:: Direct Loan Resources for Borrowers ::

A law signed by President Obama on March 30, 2010 mandates that all federal student loans made on or after July 1, 2010 must be originated through the Federal Direct Loan Program, which is administered by the U.S. Department of Education.

Although the source of funds for federal student loans has changed, you'll still work with the financial aid office to get your loan funds. If you have questions about how the law affects your borrowing, talk to your financial aid officer.


Quick Content Links

Links

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Direct Loan Forms

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Dept. of Education Direct Loan Publications

DL Basics for Students brochure DL Basics for Students PDF – Introduces students to Direct subsidized and unsubsidized loans
DL Basics for Parents brochure DL Basics for Parents PDF – Educates parents about Direct PLUS Loans
Conceptos básicos sobre préstamos PLUS del Direct Loan Program para padres Conceptos básicos sobre préstamos PLUS del Direct Loan Program para padres (DL Basics for Parents in Spanish) PDF – Educates Spanish-speaking parents about Direct PLUS Loans
DL Entrance Counseling Guide DL Entrance Counseling Guide PDF – A guide for individual or group entrance counseling sessions with students
DL exit counseling guide DL Exit Counseling Guide PDF – A guide for individual or group exit counseling sessions

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Frequently Asked Questions (FAQs)

Q. Who do I contact if I have questions about my Direct Loans?

A. Borrowers have the following contact options:

Questions about Student Aid Applications

Federal Student Aid Information Center
Phone: 800.4.FED.AID or 800.433.3243 (toll-free)    |     TDD: 800.730.8913    |     E-mail: StudentAid@ed.gov


Questions about Direct Loans

Direct Loan Servicing (external link)  


Questions about Direct Consolidation Loans

Direct Consolidation Loan (external link)    |     Phone: 800.557.7392 (toll-free)    |    TDD: 800.557.7392
E-mail: Loan_Consolidation@mail.eds.com


Questions about Defaulted Direct Loans

readysetrepay.org    |    Phone: 800.621.3115 (toll-free)    |     E-mail: DCS_HELP@ed.gov




Q. How do I find my loan information?

A. StudentAid.gov provides a centralized database containing all your federal student loan information including loan amounts, outstanding balances, loan statuses and loan servicers. To access your information, you will need to provide your name, Social Security number (SSN), date of birth and FSA ID – the same FSA ID you used to apply for aid and complete your FAFSA. If you need to contact your loan servicer, use the following information:

Federal Loan Servicer Information
Name
Contact Details
CornerStone Education Loan Services

phone: 800.663.1662  
website: mycornerstoneloan.org
email: customerservice@mycornerstoneloan.org

ESA/EdFinancial Services phone: 800.337.6884   
website: edfinancial.com
FedLoan Servicing / PHEAA phone: 800.699.2908     |     TDD/TTY: 711
overseas borrowers: 717.720.1985
website: MyFedLoan.org (external link)
Granite State Management & Resources phone: 888.556.0022    |     TDD/TTY: 711
website: gsmr.org
Great Lakes Higher Education Loan Corp. phone: 800.236.4300     |     TDD/TTY: 711
overseas borrowers: 608.246.1700
website: MyGreatLakes.org (external link)
email: Borrowers@MyGreatLakes.org
MOHELA phone: 888.866.4352    |     TDD/TTY: 711
overseas borrowers: 636.532.0600
website: mohela.com(external link)
Navient phone: 800.722.1300    |     TDD/TTY: 877.713.3833
overseas borrowers: 888.272.5543 or 317.570.7397
website: navient.com(external link)
Nelnet phone: 888.486.4722     |     TDD/TTY: 888.486.4722
overseas borrowers: 303.696.3625
website: Nelnet.com (external link)
OSLA Student Loan Servicing phone: 866-264-9762   
overseas borrowers: 405.556.9200
website: osla.org(external link)
VSAC Federal Loans phone: 888.932.5626    |     TDD/TTY: 800.281.3341
overseas borrowers: 802.654.3796
website: vsacfl.org(external link)
email: fedinfo@vsac.org



Q. Who do I call if I'm having problems with StudentLoans.gov?

A. You can call COD Applicant Services at 800.557.7394 (toll-free).




Q. What fees are charged to Direct loan borrowers?

A. The current origination fee for Direct subsidized and unsubsidized loans is 2%, which is based on when the loan is first disbursed. A 4% origination fee is assessed to Direct PLUS loans, regardless of the first disbursement date.




