Clemson changing student lending program
January 20, 2010
CLEMSON, SC – January 20, 2010 – Students attending Clemson in the 2010-2011 academic year will see a significant change in the student loan program for federal loans.
Clemson will participate in the Federal Direct Loan Program beginning this fall. Students applying for student loans will do so directly through the federal government instead of through banks and private lenders. Clemson has participated in the Federal Family Education Loan Program, which uses banks and other private sources for loan capital, for more than 30 years.
“This is a change in the funding source, not in eligibility requirements. It will be a simpler process for the students,” said Keith Reeves, associate director of financial aid at Clemson. “In addition, this change will ensure a secure source of funding for federal student and parent loans going forward. Recent volatility in the credit markets and proposed legislative changes to student loan programs have caused a high level of instability in the private-based student loan market.”
Approximately 8,000 Clemson students benefit from federal education loans, which include Stafford Loans, Parent PLUS Loans and Graduate PLUS Loans, totaling $80 million per year.
The university financial aid staff is modifying student-parent loan processes for transition between the two loan programs and will provide more specific information directly to student and parent borrowers.
