Federal Family Education Loan Program (FFEL)

Author:

Moneyzine Editor

1 mins

September 25th, 2023

Advertiser Disclosure

Definition

Created by the Higher Education Act of 1965, the Federal Family Education Loan Program, or FFEL Program, includes Subsidized Federal Stafford Loans, Unsubsidized Federal Stafford Loans, Federal Parent Loans for Undergraduate Students (PLUS), and Federal Consolidation Loans.

Explanation

Prior to July 1, 2010, private lenders provided Stafford, PLUS, and Consolidation Loans under the Federal Family Education Loan Program. These loans were guaranteed by guarantors, and reinsured by the federal government. These loans were managed and collected by the lender or agency that holds the loan. Typical lenders were banks, credit unions, and savings and loan associations.

This program was eliminated by the Health Care and Education Reconciliation Act of 2010. New student loans are now available directly from the U.S. Department of Education's Direct Loan Program. Students that received loans under the FFEL Program need to reapply to receive loans under the Direct Loan Program.

Related Content

What Can Help You Meet Your Budget While Shopping for Important Items?
Budgeting while ensuring you don't compromise on quality can seem daunting. Whether filling your pantry, updating your wardrobe, or keeping up with the latest tech, smart shopping strategies are crucial for keeping your finances in check.
April 2nd, 2024
How to Make a Million Dollars in 10 Years
Truthfully, this title should actually be “How to Make a Million Dollars in 10 Years Without Going Into Debt", but that is just getting a little too winded for my liking. It’s true though!
March 26th, 2024
How to Apply Maslow’s Hierarchy to Your Money This Year
You might vaguely remember your psychology teacher talking about Maslow. He pointed at a picture of a triangle as you nodded off in the back of the school room.
March 27th, 2024
How to Tackle Multiple Savings Goals
When there’s only so much money to go around, there are often multiple savings goals competing for your money. Think of the young professional who’d like to get a more reliable car, buy a house, and save for retirement. Or consider the young family that’s saving for college, retirement, and a bigger house.
March 22nd, 2024
The Countdown to Early Retirement: 10 Expenses to Eliminate
Dreaming of waving goodbye to the daily grind five years ahead of schedule? The road to early retirement is paved with more than good intentions; it requires a meticulously crafted strategy with surprising twists. It's not solely about what you should be doing—like diligently saving a portion of your income or investing wisely—but also about what you need to stop doing.
March 22nd, 2024

Contributors

Author