Direct Student LoansThe William D. Ford Direct Loan ProgramThe Direct Loan program had it's origin around 15 years ago and in keeping with Americana it was set up to avoid the middleman.You see in lieu of credit unions and banks and other private sources that lend money to parents and students, the government lends to them directly. These direct programs overlap the FFELP. The latter are programs that work with and through private lenders. Since they replicate in some ways the Federal Family Education Program, it is important for lenders to target just which they want. They both offer Plus and Stafford loans. And Direct Loans employ the same criteria for eligibility.And they have the same need-based guidelines or they require the same credit check criteria for the non need based programs. Since they have the same standards then how do you decide between them? You have to make a decision between the two choosing which of the services to deal with. Both will have answers provided by customer service personnel.But in some cases the you will find the private lender a little more flexible and the government a bit indifferent.The best way to get more information as to which would suit you the best is to read some of the forums. One such site is College Confidential With all the social networks out there it is easier to get a wide variety of opinions.You will be able to form an opinion by reading the various posts on the forum. Differences`do exist between the two broad types though.Since FFELP loans are funded by various institutions, who you sign with may not be who you repay. These lenders sell the loans to other companies all the time. Let us say you found a lender you like and everything is fine. The lender then sells your loan to an institution you previously rejected.That must be considered.In the case of Direct Loans where the government is the lender, the loans will not be sold to another party. The big difference to most borrowers will be the possibility that rates, fees and repayment terms will differ between the two.The rates for Stafford and Plus loans are a fixed rate but private are flexible in different areas. The best and only way to find out what is available is to go shopping like you would do with any other loan.Do some figuring. Calculate the costs like you would any other loan.Get more info from: Govt To apply online see Apply Like the others a Free Application for Student Aid is required. Get the form:FAFSA Form |
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