March 23, 2007, Newsletter Issue #9: The Direct Loan Versus FFEL Loan Program

Tip of the Week

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.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.

Not finding the advice and tips you need on this Student Loan Tip Site? Request a Tip Now!

Guru Spotlight
Jennifer Mathes, Ph.D.
Buy My Book