Frequently Asked Questions (faqs)
1. What is the difference between the FFELP and the William D. Ford Federal Direct
In the Direct Loan Program, the U.S. Department of Education acts as a lender, providing funds for Stafford loans and the Grad Plus loans. With FFELP, students chose a bank or lender.
2. What steps do I need to take to apply for the Federal Direct unsubsidized, and Grad PLUS Loans through the Direct Lending program?
- Apply for financial aid via FAFSA.
- Wait to receive your award letter from the financial aid office that will be viewable via Banner self-service system (an email will be sent to acknowledge completed awards).
- Follow the steps and/or instructions on your award letter.
3. What is the interest rate on the Federal Direct unsubsidized Loan Program?
The interest rate is currently fixed at 6.8%.
4. What is the interest rate on the Federal Direct Grad PLUS Loan?
The interest rate is currently fixed at 7.9%.
5. Does the Federal Direct unsubsidized loans program have any fees?
Yes. See chart below.
|If the awards earliest disbursement date is...||Origination
|Up-front Origination Rebate||Total
|On or after July 1, 2010 and before July 1, 2011||1%||0%||1%|
6. Does the Federal Direct Grad PLUS Loan have any fees?
Yes. See chart below.
7. How does the credit check process work on the Federal Direct Grad PLUS Loan?
Once the borrower completes the Master Promissory Note (MPN), which includes the applicants authorization for a credit check to be completed the borrower will receive written confirmation of the credit check result.
8. When does the credit check process take place?
The school sends notification to the Direct Loan program within five (5) days after the student accepts their award in Banner.
9. How long is the credit check valid for?
A credit check is valid for 90 days.
10. Can endorsers of Federal Direct Grad PLUS Loans complete the endorser addendum
No. A customized paper endorser addendum form would be mailed directly to the borrower.
11. Do I need to complete a new Entrance Interview for the Direct Loan program?
Yes. Students need to be aware of the differences in the Direct Loan Program versus the FFELP program.
12. Does the Direct Loan program have in-school deferment for graduate/professional
Yes. Graduate/professional students who have Federal Direct Loans and/or Grad PLUS are placed in an in-school deferment status based on the information reported by the school.
13. Does the Direct Loan program allow borrowers to defer payments?
Yes. The Direct Loan program offers the same deferments that were available to borrowers in the Federal Family Education Loan Program (FFELP).
14. Who will be my service provider for the Direct Loan program?
You will be directly notified by the Direct Loan Program as to whom your service provider will be.
15. Whom should I contact if I have questions about the Direct Loan program?
Please contact the Office of Student Financial Aid at 615.327.6826 or by emailing us.
Meharry Medical College
Office of Student Financial Aid
1005 Dr. D.B. Todd, Jr. Blvd.
Nashville, Tennessee 37208