FFEL Loan (Federal Family Education Loan)
What Is an FFEL Loan?
FFEL loan is a federal student loan issued through the Federal Family Education Loan Program (FFELP), a system that allowed private lenders to provide student loans backed by federal guarantees.
Under the FFEL program, banks, credit unions, and other financial institutions issued student loans while the federal government guaranteed repayment to lenders if borrowers defaulted.
FFEL loans historically included several types of federal loans, such as:
- Stafford Loans
- PLUS Loans
- Consolidation Loans
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.
No new FFEL loans are issued today. Federal student loans are now provided primarily through the William D. Ford Federal Direct Loan Program.
However, many borrowers still have FFEL loans in repayment.
Why It Matters
Understanding FFEL loans remains important because borrowers may still encounter them when:
- Reviewing student loan balances
- Consolidating federal loans
- Evaluating eligibility for federal repayment or forgiveness programs
Some FFEL borrowers choose to consolidate their loans into the Direct Loan Program to access additional federal repayment options.
How FFEL Loan Works
FFEL loan allowed approved private lenders to issue federally guaranteed student loans.
Example: A student attending college before 2010 might have borrowed a Stafford Loan from a bank under the FFEL program.
The borrower repaid the loan to the private lender or loan servicer, while the federal government guaranteed repayment protections.
Today, FFEL borrowers continue repaying their loans through loan servicers.
FFEL Loan vs Direct Loan
FFEL Loan → Issued by private lenders with federal guarantees
Direct Loan → Issued directly by the U.S. Department of Education
The Direct Loan Program replaced FFEL.
Related Terms
- Federal Family Education Loan Program
- Direct Loan
- Stafford Loan
- Student Loan Consolidation
- Loan Servicer
