Choose a Lender
Once you know you will need to borrow money for college, you should determine from which lender you will borrow. There are many things you should consider. To help you choose a lender, you will need to know first if your college/university is a FFELP or Direct Loan school. If your college/university is a FFELP school, you will need to
make an informed choice regarding your lender. Utilizing an
Iowa Student Loan Serviced Lender will allow you to benefit from our exclusive borrower benefits.
FFELP or Direct?
Before deciding which lender to choose for your federal loans
(Stafford and PLUS loans), you must first determine the federal loan
program your college uses: FFELP or Direct. The two programs are
similar, with the main difference being the source of the money. Your
college will let you know the loan program it uses and how to apply.
- Federal Family Education Loan Program (FFELP) – Funding comes from commercial banks, credit unions and savings banks that make the loans. Iowa Student Loan works with our Serviced Lenders to help fulfill your federal loan needs if you are attending a FFELP school.
- William D. Ford Federal Direct Loan Program (Direct) – The U.S. Department of Education provides the money for the loan through the college or university. If you are attending a Direct school, you will need to contact your school to inquire about the federal student loan process.
Find out if your
college/university is a FFELP or Direct school.
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