TAMIU Transitioning to
Federal Direct Loan Program
As part of the passage of the health care reform law, which also overhauled the national college student loan system, Texas A&M International University’s Financial Aid team is transitioning to the William D. Ford Federal Direct Loan Program (Direct Loans).
The Direct Loan program will take the place of the FFEL program previously used at TAMIU and the lender for all of these loans will be the U.S. Department of Education.
Laura Elizondo, TAMIU director of Financial Aid, said while changes have taken place, the process remains similar to the current loan program.
“There will be changes to how students and parents obtain federal student loans, but the process is similar to the current loan program. Participation in this program will begin with summer 2010 and academic year 2010-11. Students who plan to borrow this summer or next academic year will be required to complete Direct Loan entrance counseling and sign a new Master Promissory Note. Funding for federal student loans will be obtained through the U.S. Department of Education instead of through private lenders,” she said.
“The interest rates and repayment terms and conditions are the same or better than the FFEL program. Other Additional advantages include: reliable access to funds, lower cost to parents, added repayment plans, public service forgiveness, smoother delivery of loan funds, working with one lender, consolidation choice and that the loans themselves are never sold,” she continued.
Elizondo said students will be required to sign a new promissory note this summer or fall as Stafford loans will not be available. Financial aid counselors can provide guidance on completing the Direct Loan process as students apply this summer or fall.
For additional information, visit the TAMIU Office of Financial Aid at 326.2225, visit offices in the Sue and Radcliffe Killam Library, room 158, e-mail firstname.lastname@example.org or click on tamiu.edu/affairs/financial/loans.
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