The Federal Family Education Loan Program is authorized by Congress, through which education loans are provided by private lenders and guaranteed by the federal government. The guarantee agency, or guarantor, administers and insures FFELP loans against default, bankruptcy, disability, or death of borrowers.
Under this program, private lenders provided loans to students that were guaranteed by the federal government. These loans included Subsidized Federal Stafford Loans, Unsubsidized Federal Stafford Loans, FFEL PLUS Loans, and FFEL Consolidation Loans.
Federal student loans under the FFEL Program are no longer made by private lenders. Instead, all new federal student loans come directly from the U.S. Department of Education under the Direct Loan Program.
