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King University News :: IMPORTANT FINANCIAL AID NEWS

During the week of March 25, 2010, Congress passed major legislation, which removed all private lenders from the federal loan program and made it mandatory for all colleges and universities who participate in the federal loan program to participate in the new Federal Direct Lending Program.  The Department of Education serves as the lender for the Federal Direct Lending Program.

Beginning with the 2010-11 academic year, King College will be processing ALL Federal Stafford, Parent Plus, and Grad Plus loans through the Federal Direct Lending program.

Below is more information about how this change will affect you:

New AND current borrowers must complete the Direct Loan Master Promissory Note (eMPN).

1.  Please go to www.studentloans.gov to complete your Federal Direct Loan eMPN and the Entrance Loan Counseling that is required if you are a new Stafford borrower.  You will use your PIN number to electronically sign your eMPN.  If you do not have a PIN number please go to www.pin.ed.gov. PLUS loan borrowers will sign an eMPN and will apply for the PLUS loan at www.studentloans.gov.

2. Your eMPN MUST be electronically signed before we can process your loan for 2010-2011.  This applies to ALL CURRENT STUDENTS and ALL NEW STUDENTS.

3. ALL NEW STUDENTS must electronically sign your eMPN and complete your loan entrance interview before we can process your loan for 2010-2011.

It is important that you follow through with these steps as soon as possible in order for your Financial Aid to be processed.

FREQUENTLY ASKED QUESTIONS:

WHAT IS THE DIRECT LOAN PROGRAM?

King College currently processes Federal loans through the Federal Family Education Loan program (FFELP). Under this program. the student borrowed from their chosen bank, credit union, or other lender that participated in the program. Under the new Direct Lending Program your federal loan will come directly from the US Department of Education.

WHY ARE WE CHANGING TO THE DIRECT LOAN PROGRAM?

On March 25, 2010, The US House of Representatives and the US Senate passed The Health Care and Education Affordability Reconciliation Act of 2010. This bill mandates that, effective July 1, 2010, all federal student loans (Stafford, Plus, and Grad Plus) be processed through the Federal Direct Loan Program. The FFELP program as explained above is eliminated effective June 30, 2010.

IS MY ELIGIBILITY FOR LOANS AND THE AMOUNTS I CAN RECEIVE THE SAME?

Yes, they are the same in both programs.

WHAT DO I NEED TO DO TO OBTAIN A LOAN FOR 2010-11?

You will receive a revised/and or initial award letter in the near future indicating your Federal Direct Loan eligibility. Accept your Federal Direct Loan on your award letter and return one signed copy to the King College Financial Aid Office. Whether you are a new or current borrower, you MUST complete a Direct Loan Master Promissory Note (eMPN) before your loan will be disbursed. This can be completed at www.studentloans.gov. You will need the same PIN that you used to complete your FAFSA to sign into the website. If you do not have a PIN, you may obtain one at www.pin.ed.gov. All new students must also complete a loan entrance interview at www.studentloans.gov.

 

CAN I COMPLETE THE MPN NOW TO GET A HEAD START?

YES!!  You are encouraged to do so immediately!! You can complete it any time for a Stafford Subsidized, Unsubsidized, or PLUS loan. King College will be notified once you complete the MPN. If you are a parent wanting a Parent Plus loan or a Graduate student wanting a Grad Plus loan, please go to www.studentloans.gov to sign an eMPN and to apply for the PLUS Loan.

WHAT WILL HAPPEN TO THE EXISTING LOANS THAT I HAVE BORROWED FROM OTHER LENDERS?

After you graduate or drop below half-time, you have a choice. You may either make separate payments to your previous lender(s) for your FFELP loans and the Department of Education for your Direct Loans, or you can consolidate all your loans into one loan with the Department of Education.  Please keep in mind when you consolidate your loans you may lose some of your repayment incentives.  You may contact your lender for further information.

If you have any questions about how this new process will affect your financial aid or about completing the necessary steps, please don't hesitate to contact the King College Financial Aid office at 423.652.4725 or email financialaid@king.edu. We are here to help guide you through. Thank you for choosing to be a part of the King College community. Your success is important to us!