Keene State College is pleased to announce that beginning with the 2010-11 academic year, we will be participating in the William D. Ford Federal Direct Loan Program. We have compared our current Federal Family Educational Loan Program (FFELP) and the Federal Direct Loan Program. We believe the Federal Direct Loan Program will better serve our students and parents for the benefits listed below.

1. Access to funds: The Direct Loan Program is funded by the federal government, eliminating the concern for access of funds from banks and other lenders who may be exiting the FFELP Program.
2. Lower cost to parents: Parents of dependent students are able to access Federal PLUS loan at 7.9% fixed interest rate versus 8.5% from FFELP. The loan origination cost is 2.5% versus 4.0% from FFELP.
3. Added repayment plan for Stafford loan borrowers: The Direct Loan Program for students has 5 repayment plans versus FFELP's 4 repayment plans. The Direct Loan Program offers an income contingent plan, where after 25 years of payments, the unpaid portion is discharged.
4. Public service forgiveness: For KSC graduates working in key public service professions such as teaching, government, social work, law enforcement, and non-profit 501(c)(3) organizations, Direct Loans have a new Public Service Loan Forgiveness program that will forgive remaining debt after 10 years of eligible employment and qualifying loan payments.
5. Smoother delivery of loan funds: Direct Loan program is fully integrated with the federal financial aid process, simplifying the administration and oversight of the loan funds. KSC has the technology and business process in place to administer this program which is similar to other federal programs we administer.
6. One lender: Students will be able to track their Direct Loans with one lender and in one location.
7. Loans never sold: Loans are being sold in the FFELP program. Loans are never sold in the Direct Loan Program.
8. Consolidation: All federal loans can be consolidated to the Direct Loan Program and still have some of the loan forgiveness programs.