Yesterday, Senator Edward M. Kennedy (D-MA), chairman of the Senate Health, Education, Labor and Pensions Committee, sent a letter to George R. Boggs, president of the American Association of Community Colleges, urging him to publicize the Direct Loan Program to his members to ensure that students continue to have access to federal student loans. Some lenders - including larger loan providers like Chase and Citibank - have announced that they would not be offering loans to certain students at specific schools like community colleges or other schools with high default rates or low average loan balances.

"[S]ince lenders continue to say they may have to limit new loans to certain colleges, it’s possible that the neediest students, particularly those at community colleges, will need an alternative to the FFEL Program," wrote Kennedy. "Colleges participating in the Direct Loan Program have not and will not face the possibility that their lender will pull out."

In the letter Kennedy outlines the steps schools would need to take to enroll in the Direct Loan Program, as well as a Web link to the Department's Direct Loan Registration Web site.

"I commend you and the Association for all you do so well to assist students and families," concludes Kennedy. "I hope that you will call on my office if we can be of any assistance or if your students are having difficulty obtaining loans, and that you will urge college presidents and financial aid officers to do the same."

The full letter is available online.

Other Media Coverage

Kennedy Urges Community Colleges to Enroll in Direct-Loan Program (The Chronicle of Higher Education)

By Justin Draeger
NASFAA Associate Director for Communications

Posted 06/17/08 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.