Changes for Student Loans
Financial aid shifts to Direct Lending for 2010-2011
In an attempt to better serve our students, Cincinnati State Technical and Community College will participate exclusively in the William D. Ford Federal Direct Loan Program (Direct Lending) beginning July 1, 2010, for the 2010-2011 academic year. The College is withdrawing from the Family Federal Educational Loan Program (FFELP).
This change will not affect any existing 2009-2010 loans. In fact, it requires only a small amount of student action, while providing numerous added benefits.
Through Direct Lending, students borrow funds for College directly from the U.S. Department of Education, through their school. Direct Loan Subsidized and Unsubsidized Loans operate in essentially the same manner as the FFELP program. Students receive the same interest rates and have similar repayment options, sent directly to the U.S. Department of Education’s servicer.
Switching to Direct Loans benefits students in the following ways:
- Provides one lender and one payment for new borrowers.
- Eliminates the uncertainty of current lenders exiting the FFELP program.
- Eliminates the need for reprocessing student loans when lenders leave the program.
- Allows returning borrowers to consolidate FFELP loans with their Direct Loans at repayment.
- Offers four repayment options for students.
- Offers interest rate reductions for on-time payments.
- Allows students to participate in the Public Service Loan Forgiveness Program.
As a result of this change, all students who borrow funds in 2010-2011 must complete a new Direct Loan Master Promissory Note (MPN). Instructions for completing a new MPN will be available on MyCState and on our website.
We believe that using the Direct Loan Program is the best way to ensure Cincinnati State students receive loan funds in a timely and efficient manner. For more information regarding the change to Direct Loans, please read our frequently asked questions.
If you have questions or concerns, please contact us. We’re here to help.