Federal Direct Loans
Barry University is now participating in the Federal Direct Lending Program. How will this impact our students?
- Our students and families can rest assured that funding for federal student loans will be available.
- Students do not have to select a lender - the federal government is the lender.
- Unlike in the FFELP process, a Federal Direct Student Loan cannot be sold. You always know where your loans are and where to obtain information about them.
- Students will only have to track their loans with one lender, instead of multiple lenders.
- Direct Lending has the new Public Service Loan Forgiveness Program that will forgive remaining debt after 10 years of eligible employment and qualifying loan payments for people working in key public service professions such as teaching, government, social work, law enforcement, and non-profit 501(c)(3) organizations.
- There are more repayment plans through the Direct Loan program, including the income contingent plan, which allows the government to forgive any remaining balance on a loan after a student makes qualifying payments for 25 years. In addition, the interest never exceeds 10% of the loan principal
A student usually qualifies for up to $10,250 per semester (Fall/Spring/Summer) in Federal Direct Student Loans.
Students who borrow Direct Loans are required to complete a Master Promissory note at www.studentloans.gov. and complete entrance counseling before their loan proceeds can be released. The Entrance/Exit Counseling can be accessed at www.studentloans.gov and the student can click on the Entrance/Exit Counseling link.
No credit check is required.