Please contact the Financial Aid Office if you have questions about receiving your award letter or the student loan application process.
About the New Direct Lending Program
What is the Direct Loan program?
Due to new federal regulations, all institutions of higher education will change loan programs starting with the 2010-2011 school year. Until now, SAGU has participated in the Federal Family Education Loan (FFEL) program in which you chose a lender to fund your Stafford Loans. The new program SAGU will utilize for all students starting with the Fall 2010 semester is called the William D. Ford Direct Loan program. This program allows students to borrow loan funds directly from the federal government.
Why is SAGU changing loan programs?
Recent federal legislation has eliminated the FFEL program as an option for student loans. All federal student loans must now originate through the Direct Loan program. The William D. Ford Direct Loan program will serve as your lender and servicer for the life of your loan. This program guarantees the availability of Stafford and PLUS loans to all eligible students and parents in the years to come.
What do I need to do?
- Complete a new Master Promissory Note (MPN): You will need to sign a new MPN with the federal government if you plan to borrow a loan for the 2010-2011 school year. To sign your new MPN for the Direct Loan program, please visit www.studentloans.gov as soon as possible. You will need the same PIN you used to complete your FAFSA to login to this website. Once you login, click on the link on the left hand side that says “Complete MPN.”
- Complete Entrance Counseling if you are a first time borrower: If you are a first time borrower and have never received a student loan, then you will be required to complete loan Entrance Counseling. You can complete your Entrance Counseling online at www.studentloans.gov.
- Accept your student loans in your eCAMS Student Portal (only if you wish to receive loans): Once your FAFSA results are processed, you will receive an Award Letter that details the financial aid that you are eligible to receive. If you wish to receive student loans, then you are required to officially accept them. After you login to your eCAMS Student Portal, click on the link that says “My Financial Aid” to accept or deny your student loans. If you wish to receive a loan but for a different amount that you have been awarded, please contact the Financial Aid Office.
What happens with my current FFEL program loans?
While you are currently enrolled at SAGU, you will still have FFEL program loans with your current lender and any additional loans you choose to accept with the Direct Loan program. Once you graduate or drop below half-time enrollment, you will have the opportunity to consolidate all of your student loans into one loan amount with the Direct Loan program.
What are the benefits of the Direct Loan Program?
Your loans are borrowed, serviced, and repaid to one lender, the U.S. Department of Education. You have more repayment options that will allow you to pay a smaller monthly amount. You pay lower origination fees on loans and receive a lower interest rate on PLUS loans. You may consolidate your loans within this program. Students that have previously borrowed Stafford or PLUS loans under the FFEL program will graduate owing loan amounts to two different lenders. You have the option to consolidate these loans.
What are some other direct loan and financial aid resources?
- www.studentloans.gov: This site is your source for information from the U.S. Department of Education about the Direct Loan program and how to manage your student loans. You can complete your MPN, and Entrance/Exit Counseling on this site.
- www.loanconsolidation.ed.gov: The Federal Direct Consolidation Loan website that gives information on how to consolidate students loans from different lenders, including students with both FFEL and Direct Loans.
- www.fafsa.gov: Complete your Free Application for Federal Student Aid (FAFSA).
- www.studentaid.ed.gov: A great source for free information from the U.S. Department of Education on preparing for and funding your college education.
- www.aie.org: Adventures In Education (AIE) has college planning resources, financial aid information, career guidance and money management tips to help families and students achieve their educational goals.
How does loan repayment work?
Defaulting on a student loan can have serious consequences. Therefore, it is important to make plans now regarding the repayment of your loans. Please click here for detailed information and tips on paying back your loans, repayment options, loan consolidation, and budgeting tips.
What if I still have loan questions?
Our Financial Aid Office Team is here to serve you. Please contact us with any financial aid questions. We look forward to serving you.
- Email: firstname.lastname@example.org
- Phone: (972)825-4730
- Visit the Financial Aid Office in the Davis Building.