Direct Loan Program Information & FAQs

Federal Direct Loan Programs

Western University of Health Sciences is a Direct Lending school which participates in the William D. Ford Direct Loan (Direct Loan) program. This means that students get their loans directly through the U.S. Department of Education.

Under the Direct Loan program, the funds for your loan(s) come directly from the federal government unlike Federal Family Education Loans come from a bank, credit union, or other lender that participates in the program.

Students must fill out a FAFSA to get a Federal Direct Stafford Loan, and for the Graduate PLUS Loan.

Direct Loan Program Changes 2012-2013

►Loss of Subsidized Loan Eligibility for Graduate and Professional Students 

The Budget Control Act (BCA) of 2011 (Pub. L. 112-25) was signed into law on August 2, 2011. This Act makes two changes to the William D. Ford Direct Loan (Direct Loan) Program.

1)       Effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans (the portion of the loan that the interest does not accrue while the student is enrolled at least half-time). The terms and conditions of Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012, for either graduate or undergraduate study, are not affected by this change. Please see the chart below for the previous and new rate structure on the Direct Stafford and the Graduate Plus Loans.

 ►Termination of Direct Loan Borrower Repayment Incentives

2)       With the one exception noted below, the Budget Control Act terminates the authority of the Department of Education (the Department) to offer any repayment incentives to Direct Loan borrowers to encourage on-time repayment of loans, including any reduction in the interest rate or origination fee, effective for loans first disbursed on or after July 1, 2012. As a result of this change, the up-front interest rebate that has been provided to Direct Loan borrowers at the time of their loan disbursement will no longer be offered on any Direct Loan Program loan with a first disbursement date that is on or after July 1, 2012. 

The law continues to authorize the Department to offer .25% interest rate reduction to Direct Loan borrowers who agree to have payments automatically electronically debited from a bank account.

►Students whose enrollment period (first day of class) begins prior to July 1, 2012 will continue to    be eligible for the subsidy on the $8500.00 (for this year only).

►Students whose enrollment period (first day of class) begins after July 1, 2012 will have the $8500.00 (old Subsidized portion) rolled into their Unsubsidized loan amount. Thus the student will not be losing the $8500.00 loan amount only the subsidy on the loan.

Previous and New Rates on Direct Stafford Loans

Previous and New Rates on Direct Graduate PLUS Loans

Please Note: Western University of Health Sciences does not participate in any preferred lender arrangements or preferred lender lists. 

Questions and Answers about the Direct Loan Program

What is the difference between the Federal Family Education Loan Program (FFELP) and the William D. Ford Federal Direct Loan Program?

If I have previously received a Stafford or Grad Plus loan through another lender, do I have to change to the Direct Loan Program?

What steps do I need to take to apply for the Stafford and Grad Plus Loans through the Direct Lending program?

1. Apply for financial aid via the FAFSA
2. Wait to receive your award notification from the financial aid office that will be sent directly to your WesternU e-mail address to complete the award process through BanWeb
3. Follow the steps/instructions on your award letter

What is the interest rate on the Stafford Direct Loan Program?

What is the interest rate on the Direct PLUS Loan?

Does the Stafford Direct Loan program have any fees?

Previous and New rates on Direct Stafford Loans

Does the Direct PLUS Loan have any fees?

Previous and New Rates on Direct Graduate PLUS Loans

  
How does the credit check process work on the Direct Grad Plus Loan?

Once the borrower completes the Master promissory note, which includes the applicants authorization for a credit check to be completed the borrower will receive written confirmation of the credit check result.

When does the credit check process take place?

How long is the credit check valid for?

Can endorsers of Direct Plus Loans complete the endorser addendum online?

Can I cancel my Stafford and or my Grad Plus loans?

Yes. You may cancel or reduce the amount of your loan by writingto your school's financial aid office or lender before your lender sends your loan money to your school. There are also two ways to cancel all or part of your loan after your loan money is sent to your school. You may contact the school within 14 days of the date the school informs you they have applied your loan to your account or you can pay back all or a part of your loan within 120 days of the date your lender sends your loan money to your school.                     

Do I need to complete a new Entrance Interview for the Direct Loan Program?

Yes. Students need to be aware of the differences in the Direct Loan Program versus the Federal Family Education Loan Program (FFELP).

Does the Direct Loan program have in-school deferment for graduate/professional students?

Does the Direct Loan program allow borrowers to defer/forebear payments?

Who will my servicer be for the Direct Loan program?

Who should I contact if I have questions about the Direct Loan program?

Helpful Phone Numbers and Addresses for Students and Borrowers

For general questions:

In regards to your loans, Master Promissory Note or need assistance with the studentloans.gov website or appealing credit decisions and endorser questions

Direct Loan Applicant Services                         1-800-557-7394

For Direct Loan servicing questions:

Direct Loan Servicing Center for Borrowers         1-800-848-0979

If a borrower needs to know who is servicing the loan please contact the Applicant Service Number at 1-800-557-7394

For Endorser Information:

Endorsers on the Grad Plus Loan can complete the endorser application online at www.studentloans.gov endorsers will need to have their own pin number which can be obtained at www.pin.ed.gov once the pin has been activated the endorser can complete the endorser application at the www.studentloans.gov website

If a paper endorser form or Master Promissory Note needs to be mailed or sent overnight:

Regular Mailing

Department of Education

PO Box 5692

Montgomery, AL 36103

Overnight

Department of Education

100 Capitol Commerce Blvd.

Montgomery, AL 36117

For information on consolidation:

Consolidation 1-800-557-7392

For borrower assistance regarding exit counseling:

FSA/PIN 1-800-433-3243