Students relying on Stafford loans as part of their financial aid packages will no longer be receiving funds from private lenders in the 2010-2011 academic year because of a lending program switch that will draw funds from the federal government as opposed to private lenders.

“We will end our participation in the Federal Stafford Loan Program effective at the end of this academic year,” said Larry Chambers, director of Student Financial Services.

An e-mail sent out by the Office of Student Financial Services said there is legislation going before Congress that, if passed, would eliminate the loan program the college currently uses as of July 1, 2010. The college did not want to have to convert to a new loan program within a very short amount of time before next year, should the legislation pass this summer.

Instead, students will be eligible for federal direct loans which offers the subsidized and unsubsidized versions — the same as Stafford loans — as well as the PLUS and Graduate PLUS versions of the direct loans.  

For the full story, check tomorrow’s issue of The Ithacan, or visit www.ithaca.edu/finaid/faqs for more information.