Federal Direct Lending Comes to CALU

Beginning with the 2010-2011 academic year, California University of PA will be participating in the William D. Ford Federal Direct Loan Program for all of our Stafford Loans, Parent PLUS Loans and Graduate PLUS Loans.  For the most part, this transition will be transparent to our students.  In contrast to previous years, our students will no longer be borrowing their Federal loans from a bank, credit union or other lending agency.  The loans will be made directly with the US Department of Education. 

There are very few differences between Direct Loans and loans made previously under the FFEL program.  The interest rates and loan amounts are the same as those used under the FFEL program.  One significant benefit is the difference in fees associated with the loans.  Please reference the chart below.  We also feel all changes involved with this transition are beneficial to our students.  These changes include but are not limited to; quicker processing time, a more streamlined process for adjusting loan amounts and ultimately, quicker access to your loan funds.  We are excited about this opportunity to better serve our students.  Information about how Direct Lending and what you will need to do to ensure that your loan funding is in place for 2010-2011 is contained in this section.  Please contact us if you have questions or concerns.

Direct Loans vs. FFEL Loans

For loans made after July 1, 2010.

**IMPORTANT**

Because of this transition, all borrowers will need to sign a new Direct Stafford Loan Master Promissory Note even if you currently have Stafford Loans.  Instructions on how to complete your new MPN can be found by clicking here.

Learn more about the Federal Direct Stafford Loan Process.