Dear Editor:
Thank you for your April 8, 2010 article on the Health Care and Education Reconciliation Act of 2010 and the impact that it will have on Federal Student Loan Programs starting July 1.
The ultimate goal of these changes is to create a federal student loan system that is easier for families to utilize. This is a laudable goal that we fully support. The Department of Education has been working closely with school to try to insure a successful conversion of all federal student loan processing to the Federal Direct Loan Program starting July 1, 2010. However, there are always challenges when such a massive change in processing systems occurs.
We need currently enrolled students who are utilizing Federal Stafford and Grad PLUS loans to go the StudentLoans.gov Web site and complete Entrance Counseling and a new Master Promissory Note.
The StudentLoans.gov Web site is the new portal that all students and parents across America will be using to process their federal student and parent loan applications.
Therefore, we want to STRONGLY ENCOURAGE students to take this step now and beat the “back to school rush” that may occur in late July and August. This is especially important for all students who will participate in summer abroad programs.
We have posted a great deal of information on our Web site that will hopefully answer any additional questions or concerns borrowers may have.
One additional aspect of this legislation is that it will let currently enrolled students consolidate all previous loans into one loan with the Federal Direct Loan Program. We will be posting information as we receive it on this important option for students who have received federal loans through multiple lenders.
We want everyone’s federal student loan money to be here when you return for the fall semester. Please contact our office ([email protected] ) if you have any questions or concerns about this new process.
Cathy Simoneaux
Director
Office of Scholarships and Financial Aid
