Financial Aid Perspectives: Northeastern U. Financial Aid Director Talks About Switching To Direct Loans (Audio Podcast)
Northeastern University Director of Financial Aid Services Tony Erwin speaks with NASFAA's Haley Chitty about the university's change to the Direct Loan Program. Erwin talks about the factors that led to switching loan programs and the decision making process at Northeastern. He also highlights some of the challenges and benefits of switching programs. Erwinoffers some advice to financial aid offices that might be considering a switch from the FFELP loans to Direct Loans.
The recent turmoil in the capital markets and last year's subsidy cuts to FFELP loan providers has caused many FFELP lenders to suspend participation in the program or reduce loan benefits to students. These developments have also raised fears that students may experience a disruption in access to loans this fall. FFELP lenders have assured institutions that they will continue to provide loans to students, but the Department of Education, Congress and institutions have been exploring options to ensure student access to loans if a significant number of FFELP loan providers leave the program causing a loan access problem.
The Direct Loan Program is one option being explored as a safety net to ensure loan access. Institutions considering switching to the Direct Loan Program should review, the Department's guidance for joining the Direct Loan Program. This information is also provided in PDF format.
"Financial Aid Perspectives" is NASFAA's new Podcast series where different points of view from the financial aid and higher education communities will be presented on issues relevant to postsecondary access.
Posted 03/11/08 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.
