The student loan programs that have been introduced are the Federal Direct Student Loan Program and the Direct Loan Consolidation Program. Through these new programs, the University will have control of the students' money. The money will be sent directly from the federal government to the schools. The schools love it. It's much simpler.
Students get their money much quicker.
K-State will be participating in the program beginning fall 1995, but only freshmen and sophomores will be included. Everything will be the same as far as the interest and the amount of money that can be borrowed. All students will have the option of the Direct Consolidation Loan to repay their loans. The plan consists of combining their loans and paying them back according to their income after graduation. Moeder said the main concern with this plan lies in the consolidation of the loans.