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Federal Family Education Loan (FFEL) Programs [Education]
Understanding the Federal Family Education Loan (FFEL) Programs [Education]
Definition & Meaning
The Federal Family Education Loan (FFEL) Programs are a group of federal student loan programs that were established to help students and their parents finance the cost of higher education. These programs, previously known as the Guaranteed Student Loan (GSL) programs, are authorized under Title IV-B of the Higher Education Act of 1965. The FFEL Programs include:
Federal Stafford Loans
Federal PLUS Loans
Federal Supplemental Loans for Students (Federal SLS)
Federal Consolidation Loans
In these programs, private lenders provide the loans using their own funds, and the federal government guarantees repayment, making it easier for students and their families to afford education at eligible institutions.
Table of content
Legal Use & context
The FFEL Programs are utilized primarily in the realm of education law. They play a significant role in helping students access financial resources for college or vocational training. Legal professionals may encounter these programs when advising clients on student loan options, repayment plans, or loan consolidation. Users can often manage their loan applications and related documents through legal forms available from platforms like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A parent applies for a Federal PLUS Loan to help cover their child's tuition at a university. The loan allows them to borrow up to the total cost of attendance, minus any other financial aid received.
Example 2: A student consolidates multiple Federal Stafford Loans into a Federal Consolidation Loan to simplify their repayment process and potentially lower their monthly payments. (hypothetical example)
Relevant laws & statutes
The FFEL Programs are governed by several federal regulations, primarily found in:
Higher Education Act of 1965
34 CFR Part 600 - Institutional Eligibility
34 CFR Part 668 - Student Assistance General Provisions
Comparison with related terms
Term
Definition
Key Differences
Federal Direct Loan Program
A federal student loan program where the government lends directly to students.
Unlike FFEL, which involves private lenders, Direct Loans are funded by the government.
Private Student Loans
Loans offered by private lenders to students, often with different terms and conditions.
Private loans typically have higher interest rates and less flexible repayment options compared to FFEL loans.
Common misunderstandings
What to do if this term applies to you
If you are considering applying for a Federal Family Education Loan or need assistance with existing loans, follow these steps:
Research the types of loans available under the FFEL Programs.
Gather necessary documents, such as income information and school enrollment details.
Consider using US Legal Forms to access templates for loan applications and related documents.
If you have complex financial situations, consult a financial advisor or legal professional for tailored advice.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.
Students and parents of students attending eligible institutions
Key takeaways
Frequently asked questions
No, new FFEL loans are no longer being issued as of 2010. However, existing loans can still be managed and consolidated.
Defaulting can lead to severe consequences, including wage garnishment and damage to your credit score. It's important to seek help if you're struggling with payments.
Some FFEL loans may qualify for forgiveness programs, such as Public Service Loan Forgiveness, if they are consolidated into a Direct Consolidation Loan.