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
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