Financial Aid
The Direct Student Loan Program
Bryn Mawr College is pleased to announce a change for the 2009-2010 award year. The College will be participating in the Federal Direct Student Loan Program for Stafford and Grad PLUS Loans.
The decision to switch to the Federal Direct Student Loan Program was in response to concerns that many Bryn Mawr students had regarding their ability to obtain funding to cover educational costs. In 2008, many lenders abruptly stopped their participation in the Stafford and Grad PLUS Loan Programs as a result of the economic downturn. It is impossible to predict how many other lenders may follow. In researching options to address this situation, it became evident that the Federal Direct Student Loan Program was the more stable loan option for our students for a number of reasons.
- Federal Family Education Loan Program funds (FFELP), which the College presently utilizes, are disbursed by private lenders (such as Wachovia, Citibank, etc.). These lenders are inundating our students with direct to consumer marketing that tends to be very confusing and overwhelming. With the Direct Student Loan program, funds will come to Bryn Mawr students directly from the U.S. Treasury, eliminating the middle man and subsequent confusion for families.
- The Direct Student Loan Program offers students a larger number of repayment plans, including an income contingent plan. If a student does not repay their loans in 25 years, the government forgives the balance of the loan. Additionally, the interest never exceeds 10% of the loan principle.
- The Direct Student Loan Program offers a new Public Service Loan Forgiveness program that will forgive remaining debt after 10 years of eligible employment and qualifying loan payment for people working in key public service progressions such as teaching, government, social work, law enforcement, and non-profit 501(c)(3) organizations.
- The Direct Student Loan Program is fully integrated with the federal financial aid process, simplifying the administration and oversight of the government funds. Bryn Mawr College already has the necessary software and business process in place to administer this program due to the other federal programs we administer such as the Federal Pell Grant and Federal Work Study Program.
- Students will now only need to track their loans with one lender versus multiple lenders.
- Benefits advertised for Direct Student Loans are part of the Master Promissory note, unlike the benefits advertised with the FFELP which are not a part of the promissory note. Borrowers are assured to receive borrower benefits only if they are part of the signed promissory note.
- Loans are never sold in the Direct Loan program. In FFELP, loans can be sold to other lenders, negating their borrower benefits.
We believe this new service will allow us to serve you in more important ways. We encourage you to visit the Bryn Mawr College Financial Aid Portal to Change at www.brynmawr.edu/financialaid/portaltochange.shtml for additional information on the Federal Direct Loan Program. You may also reach us by phone at 610.526.5245 or by email at finaid@brynmawr.edu. We look forward to working with you as we implement this new program for 2009-2010.
Useful Telephone Contacts
Admissions Office: 610-520-2601
Dean’s Office: 610-520-2603
Career Development: 610-520-2602
Comptroller’s Office: 610-526-525
Field Instruction: 610-520-2601
Financial Aid: 610-526-5245
