If you haven’t heard, one of President Obama’s proposed changes for the Stafford loan program is to eliminate the FFEL program, which stands for the Federal Family Education Loan Program. This basically consists of private lenders who lend out Federal loans. Currently there are 2 types of programs that lend Federal loans, FFELP and Direct loans. Direct Loans are loans lent directly from the government. The President has proposed to eliminate the FFEL program and run all Stafford loans out of the Direct program. About $76 billion in loans has been lent out for this current school year, of which only $26 billion was lent by Direct Loans.

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