William D. Ford Direct Loan Program

Soka University currently processes Federal Stafford and Federal PLUS loans through the Federal Family Education Loan program, in which students and parents borrow from private lenders and banks. Beginning on July 1, 2010, the University will participate exclusively in the William D. Ford Federal Direct Loan program, in which borrowers obtain loan funds directly from the U.S. Department of Education. 

Why is Soka changing its loan process?

On March 25, 2010, the U.S. House of Representatives  and the U.S. Senate passed the The Health Care and Education  Affordability Reconciliation Act of 2010 ("HCEARA"-H.R. 4872) . This bill makes major changes in several federal student aid programs AND mandates that, effective July 1, 2010, all federal student loans (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 these loans, is eliminated effective June 30, 2010.

What do I have to do to get my loan funds for next year?

As in prior years, you must:

1. Complete the FAFSA (Free Application for Federal Student Aid),
2. Provide any documents requested by our office such as income tax, bank statements and verification worksheets, and accept or decline your federal student loans online.
3. You will then have to complete a new Master Promissory Note for the Direct Loan program before the Department of Education will electronically disburse your funds to Soka University.

"Can I complete the new MPN now to get a head start?"

• Yes, the  Department of Education has created a new Web site that will serve as a portal for Direct Loan borrowers to manage their Direct Loans. The new Web site is StudentLoans.gov. Effective March 28, 2010, borrowers will use the StudentLoans.gov web site to:
  • complete Stafford and/or PLUS Entrance Counseling,
  • complete a Direct Loan Electronic Master Promissory Note ("MPN")
    • You will need the same PIN that you used for your FAFSA to electronically sign the note. If you do not have a PIN, you may obtain one via http://www.pin.ed.gov.
  • view electronic loan correspondence such as disclosure statements, and
  • link to other tools and resources
• Note: If you will borrow from BOTH the Stafford and PLUS programs, you and your parents will need to complete a separate MPN for each loan program. Also, please remember that unlike Stafford loans, PLUS loans are subject to credit approval.

  "What Else Do I Have to Do?"

• Students who are borrowing for the first time will need to complete an Entrance Counseling Session. Continuing students who currently are participating in the Stafford Loan Program do not have to complete a new  Entrance Counseling session with the Direct Loan Program.

 

Consolidating All Prior Loans

Under provisions of the Ensuring Continued Access to Student Loans Act ("ECASLA") , lenders have the option to "PUT" (sell) loans to the U.S. Department of Education (DOE).  Lenders must notify borrowers if their loans have been sold to the Department of Education. 

Currently enrolled students with Federal Stafford, GradPLUS or PLUS loans should pay particular attention to the option to consolidate all of their prior federal loans into a Federal Direct Consolidation Loan between July 1, 2010 and June 30, 2011. We will be posting more information about this option as we receive it.

A Consolidation Loan allows you to combine all the federal student loans you received to finance your college education into a single loan. Borrowers will be able to consolidate all of their prior Stafford, Grad PLUS or PLUS Loans through the Federal Direct Consolidation Program.

To locate/repay your federal student loans you can click on My Student Loans.

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Loan Forms:

William D. Ford Direct Loan Instructions

Federal Direct Loan (Subsidized and Unsubsidized) Master Promissory Note (MPN)

Federal Direct PLUS Loan Master Promissory Note (MPN)

Self Service Navigation Instructions