Columbia University Student Financial Services

On March 30, 2010 President Obama signed a reconciliation bill that significantly reforms the processing of federal loans and grants for students.  In light of this legislation, Columbia University will transition to the Federal Direct Student Loan Program beginning with the 2010-2011 academic year.

Like the existing Federal Family Education Loan Program (FFELP), the Direct Loan Program provides federally insured loans to students and their families. Rather than working with private lenders who process and disburse federal loans, students and their families will now receive federal loans directly from the U.S. Department of Education.

For the 2010-2011 academic year, all federal Stafford and PLUS loans will be processed through the Direct Loan Program of the U.S. Department of Education. This change will not affect borrowers' eligibility, but the process will be different. Students and parents who have existing loans through FFELP will continue to work with private lenders for these existing loans.  All future loans will be issued through the Direct Loan Program.  Upon graduating, students may elect to consolidate their federal loans into one payment with the U.S. Department of Education.

We understand that there will be many questions regarding this transition.  This website provides a set of questions and answers that will be updated regularly.  Federal student loan recipients will receive more detailed information via email in the coming weeks.  Please know that we will provide as many resources as possible to ensure that this transition occurs smoothly.