**NEW** Direct LoansOn March 30, 2010, President Obama signed the Health Care and Education Reconciliation Act of 2010 (HCERA), which makes significant changes to the federal student loan programs authorized by Title IV of the Higher Education Act of 1965. One of the provisions of the HCERA is the termination of the Federal Family Education Loan (FFEL) Program. Therefore, beginning July 1, 2010, all new Stafford, PLUS, and Consolidation loans can only be made under the William D. Ford Federal Direct Loan (Direct Loan) Program. This change simply means that our students and parents will now acquire Stafford and PLUS (parent) Loans directly through the U.S. Department of Education, rather than through private lenders participating in the Federal Family Education Loan Program (FFELP).
What should you do to prepare for this change and ensure Fall 2010 loans?
- You should file the Free Application for Federal Student Aid (FAFSA) online at www.fafsa.gov as soon as possible. Be sure to include Central Alabama Community College (School Code 001007) on your FAFSA application. While this can be done anytime, it is strongly advised that it be completed by May 1 of this year.
- You will then need to request and complete a Direct Loan Application from the Financial Aid Office. This loan application must be returned to the Financial Aid Office as soon as possible for consideration.
- Due to the importance of understanding responsibilities associated with borrowing, all students are required to complete an online ENTRANCE COUNSELING at each request for a Direct Loan. Please visit the Direct Loan web site at www.studentloans.gov and sign with your federal PIN to complete the Entrance Counseling.
- You must complete the Direct Loan Master Promissory Note (MPN) on the Direct Loan website at www.studentloans.gov or you may come by the Financial Aid Office for other options. Electronically signing your MPN is recommended for faster guarantee of your loan.
Central Alabama Community College is committed to providing you with timely and dependable financial assistance. I encourage you to contact the Financial Aid Office should you have questions regarding the transition to Direct Lending for the Fall Semester.
Sincerely,
Cindy Entrekin
Director of Financial Aid
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