Yay! You’ve gotten into college. Now you need to make sure you have the funding you need. After completing the FAFSA and speaking with the Financial Aid Office at the institution you’ll be attending, you should know the award amounts of grants and scholarships that you’ll receive. But what if these funds don’t cover the full amount? Then you might want to look into federal student loans.
Beginning July 1, 2010, federal student loans will no longer be made by private lenders. Instead, all new federal student loans will come directly from the U.S. Department of Education under the Direct Loan Program. This change does not impact the process of applying for federal grants, loans, and work-study or the amount of federal aid that students are eligible to receive.
Students who have previously received a federal student loan from a private lender will need to complete a new promissory note to receive loans under the Direct Loan Program. The best advice? Check with the Financial Aid Office at your school for specific instructions or call 1-800-4-FED-AID.