March 30, 2010: President Obama signed into law the Health Care and Education Reconciliation Act (HCERA) (Public Law 11-152), which made substantial changes to federal student aid programs.
April 1, 2010: Beginning Summer 2010 Reinhardt University will be participating in the William D. Ford Federal Direct Loan Program for all federal student and parent loans.
This decision was made to ensure students and parents access to loan funding. By participating in the direct loan program, your loans will be disbursed directly from the Federal Government. This program is easy for families to understand; borrowers have one source throughout the life of your loan.
What are the steps to obtaining a loan for the 2010-2011 school year?
Complete the 2010-2011 FAFSA with your and your parents 2009 federal tax forms.
Complete the Loan Request Form.
Complete Student Loan Entrance Counseling.
Complete the Master Promissory Note (MPN).
All of these forms are electronic and on our web site.
What are the benefits in the direct lending program?
A guaranteed source of funding for student loans.
A lower interest rate for parent PLUS loans.
A single point of service for borrowers while in school and during repayment.
More repayment options for students and interest rate reductions.
Why did Reinhardt move to Direct Lending?
To ensure our students and parents access to student and parent loan funding.
Will I still choose the lender that I had in previous years?
No. Beginning summer 2010, all federal loans will be processed through the Direct Lending Program, which means you will be borrowing directly from the Federal Government.
How will repayment work with FFELP and Direct Loans?
You can consolidate your previous FFELP loans with your Direct Loans and have only one payment when you go into repayment. Otherwise, you will have to make separate payments.
Where can I find information about who services my other federal loans?
You can find your previous federal loan information on www.nslds.ed.gov. You will need your PIN number from the FAFSA to access your information.
Where can I receive information about the entire Direct Loan process?
Log on to www.studentloans.gov and receive information belonging to your account, loan consolidation, electronic services, making payments, and other options.