Changes announced regarding federal student loans
Beginning summer 2009, Auburn University will begin processing all federal student loans through the William D. Ford Federal Direct Student Loan Program instead of the Federal Family Educational Loan Program (FFELP). All loan proceeds will be borrowed directly from the federal government instead of through a bank or student loan company. The primary reason for this decision to change programs is assurance of funding. Over the last year, there have been many unforeseen funding delays as a result of the volatile conditions in the credit market, as well as in the student lending industry. Student and parent borrowers will be notified of the requirements of the Direct Loan Program in the next couple of weeks. This change should be relatively seamless to current borrowers.
Tags: federal government, student loans