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What is the difference between Direct Loans and the Federal Family Education Loan Program (FFELP)?

April 26, 2017difference Education family Federal FFELP loan Loans program

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What is the difference between Direct Loans and the Federal Family Education Loan Program (FFELP)?

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A. The primary difference between Direct Loans and the Federal Family Education Loan Program, (Stafford Loan) is the source of funding. While FFELP loans are funded through a variety of banks and private lending institutions, Direct Loan funds are borrowed directly from the federal government. Additionally, with Direct Loans borrowers have a single contact, the Direct Loan Servicing Center, for everything related to the repayment of the loan.