What is a Direct Loan and FFEL?

William D. Ford Federal Direct Student Loan Program referred to as Direct Stafford Loans (or Direct Loans). Eligible students and parents borrow directly from the U.S. Department of Education at participating schools. Direct Loans consist of Direct Stafford Loans, Direct PLUS Loans, and Direct Consolidation Loans. You repay these loans directly to Department of Education.

Federal Family Education Loan (FFEL) Program referred to as FFEL Stafford Loans (or Federal Stafford Loans). Private lenders provide funds that are guaranteed by the federal government. FFEL Loans consist of FFEL Stafford Loans, FFEL PLUS Loans and FFEL Consolidation Loans. You repay these loans to the lender that made you the loan.

Whether you receive a Direct or FFEL Stafford Loan depends on which program your school participates in.