Similar factors influenced a large majority of schools’ decision to participate in the Direct Loan Program, whereas the factors that led schools to leave the program varied. Four factors—(1) streamlined loan delivery, (2) greater control over loan processes, (3) timely delivery of money to students, and (4) ease of tracking loans over time—were extremely or very important in influencing 70 percent of Direct Loan schools’ decision to participate in the program. While recognizing that improvements have since occurred in FFELP, financial aid officials at Direct Loan schools we visited explained that prior to joining the Direct Loan Program, they had to follow separate and distinct loan processes for each of.
