Howard_Payne_logosmallIn January, Howard Payne University began transitioning to the Federal Direct Loan Program (FDLP). HPU joins thousands of other U.S. colleges and universities implementing this change.

HPU is moving to the FDLP, under which students and parents borrow federal student loans directly from the U.S. Department of Education, to ensure continued access to federal student loans for pursuit of higher education. Currently, HPU participates in the Federal Family Education Loan Program (FFELP), under which students and parents borrow from private lenders. Recent federal legislation ceases the making of new FFELP loans effective July 1, 2010.

“As we watched the changes taking place in Washington, D.C., Howard Payne University began to take proactive measures to ensure that, to the best of our ability, students would not see an interruption in service,” said Dr. Brad Johnson, vice president for enrollment and student services. “The HPU financial aid staff, and other offices on campus, have worked diligently through this significant transition period and stand ready to assist students and families through the new process.”

In general, the process by which a student or parent obtains a Direct loan will be essentially the same as the process to obtain an FFELP loan. One action that will be necessary, however, is that a student or parent will have to complete a new Master Promissory Note (MPN) to borrow his or her first Federal Stafford or PLUS loan under the FDLP.  Further guidance on this process and more information about Direct loans are available at the Department of Education’s federal student loan Web site at www.studentloans.gov. In addition, HPU will provide guidance on completing a Direct loan MPN during the federal student loan awarding process.

Students and parents who have questions about this transition may contact HPU’s Office of Financial Aid at 325-649-8015.