Student loans that the federal government provides or guarantees usually fall into two categories: Federal Direct Loans or Federal Family Education Loans (FFELs). FFELs are also called "indirect loans." Private student loans come from a bank, credit union, or private lender without government involvement.
You can identify your loan types by logging on to StudentAid.gov and selecting ``My Aid'' in the dropdown menu under your name. In the ``Loan Breakdown'' section, you'll see a list of each loan you received. You'll also see loans you paid off or consolidated into a new loan.
Sallie Mae provides private student loans. Federal loans formerly managed by Sallie Mae were moved to other servicers.
``Direct'' loans are owned by the Dept of Education. The Dept of Education can only ``forgive'' loans that are owned by the Dept of Education. FFEL loans are NOT owned by the Dept of Education (except in unusual circumstances).
FFELP loans (also known as FFEL loans) can be forgiven after 20 years, but it's not automatic. These Federal Family Education Loan Program loans, issued before July 2010, weren't originally eligible for many forgiveness programs.
Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans are types of Direct Loans. Learn more about the types of federal student loans and how to get a federal student loan.
In 2021, Navient's contract with the Department of Education to service Direct Loans finally ended. Navient announced in early 2024 that it intended to transfer the servicing of its remaining loans to another servicer.
Federal student loans are broken down into four categories: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans and Direct Consolidation Loans. Within those categories, there are loan options for undergraduate students, graduate students, professional students and even parents.
Lender Sallie Mae used to offer federal student loans, and if you received one, you may be able to qualify for loan forgiveness. But federal student loan forgiveness can be hard to get — and if you have a private student loan through Sallie Mae, federal forgiveness is not available.
You can identify your loan types by logging on to StudentAid.gov and selecting “My Aid” in the dropdown menu under your name. In the “Loan Breakdown” section, you'll see a list of each loan you received. You'll also see loans you paid off or consolidated into a new loan.
Nelnet is a federal student loan servicer working on behalf of the U.S. Department of Education (ED), the government agency that lends you student loans.
Navient is a company that services federal and private student loans.
If you take out a federal student loan, the U.S. Department of Education will assign you to one of the student loan servicers that oversee federal student loans after your loan amount is first disbursed. Edfinancial is one of the seven student loan services for federal student loans.
You'll have to repay the money with interest. Subsidized loans don't generally start accruing (accumulating) interest until you leave school (or drop below half-time enrollment), so accept a subsidized loan before an unsubsidized loan. Next, accept an unsubsidized loan before a PLUS loan.
IDR plans calculate your monthly payment amount based on your income and family size. So if your income increases, so does your payment amount. On PAYE and IBR, we limit your payments so that even if your income increases, your payments never go higher than what you'd pay on the Standard Plan.
Direct Loans are issued by the U.S. Department of Education, while indirect loans are made by colleges and universities. Federal Family Education Loans (FFEL) and Perkins Loans are two common types of indirect loans. These loans were made by private lenders and guaranteed by the federal government.
Plan 2 refers to a student loan taken out from September 2012 onwards, in England or Wales. Older loans (from England or Wales) and loans taken out in Northern Ireland, are called plan 1 loans.
Sallie Mae is not a federal loan servicer.
When Sallie Mae first formed, it was a government-sponsored enterprise servicing federal student loans — or loans made by the government. But in 2014, it split into two separate companies.
Navient also offers federal student loan forgiveness for borrowers who work in public service, make payments for 20 to 25 years under an income-driven repayment plan, become totally and permanently disabled, or teach in low-income schools.
Since 2021, MOHELA has more than tripled its portfolio of Department of Education (ED)-held federal loans. At the same time, MOHELA continues to serve as the exclusive loan servicer for private student loans made by banks like SoFi and KeyBank (d/b/a Laurel Road).
Compare the loans listed on your studentaid.gov account with your credit report. Any loans that are listed on your studentaid.gov account are federal student loans. If any loans on your credit reports are not listed on your studentaid.gov account, they are probably private student loans.
The main difference between the Direct and FFEL loan programs is the source of funds for borrowers. Funds for Direct Loans come from the federal government; loans made through the FFEL program are provided by private lenders and are insured by guaranty agencies and reinsured by the federal government.
Stafford loans are a type of federal student loan that are either subsidized, meaning the government pays the interest while you're in school, or unsubsidized, meaning you pay all the interest. Stafford loans are a type of loan issued under the Federal Family Education Loan Program (FFELP).