Bulletin ID
DLB - 95 - 4
| PublicationDate: 4/1/95 BulletinID: DLB - 95 - 4 April 1995 DLB-4 SUBJECT: LOAN CONSOLIDATION UPDATE; OPPORTUNITY TO ORDER LOAN CONSOLIDATION BROCHURE Dear Colleague: As many of you are aware, effective July 1, 1995, students can, while they are in school, consolidate their Federal Family Education Loans into Federal Direct Consolidation Loans. This important new benefit is available even to students at your school who do not have Direct Loans. (Your students parents also can consolidate their Federal PLUS Loans into Federal Direct PLUS Consolidation Loans.) We want to mention the benefits of in-school Direct Consolidation Loans and to make available our consolidation brochure, which explains Direct Loan consolidation to students and allows them to find out for themselves if consolidation would be right for them. In-School Consolidation Benefits for Students and Schools · Because the U.S. Department of Education is the only lender under Direct Loans, students will no longer have to notify multiple lenders about any changes in borrower status. · Any additional Direct Loans students receive will be added automatically to their Direct Loan accounts, their "Individual Education Accounts." Students need take no action. · When they leave school or drop below half-time status, students will have a grace period for in-school Federal Direct Consolidation Loans. · Schools will not have multiple Student Status Confirmation Reports coming in every three months requiring an update on their students borrower status. The Consolidation Brochure We have enclosed a brochure we have been sending for some months to students calling the Direct Loan Servicing Center for consolidation information. If you would like copies available at your school, please use the order sheet included with this letter. In addition to describing the benefits of Direct Loan consolidation, the brochure briefly explains the available repayment plans. Students return a portion of the brochure directly to the Servicing Center, which will calculate their estimated monthly payment amounts under each repayment plan. In this way, students can see if a Direct Consolidation Loan will be right for them. We hope this information on Direct Loan consolidation will be useful, and we thank you for your continued support of the Direct Loan Program. Sincerely, Diane Voigt Chair, Direct Loan Task Force Enclosure |