The federal government operates two major student loan programs: the FFEL
program, authorized under Title IV, Part B of the Higher Education Act (HEA), and the DL program, authorized under Title IV, Part D of the HEA.
* Eliminate loans funded privately by lenders and banks, or the Federal Family Education Loan program (FFEL
) in favor of the publicly funded Direct Loan Program.
They noted in a letter to Kennedy that in 1993, Congress rejected replacing the FFEL
program with the DL program with the hope that competition between the two programs would benefit students and parents.
I used the Title IV Program Loan Volume Report for the 2012-2013 Academic Year report from the office of Federal Student Aid to identify which institutions have the largest Parent PLUS loan disbursements (the Award Year Summary tab in FFEL
Loan Volume AY 2012-13 Q4).
Converting from FFEL
to the Direct Loan program has always been an option for higher education institutions, but a minority of community colleges have done so.
For their part, colleges should consider switching from FFEL
to the Direct Loan program, which relies directly on capital from the federal government.
This total excludes mandatory federal expenditures for the Federal Family Education Loans (FFELs
) and Direct Loans (DLs).
But Bush and Phelps say they are willing to explore renewing their participation in the FFEL
and/or Direct Loan programs.
Loan Forgiveness Processing and Payment: After a borrower qualifies for loan forgiveness, FFEL
loan holders would get 60 days to ask for payments from guarantee agencies.
This guide is designed to assist schools with their Federal Family Education Loan (FFEL
) Program and William D.
Nelnet originates, holds, and services student loans, principally loans originated under the Federal Family Education Loan Program, referred to as the FFEL
Program or FFELP
The biggest and most important change was the elimination of the bank-based Federal Family Education Loan (FFEL