Definition
A former student loan program where private lenders issued federally guaranteed loans. It’s been replaced by Direct Loans, but many borrowers still have FFEL loans.
What to consider
- If you still have FFEL loans, check how they differ from newer loans.
- Review your options for consolidation or forgiveness.
- Keep track of any changes in the program rules.
Real world scenarios
- Marta uses a FFEL to finance her undergraduate degree, appreciating the federal backing for more flexible repayment terms.
- Comparing FFEL loans and private options, Conrad chooses FFEL to benefit from government protections and potential consolidation.
- Kelly enters a consolidation program that wraps her FFEL loans under a single repayment plan, simplifying billing.
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