Wednesday, April 07, 2010
On Tuesday, March 30, 2010, President Obama signed a new law for higher education, the final component of the healthcare reform bill. The Federal Direct Loan program will eliminate the role of banks as “middle men” in the lending process. Beginning Thursday, July 1, 2010, all loans will be funneled through the Department of Education and all students will be impacted.
According to President Obama, the changes in the lending program will generate $68 billion in savings over the next 10 years, money which can ultimately be used to expand the Pell Grant program. Sandra Davis, director of the Office of Financial Aid at SC State University, says that there are certain steps that all students must follow to receive Stafford Student Loan funding. The 2010-2011 Free Application for Federal Student Aid (FAFSA) must be completed, as well as online entrance counseling. The Federal Stafford Loan Master Promissory Note must also be signed in order for you to receive any loans.
According to Davis, the Office of Financial Aid has worked diligently to prepare for this shift, and all students should take the necessary steps to apply for a direct loan. “I feel confident that the steps taken to date will ensure a smooth transition for our students and will not interrupt the availability of loan funds for those who need it,” says Davis. “I would advise all students to complete the FAFSA, the online entrance requirements and e-sign the master promissory note. Have it in place just in case you need it.”
For additional information regarding the new direct student loan, download the bulletin or contact the Office of Financial Aid at (803) 536-7067.