Babson College Shifts to Federal Direct Loans for its Students
Starting with the 2009-10 academic year, Babson College will offer its students federal loans through “Direct
Lending,” where the federal government makes the loans in place of commercial lenders. There are three loan
programs involved which total over $15 million per year at Babson -- Federal Stafford Loan, Federal Parent Loan
for Undergraduate Students (PLUS), and Federal Graduate PLUS Loan.
Students will benefit from a simpler process of loan origination and better guidance as they enter repayment after
graduation. Parents and graduate students will have the advantage of superior interest rates in the Federal Direct
PLUS and Grad PLUS programs respectively.
Melissa Shaak, Director of Student Financial Services at Babson, says of Babson’s move to Direct Lending, “In
these uncertain financial times it is important to provide the assurance that federal education loans will be
available to every qualified student, and that the loans will come with highly competitive rates, ease of
processing, and excellent customer service. Direct Lending gives us the best way to do that.”
All Babson students and parents who borrow a Federal Stafford, PLUS, or Grad PLUS loan in 2009-2010 will need
to e-sign a Direct Lending Master Promissory Note which will cover future years at Babson. Returning students
and parents who had federal education loans in prior years will be advised to consolidate these loans at
graduation to make repayment easier and more convenient.
For more information please contact Student Financial Services at 781.239.4219 or firstname.lastname@example.org.
Frequently Asked Questions
About Federal Direct Loans at Babson
Q. What will be my interest rate and fees for my Direct Loan?
A. For loans first disbursed on or after July 1, 2009 and through July 1, 2010, the interest rate and fees are:
Fixed Interest Rate
Rebate on Fee*
Direct Subsidized Stafford for