Yesterday the Department of Education conducted a Webinar to review provisions from the College Cost Reduction and Access Act (CCRAA) and the recently enacted Ensuring Continued Access to Student Loans Act (ECASLA).

Jeff Baker, from the U.S. Department of Education's Office of Federal Student Aid, announced that the Department is currently ready to double the Direct Loan program's lending capacity with plans in place to increase its capacity even further if necessary. Baker also said that schools that apply to participate in the Direct Loan program can expect to receive approval in fewer than five days, although it may take longer for schools to update their own business, computer, and financial systems.

"It varies very much by campus and it depends on the software products that a school uses," said Baker. "We are confident we can handle all of the volume from schools coming into the program."

To participate in the Direct Loan Program, all schools must first be eligible and certified for Title IV by the School Eligibility Channel. Schools may begin this process through the Electronic Application for Program Participation (E-App). Once the application is processed, the school will receive an Eligibility and Certification Approval Report (ECAR), listing all the programs a school is eligible and certified to participate in.

Schools wanting to switch over to the Direct Loan program may visit the Department's Direct Loan Registration page online or call the COD School Relations Center at (800) 848-0978 for assistance.

By Justin Draeger
NASFAA Associate Director for Communications

Posted 06/18/08 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.