Direct Loan Program
Beginning with
the 2009-2010 academic year, Tufts will
participate in the government's Federal Direct Loan
Program. This means that funding for a
Federal Direct or PLUS loan will
come directly from the federal government instead
of from private lenders, as in the past via the
Federal Stafford loan program.
Why the change?
This change will
ensure that all of our borrowers will continue to
be able to borrow low cost federal education
loans. Last year, a number of private lenders
stopped making loans to students while others
changed their terms so they were not as attractive
to borrowers. This new program will minimize the
impact of the current student loan credit crunch
for our students and their families.
What are the benefits?
-Consistent access to federal loan
funds
-Competitive rates and repayment
options
-Simple application process
How will this affect repayments?
-When you begin
repaying your loans, some of your loans will be
repaid to the federal government and, if you are a
previous borrower, some will be repaid to private
lenders. We recommend that when you begin
repayment, you consider consolidating all of your
loans under the Direct Loan program to simplify
repayment.
Will this affect any of my loans for this year?
No, all loans for the
2008-2009 year will continue to be processed as in
the past. The change to the Direct Loan Program
will begin with loans for 2009-2010.
By participating in the
Direct Loan Program, we
will ensure that Tufts families have a secure,
dependable and affordable source of funds to
finance their educational costs during these
difficult times.
|
