Whats the Difference Between FFEL Program and Direct Loan Program?
These are two different programs doing the same thing: originating Federal education loans (Stafford, PLUS and Consolidation Loans.) Both of the programs have the same basic rules; however, there are a few primary differences: • The identity of the lender of your loan. The lender in the FFEL Program is a private lender (like Student Lending Works); whereas, the exclusive lender for the Direct Loan Program is the Federal Government. • The loan discounts offered. FFEL Program lenders may offer different discounts than the Direct Loan Program. Note: If your school participates in the Direct Loan Program, you must borrow your Federal loans from this lender. If your school participates in the FFEL Program you may choose any FFEL Program lender to borrow your Federal student loans – even if that lender is not listed on your school’s “preferred lender list”. If My School Participates in the Direct Loan Program Can I Still Get the Student Lending Works Loan Discounts? No. If your school partic
Related Questions
- When are schools required to recalculate the cost of attendance used to certify a FFEL Program loan when a students enrollment status changes from full time to at least half time?
- May a school withhold an academic transcript requested by a student who has defaulted on a FFEL Program loan?
- How do the Direct Loan repayment options differ from repayment options through the FFEL program?
