Recent Changes to the Student Loan Process
Recent changes to the way the federal government distributes and manages student loans will affect how The University of Tennessee Health Science Center students receive financial aid.
The changes, which recently passed into law, shift the processing of federal student loans away from private lenders and to the U.S. Department of Education. UTHSC students should see few, if any, changes, although many of them will need to complete additional paperwork:
- Students currently receiving federally backed student loans must complete a new master promissory note (MPN) to satisfy the requirements of the now mandated Direct Loan government program.
- Current students with existing federal student loans managed by private lenders (i.e. banks) will have the option to consolidate their loans into the Direct Loan program.
- Students receiving a federal Direct Loan for the first time at UTHSC will now complete forms directly from the Department of Education to receive their federal loans.
The changes go into effect beginning July 1, 2010.
More than 2,500 UTHSC students receive some form of federally backed student loan, totaling more than $65 million each year.
If you are a student or parent with questions regarding this new process, please give our office a call at (901) 448-5560.