For those who have a student that is federal, determine if it is a direct loan or Federal Family Education Loan (FFEL).

For those who have an educatonal loan which was given by or guaranteed in full by the government that is federal your loan most 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 confusing, however, because various types of loans—such as Stafford or PLUS loans—can be either an immediate 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 education loans are either direct loans or indirect loans. They are split from personal student education loans, that have nothing at all to do with the national government, as they are supplied by personal loan providers, just like virtually any type of loan you might get for a home or a vehicle and for retail acquisitions. (find out more about private figuratively speaking. )