Direct Loan Process for the 2009/10 School Year
Beginning with the 2009-2010 Award Year (which is summer 2009, fall 2009, and spring 2010), Lourdes Financial Aid Office (FAO) will be processing all Federal Loans using the Federal Direct Loan Program. This will include the Federal Stafford Subsidized and Unsubsidized Student Loans as well as the Federal Parent PLUS Loan. In the past (2008-2009 Award year and previously) Lourdes FAO processed these loans using your selected bank and the Great Lakes Guaranty Agency. We’ll keep you informed and help you every step of the way! Watch for more information on your Lourdes Email, at Lourdes Financial Aid website, and at the Lourdes FAO over the next few weeks and months. And remember we are just an email (finaid@lourdes.edu), phone call (419-824-3732) or visit away if you have any questions.
Federal Student Stafford Loan 2009-10
Federal Stafford Subsidized and Unsubsidized Stafford Direct Loans are used to assist in paying for college expenses. These loans are in the student’s name and the student is responsible for repaying them after they leave school or drop below half-time enrollment. Please complete the following steps in order to receive a Federal Stafford loan. Complete the steps below to apply:
Complete a 2009/2010 FAFSA, if you have not already done so Review your Lourdes award letter and accept your offered Stafford Loans Complete your on-line Entrance Counseling Complete an electronic Student Promissory Note (eMPN)
Federal PLUS Loan 2009-10 for Parents
Federal PLUS Loans are loans that a parent can apply for in order to assist in paying for college expenses for their student. PLUS loans are packaged to cover the full cost of attendance including living expenses and other indirect costs minus other offered aid. You may wish to reduce the amount for which you apply. These loans are in the parent’s name and the parent is
responsible for repaying them. Please complete the following steps in order to receive your loan. Remember – to apply, just complete the steps below. The Promissory Note is the final application and completes the credit review. Complete the steps below to apply:
Your dependent student must complete a 2009/2010 FAFSA, if they have not already done so You and your student must review their Lourdes College award letter and accept the offered PLUS Loan Complete an electronic PLUS Promissory Note (eMPN) Complete a PLUS Loan Acceptance Form (PDF)
2009-10 Private Alternative Loans
Private Alternative Loans are loans that a student can apply for in their own name. Often these loans require a co-signer because approval is based upon the credit-worthiness of the student. Unlike Stafford and PLUS Loans, Private Alternative loans are not federally guaranteed and have different interest rates and repayment terms. Some of these loans may also require that interest payments be made while the student is still in school. If you are interested in applying for one of these loans, please visit the Private Alternative Loans page.
Frequently Asked Questions
What is the Federal Direct Loan Program? What types of loans are available through the Direct Loan Program? Why did Lourdes decide to switch to the Federal Direct Loan program? How will I get my federal student loan? When will I get my student loan? Will I need to do anything? How will I know what to do and when to do it? What is a Master Promissory Note (MPN)? Where else can I get information on the new Direct Lending process for Federal student Stafford Loans and Federal parent PLUS loans? What fees are borrowers charged to originate the loan? What is the Federal Direct Loan Program? The U.S. Department of Education offers schools two options for processing Federal Stafford and Federal Parent PLUS Loans. The school can choose to process these federal loans directly through the federal government, which is known as the Federal Direct Loan Program. OR the school can choose to process these federal loans through third party lenders, which is called the Federal Family Education Loan Program (FFEL). Beginning with loans processed for the 200910 year (which is summer 2009, fall 2009, and spring 2010) Lourdes College will stop processing through the FFEL Program and switch to processing your loans through the Federal Direct Loan Program.
