A Time for Change- Direct Loans
The following information was posted on myLynn yesterday. Additionally, we will be sending a letter very shortly to all students regarding Direct Loans.
As many of you have already been reading in the news, President Obama seeks to make higher education affordable to more students. In response to current economic conditions, one of the measures his administration is considering is the elimination of the Federal Family Education Loan Program (FFELP), whereby our government outsources the provision and processing of federal student loans to private entities such as Sallie Mae or Discover.
If FFELP is eliminated, then you will be left with but one choice as to your lender- the U.S. Department of Education. Although such action has not yet taken place, Lynn University is joining hundreds of other schools around the nation in preempting that decision by transitioning to the Federal Direct Loan Program effective July 1st, 2010. Under the Federal Direct Loan Program, all current and incoming students wishing to receive Federal Stafford Loans, Federal PLUS Loans, or Federal Grad PLUS Loans will need to complete a new master promissory note (MPN). For current students, the sale of your loan to the Department of Education will be seamless and will result in no change to your repayment plan.
Benefits of the Federal Direct Loan Program include:
- Reduction in the amount of lender fees that are deducted from your loans prior to being received by Lynn
- Easier transition to the Federal Direct Loan Consolidation program after graduation allowing for one payment
- Streamlined processing of your loans by Lynn allowing us to deliver your loan funds more efficiently
Again, all loan requests for the 2010-2011 academic year will require a new MPN through the Department of Education. Our goal is to make this transition as easy as possible for you and your family. To that end, expect information from our office regarding this process in the coming weeks, as well as for our website to be updated soon with new MPN information.