If you borrowed for your education under the previous FFELP program (1993-2009), the information below will help you understand the 2010 transition to Direct Loans.
Previously Borrowed Stafford and Graduate PLUS Loans
If you are enrolled at least half-time, your prior FFELP loans will continue to be deferred. The Direct Loan Program offers the same deferment and forbearance provisions as FFELP.
Impact of Direct Loan Program on FFELP Student Loan Borrowers
- Students no longer select a third-party lender for their loans. If a loan is offered in the financial aid notification, simply accepting the loan award will begin the origination/approval process.
- All loan borrowers (new and returning) must complete a new Master Promissory Note (MPN) via www.studentloans.gov in the Direct Loan program. MPNs signed prior to 2010 in the FFEL program are not valid within the Direct Loan program. Direct Loan MPNs can be completed online prior to receiving an award for 2010-11. The same FSA ID used for completing the Free Application for Student Aid (FAFSA) is used to electronically sign the MPN.
In prior years, student and parent borrowers logged in using a federal PIN, but effective May 10, 2015, an FSA ID replaces the PIN. If you do not have an FSA ID, the website will prompt you to create one. Note that it may take up to three days for the system to verify your identity when you create a new FSA ID. - Although University financial aid offices continue to certify PLUS loan eligibility, Parent Loan (PLUS) and Graduate PLUS borrowers no longer can apply with private lenders. Do not complete a PLUS Loan pre-approval with a private lender.
- Continuing Direct and PLUS loan borrowers who began to borrow prior to the 2010-2011 academic year will have split loan servicing in repayment, between FFELP and Direct Loans. Direct Loans will be serviced by the Department of Education and the current holder of any FFELP loans will service loans previously borrowed. Loan consolidation with the Department of Education allows for one single payment.
- Terms and conditions of Direct Loans, in-school deferments and grace periods mirror the FFEL program.
The process for credit-based private educational loans remains unchanged.