The Players in the Student Loan Process
YOU - You are responsible for repaying your
loan according to the terms of the promissory note you signed when
you took out the loan. The promissory note is a binding, legal
YOUR COLLEGE/UNIVERSITY - The post-secondary
institution you plan to attend develops your financial aid package,
including Federal Direct Loans, based on the information you
provided on your Free Application for Federal Student Aid (FAFSA).
In addition, your college or university also certifies your student
loan applications and monitors your enrollment status. The
financial aid office at your college or university is an excellent
source of advice and information about your loan.
U.S. DEPARTMENT OF EDUCATION (USDE) - The USDE
is the federal agency that administers the William D. Ford Federal
Direct Student Loan (Direct Loan) program. The USDE sets the loan
program regulations, requirements and defines eligibility
PRIVATE LENDERS - While federal loans are
usually less expensive, have more deferment and forbearance options
available to postpone payments and have loan forgiveness
opportunities not available through private loan programs, in some
cases private loans may be used as a last resort to help finance
any gap that is remaining after family resources, scholarships,
grants, institutional aid, student employment and federal loans
have been exhausted.