 TITLE: What Is the Difference Between Private and Federal Student Loans? CONTENT: Federal student loans, also known as direct loans, are funded by the U.S. Department of Education (although a loan servicing company will handle your loan).\nThere are several types of federal student loans, including for undergraduate students, graduate students and students pursuing professional education. Each type of federal student loan has its own set of requirements; some are available only to students who have financial need, while others are offered regardless of need.\nAll federal student loan borrowers must first complete and submit a Free Application for Federal Student Aid (FAFSA) form. This application is used to determine if you're eligible for federal student loans; if not, you may need to look into private student loans.\nTo borrow money using a federal student loan, you must meet some basic eligibility criteria. For instance, you must be a U.S. citizen or eligible noncitizen; have a valid Social Security number; be enrolled or approved to enroll in an eligible degree or certificate program; be enrolled at least half time (for direct loans); and be making satisfactory academic progress. If you're male between the ages of 18 and 25, you must also be registered with the Selective Service. END