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What is the difference between the Federal Family Education Program (FFELP) and the Federal Direct Loan Program?

April 26, 2017Education family Federal FFELP loan program

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What is the difference between the Federal Family Education Program (FFELP) and the Federal Direct Loan Program?

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A20. Federal Direct Loans have the same general terms, conditions, interest rates, benefits, and loan amounts as loans made to borrowers under FFELP. The primary difference between the Federal Direct Loan Program and FFELP is that the federal government, not private lending institutions, funds the Federal Direct Loan Program. Check with the college/university you plan to attend to determine the loan program in which the college participates.