| DCLPublicationDate: 5/1/95 DCLID: GEN-95-28 AwardYear: Summary: 1996-97 Application for Participation in the William D. Ford Federal Direct Loan Program sent to Chief Fiscal Officers at eligible non-participating institutions. May 1995 GEN-95-28 (LD) (Subject: 1996-97 Application for Participation in the William D. Ford Federal Direct Loan Program sent to Chief Fiscal Officers at eligible non-participating institutions.) Dear Colleague: We are writing to request your institution's support and participation in the most innovative financial aid program to be implemented in the last 20 years: Direct Loans. We invite you to participate in this important program. At the same time, you'll be joining your colleagues nationwide who have already decided that direct lending is the program that will efficiently and effectively take student aid into the next century. The accolades for this program are not merely Department or Administration rhetoric. In fact, a recent Education Daily survey of first year participants found that 92 percent of the schools rated the program exceptional! A recently issued report on the program, performed by independent auditors, found similar results and concluded that the program is "more efficient, less costly and more customer friendly" than the old guaranteed loan system. Your colleague, Judith Fingar, Chief Fiscal Officer at the University of Washington, expressing her enthusiasm for the program, writes: "After two full quarters in the Ford Federal Direct Student Loan Program, the University of Washington is convinced that our early support for direct lending was more than justified. Earlier disbursement of Direct Loan proceeds resulted in other efficiencies at the UW. We saw a drop in the number of students requesting short-term emergency loans and we were able to process an ever increasing number of Stafford/PLUS loans with reductions in staffing. The Direct Loan Program works." Clearly, the program is realizing every goal that was originally envisioned. The Direct Loan Program is all about choice. It offers you a newer, faster, streamlined, more efficient approach to providing loans to your students to help meet their financial needs. The program itself is extremely flexible--you can decide how much administrative responsibility you want to take on and what portion of your loan volume you want to be in Direct Loans. In addition, the program can be tailored to meet your automation needs, whether you operate in a PC or mainframe environment. Take advantage of the opportunity to participate in this new "reinvented" student loan program. Apply early and ensure your school's place in the 1996-97 school year. Enclosed is an application for your consideration. Sincerely, Leo Kornfeld Senior Advisor to the Secretary Enclosure [[ The enclosure "1996-97 William D Ford Federal Direct Loan Program Participation Application" is currently unavailable for viewing. Please reference your paper document for additional information.]] |