Cheyanne Gonzales '18

Major: Writing
Hometown:Alliance, Ohio

I've lived in Alliance my whole life. I knew I wanted to stay close to home when I started researching colleges, and I realized that Mount Union was the perfect fit for me. The academics are strong and there is plenty to get involved in on campus. Not to mention, the campus is amazing.


  • Will access to federal loans continue to be available?
    Yes. The last several years have brought tremendous change within the student loan industry. There has been a steady decline in the number of banks willing to participate in the FFEL student loan program, due both to significant legislative changes and to the effect of the economy in general, reinforcing the need for a transition to Direct Lending.

    In fact, under the Direct Loan program, more borrowers will be eligible for the PLUS loan (for which a credit check is required; typically a higher rate of parents and students are approved for this loan in DL).

    The Obama Administration strongly supports Direct Lending, and it anticipates that savings achieved by this transition will go toward funding other federal financial aid programs. It is probable that ultimately all colleges and universities will be required to convert to the Direct Lending program in the future. The U.S. Department of Education has repeatedly assured schools and students that funding through these programs will be accessible.

    Back to List
  • Are there other differences between the programs, other than the source of funding?
    Yes, and the differences will benefit the student participating in the DL program. These differences include:

    • Lower Interest. The interest rate for the PLUS loan is lower in DL than for borrowers in FFELP (those rates are currently 7.90% in DL and 8.5% in FFELP).
    • Lower Fees. FFELP loans carry associated fees, and DL fees are generally more favorable than FFELP, because of the way they are calculated. For 2010-2011 the origination fee for the Stafford DL is 0.50% (the FFELP Stafford fee ranges from 0.50% to 1.50%), and the PLUS DL origination fee is 2.5% (the FFELP PLUS fee is 3% to 4%).
    • More Repayment Options. The repayment options for students with DL loans are similar to those who have FFELP loans. However, under the DL program there are two new options - the income contingent repayment plan (the amount that you put towards your debt is tied into your income, allowing greater repayment flexibility) and Public Service Loan Forgiveness.
    • Easy Servicing. Direct loans are easier to track, because your loans will not be sold from lender to lender, but will reside with the Federal government. This will make an otherwise complex process easier, because tracking the loans and repayment terms will be consistent.
    • Easy Organizing. Further, even if you had FFELP loans in the past, you can consolidate your loans if you choose, and then repay to one source. Review Direct Consolidation Loans to determine if this is the best option for you before consolidating.
    Back to List
  • What will differ in the loan process with the introduction of DL?
    All new students who have paid their deposit for Fall 2010 and returning students who are enrolled will be mailed a packet in late June with instructions on how to apply the Federal Direct Stafford and PLUS loans for Fall 2010.

    All students will be required to complete a loan request form and a Direct Loan MPN. First time borrowers will be required to also complete the Entrance counseling session online (even if you did one in the past under FFELP or under DL at another school).

    Back to List
  • Is it possible that I already have a Direct Loan through Mount Union?

    Back to List
  • I know I will receive more specific instructions about Direct Lending and the requirements when I receive my packet in late June, but is there anything I can do now to help me with the transition?
    If you haven't yet filed your Free Application for Federal Aid (FAFSA) for 2010-2011 you should do so as soon as possible ( If you have filed, remember to update it if necessary if you based your information on estimated tax data and have since filed your taxes (go to "FAFSA Follow-Up").

    Otherwise, it's best to wait until you have specific instructions from the Office of Financial Aid informing you how and when to secure your Direct Loans. Back to List

  • Where can I go to learn more about Direct Lending?

    Back to List

Get Social with #MountUnion

Check out our Mobile Apps >


  • The Importance of a Campus Visit

    Published: 6/5/2018 10:57:25 AM

    BY: Eric Young, Director of Admission, University of Mount Union

    As the school year winds down and students begin to make summer plans, one activity that should be on your mind is to schedule campus visits to a few colleges …

    Read more
To The Top!