| At the time of researching your student loan | | | | More concrete differences between the two |
| consolidation information alternatives you need to | | | | products do exist, though since FFELP loans are |
| examine the William D Ford Direct Loan Plan. | | | | funded and serviced by private financial institutions |
| The Direct loan program began about 15 years ago | | | | who you sign a promissory note and could possibly |
| and in reliable American fashion was used to remove | | | | not be who you re-pay the loan to, it is a basic |
| the middle man, instead of having the banks, credit | | | | practice for lenders to re-sell loans to other |
| unions and other private businesses lend money to | | | | businesses, mortgage companies have been doing |
| students and their parents, the Federal government | | | | this all the time, you may have gone to the trouble |
| loans the dollars directly. | | | | to discover a lender and their services you like, you |
| Direct programs overlap in many areas, the | | | | could have decided over and above the rate and |
| alternative known FFELP (Federal Family Education | | | | repayment terms preferring their customer service |
| Loan Program), the latter is the acronym for | | | | and then for example finding the loan has been sold |
| programs that work via private lenders, since they | | | | to another business, you may now be repaying the |
| duplicate in a few ways the FFEL schemes, it is | | | | loan to a company you rejected, however in the |
| critical for lenders to target which program they | | | | situation of Direct loans since the Federal government |
| want as both offer Stafford and PLUS loans, Direct | | | | is the lender the loans are not sold to any third party. |
| loans have similar criteria for eligibility, they adhere to | | | | The most critical difference to many people will be |
| a similar need-based guidelines, or have similar credit | | | | the possibility that rates, charges and repayment |
| check requirements for non-need-based services, | | | | terms could differ between the two, officially the |
| providing similar programs according to a similar | | | | interest rates of both Stafford and PLUS loans are |
| standard raises a natural question, how to pick | | | | fixed, nevertheless private lenders have some |
| between them? | | | | flexibility in other areas. |
| In part the decision involves picking out which of two | | | | The lenders could possibly charge or not charge |
| types to use, both provide customer service | | | | origination and insurance charges (officially assessed |
| personnel to answer any questions, in a good number | | | | at 3% and 1% according to the Federal laws, which |
| of cases the private lenders will be more flexible and | | | | themselves are changing in the next few years). |
| helpful and the government more bureaucratic or | | | | Though the fees are still there the lender may agree |
| indifferent, reading many of the forums, which can | | | | to absorb them in order to obtain your business, |
| be accessed on-line could be the better way to | | | | they could possibly modify the dates on which |
| obtain more information about which would best suit | | | | interest charges are calculated, or extend grace |
| an individuals situation, with the growth of social | | | | periods or lengthen the re-payment time. |
| networks it has become much easier to get a | | | | The only way to find out what is available is to shop |
| diverse set of views and opinions, many of these | | | | around much as you would for any other kind of loan |
| views are based less on objective criteria than | | | | and calculate the total cost of the loans, it is |
| personal taste, reading the posts may instantly allow | | | | imperative to keep this information at hand when |
| a person to decide which side they favor. | | | | considering any student loan consolidation information. |