University to Make Direct Student Loans

STUDENT LOANS AVAILABLE DIRECTLY FROM UNIVERSITY

     COLUMBUS -- The Office of Financial Aid at The Ohio State
University is cutting through the paperwork and lightening the
load for nearly 30,000 students per year.

     Beginning summer quarter, Ohio State will be one of 1,500
schools nationwide participating in the William D. Ford Direct
Loan Program, according to Brenda Stearns, associate director of
financial aid.

     Students will be able to apply directly to Ohio State for
the Federal Stafford Loan, Federal Unsubsidized Stafford Loan and
the Federal Parental Loan for Undergraduate Students (PLUS). To
apply, an applicant simply needs to check "yes" to questions 34
and 35 on the Free Application for Federal Student Aid (FAFSA)
provided by the Office of Financial Aid.

     In the past, borrowers had to work through private lenders,
fill out several applications and wait for their loan checks to
arrive through the mail. Now it will be faster, easier and more
streamlined. Students won't have to fill out any other
applications or talk to any other lenders, Stearns said.

     "This is exactly the kind of thing the Committee on the
Undergraduate Experience is enthusiastic about," said Martha
Garland, associate dean of humanities and co-chair of the
committee. CUE was appointed last spring to study and propose
improvements to all aspects of student life at the University.

     "It (the direct loan process) considers the customer, and
it's a cross-functional improvement," Garland said. "Instead of
several different offices being involved, from the student's
perspective, there's just a kind of one-stop experience for them.

     "We are grateful to Financial Aid for putting this in place
and working out the details of it," Garland added."

     With the new process, the Department of Education will
deliver loan proceeds directly to Ohio State, and the funds will
be automatically applied to the students' University billing
accounts (as permitted by federal regulation).

     The Direct Loan Program involves three kinds of loans:

     -- The Federal Stafford Loan, which is a subsidized loan.
The federal government will pay the interest while the student is
still in school. To be eligible for this loan, students must show
financial need.

     -- The Federal Unsubsidized Stafford Loan, which requires
students to pay all interest charges. But they can defer the
interest payments. Students are eligible for this loan regardless
of financial need.

     -- The Federal PLUS Loan, which is available to parents of
dependent students. It is not based on financial need.

                                #

Contact: Brenda Stearns, (614) 292-8244.


[Submitted by: REIDV  (reidv@ccgate.ucomm.ohio-state.edu)
               
Thu, 12 Jan 1995 09:40:47 -0500 (EST)]
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