Explain the difference between the two federal loan programs (Direct and FFEL)?
The Department of Education (without the involvement of a private entity) directly makes loans to students through William D. Ford Direct. In the Federal Family Education Loan program (FFEL), the loans made by private lenders with a government subsidy that guarantees these loans in case of student default. FFEL is also known as the guaranteed loan program. The terms and conditions of these loans are similar; however, there are some differences in the repayment options. Tell me more about the two federal loan programs (Direct and FFEL). Explain the difference between private and federal loans. Private loans are unsubsidized and unregulated, generally carry a variable interest rate and come with limited repayment options. Federal loans, provided by a private lender or directly by the Department of Education, are subsidized and regulated by the federal government. Federal loans also carry a fixed interest rate. Borrowers should try to utilize their federal loan options before considering
