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All-New Loan Process
Trinity Valley Community College will begin processing
Stafford Student Loans through the Federal Direct Loan
Program beginning with the Summer 1 2010 semester. This
program will replace the current Federal Stafford Student
Loan and Parent PLUS loan programs. Federal regulation now
requires educational loans to be processed through the
Federal Direct Loan Program. This program gives TVCC current
and prospective students the opportunity to receive
competitive benefits as well as assuring TVCC, and students,
that funding will be available for federal educational
loans.
FOR DETAILED INFORMATION ON THE WILLIAM D. FORD DIRECT LOAN
PROGRAM, PLEASE GO TO THE DIRECT LOAN WEBSITE AT
www.studentloan.gov
– THIS IS A COMPREHENSIVE WEBSITE MAINTAINED BY THE
DEPARTMENT OF EDUCATION COVERING ALL ASPECTS OF THE LOAN
PROGRAM.
Here are some of the benefits that Trinity Valley students
will receive from this change:
• The Direct Loan Program is funded directly by the Federal
Government, thereby eliminating some of the confusion by
offering a single source and process for federal loans.
• Direct Loans are not sold by the Federal Government;
borrowers will know who holds their loans during repayment.
In addition, prior borrowers can consolidate Federal
Stafford Loans with their Direct Loans, enabling them to
track their loans with one lender instead of multiple
lenders.
• Direct lending offers a Public Service Loan Forgiveness
program and an income-based repayment option for students in
certain public service professions or who have low incomes.
What does this mean for you? This means that your Federal
Stafford and PLUS loan will come from a different source but
the funding for it is assured. It also means that you and
your parents (if the parent desires to borrow a PLUS loan)
will need to complete a new Master Promissory Note (MPN).
The Trinity Valley Community College Financial Aid Office
will be available to assist you with any questions regarding
the Federal Direct Loan Program. TVCC will also be updating
our web site and distributing information to assist you with
this transition in order to help you develop a better
understanding of the benefits of the new program.
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