Major Changes to Federal Student Aid Programs
The Health Care and Education Affordability Reconciliation Act of 2010 was passed by the U.S. House of Representatives and the U.S. Senate on Thursday, March 25, and was signed into law Tuesday, March 30, by President Obama. This bill has caused major changes to be made in several federal student aid programs:
• It mandates that, beginning Thursday, July 1, all federal student loans, including the Stafford, PLUS and Grad PLUS, will be originated through the Federal Direct Loan Program. The Family Federal Education Loan program, which permitted private lenders to originate the loans, will be eliminated as of Wednesday, June 30.
• Beginning in May, Xavier will be using the Federal Direct Loan program. Students wishing to borrow a Federal Direct Stafford Loan for the summer 2010, fall 2010 and/or spring 2011 terms need to complete a new Master Promissory Note online at www.studentloans.gov. Parents who have borrowed a PLUS loan will also need to complete a new Master Promissory Note. More information regarding the new application process for a PLUS loan will be included in the May newsletter.