2010-2011 Federal Direct Loan Program Transition
Tulane is preparing to participate in the Federal Direct Loan Program beginning with the 2010 summer semester. Please continue to check back on this website for forthcoming details regarding the Federal Direct Loan Program application process.
On March 30, 2010, President Obama signed a bill that changes the processing of federal loans and grants for students by eliminating the Federal Family Education Loan Program (FFELP) on July 1, 2010, utilizing the Federal Direct Loan Program exclusively, and using the estimated savings to increase funding for Federal Pell Grants.
The Federal Direct Loan Program provides federally insured loans to students and their families, but rather than working with private lenders who process and disburse federal loans as participants in the Federal Family Education Loan Program (FFELP), students and their families will now receive federal loans without the intervention of a private lender. This change will not affect borrowers' future federal loan eligibility, but the process to obtain the federal educational loans will be different.
Students and parents who have existing loans through FFELP will continue to work with private lenders for these existing loans. Note: In some cases, private lenders may sell their FFELP loans to the U.S. Department of Education (DOE), but these loans are not considered Federal Direct Loans (they are called "PUT" loans, meaning that the FFELP loans have been "put" or "placed" with DOE). Borrowers may elect to consolidate their existing FFELP loans into one Federal Direct Consolidation Loan to allow for a single repayment with the U.S. Department of Education.
We understand that there will be many questions regarding this transition. See below for loan processing steps. Federal student loan recipients will receive more detailed information via email in the coming weeks. We want to ensure that the transition to the Federal Direct Program occurs smoothly.
Tulane Student Direct Loan Processing Steps
Click here for Tulane Student Direct Loan Processing Steps.