Federal legislation is pending that, if passed as written, would require all schools in the U.S. to participate in the William D. Ford Direct Loan (DL) program, which utilizes the federal government as the lender to fund federal student loans.
The effective date currently written into the legislation is July 1, 2010. Traditionally, IUP has participated in the Family Federal Education Loan (FFEL) Program, which utilized private banks for funding student loans. DL is not a new program, as it has been available for more than fifteen years.
IUP will transition to the Direct Loan program with any loans for students or parents beginning in the Summer 2010 session. As a result, all students and parents who are interested in borrowing Stafford or PLUS/GradPLUS loans must complete a new electronic Master Promissory Note (eMPN) specific to the William D. Ford Direct Loan program. Upperclass and current graduate students will be notified in early June, via their IUP e-mail accounts, the directions to complete this new eMPN.
Please know that students and parents will still be able to secure federal student loans (subsidized Stafford, unsubsidized Stafford, and PLUS/GradPLUS loans) for next year’s education at IUP, if otherwise eligible. All of the federal rules and regulations for the DL program are the same as the FFEL program. Important updates will also be available on this page as they become available.
As always, please feel free to contact the Financial Aid office if you have any questions regarding this, or any other, financial aid question. We can be reached at 724-357-2218 or by e-mail at firstname.lastname@example.org.
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