For those who have a federal education loan, determine if it is a direct loan or Federal Family Education Loan (FFEL).
When you have an educatonal loan that has been supplied by or fully guaranteed because of the government, your loan most likely falls into 1 of 2 groups: direct loans or indirect loans. Indirect loans may also be called Federal Family Education Loans (FFELs). Things will get perplexing, however, because various types of loans—such as Stafford or PLUS loans—can be either a primary loan or a loan that is indirect.
Keep reading to get the difference out between a primary loan and an indirect loan/FFEL loan.
Direct vs. Indirect Federal Loans
Federal student loans are either direct loans or loans that are indirect. They are split from personal student education loans, that have nothing in connection with the federal federal government, as they are given by personal loan providers, similar to some other types of loan you could get for a property or an automobile and for retail acquisitions. (find out about private student education loans. )