KNOXVILLE — Recent changes to the way the federal government distributes and manages student loans will affect how University of Tennessee, Knoxville, students receive financial aid.
The changes, which recently passed into law, shift the processing of federal student loans away from private lenders and to the U.S. Department of Education. UT Knoxville students should see few, if any, changes, although many of them will need to complete additional paperwork:
Students currently receiving federally backed student loans must complete a new master promissory note (MPN) to cover the new direct loans from the government.
Current students with existing federally backed loans managed by private lenders will have the option to consolidate their loans into the direct loan program.
New loan recipients, including incoming freshmen and transfer students, now will complete forms directly from the Department of Education to receive their loans.
The changes go into effect beginning with the summer term.
Students can find information on the new process and links to the online MPN at the UT Knoxville financial aid website, http://finaid.utk.edu/.
More than 12,000 UT Knoxville students receive some form of federally backed student loans, totaling more than $110 million each year.
Students or parents with questions about the changes are encouraged to call the UT Knoxville Office of Financial Aid at (865) 974-3131.
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