If you receive student loans,
YOUR FINANCIAL AID IS CHANGING!!
MSU IS CHANGING TO THE FEDERAL DIRECT LENDING PROGRAM
President Obama has signed legislation that makes significant changes in the Federal Student Loan program. Missouri State University will be processing Federal Stafford Loans through the Direct Lending (DL) program beginning with the 2010 summer semester . We will no longer use the Federal Family Education Loan (FFEL) program to process Stafford, Parent PLUS and Graduate PLUS loans. Under the DL program, your federal loan funds will come directly from the federal government instead of from a private lender.
WHAT DOES THIS MEAN FOR YOU, THE STUDENT?
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Eligibility rules and loan amounts are identical under both the FFEL and DL programs; the amount of loan funds available to you will not change.
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The interest rate on your student loans will not change.
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If you are a current FFEL/Stafford loan borrower you will not be able to continue using a private lender to fund federal student loans. If you have never borrowed a federal Stafford Loan, you will not be impacted by this change.
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MSU will process all student loans through the Direct Loan program. Students will have the opportunity to consolidate previously borrowed loans from the FFEL program into the DL program.
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Beginning with the 2010 summer semester, all student borrowers will be required to complete loan Entrance Counseling and a new Master Promissory Note (MPN) before receiving loan funds. After 2010-11, continuing borrowers will not need to do Entrance Counseling or a new MPN.
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This change will in no way affect other awards for which you may be eligible.
OTHER CHANGES YOU CAN EXPECT:
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MSU will process all Parent PLUS loans through the federal Direct Loan program. Parents may not obtain a PLUS loan through a private lender even if they have prior loans through the FFEL program. Parents will have the opportunity to consolidate previously borrowed PLUS loans from the FFEL program into the DL program.
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MSU will process all Graduate PLUS loans through the federal Direct Loan program; graduate student may not obtain a Graduate PLUS loan through a private lender even if they have prior loans through the FFEL program. Students will have the opportunity to consolidate previously borrowed PLUS loans from the FFEL program into the DL program.
Apply for a Graduate PLUS Loan
While this new program will require changes in the way the Office of Student Financial Aid must process your student loan, the effect of moving to this program will be minimal for our students. We believe this change will provide you with the benefits of having a secure source of funding and a streamlined process of obtaining federal loans. If you have questions about how this change will affect you, the student borrower, we encourage you to learn more about the Federal Direct Loan program or make an appointment to speak with a Financial Aid Counselor.
To contact our office:
Phone: (417)836-5262 or (800)283-4243