Federal Direct Loan Program Q & A

PMC changed the way we process Federal Student Loans starting with the 2008-2009 academic year. We no longer award Federal loans through the Federal Family Education Loan Program (FFELP). Student Financial Resources has put together this brief Q & A to provide you with a better understanding of the new loan process.

Why the change?

Economic issues, including the recent subprime lending crisis, coupled with regulatory changes to the student loan industry have all contributed to our decision to exit the Federal Family Educational Loan Program. After careful consideration and review of these issues and changes, the College concluded that a change to the Direct Loan program would be more beneficial to students.

How does this affect me?

If you are or were a borrower of a Federal Stafford Loan or your parent borrowed a Federal PLUS Loan, these loans were borrowed from a bank or credit union. These loans will now be borrowed directly from the federal government through the William D. Ford Federal Direct Loan Program.

What are the benefits of the Direct Loan Program?

  • Funding secured directly from the U.S. Department of Education
  • A simple application process
  • Quick receipt of funds
  • Excellent customer service
  • Loan forgiveness program

What do I have to do?

To accept funds from this program, you are required to complete a Master Promissory Note. More information can be found in the PMC Loan Center.

How will I know when funds will be disbursed?

You will receive notification from PMC that funds have been disbursed to your student account. Disbursements occur no earlier than ten (10) days prior to the start of a term.

Can I borrow a private educational loan?

Yes! Private (supplemental) loans, exclusive of the Federal Stafford and PLUS, are available from lending institutions for students and families to borrow for expenses not covered by your financial aid offer, up to the cost of education for the academic year. Rates are competitive and we recommend you research the options available. Federal loans should be applied first.