Though not required through the current Federal Family Education Loan Program (FEEL), the new William D. Ford Direct Loan Program will require students receiving loans to work directly with the federal government to complete loan paperwork.

“We just want to notify students and parents of what they need to do now,” Kathy Q. Graham, assistant director of the Office of Student Financial Aid said.

Beginning summer 2010, all federal education loans at Appalachian State University will be processed under the new direct loan program.

“Because of this change, there are steps that students and their parents will need to take immediately to ensure that loan money is available to them in the future,” Lori A. Townsend, associate director of the Office of Student Financial Aid said.

Appalachian students and parents will be considered new borrowers under the Direct Loan Program, and must complete new Master Promissory Notes (MPN).

“Even if a student has borrowed for three years at Appalachian, he or she must now complete a new MPN in order to borrow for summer 2010 or fall 2010,” Townsend said.

If a loan-seeking student does not complete a MPN, the student’s financial aid loan-money will not be available to them at the beginning of the semester.

During the 2009-10 school year, 52 percent of Appalachian students received federal or state loans.

“Students have to know they have to do this,” Graham said. “The loans won’t just come in.”

Story: JULIANNE OLSON, Intern News Reporter