CLARION, Pa., April 22 – When President Barack Obama signed the new health care legislation into law, he also signed the Reconciliation Act of 2010.

The Reconciliation Act stops banks and private lenders from offering Stafford Loans to students and also authorizes all student college loans to be offered through the U.S. Department of Education.

Kenneth Grugel, director of financial aid at Clarion University, issued an advisory to students and their parents that Student Stafford Loans will no longer be issued on June 30.

Direct loans from the federal government will take the place of private loans.

All students enrolled at any university or college will need to complete a new Master Promissory Note with the USDOE if they wish to borrow funds for the new academic year.

Students will also have to fill out an entrance interview at the Federal Student Aid web site at StudentLoans.gov. “There won’t be any change in how much students receive,” said Grugel. “The only change will be a decrease in interest rates.”

Hopefully everybody will be up to date with this by the fall,” said Grugel.