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Guaranteed Student Loan is the name for the Federal Family Education Loan (FFEL) Program loans that were made prior to 1992. The Guaranteed Student Loan was an extension of credit from a financial institution that is guaranteed by a Federal or State government entity to assist with tuition and other educational expenses. The government entity is responsible for paying the interest on the loan and paying the lender to manage it. The government entity also is responsible for the loan if the student defaults.
