Campus News
January 25, 2010
Loans transition to Direct Lending
Effective fall 2010, Emory will participate in the William D. Ford Federal Direct Loan program. The University is making this move to ensure continuity of service for student loan recipients in light of Congressional moves to change the federal student loan program, as well as ongoing changes in the banking industry.
Currently, Emory’s Federal Stafford, PLUS and Grad PLUS loans are provided under the auspices of the Federal Family Education Loan (FFEL) program. In the FFEL program, funds are provided from third-party lenders. In the William D. Ford Federal Direct Loan program, loan proceeds are provided directly from the federal government to the university on behalf of the borrower. More than half of U.S. colleges and universities already participate in the direct lending program.
“The economic decline of 2008-2009 has created considerable challenges for lenders in the FFEL program. Emory is choosing to move to an exclusive Direct Lending option in 2010-11 to eliminate any possible risks to our students and parents that might be associated with either federal regulatory changes or market fluctuations in the FFEL program,” said Provost Earl Lewis in a letter to student borrowers.
