What about companies offering governmental loans?

I'm on the look for a student loan program and in the light of the latest discussions about student loans I am fearing too a student loan crisis. One one hand I fear that I will hardly find any loans at all, on the other hand, if I find any, can I trust private lenders? Now, I came across a lender offering student loans on a governmental program basis - http://www.loancentralstation.net/student_loans.html. The offer is tempting, they say the monthly payment is reduced by 60%. Can this be called a private loan? I hope it's not that scary as I thought but I guess loans are going to be harder to obtain. Would you say the repayment conditions will harden too?

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