| Direct Loan is true to its name and self explanatory. It | | | | of a personal touch. Also, because the lender will make |
| is a program in which the government loans money | | | | no money if they are not able to extend you credit |
| directly to students rather than using a third party bank | | | | they will work harder to get you approved for the loan. |
| or other lending institution to process and make the | | | | Government agencies are normally not as personal or |
| loan. The direct loan program has been in affect for | | | | as accommodating. |
| about 15 years now. | | | | Go to talk.collegeconfidential.com/forumdisplay.php?f=7 |
| The opposite of a direct loan is a Federal Family | | | | if you want to hear what others think about the two |
| Education Loan (FEEL). Both direct loan programs and | | | | different programs. |
| FEEL programs make PLUS and Stafford loans | | | | Many things posted are solely personal opinion and not |
| available. There are other similarities between what | | | | so much on the actual variables or requirements of |
| each program offers. The borrower has to decide | | | | each program. Reading through it may help you get a |
| which type of program he wants. | | | | good idea of where you stand between the two |
| Since both offer the same types of loans the same | | | | options. |
| requirements must be met. If it a loan offered based | | | | One important factor to keep in mind is that whenever |
| on a person's credit scores then both direct and FEEL | | | | you are dealing with a private lender your loan is |
| programs will have the same requirements. The same | | | | subject to be sold to another lending institution. |
| is true if the loan is based on a family's income. Both | | | | The opposite is the case with direct loans which are |
| programs will have to follow the same requirement | | | | always directly with the federal government. It if is |
| guidelines in offering the loan. With so many similarities | | | | important to you that throughout the life of your loan |
| how does one choose? | | | | you are able to deal with the same person or group of |
| Well there are some differences to consider. One is in | | | | people if you have questions or concerns you might |
| customer service. When you involve a third party that | | | | want to consider going with a direct loan program. |
| is in business to make money normally you get more | | | | |