- Why do I have to switch to Direct Lending?
The College is making this move to ensure the continuity of service for student loan recipients in light of Congressional moves to change the federal student loan program, as well as ongoing changes in the banking industry. It is unclear at this point whether the FFEL program will continue and if so, which Stafford Loan lenders will participate. In the Direct Loan program, loan proceeds are provided directly from the federal government to the college on behalf of the borrower.
- I am a current Geneva student. Am I required to switch?
Yes, because it is likely that federal legislation will mandate this change for all borrowers, you are required to switch unless you've been notified otherwise by the Financial Aid Office.
- Why do I have to sign a new Master Promissory Note?
Your current Stafford Loan Promissory Note is valid only for the FFEL Program and specifies your choice of lender. Since the Direct Loan Program requires the federal government to be your lender, a new promissory note must be signed.
- I am a parent and borrow a Parent PLUS Loan. How does this affect me?
Rather than applying for a Parent PLUS Loan through AES or another lender (ex. Citibank), you will need to complete a Direct Parent PLUS Loan Application and submit it to the Financial Aid Office (forms can be found online at www.geneva.edu/object/fin_aid_forms). We will then process the loan for you directly with the Dept. of Education.
If you've had a PLUS Loan in the past, this switch may cause you to repay two separate entities for your Parent PLUS Loans (ex. AES and Dept. of Ed servicer). You may want to consider consolidating your Federal Parent PLUS Loans with the Department of Education (www.loanconsolidation.ed.gov) after your student graduates so that your Parent PLUS Loans can be serviced by a single entity, the US Dept. of Ed.
- How will this switch to Direct Lending affect my student loan repayment?
If you are a current student, you've likely had Stafford Loans serviced by AES or another entity. Since your federal loans will now be through the US Dept. of Education, they will select a servicer for your Direct Loans. As a result, you may have two separate loan payments for your federal loans upon graduation.
Consider consolidating your Federal Stafford and Direct Loans with the Department of Education (www.loanconsolidation.ed.gov) after you graduate so that your federal loans can be serviced by a single entity, the US Dept. of Ed. If you're unsure about where your federal loans are held, log into www.nslds.ed.gov with your PIN number.
- I can't find my FAFSA PIN number and I need it to sign my Direct Loan MPN. What should I do?
Visit www.pin.ed.gov and request that a duplicate PIN be sent to you. If you have additional questions about this, feel free to contact Federal Student Aid at 800-433-3243.
- Who will be my lender?
The US Department of Education will now be your lender. Funds are processed from the Treasury Department and sent directly to your student account at Geneva College.
- Who will I repay for my Direct Loans?
The Department of Education has contracted with multiple loan servicers. Your loans will be assigned to a servicer and they will be in contact with you after the first disbursement of the loan. You can also log onto www.nslds.ed.gov to access this information about your federal loans.