Blog sponsored by Bankrupt-Law.com

The Department of Education acts as a lender, providing funds for Stafford
loans (for students) and PLUS loans (for parents) in the same amounts as the
Stafford and PLUS loans offered through the Federal Family Education Loan
Program. (In the FFEL Program banks and other private lenders provide these
loans.)

For more see:
http://www.ed.gov/offices/OSFAP/DirectLoan/index.html