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Direct Loan Program Frequently Asked Questions & Answers

​Due to the passage of the Health Care and Education Reconciliation Act of 2010, major changes will be made to the student loan program. Under this Act, all student loans with a disbursement date of July 1, 2010 or later must be processed under what is known as the Federal Direct Loan Program.

Previously, Alabama A&M University participated in the Federal Family Education Loan Program (FFELP), which allowed the student, to choose their lender and it encouraged the various lenders to compete for business by offering a wide array of loan repayment options and benefits. With the passage of this Act, students will no longer have that choice. Under the Direct Loan Program, the U. S. Department of Education serves as the lender, rather than a bank or other financial institution. Any questions concerning loans currently under the FFELP program should be directed to the lender(s).  

 

expand >> : 01. What is the difference between Direct Loans and the Federal Family Education Loan Program? ‎(1)
expand >> : 02. What are Direct Loans? ‎(1)
expand >> : 03. Why is AAMU changing to the Direct Loan Program? ‎(1)
expand >> : 04. How will this impact me? ‎(1)
expand >> : 05. Does this change affect my current federal loans? ‎(1)
expand >> : 06. What happens if I want to attend summer school? ‎(1)
expand >> : 07. Are other programs affected? ‎(1)
expand >> : 08. Are there any difference in interest rates & fees? ‎(1)
expand >> : 09. What do I need to do to receive a federal loan for the 2010-2011 academic year? ‎(1)
expand >> : 10. Do I have to complete another Master Promissory Note? ‎(1)
expand >> : 11. When will I be able to complete my new Master Promissory Note? ‎(1)
expand >> : 12. Do I have to complete entrance counseling for Direct Loan? ‎(1)
expand >> : 13. I am a parent. I plan to borrow a PLUS Loan. Help? ‎(1)
expand >> : 14. I am a graduate or professional student. Help? ‎(1)
expand >> : 15. Will I still be able to continue borrowing through the same lender as last year? ‎(1)
expand >> : 16. What will happen to the existing loans that I have borrowed with other lenders? ‎(1)
expand >> : 17. Will I have to repay two different lenders now? ‎(1)