Financial Aid System at College Transitions to Direct Lending
Middlesex County College will be transitioning from the Federal Family Educational Loan Program (FFELP) to Federal Direct Lending (DL) beginning in the fall of 2010.
Direct Loans are low-interest loans used by students and parents to help defray educational costs. The Direct Loan (DL) program is funded by the federal government through the U.S. Department of Education.
Consistent with FFELP, students will be able to use a subsidized and/or unsubsidized student loan to defray educational costs. The Direct Loan program allows students and parents to borrow directly from the federal government rather than borrowing funds from a bank or other financial establishment.
To apply for a federal student loan, students must complete the Free Application for Federal Student Aid (FAFSA), a Direct Loan Master Promissory Note, and first-time borrowers must complete a loan entrance interview. Students must complete a loan request form indicating the amount requested per academic year or term.
One of the major advantages of participating in the DL program is that all students will borrow from one entity, the federal government—a single point of service for the life of the student's loan(s).
For more information regarding the Federal DL program, visit the Department of Education's Direct Loan site at http://www.direct.ed.gov/student.html .