Loans for Education
You are about to apply for a loan that must be repaid.
Federal Direct Loan Program Information
Effective July, 1, 2010, York College will implement Federal Stafford Direct Lending for all students. This change is due to the passage of the Health Care and Education Reconciliation Act of 2010. All students must complete a Direct Loan Master Promissory Note (MPN) as a part of this transition. Incoming freshman and transfer students also need to complete Entrance Counseling.
Students
Please follow these instructions to complete the MPN:
- Go to http://studentloans.gov/myDirectLoan/index.action
- Click on the green Sign In box
- Complete the Sign In Information:
- Social Security Number
- First Two Letters of Your Last Name
- Date of Birth (mm/dd/yyyy format)
- Pin Number (same as FAFSA Pin) – if you have forgotten your PIN select the PIN link
- After signing in:
- Select Sign Master Promissory Note (MPN)
- Click on Subsidized/Unsubsidized
- Complete the requested information
- Print a copy of the signed MPN for your records
- Complete Entrance Counseling (for freshman and transfer students ONLY
Parents
Step 1:
Please complete PLUS Loan Information Sheet and submit to Financial Aid Office
Step 2:
- Go to http://studentloans.gov/myDirectLoan/index.action
- Click on the green Sign In box
- Complete the Sign In Information:
- Social Security Number
- First Two Letters of Your Last Name
- Date of Birth (mm/dd/yyyy format)
- Pin Number (same as FAFSA Pin) – if you have forgotten your PIN select the PIN link
- Select: Request a PLUS Loan
To complete a Direct PLUS Loan application, you will need:
- Permanent Address
- Mailing Address (if different from permanent address)
- Telephone Number
- Email Address
- Alien Registration Number (if you are an eligible non-citizen)
- Employer Name
- Employer Address
- School Name
- Student Information
- Student first name, middle initial and last name
- Student social security number
- Student date of birth
- Student address
- Student telephone number
The PLUS loan application must be completed in one sitting (approximately 30 minutes), so please have all the necessary information before beginning.
Direct Loan Frequents Asked Questions
1. What is Direct Lending?
2. If I have previously borrowed under the FFELP Program, do I have to complete another Master Promissory Note (MPN)?
3. What if I forget to sign a Direct Loan Master Promissory Note?
4. What happens to my old FFELP Loans?
5. What does the conversion to Direct Lending mean for me?
6. Do I have to do Entrance or Exit Counseling again?
7. Will the change in loan programs cause my prior loans to go into repayment?
8. Are there any differences in the interest rates and fees between the two programs?
9. What are the benefits in the Federal Direct Loan Program?
1. What is Direct Lending?
Direct Loans are low-interest loans for students and parents available to help pay for post-secondary educational expenses. The lender is the U.S. Department of Education rather than a commercial bank as with the Federal Family Education Loan Program (FFELP).
2. If I have previously borrowed under the FFELP Program, do I have to complete another Master Promissory Note (MPN)?
Yes, you must sign a new Federal Direct Loan Master Promissory Note. Your Federal Pin (used to sign your FAFSA) is required in order to eSign.
3. What if I forget to sign a Direct Loan Master Promissory Note?
You will receive reminders to sign a new MPN. You will not be eligible for Direct Loan funds until after your new MPN is completed.
4. What happens to my old FFELP Loans?
When you go into repayment, you will have a servicer for both your FFELP loans and your Direct Loans. You may either make individual payments to both your previous lender(s) and to the Department of Education for you Direct loans, or you can consolidate your loans into one payment. You may consider consolidating all your loans with your previous lender or with the Department of Education, but many private lenders have discontinued their consolidation services. To consolidate with the Department of Education go to www.loanconsolidation.ed.gov to begin the process.
5. What does the conversion to Direct Lending mean for me?
New and returning student borrowers will be required to eSign a Federal Direct Loan Master Promissory Note. In addition, all NEW borrowers will be required to complete Federal Direct Loan Entrance Counseling.
6. Do I have to do Entrance or Exit Counseling again?
If you have previously complete Entrance Counseling at York College, you will not be required to do it again. However, upon graduation or leaving York College, you may be required to complete Exit Counseling for both FFELP and Direct Lending as there are some differences between programs.
7. Will the change in loan programs cause my prior loans to go into repayment?
No, your prior Stafford loans will not go into repayment as long as you remained enrolled at least half time (6 hours).
8. Are there any differences in the interest rates and fees between the two programs?
There are some differences. The interest rate for Federal PLUS loans is 7.9% in the Direct Loan program, compared to 8.5% in the FFELP program. Interest rates for Federal Stafford Loans are the same in both programs. The Direct Loan program provides an upfront rebate that reduces the fees you pay at origination. However, if you do not make your first 12 monthly payments on time, the rebate amount will be added to your principal balance.
9. What are the benefits in the Federal Direct Loan Program?
A stable source of funding for student and parent loans.
- A variety of repayment options including the option of an income-contingent repayment plan or an income-based repayment plan when a student enters repayment.
- Loan forgiveness for students who enter public service jobs. These students can have any remaining balance on the loans forgiven after 10 years of repayment while in public service work. (Although this option does not exist for FFELP loans, students who borrow in that program can consolidate their loans into the Direct Loan Program in order to take advantage of this forgiveness.)
- The interest rate for the Parent PLUS loan is 7.9% in the Direct Loan Program compared to 8.5% in the FFEL program.
- Effective July 1, 2009, the government pays 1.00% of your origination fee at disbursement, commonly called the loan rebate benefit. You are eligible to keep this benefit as long as you make your first 12 monthly payments on time.
- There is a .25% interest rate reduction for automatically debiting your payment from your checking account when you begin repayment.
Helpful Links
Department of Education Direct Lending Website
http://www.dl.ed.gov/borrower/BorrowerWelcomePage.jsp
National Student Loan Data System (NLDS) Website
http://www.nslds.ed.gov
Direct Loan Consolidation Website
http://loanconsolidation.ed.gov
Common Alternative Loan (Private Loan) Lenders
Private student loans (also known as alternative student loans or private student loans) can help you pay for college. You should only use private student loans as supplemental funding after you have exhausted all other sources of financial aid, including Grants, scholarships, work-study, and federal student loans. These loans are non-federal loans and are usually not subsidized and carry variable interest rates. These loans are usually not able to be consolidated with federal loans.
US Bank
No-fee Private Loan
Sallie Mae Trust
Smart Option Student Loan
Students are expected to pay interest on this loan while they are enrolled in school.
Students attending York College or families of such students, do not have to borrow from lenders on these lists.
You must have names and addresses for 2 personal references and your driver's license number.
This list is provided for convenience to the student only. York College has no agreements with any of these lenders. Lenders on these lists based upon student loan volume over the last three years. York College has no preference as to which lender, on or off of this list, is used. These lenders have no known affiliation with one another.
Student Loan Counseling
|
