Bulletin ID
DLB - 96 - 10
| PublicationDate: 7/1/96 BulletinID: DLB - 96 - 10 DLB-96-10 July 1996 SUMMARY: DIRECT LOAN PUBLICATION UPDATE Dear Colleague: We are pleased to announce the availability of a number of 1996-97 publications on the William D. Ford Federal Direct Loan Program (Direct Loan Program). As you know, regulations published on December 1, 1995, made changes to the program, and these publications have now been revised to reflect the changes. In addition to printed copies, electronic versions of these publications, in both text and Portable Document Format, are available on the Student Financial Assistance Bulletin Board System (SFABBS). They will also soon be available on the Internet through the Direct Loan home page at http://www.ed.gov/offices/OPE/DirectLoan. The following 1996-97 publications may be ordered from School Relations at the Direct Loan Program Loan Origination Center. An order form is enclosed for your convenience. All About Direct Loans gives borrowers detailed information about the Direct Loan Program, including types of Direct Loans, loan disbursement procedures, repayment options, options for postponing repayment, and loan consolidation. Direct Loans: A Better Way to Borrow gives a brief overview of the Direct Loan Program, including information on application procedures and loan limits as well as a brief description of the repayment options. It also describes the advantages of Direct Loans for student and parent borrowers, schools, and taxpayers. PLUS Basics includes the definition of a dependent student, eligibility criteria, repayment options, options for postponing repayment, and loan consolidation. Repayment Book explains the four repayment plans available in the Direct Loan Program and gives examples of how each plan works. The booklet includes a table allowing borrowers to see the approximate amount they would repay (per month and in total) under each repayment plan (assuming different debt levels). Worksheets (and supplementary charts) allow borrowers, including Direct PLUS Loan borrowers, to estimate what they would owe under each repayment plan, based on their actual circumstances. The booklet helps borrowers choose the repayment plan best for them. Entrance Counseling Guide for Borrowers (Entrance Guide for Borrowers) covers topics such as loan amounts, interest rates, capitalization of interest, and_briefly_the repayment plans available under Direct Loans. Also discussed are deferments, forbearance, and the consequences of default. The Entrance Guide for Borrowers includes tips on how students can budget their money so they will have enough to stay in school and to repay their loans later. Entrance Counseling Guide for Counselors offers tips for institutional counselors on what to cover in entrance counseling and gives explanations that follow the order of topics in the Entrance Guide for Borrowers. The Exit Counseling Guide for Borrowers and Exit Counseling Guide for Counselors are expected to be available in August. You will receive a separate order form for these guides. An electronic version of the exit guides will be available prior to the printed version on the SFABBS and the Direct Loan home page. Sincerely, Diane Voigt, Chair Direct Loan Task Force |