|
An educational loan will help open the door to a student’s future. Making informed, well thought-out decisions regarding finances while in college is one important key to ensuring that this and many other doors remain open.
Loans are a form of financial aid that must be repaid with interest. Loans provide monetary assistance through participating lenders, colleges, the federal government and other organizations. Loan funds are to be used for educational purposes and must be repaid.
The main purpose of this section is to provide you with an introduction to the Federal Family Education Loan Program (FFELP), as well as a quick summary of the different types of loans available to students and parents. Schools may also participate in the William D. Ford Federal Direct Loan Program (Federal Direct Loans). Federal Direct Loans are very similar to FFELP, with comparable terms and conditions. The main difference between the two programs is who acts as the lender: under FFELP, lending institutions (i.e., banks, credit unions) loan the funds, while the federal government is the lender for Federal Direct Loans.
|
