Direct Federal Student Loans are a Mess

by Ashley
(Atlanta)

Switching to Direct federal student loans has been a mess for my school. Students need to sign their new master promissory note by Aug 10 or they will be dropped from their classes. I found this out by chance. Maybe the school sent out notices, but who looks at their college email over the summer?

If this is happening in other schools, this first year with Direct loans will be a disaster. Schools will either have to grant extensions, which will mean that they will be late paying their employees, or else they will lose a lot of students.

There should have been more notice and direction given to students before they left for summer break. Even if the law did not get signed until late, the government could have waited another semester for it to take effect. Maybe it will work out better in the end, but the beginning of having only Direct loans has not been good.