Direct Loans

Beginning Summer 2010, the University of North Florida will participate in the Federal Direct Loan Program. This change will eliminate borrowing from private lenders for all Stafford and PLUS loans. Loans originated through UNF will be disbursed directly by the federal government. The Direct Loan Program offers an easier and more efficient process for our borrowers and, in some cases, it may cost less. The questions and answers below should provide a broad understanding of how this program works.

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Frequently Asked Questions

What are Direct Loans?

Direct Loans are federally insured low-interest education loans for student and parents. These include the Direct Subsidized Stafford Loan, the Direct Unsubsidized Stafford Loan, the Direct Parent PLUS Loan, and the Direct Grad PLUS Loan program for graduate and professional students.
Why is UNF changing to the Direct Loan Program?

The Direct Loan Program will provide UNF students with a reliable source of educational loan funding. While volatility in the credit markets and reductions in lender subsidies have caused some lenders to stop making federal student loans or to stop offering borrower benefits and other services, the Direct Loan Program is not impacted by such changes in the economy and can therefore provide a stable and predictable loan process.
Does this change impact me?

This change will affect all student and parent borrowers who plan to borrow a federal loan from the Summer 2010 and forward. After the spring 2009 semester, UNF will no longer process any loans through the Federal Family Education Loan Program.
Will other student aid programs such as federal and state grants be affected by what is happening with student loans?

No, those programs are not affected.
Do I have to complete another Master Promissory Note?

Yes, you must sign a new Direct Loan Master Promissory Note (MPN) because you will be borrowing from a new lender, the Federal Department of Education.
I have previously completed entrance counseling. Do I have to complete entrance counseling for Direct Loans?

Yes, every student borrower must complete new entrance counseling under the Direct Loans Program.
I am a parent. I plan to borrow a PLUS loan for my student. I usually get pre-approved through my lender. What should I do this year?

You will borrow through the Direct Loan program as well. Go to the Direct Parent PLUS Loan Instructions.
I am a graduate of professional student and plan to borrow a Graduate PLUS Loan. I usually get pre-approved through my lender. What should I do this year?

You will borrow your Graduate PLUS Loan through the Direct Loan program as well. Go to the Direct Grad PLUS Loan Instructions.
What will happen to the existing loans that I have borrowed with other lenders? Will I have to repay two different lenders now?

Any loan(s) you borrowed from another lender either here at UNF or at another institution will be maintained by the lender/servicer with which you signed your original MPN. Your Direct Loan will be serviced by the Department of Education. You will receive correspondence and payment information from both the Department of Education and your prior lender/servicer. This means that you may have separate payments for your existing and new loans. Visit the Federal Student Aid website for consolidation information.