You are here

FAQ for Students Switching to Direct Lending

FAQ for Students Switching to Direct Lending

For students who have had loans, here are answers to some common questions.

What is changing?

Beginning with the academic year 2010-2011, all Federal Student Loans (Stafford Loans and GRAD PLUS Loans) will be originated, guaranteed, disbursed, and serviced through the U.S. Department of Education. This process is called Direct Lending. In it, borrowers obtain loan funds directly from the U.S. Department of Education. Students may still use banks and private lenders for alternative/private loans not guaranteed by the government.

Why is Spertus changing its loan process?

All schools participating in the federal loan programs are required to convert to the Direct Loan Program.

What do I have to do to get my loan funds for this year?

As in prior years, you must complete the Free Application for Federal Student Aid (FAFSA) and provide any documents requested by our office. (We’ll contact you if we need anything.) As mentioned above, you will have to e–sign (electronically authorize) a new MPN and and complete online Entrance Counseling before we can process your loan.

To complete your FAFSA, visit www.fafsa.gov.

To e-sign your Direct Loan MPN and complete your Entrance Counseling, visit www.studentloans.gov.

You will need the same PIN that you used for your FAFSA to electronically sign the MPN. If you do not have a PIN, you may obtain one via www.pin.ed.gov.

For More Information

Information is available at www.StudentLoans.gov.

Or contact your Spertus Financial Aid Administrator, Pam Felton, at FinAid@spertus.edu or 312.322.1734.