Loans There are many issues to consider when taking out loans to pay for college.
The Stafford Loan is one of the Department of Education's largest financial aid programs. The major difference between the two loan programs is the lender. Under the Stafford Loan program, students borrow funds from commercial lenders. Under the Direct Loan program the federal government is the lender. The financial aid process is not an easy task and deciding how much to borrow can be even more difficult.