Have they changed the types of loans being given affective 7/2010??

[DrMcKittrick]

I have heard that the types of loans (sub, and unsub) along with grad plus loans are being changed with the banks being taken out of the equation. Can anybody clarify this? Since all loans are being backed by the Government affective 7/2010 what type of loans will there be now??

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[WACAT]

Exact same loans, just through the Dept of Ed and not through banks. I think Grad Plus loans will have a lower interest rate though.

 

[DrMcKittrick]

I'm wondering if the Grad Plus will still be a credit based loan since the middle man has been removed.

 

[TMP-SMX]

Grad plus is marginally credit based. (Requirement of no defaults/bankruptcies etc.) Plus loans will be 7.9% rather than the 8.5% they were.

Many schools started Direct loans this past year rather than FFEL through lenders. Starting July 1st, all schools will move to Direct Loans.