Fed Financial
federal direct loans?
Wat student loans are better to work with
Public Comments
- Stafford Loans are the best student loans to work with and depending on your school you can either used Direct loans where you borrow from the government or FELP loans were you borrow from private lenders, a few schools give you the option for either. I have had both and the Direct Loan website is great but FELP lenders sometimes offer better incentives if you make so many payments on time.
- I like federal direct loans b/c if you have a history of poor performance in school, they will give you the amount request. Instead, ffel will probate the loan to the cost of tuition and books and not for outside cost, like, housing and food. In addition, direct lenders charge an origination fee for their loans, so student may have to pay the difference. FFEL doesn't have an origination fee, so the money you request is the amount you will receive. Unfortunately, a few school use direct loans because more schools are reaping the benefits of doing so. I am sure there will be a point where all schools are going to deal with FFEL lenders
- Direct Loans and FFELP Loans are functionally identical, though some FFELP lenders can offer incentives for repayment. However, for the most part, you don't get to choose which loan type you want; it's determined on a school by school basis by each school's financial aid office. Hope this helps! Christopher S. Penn Producer, the Financial Aid Podcast Daily free financial aid internet radio, no iPod required http://www.FinancialAidPodcast.com FinancialAidPodcast [at] gmail [dot] com
