The Direct Loan Versus FFEL Loan Program

There are actually two types of federally funded Stafford Loans: the Direct Loan and the Federal Family Education Loan (FFEL). A Direct Stafford Loan can be obtained through participating colleges and universities but is borrowed directly from the U.S. Department of Education. The FFEL Stafford Loans are made through private lenders but are guaranteed by the government. If you receive an FFEL Stafford Loan, you or your child are only required to submit the FAFSA and will not undergo a credit check. Most schools participate in one of the two programs although you may find some that participate in both.