Q. Are there any borrower benefits for Direct loans?

A. Direct loan borrowers who make their first 12 payments on time are eligible for an up-front rebate of 1.5% of the loan amount borrowed. In addition, borrowers in repayment who choose to have their monthly payments electronically debited from their bank account can have .25% reduction of their interest rate while they continue to use the electronic option to make loan payments. Specific details and eligibility guidelines are available on studentloans.gov (external link).




Q. Can I consolidate my student loans while I'm in school?

A. Normally, no; however, for the period from July 1, 2010 through June 30, 2011, borrowers meeting certain criteria will temporarily be allowed to consolidate their loans while still in school.




Q. What are the eligibility criteria for the temporary loan consolidation?

A. To be eligible for a consolidation loan under the temporary loan consolidation authority, you must meet these conditions:

  1. You must have loans in at least two of the following categories:
    • Federal Direct loans,
    • FFELP loans owned by a lender, AND
    • FFELP loans owned by the Department of Education ("PUT" loans)
    AND
  2. You must have at least one eligible loan in the above categories that has not yet entered repayment.

If you meet both of these conditions, you're eligible to consolidate all of the loans described in the first condition above, including the eligible loan(s) in an in-school status.




Q. Are there any implications of consolidating my loans while I'm in school?

A. Yes. You may lose some benefits of your existing loan if you consolidate.

Stafford borrowers should be aware that in-school consolidation will result in the loss of their 6 month grace period (after they graduate or their enrollment drops to less than half-time).

Parent PLUS borrowers should keep in mind that they will lose the ability to defer PLUS loans for students who are in school. In-School PLUS deferments are not available for consolidated loans.

Similarly, Parent PLUS and Grad PLUS borrowers should know that the post-enrollment deferment is only available on PLUS loans, not on Consolidation loans.




Q. How would the loss of the grace period affect me?

If a subsidized loan is consolidated while you're in school, you will be responsible for the accruing interest as well as monthly payments immediately after you graduate or aren't enrolled at least half-time. The government normally pays the interest on a subsidized loan while you are enrolled at least half-time and during the six-month grace period after you graduate or fall below half-time enrollment.




Q. If I don’t consolidate now, can I do it later?

Yes. Assuming you meet the program's eligibility requirements, you will still have the option of consolidating under the regular Direct Loan Consolidation Program after you leave school.




Q. How does this special in-school consolidation loan compare to a regular consolidation loan?

Direct Consolidation loans made under the temporary loan consolidation authority have different eligibility criteria and a slightly different interest rate, but otherwise have the same terms and conditions as regular Direct Consolidation loans.

The final interest rate for most in-school consolidation loans is not subject to rounding. In other words, the interest rate is calculated as the weighted average of the interest rates of the loans included in the consolidation loan.

However, if the consolidation loan includes one or more variable rate Stafford loans made July 1, 1994 through June 30, 2006 which are currently receiving the in-school or grace period interest rate, then the interest rate is calculated the same as for regular Direct Consolidation loans, including rounding the final rate upward to the nearest 1/8th percent. In this situation, though, the reduced in-school or grace period interest rate will be used in calculating the weighted average.




Q. How can I know if the temporary in-school consolidation is best for me?

If you're thinking about consolidation using the temporary loan consolidation program, you should weigh the benefits of:

(1) consolidating in-school to get a single servicer
and
(2) an interest rate that is not rounded up to the nearest 1/8th of one percent (unless variable rate Stafford loans are involved)

versus

(1) the loss of your grace period on Stafford loans
and
(2) loss of any PLUS deferment options.

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