Q. What is the difference between the FFELP and FDLP programs?
A. There are two federal programs that oversee Federal Stafford and PLUS Loans: the Federal Family Education Loan Program (FFELP) and the William D. Ford Federal Direct Loan Program (FDLP).
In the FDLP, eligible students and parents borrow directly from the federal government at participating schools. Under the FFELP, private lenders provide federally guaranteed funds.
Both programs offer Federal Stafford Loans and Federal PLUS Loans, require that you file a FAFSA first, and call for signing a Master Promissory Note (MPN).
Your child’s school participates in either the FDLP or the FFELP—not both. So, the decision about which program provides your loans is made by the school.
Q. How long does it take for my credit score to become healthy again?
A. Generally after six to nine months of responsible credit use you will begin to see an increase in your credit score.
Q. Why does the FAFSA look at the number of family members when determining how much funding my family will receive?
A. The number of family members is asked so that the FAFSA can determine what you may be putting out to take care of the family. The FAFSA does not ask directly about house payments, clothing, and food, but there is a calculation done behind the scenes to account for these items. You get credit for multiple students in college at the same time, but parents are not counted even if they attend college. The FAFSA figures in the parents' need for saving for retirement by asking for the age of the oldest parent; these figures go into the calculation for the FAFSA.
If you have a question about planning and paying for college, email FinMan@nelliemae.com.
We will update this page monthly. Visit our PREP pages for more information.
Looking for more information? Let us know if you'd like a representative to present a College Night at your child's high school. Email requests to FinMan@nelliemae.com.
