Briefly: Sec. of Education urges Yale, other universities to adopt Direct Loan Program

Yale was one of nearly 3,000 U.S. colleges and universities to receive a letter Monday from Secretary of Education Ame Duncan urging them to adopt the Direct Loan Program for the 2010-’11 academic year. The letter follows the passage of the Student Aid and Fiscal Responsibility Act by the House of Representatives last month which will end federal subsidies and loan guarantees for private lenders. Director of Student Financial Services Caesar Storlazzi said that he has convened a fourth meeting to map out Yale’s response to the legislative changes, noting that protecting the financial well-being of Yale students is a top priority. Approximately 75 percent of colleges currently use the Federal Family Education Loan Program which disburses loans through private lenders. The Direct Loan Program was established in 1993 under the Student Loan Reform Act and provides loans from the Federal government directly to students and their families. SAFRA is currently awaiting approval by the Senate.

Comments