Federal Family Education Loan Program (FFELP)
What Is the Federal Family Education Loan Program?
Federal Family Education Loan Program (FFELP) was a federal student loan program that allowed private lenders to provide government-backed student loans.
Under the program, banks, credit unions, and other lenders issued student loans that were guaranteed by the federal government.
These loans helped millions of students finance higher education before the federal government transitioned to direct lending.
Program Status
The Federal Family Education Loan Program ended in 2010.
New FFELP loans are no longer issued. Federal student loans are now primarily provided through the William D. Ford Federal Direct Loan Program.
However, many borrowers still have existing FFEL loans in repayment.
Why It Matters
FFELP was one of the largest student loan programs in U.S. history.
It allowed private lenders to issue federally guaranteed loans such as:
- Stafford Loans
- PLUS Loans
- Consolidation Loans
Understanding FFEL loans remains important because many borrowers still carry these loans today.
How Federal Family Education Loan Program Works
Federal Family Education Loan Program allowed approved private lenders to issue federally guaranteed student loans.
Example: A student attending college before 2010 might have received a Stafford Loan from a bank under the FFEL program, with the federal government guaranteeing repayment to the lender.
Borrowers repaid their loans to private lenders or loan servicers.
The federal government later transitioned to a direct lending model.
FFELP vs Direct Loan Program
FFELP → Loans issued by private lenders with federal guarantees
Direct Loan Program → Loans issued directly by the federal government
The Direct Loan Program replaced FFELP.
Related Terms
