What is the difference between FFELP and the William D. Ford Direct Loan Program?
In the Direct Loan Program, the U.S. Department of Education acts as a lender, providing funds for Stafford loans and PLUS (for parent and graduate students) loans. With FFELP, students chose a bank or lender, the college then certified the amount the students and parents were eligible to borrow and applied the laon proceeds to students accounts. Why is Stockton changing to the Direct Loan Program? Stockton very carefully weighed the differences between FFELP and the Direct Loan Program. We decided to go with the Direct Loan Program because it: • Is a simpler process for families as every borrower uses the same application process and is subject to the same loan fees; • Better guarantees the availability of funds for families; • Is cheaper for families in the short term and offers the same cost to families in the long term*; and • Offers loans through the same department that handles conslidation of student loans (the U.S. Department of Education). If I’d previously received a Stafford
