More Schools Plan to Adopt Direct Lending in 2009

Oct 28, 2008

by Scholarships.com Staff

Fewer students may have to worry about finding a new lender for their Stafford Loans next year, as more colleges are turning to federal Direct Loans for student loans.  A web-based poll of college financial aid administrators at schools participating in the Federal Family Education Loan Program (FFELP) revealed that six percent of those surveyed are planning to make the switch to direct lending next year, with an additional 29 percent seriously considering it as an option.

This means that Direct Loans could very likely become the leading supplier of student loans in 2009.  Since direct loans are taken out from the government, rather than from a bank, the stability they provide is proving popular among student borrowers.  Already, the amount of money in the direct borrowing system has grown by 50 percent this year, whereas the amount in FFELP is up only 7 percent.  While most students have been able to find different lenders and continue borrowing what they need in student loans, attending college at a school that participates in direct lending can save students a bit of hassle in getting financial aid

While a move towards direct lending means that students at participating schools won't be able to cash in on incentives banks might offer during student loan repayment in the future, these options have become scarce in the last year due to the federal subsidy cuts and credit troubles banks have faced.  The disappearance of the FFELP's advantages coupled with the uncertainty and instability caused by the credit crisis will likely continue encouraging schools to turn to Direct Loans to service their Federal Stafford Loans.

And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a Scholarships.com free college scholarship search today, then apply and win! It’s that easy!

Discuss

Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



If you can read this, don't touch the following fields


 
Comments (0)

Most Shared Articles

The mantle of "College President" is one that includes a lot of responsibility and scrutiny, but for some in the higher ranks, the lucrative pay makes it worth it. According to data released by The Chronicle of Higher Education, some private-college presidents have made over $5.4 million in a single year. The average annual salary for full-time college/university presidents in 2014 was roughly [...]

0 months ago 1 comments Read More

Perhaps your 2017 New Year's Resolution is to earn more free college money - that's our goal for you! 2016 is now coming to an end, and so are these scholarship deadlines, so hurry and apply to these end-of-the-year awards while you still can! Girls Who Illustrate Awesomeness Scholarship [...]

0 months ago 6 comments Read More

The incoming Trump administration could reverse President Obama's actions on college sexual assault, giving hope to those who claim their lives were destroyed by false rape claims. However, this raises concerns for some that perhaps those who have been victims of sexual assault and made legitimate reports may not get the protection they deserve. Since 2011, colleges and universities have been [...]

1 months ago 5 comments Read More

Students are being called to "expose and document" professors "who discriminate against conservative students, promote anti-American values, and advance leftist propaganda" on a new website called Professor Watchlist. Turning Point USA, a 501(c)3 non-profit organization founded in 2012 promotes ideas of free-market capitalism and "educates students about the importance of fiscal [...]

1 months ago 7 comments Read More

Finding trustworthy and accurate scholarship and other financial aid information can be tricky these days, especially when it comes to sources that offer unreliable, often misleading content. "Scholarships" offered by scammers who charge fees and operate outside the laws, rules and ethics of modern-day netiquette abound. Here at Scholarships.com, we carefully and thoroughly vet [...]

1 months ago 0 comments Read More

American Flags designated for a Veterans Day ceremony at Brown University were torn and trashed by university students. While a group tried to protect remaining flags, others continued what they believe was a "justified" protest against the recent presidential election. The American flags arranged on Brown University's Main Green flew in honor of the annual Veteran's Day ceremony, which made [...]

1 months ago 16 comments Read More

Black Friday deals will be unleashed in just two weeks with some of the largest retailers getting an early start on Thanksgiving Day. When it comes to end-of-the-year scholarship hunting, no worries - we've got you covered. Score big this holiday season (and semester) with free college money: RMA Foundation [...]

1 months ago 0 comments Read More

The Associate Dean featured as the "chief villain" in a discredited Rolling Stone article on an alleged gang rape at the University of Virginia has been awarded $3 million by a federal court jury. This decision followed an earlier ruling that the discredited article ruined her reputation and "undermined her work to help students who had been sexually assaulted." In November 2014, Rolling Stone [...]

1 months ago 6 comments Read More

November is National Scholarship Month and in its honor, we're doing what we do best - offering the best scholarships out there to help students like you fund the cost of college. Whether you're in high school trying to land some free money before heading off to school or a college student looking to pay next semester's tuition, here are some of the few generous scholarships available to [...]

1 months ago 0 comments Read More