<p>Hi, </p>
<p>I was filling out my Stafford Loan App on the internet and I ran into some questions. I thought when you take out a Stafford Loan you borrow from the government, but the website says otherwise: </p>
<p>8 and 9. Lender Name and Code:<br>
Students and their parents have the right and ability to select the education loan provider of their choice. If a preferred lender list is displayed, you are not required to use a lender on that list, and will not suffer a penalty for choosing another lender. </p>
<p>So, do we have to pick a lender and get the loan from them? I thought the loan was from the federal government? This seems a lot like a plus loan.</p>
<p>Your school participates in the FFEL program. This type of Stafford loan is borrowed through a lender, but the funding is backed by the federal government. Yes, this is a federal loan. Some schools run their Stafford programs directly through the government - these schools are Direct Lending schools. The Stafford loan is the same either way, it’s just that the lender is different.</p>
<p>How is this going to affect me? So, tomorrow do I go to a private lender and ask for a Stafford loan?</p>
<p>No. You can search through CC threads for lenders - there are several recent threads about Stafford lenders. You can also look at your school’s suggested lenders. If one of these looks good, you can just follow the instructions on the school website. My D has a FFEL loan. We used the school’s preferred lender. When she transferred schools, we stayed with the lender so that her loans would be through only one lender (helps at repayment time). All we had to do was tell her school we were using that lender & then tell the lender that we wanted our loan at the other school for the coming year.</p>
<p>Okay so once I find a lender I want, then what do I do? Should I contact the lenders and tell them I am doing a stafford loan?</p>
<p>Most have an online application for Stafford loans. Google for the lender + Stafford if a link isn’t provided.</p>
<p>You need to make sure that you use the preferred method prescribed by your Financial Aid Office. From your OP, it sounds like you were already completing the Stafford Loan application through their prescribed method. I would recommend returning to that site and complete the information.</p>
<p>Completing a Stafford Loan Application (MPN) directly through the lender may delay your funding (as the information is not always routed from the lender to the school in a timely manner) or it may require you to complete the form a second time (as not all lenders forward the completed MPN to the school at all).</p>
<p>If you are unsure where to complete the MPN, contact the FA Office, they will be glad to point you in the right direction.</p>