What is the difference between a federal loan from a univeristy and one from a bank?

Trumania: What is the difference between a federal loan from a univeristy and one from a bank?
What is the difference. For example typically your financial aid office will award you say a federal Stafford loan and you just sign the promissory note for the lender.

But what is the difference from doing that through your school and actually going to a bank, IE Chase, and applying for a Federal Stafford Loan through the bank? Is it the same thing or is there a benefit from getting it through the school?

If the school doesn’t award you a loan can you apply for it through the bank or are you automactially ineligible?

Answers and Views:

Answer by mina m
It is the same thing. The school doesn’t actualy award you the loan, you just fill out the paperwork there, a bank is actualy loaning you the money.

It doesn’t really matter which bank you go through. You will get the same grace period and what not.