Federal Student Loans
What are Federal Student Loans and What Makes Them Different from Private Student Loans?Federal student loans for college are just what they sound like, college loans facilitated by the Federal Government. Federal student loans are among the most popular and most sought after student loans for college, and should typically be the first type of student loan a college student seeks out.
There are two main federal loan programs - the William D. Ford Federal Direct Loan Program aka: FDLP, and the Federal Family Education Loan Program aka; FFELP. The main difference between these two student federal loan programs is who is providing the funds for the federal student loans.
In the case of the Federal Family Education Loan Program it is most likely private banks, credit unions, or education finance companies that are providing the funds for these federal student loans (check with the college you are attending before you apply for your federal student loan to see if they work with or recommend specific institution(s). You may apply for your federal student loan through the Federal Family Education Loan Program via any participating financial institution you wish (it sometimes avoids time delays in student loan dispersements if you work with the financial institution that the college is familiar with).
There are three main types of federal student loans; Federal Stafford loans, Federal Perkins loans, and Federal PLUS loans. In order to determine which federal student loan is right for you, read more about each specific federal student loan by clicking on the name of the federal student loan types.
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