What type of loan is FFEL?

Author

Emily Carr

Published Mar 06, 2026

What type of loan is FFEL?

Federal Family Education Loan (FFEL) Program. Also Known As: FFEL Program; FFEL loans. FFEL includes four components: Stafford Loans, Unsubsidized Stafford Loans, Federal PLUS Loans, and Federal Consolidation Loans.

Likewise, people ask, what's the difference between FFEL and Direct Loan?

In the FFEL program, the funds for the student loans came from banks, credit unions, and other financial institutions. In the Direct loans program, the funds come directly from the U.S. Department of Education. Those funds were secured by the department from the U.S. Treasury.

One may also ask, what does Ffelp mean? Federal Family Education Loan Program

Also asked, how do I know if I have FFEL loans?

You can also call the Federal Student Aid Information Center, 1-800-4-FED-AID, TDD 1-800-730-8913. The Center's counselors can help you figure out what types of loans you have. Federal loan promissory notes and applications will state the name of the federal loan program (Stafford, PLUS, Perkins, FFEL, William D.

Can FFEL loans be consolidated?

FFEL Loans (with the notable exception of Parent PLUS loans) can be included in a federal direct consolidation. By consolidating, the FFEL loan becomes a Direct Loan eligible for forgiveness under the Public Service Student loan forgiveness (PSLF) program.

Are Stafford Loans FFEL or Direct?

FFEL stands for Federal Family Education Loan and was a student loan program backed by the federal government. Subsidized Stafford: Interest is paid by the government while students are in school as well as during periods of grace and deferment. Unsubsidized Stafford: Interest isn't paid by the government at all.

Is Navient a Ffelp loan?

For commercially owned Federal Family Education Loan Program (FFELP) and private student loans: Navient provides impacted borrowers with the option to suspend payments for three months. To assist borrowers in default, we also ceased filing debt collection lawsuits following the declaration of the national emergency.

Is FFEL a direct loan?

Similar loans are now provided under the Federal Direct Student Loan Program, which are federal loans issued directly by the United States Department of Education. The FFEL was initiated by the Higher Education Act of 1965 and was funded through a public/private partnership administered at the state and local level.

Can student loans be forgiven?

In certain situations, you can have your federal student loans forgiven, canceled, or discharged. Learn more about the types of forgiveness and whether you qualify due to your job or other circumstances.

Do FFEL loans qualify for Cares Act?

If you have a Federal Family Education Loan (FFEL) that is serviced by a commercial lender, it doesn't qualify for the 0% interest deferment as part of the CARES Act. The FFEL program ended in 2010 so borrowers who graduated around that time may have these kinds of student loans.

Is Sallie Mae a Ffelp loan?

Sallie Mae started off under the federal government and provided loans through the Federal Family Education Loan program, or FFEL.

What type of loan is Stafford?

Stafford Loans are federal loans made by the government, meaning you're borrowing directly from the U.S. Department of Education. That's who you'll repay when it's time, too. Today, 92% of all student loans are made by the federal government.

What is the difference between direct and indirect student loans?

Student loans that the federal government provides or guarantees usually fall into two categories: Federal Direct Loans or Federal Family Education Loans (FFELs). FFELs are also called “indirect loans.” Private student loans, though, come from a bank, credit union, or private lender without government involvement.

Are FFEL loans federal or private?

FFEL loans are federally backed loans that were originally funded by private companies. The FFEL Program ended in 2010, and some FFEL loans are now owned by the federal government.

What's a direct student loan?

Under this program, the U.S. Department of Education is your lender. There are four types of Direct Loans available: Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.

Are Navient loans Federal?

Navient is one of the largest federal student loan servicers. It also services private student loans from various lenders. If you don't find your loan information through studentaid.gov, you have a private student loan.

What type of loan is a Perkins loan?

A Perkins loan is a type of federal student loan based on financial need. Perkins loans are available to undergraduate, graduate, and professional students. A Perkins loan is a subsidized loan, meaning that the federal government pays the loan's interest while you are in school.

Is my student loan private or federal?

Review your billing statement. For federal student loans, the top of a student loan bill will have the name of your student loan servicer and the name of your federal student loan program. For private student loan bills, you'll see the name of your private lender on the bill instead.

When did FFEL stop?

July 1, 2010

What is a direct unsubsidized loan?

