The following links are helpful in deciphering some of the specific terminology and acronyms related to UTS and to US Financial Aid.
Several entities are intricately involved in William D. Ford Federal Direct Loan (Direct Loan) Program loans:
- The US Federal Government has authority over Direct Loans and establishes rules and regulations governing the administration of the loans.
- The student is the borrower of the money under the Direct Loans guidelines.
- The Financial Aid staff at the University of Technology Sydney works with you and your parents to determine eligibility based on federal guidelines for different types of financial aid such as scholarships and loans. The US Financial Aid staff also certifies or approves your federal loan application and the amount you can borrow.
- A lender actually provides the funds. The lender may be the US Department of Education, a bank or other financial institution that sends the cheque or transfers funds to the university. If the lender sells your loan to another party, you will be notified of the new loan holder.
- The university determines and certifies student eligibility for Direct loans, provides loan counselling for student borrowers, delivers loan proceeds to students (having first paid any balance due on your student account), reports enrolments and other information about Direct Loan borrowers, and complies with US laws and regulations governing the program.
- A servicer is a company contracted by a lender to administer the loan. This includes collecting payments, corresponding with borrowers, recording address changes and updating loan status on behalf of the lender. You should be familiar with the name of your servicer as it may be the source of vital communication concerning your loan.