As part of President Obama’s Fiscal Year 2010 budget, it is proposed beginning on July 1st, all Stafford (subsidized/unsubsidized) PLUS, and Consolidation loans will be made from the William D. Ford Federal Direct Student Loan (Direct Loan) Program. As a result, this translates as Nevada State College becoming a Direct Lending institution for all NSC student loans. All student loans originating after July 1, 2010, will be processed directly through the Federal government, and will no longer be processed by a bank lender.
This new system will centralize student financial aid services, making the process for students faster and easier, says Neil Woolf, Director of Financial Aid at NSC. In contrast with the current process in place, everything from the origination of the loan will be done through the Federal government.
Students seeking financial aid will still apply through the Free Application for Federal Student Aid (FAFSA). Once their eligibility is determined, students then sign their master promissory note (MPN) and finish loan entrance counseling through the Federal government. Students no longer have to select a lending institution or visit the EdFund web site for loan entrance counseling.
Once the master promissory note is signed and loan entrance counseling is completed, the financial aid office requests the loan amount from the Federal government and then disburses the funds to the students. Whereas the current process of requesting funds from various lending institutions can take anywhere from 5-10 days, the new system takes a matter a hours. This significant reduction in time students wait to receive their loan will additionally quell any anxiety they may experience!
Students with existing loans are not affected by this only loans originating after July 1, 2010.
To obtain information regarding Direct Loans, students are encouraged to visit the Federal government’s newly redesigned web site, which is anticipated to debut sometime in April. In the meantime, students can visit the current site at; http://www.direct.ed.gov/student.html, or the NSC Financial Aid office site at http://archive.nsc.edu/552.asp, where up to date information and links will be posted. For any additional questions, students may visit the Financial Aid office located on the second floor of the Basic & Water II campus building.