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News Mercyhurst gets 'direct' with lending
By Casey Greene Managing editor Mercyhurst College will launch a program next year that will make sure students aren’t left a-loan. Mercyhurst is currently making the transition to the William D. Ford Federal Direct Loan Program (FDL), which will take full effect beginning in the 2008-09 academic year. FDL allows students and parents to apply online for federal student loans using a single source. With the instability of the lending market, students relying on loans to pay tuition costs could be feeling nervous. Independent lenders are dropping out of the market.. Mercyhurst College Director of Student Financial Services Kathy Bialk said ’Hurst students don’t need to worry. "This transition will be so simple the change will not inconvenience the students in any way," Bialk said. Bialk said Mercyhurst decided to move to the Federal Direct Lending Program because of the instability of the lending market. "There is such uncertainty in the market," Bialk said. "We don’t want to put students through that, and we want to make sure funding is available." Previously, students took loans through the Federal Family Educational Loan Program (FFELP) lenders, a program that uses multiple independent lenders. Bialk said more than 40 lenders have suspended their services or have completely stopped participation in FFELP. Several dozen Mercyhurst students have lost funding due to this. "We expect these numbers to continue to grow," Bialk said. Bialk said that most students are not affected by this, but around 12 currently face issues paying for their spring term classes. "We are working with these students on an individual basis," Bialk said. "We are reaching out to these students to help them with their financial needs." Bialk said this will be the case, because Mercyhurst will have full control and will be communicating directly with the U.S. Department of Education. "This will be a more secure and simple system," said Bialk. "FDL will have fewer issues. Problems will be picked up sooner rather than being lost in the shuffle." Under FFELP, Mercyhurst has little ability to help students with the lending process and often leaves students and parents feeling overwhelmed when taking out loans, Bialk said. The FDL eliminates all outside sources, giving Mercyhurst control over lending. "Students will now have a single source," said Bialk. "This makes the process very simple and easy for students." Bialk said the FDL will benefit students who utilize loans. "We will now have the ability to help students directly," she said. "If students are having trouble with their loans we will be able to fix things immediately." Bialk said the eligibility requirements of the Federal Direct Loan Program are the same as the requirements for FFELP loans and FDL provides students with favorable repayment choices and, in some cases, debt forgiveness. "In terms of benefits to students, short and long term, the Federal Direct Loan Program is the most beneficial," Bialk said. Bialk said the college is trying to keep students informed and provide multiple lines of communication about the transition to FDL. An e-newsletter will be sent to parents and students will receive an e-mail or letter with similar information. Information will also be included in students’ financial aid award letters, which are scheduled to be sent to upperclassmen in early June. A Web site has been created to ease any concerns students or parents may have. Bialk said students should be directed to go to finaid.mercyhurst.edu and click on "Types of Financial Aid," then "Loans." "I’m very excited about this," Bialk said. "I truly believe that not only are we giving students assurance that they have funding for their education, but we will be able to have control over services which will be a significant improvement."
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