The new Health Care and Education Reconciliation Act of 2010 requires all schools to process federal loans through the Direct Loan Program.

Suffolk University Law School began participation in the Federal Direct Loan Program in the 2010/2011 academic year, beginning with Summer 2010.  Student borrowers receive funding for their Stafford and Graduate PLUS loans directly from the U.S. Department of Education, rather than from private banks and lenders as they may have previously through the Federal Family Education Loan Program (FFELP).

For further information on the Direct Loan Program, refer to the Direct Lending Frequently Asked Questions.

Direct Lending Frequently Asked Questions

Suffolk University Law School participates exclusively in the Federal Direct Loan Program since the 2010/2011 academic year, beginning with Summer 2010.   Student borrowers receive funding for their Stafford and Graduate PLUS loans directly from the U.S. Department of Education rather than from private banks and lenders as they may have previously through the Federal Family Education Loan Program (FFELP).  Below is a list of questions related to the Direct Loan Program that should help students understand this program. 

What are the primary differences between the Federal Direct Loan Program and the Federal Family Education Loan Program (FFELP)?
The primary difference is the source of funding.  Federal Direct Loans funds come directly from the U.S. Department of Education using funds obtained from the U.S. Treasury.  In FFELP, the funding was provided by private lenders. 

Do I have to complete another Master Promissory Note (MPN)?

If you will be borrowing funds from the Direct Loan program for the first time at Suffolk Law you must sign a new Direct Loan MPN.

Can I complete my Master Promissory Note (MPN) now? 
Yes, you may choose to complete your new Stafford Direct Loan MPN at any time, even before you have received your award letter.  You can complete and e-sign your MPN online at studentloans.gov. You will need your FAFSA PIN in order to sign your Master Promissory Note (MPN). This is the same PIN you used to sign your FAFSA.  More information on your PIN is available at pin.ed.gov. 

I plan to borrow a Graduate PLUS loan.  What should I do? 
There are two steps that must be completed to receive a Direct Graduate PLUS Loan:  start the application process to be approved for the loan and e-sign the Direct Graduate PLUS Master Promissory Note (MPN).

To complete both the application and MPN for the Direct Grad PLUS loan:

1. Go to www.studentloans.gov
2. Log-in with your FAFSA PIN
3. Select  “Start PLUS Application Process” and then “Graduate PLUS” for the loan type
4. Continue to complete the application by following the instructions
5. Select “Complete Master Promissory Note” and then “Graduate PLUS” for the loan type
6. Continue to complete and e-sign the MPN by following the instructions

If I borrowed a Federal Stafford or Federal Graduate PLUS loan through a private lender in the past, and borrow a Federal Direct Loan in the future, will I have to repay two different lenders?
Yes.  Your Federal Direct Loan will be serviced by the Department of Education and you will receive correspondence and payment information from the Department of Education.  You will also be contacted by other lenders from whom you have borrowed Federal Stafford or Federal Graduate PLUS loans.  However, you have the option of consolidating all your federal loans with the Federal Direct Loan Program after you graduate.  If you consolidate, your previous federal loans would be paid in full and you would make one payment for your new Federal Direct Loan Consolidation. 

Will payments still be deferred on the Stafford and Graduate PLUS loans I have already borrowed through my previous lender?
Yes.  You will continue to be eligible for the same in-school deferments on your prior loans as long as you are enrolled at least half-time. 

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