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University of Wyoming Shifts Exclusively to Federal Direct Lending

March 9, 2010 — Beginning with the 2010 summer session, students and parents will be required to use the Federal Direct Loan program for all federal student and parent loans to attend the University of Wyoming.

UW will participate exclusively in the Federal Direct Loan (subsidized and unsubsidized student loans), Federal Parent PLUS Direct Loan and Federal Grad PLUS Direct Loan programs, says David Gruen, director of Student Financial Aid at UW.

Gruen says the traditional Federal Family Educational Loan Program (FFELP) loans such as Stafford Loan, Parent PLUS Loan and Grad PLUS Loan through banks, credit unions and other student loan lending companies will no longer be processed at UW.

"We will stop doing business with these lenders and join the Federal Direct Loan program," Gruen says. "Under this program, students borrow from the federal government through their colleges and private lenders are eliminated from the picture. The Federal Direct Loan program has existed since the early 1990s, so UW is joining an established loan program to provide loan products for our students and their parents."

Instructions for how to apply for a Federal Direct Loan (subsidized and unsubsidized), Federal Parent PLUS Direct Loan and Federal Grad PLUS Direct Loan will be provided when students accept their loan award with their financial aid award notice on WyoWeb for both the 2010 summer session and 2010-11 academic year.

To view a chart to help understand the differences between the Federal Direct Loan and FFELP programs, visit

For answers to the most commonly asked questions concerning Federal Direct Loans, including the steps each borrower needs to take to apply for a Federal Direct Loan, visit

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