Cameron University will be involved in the William D. Ford Direct Loan program July that is beginning 1 2010. Pupils and parents whom previously received loans through the Federal Family Education Loan (FFEL) Program will borrow through the now Direct Loan Program. The Direct Loan Program supplies the exact exact same kinds of loans due to the fact FFEL Program and loans that are direct have a similar conditions and terms as FFEL Program loans, but rather of a bank lending the amount of money, the U.S. Department of Education (The Department) lends the cash right to pupils and parents through the student’s college. There are additionally some variations in the true names of this loans. The FFEL Program’s Federal Stafford Loans ( unsubsidized and subsidized) are called Direct Subsidized Loans and Direct Unsubsidized Loans within the Direct Loan Program. Federal PLUS Loans are called Direct PLUS Loans.
Advantages of the Direct Loan Program
Direct Loans and FFEL Program loans have a similar annual and loan that is aggregate, the exact same deferment and termination conditions, & most of the identical payment plans (Standard, Graduated, extensive, Income-Based). The attention prices for FFEL Program Stafford Loans and Direct Subsidized and Unsubsidized Loans will also be the exact same. Direct Loans also provide some advantages that are offered just within the Direct Loan Program:
- Reduced interest rate on Direct PLUS Loans (7.9% vs. 8.5% for Federal PLUS Loans)
- Up-Front Interest Rebate
- Money Contingent Repayment Plan (as well as the Repayment that is income-Based Plan
- Public Provider Loan Forgiveness System
- No interest charged (for as much as 60 months) during qualifying durations of active responsibility army solution (for loans very first disbursed on or after October 1, 2008)