Spartanburg, S.C. - Those who rely on student loans to help pay tuition costs need to be aware of recent federal and private loan requirements for the 2010-2011 academic year. Failure to act prior to the new July 15th deadline may result in payment delays to the borrowers.
“If students wait too late and there's a delay in the arrival of funds, their classes are going to get dropped," said Allison Sullivan, director of financial aid at USC Upstate.
Congress recently voted to largely expel private banks from the federal student loan process as part of the health care package. This means that students will now directly borrow student aid from the federal government. USC Upstate, like other area schools, is worried about how the switch from dealing with a network of private lenders to a handful of federally run agencies will affect their students.
With about five federal agencies expected to handle the flood of communication that will come with the "mass exodus" of schools leaving their private lenders, Sullivan said she was told by the Department of Education that financial aid offices like hers will be provided a list of 800 numbers, and that "it could be 10 days before anyone gets back to us."
To help prevent USC Upstate students from experiencing such delays in receiving their money, the University has a July 15th deadline for students to complete their promissory note for 2010-2011 loans -- and some have already done so.
The best advice to students…….. take care of your paperwork early!
July 15th 2010 Federal Loan Application Deadline
Students and/or Parents MUST complete a Direct Loan Electronic Master Promissory Note and Entrance Counseling in order to receive the Federal Stafford and Federal Parent Plus Loans. USC Upstate will convert from the Federal Family Education Loan Program to the Federal Direct Loan Program beginning with the Fall 2010 semester. Student and/or parents will be required to complete a NEW Master Promissory Note on the Direct Loan website www.dlenote.ed.gov AND borrowers are required to complete loan entrance counseling for Federal Direct Loans at www.dl.ed.gov which may cause a delay in receiving federal loan funds for the 2010-2011 academic year. APPLY BY JULY 15th to ensure your federal loan funds will be available to pay your charges.
July 15th 2010 Private Loan Application Deadline
Students and/or Parents MUST complete a Private Loan application and Self Certification Form with your lender of choice in order to receive private loan funds. Private loan lenders now require the student to complete a Self Certification Form which may cause a delay in receiving private loan funds for the 2010-2011 academic year. APPLY BY JULY 15th to ensure your private loan funds will be available to pay your charges.
NOTE: Private Loans should only be applied for after all Stafford Loan funds have been exhausted.
Please call the Financial Aid Office 864-503-5340/800-277-8727 or e-mail us at firstname.lastname@example.org if you have any questions.