Private College Student Loan

Is it better to accept direct Federal student loans or ones offered through my University?

Also, what'd be the difference between a direct loan and any other loan?

Public Comments

1. When I got my last degree, I was told the Pell Grant I was getting. Then I was allotted a certain amount in Direct and Perkins=Federal Loans. So, like my other bachelor degree I assumed that was it. Those are like Sallie Mae or Wachovia loans too. Which I was aware of. My school did not inform me that I was getting another too. So a month after I graduated my Sallie Mae, and Direct Loans came to me. Then a week later I got this loan from some company I have never heard of before. It was offered through the University. I had no clue. So, I thought it was private. I went through FASFA or Sallie Mae's website to consolidate my loans because the payments were outstanding for 3. So, I had to go meet with the Default Counselor at my school to see if this was the right choice I was making. He pulled my name up and told me I had 3 government loans out. I was confused. The loan, I was unaware that my college granted me was through the government. I told this counselor, I never had this problem before. He told me because I was going to a private, non-state funded college that the school has their own programs with the government. I was never told that. It was no different than any other loan. I was not in the position to pay for the third loan. Also, have you been to college before? Well, it clearly stated in my handbook that transferred credits are refundable up to $100.00 a credit hour maximum $400.000 per class. I had $10,000.00 coming back to me when I graduated in transfer credit and $2,500.00 in unused Pell or something. So, I was done in December and I went to get my money that the school was holding as I was told. I had 60 days to get this money. They failed to do that too. They told me Bank of America was holding my funds and they were bailed out and my money was held at a new bank and they could not go through the new process in 60 days. I called Bank of America on my own. They talked about a bailout but did not go through with it. No loans or holding were sold to another bank. I lost $7,500.00. Bank America asked me the school and said they need a line just for that college. I would say to stick with the Federal because you know where your money is. I have never had a problem until I started this private college! Keep checking in with the Student Loan Office and kept informed what is happening.