A Federal Direct Unsubsidized Loan is a non-need based, low-interest loan with flexible repayment options. It is available to both undergraduate and graduate students. The Department of Education also has information about eligibility, borrowing limits, interest and fees, and repayment information here.

How do you know if you have a direct student loan?

You might see “federal direct loan,” “federal Perkins,” or “Stafford” on your report — these are federal loans, so ensure they match up with what's in your NSLDS file. You might also be able to call your school's financial aid office to see if they have records of your loans.

Are Ffelp loans private?

Commercially held FFELP loans are guaranteed by the federal government, but they are owned by guaranty agencies and private companies. In both cases, these loans were made under federal programs, but the loans are not owned by the federal government.

Can federal Stafford loans be forgiven?

Public Service Loan Forgiveness is available to government and qualifying nonprofit employees with federal student loans. Eligible borrowers can have their remaining loan balance forgiven tax-free after making 120 qualifying loan payments. They can have up to $17,500 in federal direct or Stafford loans forgiven.

Will owing student loans affect stimulus?

If your federal student loans are in default there's good news: You'll get a temporary reprieve on wage garnishment and you'll also get a stimulus check from Uncle Sam. Under the CARES Act, the government won't withhold the money you owe for defaulted federal student loans out of your payment.

Is Navient a commercial lender?

Navient services both federal and private loans.

Do Stafford loans still exist?

Unpaid interest that is deferred until after graduation is capitalized (added to the loan principal). The Budget Control Act of 2011 eliminated subsidized Stafford loans for graduate and professional students effective July 1, 2012. Unsubsidized Stafford loans are still available to these students.

What loans qualify for Cares Act?

If you have a federal loan owned by the Department of Education, your loan is eligible for forbearance under the CARES Act. This includes Direct subsidized loans, Direct unsubsidized loans, Direct PLUS loans, and Direct consolidation loans.

Are student loans guaranteed by the federal government?

Both subsidized and unsubsidized loans are guaranteed by the U.S. Department of Education, either directly or through guarantee agencies. Nearly all students are eligible to receive federal loans (regardless of credit score or other financial issues).

How do I consolidate my federal student loans?

You can consolidate federal student loans with the Department of Education or a private lender, which is also called refinancing. If you refinance federal loans with a private lender, you'll lose access to government programs, like income-driven repayment and Public Service Loan Forgiveness.

Are direct loans federal or private?

A federal Direct Loan is a federal student loan made directly by the U.S. Department of Education. Generally, if you took out a federal student loan or consolidated your loans on or after July 1, 2010, you have a federal Direct Loan. There are four types of Direct Loans: Direct Subsidized Loans.

Is consolidating loans a good idea?

Consolidating debt with a personal loan can be a good idea if you can get a new loan with favorable terms and a lower interest rate than current debt. Whether you can qualify for a consolidation loan depends on your credit scores, income and other financial factors.

Can consolidated student loans be forgiven?

If you are consolidating federal student loans, consolidate into a Federal Consolidation Loan. If you consolidate federal loans through a private service, they are not eligible for relief under the Student Loan Forgiveness Act, or for any currently available relief.

Which federal loan servicer is the best?

Four student loan servicers: ranked

Great Lakes. Standing out as possibly the best federal loan servicer, Great Lakes actually offers pretty decent customer service.
Nelnet. Nelnet comes next.
AES/PHEAA.
Navient.

Is it smart to consolidate your student loans?

If you currently have federal student loans that are with different loan servicers, consolidation can greatly simplify loan repayment by giving you a single loan with just one monthly bill. Consolidation can lower your monthly payment by giving you a longer period of time (up to 30 years) to repay your loans.

What are the pros and cons of consolidating student loans?

Here are more pros for the Direct Loan Consolidation program:

One payment. Consolidation means combining all your federal loans into one.
Avoid default.
Fixed interest rate.
Lower payments.
Multiple repayment plans.
Deferment/forbearance options increase.
No minimum or maximum.
Protecting credit.

Will consolidating student loans hurt my credit?

Federal consolidation doesn't incur a credit check, so it won't hurt your credit score. If you qualify, consolidating federal loans also gives you the freedom to get on an income-driven repayment plan or extended plan, which could make your monthly payments more affordable.

What does consolidate loans mean?

Consolidation combines loans into one monthly payment with one servicer. Consolidating your loans may make it easier to keep track of your loans if you have more than one student loan with more than one servicer or company. There are two types of consolidation loans.

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