This study examined borrower satisfaction with the Federal Direct Loan and Federal Family Education Loan (FFEL) programs. A telephone survey of approximately 3,600 student and parent borrowers who had originated loans under the two programs in 1994-95 found that: (1) Direct Loan borrowers with previous FFEL loans were more likely than FFEL borrowers with previous FFEL loans to cite their 1994-95 loan experiences as more positive than prior experience; (2) over 80 percent of borrowers in both programs perceived the loan origination process as easy; (3) borrowers in both programs were generally satisfied with the timeliness of loan funds; (4) in both programs most borrowers were satisfied with entrance/exit counseling and other contacts with the financial aid office; and (5) borrowers in both programs indicated a relatively low awareness of the key terms of the loan programs. This report first presents highlights of findings and an introduction, and then details findings in sections on: changes in borrower satisfaction levels since introduction of the Direct Loan program, borrower satisfaction with loan program aspects, borrower awareness of key features and conditions of loans, and general comments. Technical appendices include detailed tables, data on distribution of responses and response rates, item response frequencies, specifics of the survey methodology, and the two surveys. (DB)