News

Message from Student Financial Services Regarding Switch to Direct Lending
Posted: 05/16/2008
Share |

Effective for the periods of enrollment starting with the fall 2008 semester, all Federal Stafford and PLUS loans for attendance at The University of Texas-Pan American will be provided through the Federal Direct Student Loan Program (FDSLP).

Under the Federal Direct Student Loan Program, the federal government acts as the lender for Stafford and PLUS loans. UTPA has been closely monitoring the situation with the student loan credit crunch and the potential impact to students seeking student loans for the fall 2008 semester.

The instability and uncertainty in the markets has led several student loan providers to suspend providing student loans. While there are many private lenders still in the Federal Family Education Loan Program (FFELP), UTPA administration was concerned about future developments that could negatively impact students.

The instability of the credit markets and uncertainty regarding continued participation of private lenders in student loan programs strongly influenced the University's decision to find the most secure solution possible for the fall 2008 semester. By entering the Federal Direct Student Loan Program, students will not have to shop around for a lender or worry that the lender they chose may suspend providing student loans. The Direct Loan Program provides certainty that access to student loans will not be a problem in the future.

For answers to the most commonly asked questions related to the use of Federal Direct Stafford and PLUS loans, please review additional information provided at the following link: http://www.utpa.edu/ess/documents/Direct_Lending_FAQ.pdf . If you have additional questions or concerns, please feel free to call the UTPA Office of Student Financial Services at 956/381-2501 or e-mail us at loans@utpa.edu.