This study examined satisfaction of approximately 2,200 institutions of higher education that participated in the Federal Direct Loan and Federal Family Education Loan (FFEL) programs during the 1996-97 academic year. Among major findings were: (1) both Direct Loan and FFEL institutions were satisfied with their loan programs, although FFEL institutions indicated a significantly higher level of overall satisfaction; (2) between 1996 and 1997 the proportion of satisfied Direct Loan schools declined by 19 percent; (3) satisfaction among Direct Loan schools fell from 89 percent in 1994-95 to 64 percent in 1996-97 and satisfaction among FFEL schools rose from 68 percent to 89 percent; (4) schools participating fully in Direct Loan programs were more satisfied than schools phasing in the program, and schools participating fully in the FFEL program were more satisfied than were schools that participated in both programs; (5) there were no differences between programs in ease of program administration for 1996-97; and (6) both Direct Loan and FFEL institutions reported less satisfaction than in the previous year with timeliness and usefulness of Department of Education information and support. 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)