FAMU cancels federal student loan program

[treese]

Tuesday, May 08, 2007
FAMU cancels federal student loan program


Interim President Castell Bryant is ending FAMU's participation in the Federal Direct Student Loan Program, from which FAMU students received $26 million in loans last year.

FAMU will now steer students to just two lenders -- Regions Bank and Edamerica, each of which did about $27 million in lending business last year at FAMU.

The lending requirements at the schools two "perferred" banks are stiffer than the federal loan program and command higher interest rates.

Officials at Florida A&M, told the St. Petersburg Times yesterday that this made life easier for financial aid advisers, who have to process federal loans differently for each company.

Marcia Boyd, interim director of financial aid, the fourth Financial Aid Director under the Bryant administration, claimed FAMU doesn't earn any money from preferred lenders.

FAMU students from dire circumstances will pay higher interest rates and face stricter loan requirements.

The University of Florida is the only university in the state now participating in the federal direct student loan program. Florida State opted not to participate, but the Times revealed that its financial aid director sits on the board of the school's private loan grantor.

[DOOMS]

With all the news coming out concerning college financial aid officers receiving kickbacks for steering students to certain lenders this is an extremely stupid move.

[AggiePride]

How does this move help students? The govt is way better lender than the private sector. They are more flexible and willing to work with students for repayment options. I cannot believe they are doing that, do they forget who they serve.

[Bigboy]

I get the feeling that there must be more to this move than FAMU is willing to tell.

[pitbull]

Makes zero sense .......
Higher interest rates and stiffer rules...I'm gonna tell our recruiters to head to Fla......They might see a large increase in students looking for a change...

[@ProfBellamy]

While this means FAMU students aren't elgible for "Direct Federal Loans", they still can receive Federal Loans. Nonetheless, this was an idiotic move on FAMU's part. However, Dr. Bryant is out at the end of the month now.