New York University began selective participation in and evaluation of the Federal Direct Student Loan Program (FDSLP) during the 1995-96 academic year. A study evaluated and compared the effects of the FDSLP and the existing Federal Family Education Loan Program (FFLEP) on students, families, and campus administrators. Surveys were sent to 1609 students of which 60 percent returned usable responses. Results suggest that participation in both programs, rather than just one, may pose some challenges for campus administrators and staff, but not for students. Also, while student reactions to the two programs were generally similar and positive, there were some troubling differences among students of different ethnic groups and income levels. Overall, 80 percent of students and families indicated satisfaction with the loan process. Tables detail student characteristics and survey responses. The survey and accompanying letters are included. (JLS)