Banks, savings associations and credit unions are generally referred to as a lender

Banks, savings associations and credit unions are generally referred to as a lender

NOTICE: Federal cheapest payday loan Gastonia legislation will very likely eliminate the FFEL version of federal student loans, effective information on this website, as Direct Loans will continue.

FFEL Program Loans

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FFELP Loans: FFELP Loans are relatively low-interest, long-term loans generally made by banks, savings associations and credit unions to help you finance the cost of your post-secondary education. FFELP Loans are guaranteed by the US government and, except for the PLUS Loan, do not require a credit check. There are three (3) types of FFELP Loans:

  • Stafford Loans (the interest on which may or may not be paid by the federal government while you are in school);
  • PLUS Loans (which includes loans to the parent of a student and to graduate and professional students); and
  • Consolidation Loans.

What is a Stafford Loan? A Stafford Loan is the most common form of federal student loan and one of the three (3) types of FFELP Loans made by a lender to a student/borrower. A Stafford Loan and a Direct Loan are essentially the same type of loan; the principal difference is the lender. In the case of a Stafford Loan a bank or savings and loan or credit union is the lender whereas the federal government is the lender of a Direct Loan. The repayment of a Stafford Loan is guaranteed by the federal government.More