Auburn University Welcomes Direct Loan Policy
Auburn Welcomes Direct Loan Policy
by Cara Eiland/Staff Writer

Effective summer 2009, the Federal Direct Loan Program will ensure funding to students. The banks and the Financial Aid Program have decided to become synchronized, because of today’s economy.

There are two federal student loan programs, the Federal Family Educational Loan Program and the Federal Direct Student Loan program. The Direct Loan program is a direct loan, whereas FFELP is a lending institution.

“The money comes directly from the Department of Education, so we’re in control,” said Executive Director Michael Reynolds.

Manager of Financial Aid Services Charles Markle said the fields need competition to energize the forces. The Federal Direct Loan program serves as competition for the FFELP.

Reynolds said it’s the same as any other program a student must sign up for. Everything is done online. Students need to sign into Auburns Web site and complete a Mastery Promissory Note.

The Federal Direct Loan program is a government program, and the terms are similar to any other loan program.

The University decided to use the program after getting complaints from students about problems getting their money from the lending bank. With the Direct Loan program, loan money comes directly from the Department of Education.

“The Direct Loan program is simpler, because the money will be here on time,” Markle said.

Markle said the Direct Loan program is a positive factor for the way it pays students upfront to assure funds are available on time.

“(The program) best suites our business program,” Markle said.

With the Direct Loan program students get ninety-nine percent of their loan money, however with the FFELP program students receive ninety-eight percent of their loan money.

“The Direct Loan program is one less worry for students; they don’t have to choose a lender,” said Brooke Sims, a new employee in the Financial Aid Department. “The Federal Government is lending the money.”

Comments: 0
Votes:19