The tuition increase, registration, room and board for next year, books, class fees.
These are just a few of many reasons why it is extremely important to pay close attention to the financial aid process.
Along with a modest increase in McDaniel’s tuition for the upcoming academic year, some changes have been implemented for financial aid as well, particularly in regards to Federal Stafford Loans.
Worry not, as these modifications are intended to benefit students rather than to work towards their disgruntlement. So what are the most important things to know about the Stafford Loan changes?
Patricia “Patty” Williams, the Director of Financial Aid, has the answer.
“Students will now be borrowing from the U.S. Department of Education rather than from private lenders. Any loans before now could be either staying with the private lenders or sold to the U.S. Department of Ed.”
Most students would not think twice about where their loans come from, as long as their school bills are getting paid. However, while tedious in its beginning stages, this change will be advantageous for students who receive these loans.
“Students should begin to see more of their loans going to their account with fewer fees taken out,” said Williams.
Beginning in the Fall 2010 semester, the Federal Stafford Loan Program will be replaced by the William D. Ford Direct Loan Program (Direct Loans), which is where students will now borrow their Federal Loans from.
For the 2010-2011 academic year, the Direct Loan interest rates will be 4.5% for subsidized loans (which is lower than last year) and 6.8% for unsubsidized loans.
In order for everything to work out smoothly, students must complete their small portion to receive these loans, including the Federal Direct Loan Master Promissory Note and the Direct Loan Entrance Interview. Each takes about 20 minutes to complete.
Junior Olivia Sykes has been dreading the process because of the required short quizzes that accompany each portion.
“I’ve been receiving emails, but I read them and get overwhelmed with it,” said Sykes. “I will definitely be more educated as a result, but I tend to procrastinate.”
Carlos R. Hernandez, freshman, did not mind completing them.
“They were really easy to understand and provided a detailed explanation. It’s good to know what’s going on with the loans,” remarked Hernandez. “It was also pretty cool that hints were given to make the process easy and painless.”
Williams thought that the added quizzes were a good idea. She stressed that “it is important for students to have at least a general idea of what their financial aid package is, since the loans are in the students’ names.”
Also, Williams would like to remind students to look at their financial aid packages and take notice of how much of that comes from McDaniel grants and scholarships.
“We strive to help students come and stay here, and it is nice when they have an understanding of their situation,” Williams commented.
For those students wondering where their previous loans are, the answer varies, as these loans could be in many places. Many loans are sold for a variety of reasons, but the Exit Interview should provide a more detailed explanation of that when graduation rolls around.
“Students who have not completed their MPN and/or Entrance Interview will keep getting annoying emails from me,” Williams added as a reminder, because both are needed in order to complete the process for the 2010-2011 year.
An additional reminder, ALL financial aid materials are due on April 19.
For more information on how loans work, which loans have already been taken out, and who has them, please visit www.nslds.ed.gov . Another very informative and useful site to visit is www.fafsa.gov .
It is vital to answer those emails, pay attention to the financial aid process, and understand how loans work. Staying on top of financial aid is an essential part of being a college student.