Broward College will participate in the William D. Ford Federal Direct Loan (Direct Loan) Program beginning, July 1, 2010, for the fall 2010-11 academic year. Students and parents who previously received loans through the Federal Family Education Loan (FFEL) Program will now borrow through the Direct Loan Program. The Direct Loan Program offers the same types of loans as the FFELP Program and Direct Loans generally have the same terms and conditions as FFEL Program loans, but instead of a bank lending the money, the U.S. Department of Education (the Department) lends the money directly to students and parents through the student’s school. There are also some differences in the names of the loans. The FFEL Program’s Federal Stafford Loans (subsidized and unsubsidized) are called Direct Subsidized Loans and Direct Unsubsidized Loans in the Direct Loan Program. Federal PLUS Loans are called Direct PLUS Loans.

Direct Loans and FFEL Program loans have the same annual and aggregate loan limits, the same deferment and cancellation provisions, and most of the same repayment plans (Standard, Graduated, and Extended, Income-Based). The interest rates for FFEL Program Stafford Loans and Direct Subsidized and Unsubsidized Loans are also the same. Direct Loans also have some benefits that are available only in the Direct Loan Program:

• Lower interest rate on Direct PLUS Loans (7.9% vs. 8.5% for Federal PLUS Loans)
• Up-Front Interest Rebate
• Income Contingent Repayment Plan (in addition to the Income-Based Repayment Plan)
  
• Public Service Loan Forgiveness Program
• No interest charged (for up to 60 months) during qualifying periods of active duty military service (for loans first disbursed on or after October 1, 2008)

Direct Subsidized Loan:

A loan that is based on financial need.  The federal government pays the interest on the loans while you are enrolled in school in a least half-time (6 or more credit hours) during your grace period and during authorized periods of deferment.

Loan Amounts:

The College determines the amount of loans that a student can receive.

Complete Your Financial Aid Application Process

Complete your financial aid application by submitting all required forms. You can check your requirements by logging into MyBC with your student ID and password:

1. 1. 1. 1. 1. 1. Click on the Financial Aid.
               2. Please check your application status and resolve all the red flagged items.
                  

WHY? No aid can be packaged with an incomplete Financial Aid file. Log onto MyBC and resolve all the RED flags (Verification, Authorizations, Forms) that could stop you from getting all your aid packaged and awarded by your tuition payment due date.

NOTE: Late students receive late and last-minute service.

Complete a Direct Loan Master Promissory Note MPN

WHY? Although you may have previously signed an MPN to receive FFEL Program loans, a FFEL MPN cannot be used to make Direct Loans. ALL borrowers must complete a Direct Loan Master Promissory Note (MPN).

The MPN is the legal document through which you promise to repay your Direct Loans and any accrued interest and fees to the Department. It also explains the terms and conditions of your loans. A Direct Loan MPN can be used to make loans for up to ten (10) years.

LOG ON and complete a Direct Loan MPN electronically via the StudentLoans.gov. You also have the option of completing a paper Direct Loan MPN.

To complete a Direct Loan MPN electronically, you must have a Federal Student Aid PIN. The Federal Student Aid PIN is the same PIN used to complete the Free Application for Federal Student Aid (FAFSA). To apply for a PIN if you do not already have one, or for customer service regarding a previously assigned PIN, visit www.PIN.ed.gov.

FOR FIRST TIME BORROWERS—COMPLETE STEPS 4 AND 5
PREVIOUS BORROWERS—SKIP TO STEP 6

WHY? First-Time Student Loan Borrowers Must complete Direct Loan Entrance Counseling.

• If you are an undergraduate or graduate/professional student and have not previously received a FFEL or Direct Loan program loan, you must complete Direct Loan Entrance Counseling before you can receive a Direct Loan.
• You may complete Direct Loan Entrance Counseling electronically via the StudentLoans.gov.  A Federal Student Aid PIN is required to complete online Direct Loan Entrance Counseling. Entrance Counseling provides information on what it means to borrow funds and your responsibility towards repayment.

Attend a Debt Management Workshop

If you are a FIRST TIME borrower, or have borrowed more than $20,000 you are required to attend a Debt Management Workshop.

You will receive an e-mail to your account informing you of the dates and times for all the debt management workshops throughout the College.

Consider: Consolidating Your Past Loans into the Direct Loan Program

WHY? Past student loan borrowers with student loans from multiple lenders should consider a Direct Loan Consolidation, which simplifies loan repayment. All the borrower’s eligible federal student loans are consolidated into one loan that is repaid in a single monthly payment to one servicer and will now be receiving Direct Loans, consolidating your FFEL and Direct Loan program loans together into a Direct Consolidation loan may:

• Make loan repayment easier. If you consolidate, you will have just a single monthly payment.
• Allows you to take advantage of certain benefits that are offered only in the Direct Loan Program, such as Public Service Loan Forgiveness and the Income Contingent Repayment Plan, not available if you don’t consolidate your past loans.

HOW? To learn more about when you may consolidate the pros and cons of doing so, and the application process, visit www.loanconsolidation.ed.gov or call 800/557-7392 (TDD/TTY: 800/557-7395).

If you would like to request a loan please click here