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The National Direct Student Loan Coalition (NDSLC) is comprised of schools dedicated to continuous improvement and strengthening of the Direct Loan program. Its grass-roots members are financial aid professionals working at participating institutions.
National Direct Student Loan Coalition Responds to the President's Budget President Obama's budget release February 26 brings bold new initiatives to help students finance their education. By moving the delivery method of new federal Stafford student and PLUS loans to the delivery method used by the Federal Pell Grant and Direct Student Loan Programs and cutting subsidies to lenders, the Administration intends to fund increases and stabilize the Federal Pell Grant program; making it an entitlement program not subject to the annual appropriations process. Pell Grants assist needy students with grant aid to cover educational costs. Under the President's proposal, savings from the elimination of the Federal Family Education Loan Program (FFEL) go directly to fund students through the Pell program. "The National Direct Student Loan Coalition applauds the President's efforts to help needy students fund their educational pursuits," states Roberta Johnson, Chair of the National Direct Student Loan Coalition. "Presidential budgets for many years have consistently shown that the Federal Direct Student Loan Program is less expensive to American taxpayers. Administration of the program relies on government contracts to private corporations that must meet strict standards for performance. And, because the Common Origination and Disbursement (COD) operating platform for direct loans relies on the same delivery system that financial aid professionals already use to obtain Federal Pell, ACG, SMART, and TEACH Grant funds, conversion to direct lending is quite straightforward." Over 700 schools converted to the delivery system used by the Federal Direct Student Loan Program for the 2008-09 academic year. Transition assistance was provided by both the U.S. Department of Education and through mentoring by the National Direct Student Loan Coalition for any schools who requested help. The Department of Education is prepared and capable of expanding the origination system to accommodate all institutions. In addition, the National Direct Student Loan Coalition will continue to mentor any schools who are seeking information regarding the Federal Direct Student Loan Program. > Questions & Answers on the Transition to 100 Percent Direct Lending |
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