March 26, 2010, Newsletter Issue #163: The Direct Loan Versus FFEL Loan Program

Tip of the Week

Chase Tip: If you are receiving a PLUS Loan as a means of college financing, the school will also participate in either the Direct Loan program or the FFEL program. With the Direct PLUS Loan, the application and promissory note will be sent to you as one form to complete and return to the school’s financial aid office. With the FFEL PLUS Loan, you will receive an application from the school, lender or guarantee agency for your state. After you return the form to your child’s school, they complete their portion and then send it on to the lender. The private lender will then evaluate the application to make a determination on whether or not it meets their credit granting standards for college financing. A PLUS Loan will require a credit check.

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