Direct Loans
NASFAA’s Professional Credentials provide financial aid administrators and professionals in related fields the opportunity to earn tangible recognition for mastery of content pertaining to federal Title IV aid administration. To earn this credential, candidates need to know the key characteristics of each of the three programs that make up the Federal Direct Student Loan (Direct Loan) Program, the qualifying criteria for each type of loan, and the factors affecting loan eligibility. Candidates need to know about the loan application process, the loan origination process, and mandatory loan counseling requirements. Additionally, candidates need to be familiar with the major repayment features of Direct and FFEL loans. Holding this credential demonstrates the ability to assist current and future borrowers of Direct Loans, and ensure the school’s policies and procedures related to the awarding and origination of loans do not put their borrowers or the school’s participation in the Title IV programs at risk.
Earning Criteria
Recipients must complete the earning criteria to earn this badge.
General Requirements
Financial aid professionals can qualify to sit for a test in at least one of the following ways:
- Complete an independent study on specific topics using a Self-Study Guide
- Take an instructor-led NASFAA U Online Course
- Demonstrate five or more years of well-rounded professional experience
- Attend a NASFAA U Authorized Event that uses the approved NASFAA curriculum
Assessment
The range of topics in this test include:
- General Concepts of Direct Loans
- Factors for Calculating Loan Amounts
- Direct Loan Amounts and Limits
- Calculating Direct Loan Eligibility
- Loan Counseling
- Direct Loan and FFEL Repayment Features and Plans
Tests may include questions pertaining to a variety of program structures, such as credit- or clock-hour, term or nonterm, standard or nonstandard term, undergraduate or graduate/professional programs, and programs of various length (shorter than one year, two-year, four-year, certificate, etc.).
NASFAA Professional Credentials do not expire; however, credentialed professionals may renew each credential. NASFAA recommends renewing credentials every three years, barring any major regulatory changes. Renewal is not mandatory.
Learn more about NASFAA’s Professional Credentials.
