Loans Frequently Asked Questions |
Will I need to choose a lender for my federal loans?
No, all students at ABAC will have the Federal Direct Loan Program as their lender.
If I have prior educational loans, will I need to sign a new master promissory note (MPN)?
Yes. All new and returning students will need to complete a new master promissory note. You will need your FAFSA PIN number. The link to complete the master promissory note is www.dlenote.ed.gov
What do I need to do to receive my federal loans?
Submit the ABAC Direct Loan Request Form then complete entrance loan counseling at www.direct.ed.gov and finally, sign your electronic promissory note once the Enrollment Services Office notifies you that it is available.
If I have prior student loans, will I need to do entrance counseling again?
Yes, all ABAC students will need to complete entrance counseling to receive loans through the Direct Loan Program.
What are the benefits in the direct lending program?
The Direct Loan Program offers:
- A guaranteed sources of funding for student loans
- A single source of service for students during repayment
- Additional repayment options
- Interest rate reductions for on time payments
Will I still be able to continue borrowing through the same lender as previous years?
No, beginning Fall 2010, all Federal Stafford and PLUS loans will be processed exclusively through the Direct Loan Program. You will be borrowing directly from the U.S. government.
What happens to the Stafford Loan(s) I borrowed in previous years? Will they still be deferred now that ABAC is changing its loan process?
Your Stafford Loan(s) from previous years should remain in deferment as long as you are enrolled half-time or more. You are responsible for notifying your lender if your enrollment status changes.
How will repayment work if I have two different types (FFEL and Direct) of student loans?
Unless you opt to consolidate your loans, you will have to make separate payments. Consolidation will allow you to make one monthly payment.
Where can I find information about my other federal loans?
You can find information about the lender and servicer of your other student loans at www.nslds.ed.gov. You will need your FAFSA PIN number to access this information.
Will I still be able to borrow private loans through an outside lender?
Yes. If you meet the qualifications, you will still be able to borrow private loans through an outside lender.
How can I consolidate my loans with Direct Lending?
Students can go to <a href=”http://www.loanconsolidation.ed.gov” target=”_blank”>www.loanconsolidation.ed.gov</a> for information about loan consolidation. Loans that are in an “in-school” status cannot be included in a Direct Consolidation Loan.
Where can I receive information about the entire Direct Loan program?
You can go to <a href=”http://www.dl.ed.gov” target=”_blank”>www.dl.ed.gov</a> and review information pertaining to your account, loan consolidation, electronic services, making payments and other options.
