Why is UW Oshkosh moving from FFELP to the Federal Direct Student Loan program?
Since many banks are no longer servicing student loans and/or are restricting who will receive loans, UW Oshkosh has made the pragmatic decision to switch to the Federal Direct Student Loan program. The University has determined that the Direct Loan program was a better option for students for a number of reasons: • Funding is secure. Direct Loans go through the U.S. Department of Education, and the funds come directly from the U.S. Treasury. • Fees and interest rates are more favorable. Participating in this program is not only more secure, but many of the fees and rates are more favorable. • Processing is streamlined. Unlike working with private lenders, direct loans allow students to: • Borrow from one source — the U.S. Department of Education. • Complete one electronic Master Promissory Note (MPN) via the Department of Education website. • Communicate with one entity regarding loan concerns — the Department of Education where these federal loans are made, guaranteed and serviced. •
Related Questions
- What is the difference between FFELP (Federal Family Educational Loan Program) and Direct Lending (The William D. Ford Federal Direct Loan Program)?
- What is the difference between the Federal Family Education Loan Program (FFELP) and the Federal Direct Loan Program (FDSLP)?
- What is the difference between the Family Federal Education Loan Program (FFELP) and Direct Loans?
