Financial Aid Update: Direct Lending Is Here
The Office of Student Financial Aid (OSFA) is excited to announce a change in processing loans and delivering funds at UW–Madison. Beginning with the summer session, OSFA moved to direct lending for the processing of federal student loans, as mandated under the Health Care and Education Reconciliation Act of 2010.
The change applies only to student Stafford and Grad PLUS and Parent PLUS loans. Under the program, there is one lender, the U.S. Department of Education. No private financial institutions are involved. The change makes the process much more efficient for schools and borrowers.
All current borrowers must sign a new Master Promissory Note (MPN). OSFA sends continuous e-mail reminders that the new MPN must be signed before students will be allowed to get their loans.
OSFA highly encourages you and your student to pay very close attention to mailings from your loan servicer. Borrowers can track their federal loans on the National Student Loan Data System (NSLDS).
For more information, visit OSFA.