Why did Lourdes decide to switch to the Federal Direct Loan Program? As a result of our research it became evident that utilizing the Federal Direct Loan Program is the best loan fund delivery program for Lourdes’ students for a number of reasons, including: 1. No Middle Man: The Federal Direct Loan program is funded directly by the Federal Government, eliminating the middle man and the confusion often found in the FFEL Program we currently use. 2. Loans are never sold in the Federal Direct Loan Program. Loans through the FFEL Program can be sold multiple times which can be confusing for the borrower. 3. Increased Repayment Options: There are more repayment plan options through the Federal Direct Loan Program, such as the Income Contingent Plan. With the Income Contingent Plan, if a student is unable to repay her/his loan in 25 years, the government forgives the balance of the loan. 4. Consolidation: Students can consolidate loans borrowed through the FFEL Program into the Federal Direct Loan Program allowing them to take advantage of all the Loan Forgiveness programs, including programs only available with Direct Loan Consolidation. Students can also consolidate their Direct Loans to the FFEL program, but will not have access to all the repayment and loan forgiveness options. 5. Loan Forgiveness Options Increased: Loans consolidated in the Direct Loan program are able to benefit from all loan forgiveness programs the U.S. Department of Education offers to students. What types of loans are available through the Direct Loan Program? The Federal Direct Loan Program offers exactly the same four loan types that you are currently offered, which includes: Federal Subsidized Loans, Federal Unsubsidized Loans, Federal PLUS Loan (for Parents Loan for Undergraduate Students), and Federal Graduate PLUS for graduate students. (As in the past, private Alternative Loans, which are not Federal Student Loans, should be available through private lenders. Alternative Loans through private lenders are loans based on the credit worthiness of the borrower or co-signer, usually have higher interest rates, and less flexible repayment terms. While Lourdes will continue to certify alternative loans, as always we encourage students to choose the more favorable Federal Student Loans first.) How will I get my federal student loan and PLUS loan? Your Federal Stafford Student Loan and PLUS Loan will come to you the same way it has in the past. The loan funds will be sent to the school and credited to your account. To you it will look exactly the same - the part that is changing is who will actually be sending the money to the school. Currently the money is sent to the school by a lender, for example National City Bank, but through the Federal Direct Loan Program the money will be sent to the school directly from the U. S. Department of Education. When will I get my student loan and/or PLUS loan? You will receive your Federal Stafford Student Loan and/or PLUS Loan just as you are receiving them currently. The school will process your loan when you have completed the financial aid process with Lourdes Financial Aid Office (FAO). Then Lourdes FAO will request the funds be sent to the school. The funds will disburse to your bursar account and pay against your bill. Any refunds will be processed as they have been in the past normally within 7-10 business days..
Will I need to do anything? Yes. You will need to complete a new Direct Loan Master Promissory Note (MPN) for your Federal Stafford Loan. (As always, the PLUS Loan requires a new MPN each year.) How will I know what to do and when to do it? When the time comes for you to take action, you will be notified by Lourdes FAO on what, when and where. Keep an eye on your Lourdes email account for information. What is a Master Promissory Note (MPN)? The MPN is a promissory note that must be completed to receive a federal loan. It is your promise to repay your Federal Student Loan. There are two types of MPNs in the Federal Direct Loan Program: one for the Stafford student loans and one for PLUS loans. Where else can I get information on the new Direct Lending process for Federal student Stafford Loans and Federal parent PLUS loans? The FAO will be updating our Lourdes website on an ongoing basis.
U.S. Department of Education Direct Loan website Direct Loan Servicing Online website Direct Loan Consolidation website
Are there any fees associated with using the Federal Direct Loan Program? Yes. Just as you are currently charged a fee for your Federal Stafford Loan and Federal Plus loan through the FFEL Loan Program, the Direct Loan Program also charges an origination fee. Currently, for all Federal Direct Subsidized Loans and Federal Direct Unsubsidized Loans that are first disbursed on or after July 1, 2008 and before July 1, 2009, the origination fee is 2%. For all Direct PLUS Loans for both parent and graduate/professional student borrowers, the origination fee is 4%, regardless of the first disbursement date. Can I consolidate Loans received through the Federal Direct Loan Program with loans received through the FFEL Program so that I only have one payment once I leave school? Yes. It is a relatively simple process. You can consolidate through either the FFEL or the Federal Direct Loan Program. You should check with either program when you begin to review your options for consolidation. You will want to investigate which program offers the repayment benefits that work best for you.
Address & Phone Numbers
Postal Address: Lourdes College 6832 Convent Boulevard Sylvania, OH 43560 Contacts: Toll Free Number
1-800-878-3210
Admissions Alumni Relations Donor Opportunities Financial Aid Franciscan Center Graduate Programs Helpdesk / Email Support Registrar Welcome Center
419-885-5291 419-824-3813 419-824-3813 419-824-3732 419-824-3997 419-517-8881 419-824-3807 419-824-3816 419-885-3211