<p>Thank you NikkiiL for reminding me of the distinction. I had seen a reference to some schools using both programs here:</p>
<p>[Stafford</a> Loan Overview (Student Loan Guide) - Federal Loan Programs - Student Loan Toolkit](<a href=“http://www.studentloantoolkit.com/SLT/Articles/Loan_Types/Stafford_Loans.aspx]Stafford”>http://www.studentloantoolkit.com/SLT/Articles/Loan_Types/Stafford_Loans.aspx)</p>
<p>but you are of course correct that most schools choose one or the other program, and what the student chooses is the lender. It has always been my impression that the nonprofits provide the best service to the students. I hope your students get their book money soon.</p>
<p>On the PHEAA website they say their current troubles are due in part to liquidity problems resulting from the “subprime mtge mess”. They actually used those words! On top of the misplaced notion that it would be good to squeeze out the nonprofits, I’m sure no one anticipated that action would collide with the subprime fallout. It is creating a perfect storm as right when loan demand is going up due to the economy, in part due to the mtges, the ability to get a loan is drying up. Good luck to you, and to your students!</p>