MidAmerica Nazarene University announces move to Direct Loan Program.
OLATHE - MidAmerica Nazarene University will begin using the Direct Loan Program for all federally backed student loans beginning with the 2008-09 aid year. According to Rhonda Cole, director of student financial services at the university, the decision was made to benefit students.
The university evaluated the two student loan programs, the Federal Family Education Loan Program (FFELP) and the Federal Direct Student Loan Program in light of the "credit crunch" many lenders are experiencing. MNU has participated in the FFELP program for the Stafford and Parent PLUS loan programs from the very beginning. However, the university is intent on making sure the best program is in place for our students during this unstable time in the industry and beyond.
"Lenders have been leaving the student loan business due to falling profits and tighter credit. This is predicted to cause many students to have difficulty finding access to funding for college next semester. It's in the best interest of the students for us to do this now," Cole stated.
The move to direct lending means the university will be able to coordinate loan funds that come directly from the U.S. Treasury, unlike lenders who must compete with other financial institutions to find funding from other sources. This stability means MNU students can feel secure about having the funding they need for college on time.
When asked how the change will affect the loan process Cole said that students will have to complete a new promissory note and loan counseling, both of which can be accomplished online. New students who have not already completed the loan process will not notice a difference except that the experience should be streamlined by not having to find an outside lender.
A list of Frequently Asked Questions, which includes information on the benefits the Direct Loan Program has to offer MNU students, can be viewed on our student loan page.
Students and parents may also call 913-971-3298 or 800-800-8887, extension 3298 for more information or assistance.
