Beginning with the Summer 2010 term, SUNY Fredonia will participate in the Federal Direct Stafford and Plus Loan Programs.
SUNY Fredonia had used the Federal Family Education Loan Program since the 1970’s. Under this lender-based program, borrowers secured student and parent loans from private banks and credit unions. Unfortunately, the recent challenging economic times have forced many banks and credit unions out of this program, and pending legislation on the Senate floor could very likely eliminate it completely.
As a result, the Financial Aid Office will now be processing all Stafford and Parent loans directly through the U.S. Department of Education (not through individual banks). This will eliminate much of the difficulty and misunderstanding in securing and eventually repaying loan funds. All borrowers will be required to sign a new Master Promissory Note (MPN). To ensure a smooth transition for the 2010-11 disbursement of your loan funds, we encourage you to do this now! To reiterate, it is critical that all students planning on borrowing a federal Direct Stafford Loan for the 2010-11 academic year (Summer 2010, Fall 2010, Spring 2011) complete a new Master Promissory Note (MPN).
