Direct-lending program to secure federal student loans
The University of South Carolina will participate in 2010 in the Federal Direct Loan Program, ensuring a secure source of federal education loans for students and their families.
This marks a change from the Federal Family Education Loan Program in which the university has participated for the past 30 years. Under that program, students and their families borrowed federal loans administered by banks and private lending institutions. Under the new direct-loan plan, students and parents will borrow directly from the federal government, ensuring secure funding and avoiding the volatility of the credit markets, said Edgar Miller, director of student financial aid and scholarships.
“Changing to direct lending will provide stability and assurance that our students will have access to the resources to fund their education,” said Miller. “We’re making this change in the best interests of our students and families and to ensure that we continue to guarantee service to them.”
On the Columbia campus, approximately 12,000 students benefit from federal education loans. System-wide, students and their families borrow more than $300 million.
The University is making preparations for a smooth transition between lending programs and will provide information directly to borrowers and on the financial-aid Web site: www.sc.edu/financialaid.