What types of loans fall under the Federal Family Education Loan (FFEL) Program? Loans included in the FFEL program include Subsidized Federal Stafford Loans, Unsubsidized Federal Stafford Loans, FFEL PLUS Loans, and Consolidated Loans.
How do I know if my loans are FFEL?
Log into StudentAid.gov using your FSA ID and select “My Aid” under your name. That page will display information about your federal loan amounts, including whether your loans are Direct or commercial FFELP.
Are Stafford loans the same as FFELP?
A Stafford Loan is the most common form of federal student loan and one of the three (3) types of FFELP Loans made by a lender to a student/borrower. A Stafford Loan and a Direct Loan are essentially the same type of loan; the principal difference is the lender.
Is FedLoan a FFEL?
Loan Eligibility
FedLoan Servicing services two main types of federal loan programs: FFELP and the William D. Ford Federal Direct Loan Program loans.
Are Stafford loans eligible for PSLF?
Only loans received through the direct loan program qualify for Public Service Loan Forgiveness. These loans include both subsidized and unsubsidized direct or Stafford loans.
Are Stafford Loans federal or private?
The term “Stafford Loan” may refer to a subsidized or unsubsidized Federal Stafford Loan that was made to students attending schools that previously participated in the Federal Family Education Loan (FFEL) Program.
What is the difference between a Stafford Direct Loan and a Stafford FFEL loan?
The main difference between the Direct and FFEL loan programs is the source of funds for borrowers. Funds for Direct Loans come from the federal government; loans made through the FFEL program are provided by private lenders and are insured by guaranty agencies and reinsured by the federal government.
What type of loan is a Stafford Loan?
Program Description
Direct Stafford Loans, from the William D. Ford Federal Direct Loan (Direct Loan) Program, are low-interest loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school.
What are the two types of Stafford Loans?
There are two categories of Direct Stafford Loans: subsidized and unsubsidized.
Combines eligible federal loans into a single Direct consolidation loan. Consolidating FFELP loans into the Direct Loan program allows access to repayment plans or forgiveness options created solely for Direct Loans, including Public Service Loan Forgiveness (PSLF). Repayment term of up to 30 years.
What’s the difference between FFEL and FFEL loans?
Key takeaways. FFELP student loans are federally backed loans that were originally funded by private companies. The FFEL Program ended with the 2009-2010 academic year to make way for Direct loans, and some were purchased by the federal government.
Why are FFEL loans not eligible for forgiveness?
Borrowers who consolidated their loans had to start from scratch with their repayment timeline. Even if borrowers had been making payments on FFEL loans for 10 years, they would have to make another 10 years of payments to be eligible for Public Service Loan Forgiveness after consolidating.
Why are FFEL loans not eligible for PSLF?
Unfortunately, borrowers with FFEL Spousal Consolidation Loans can’t take advantage of the PSLF Program because those types of loans can’t be consolidated into a Direct Consolidation Loan. Refinancing with a private lender is the only option to try and get rid of that student debt.
Are Stafford loans forgiven after 20 years?
Any outstanding balance on your loan will be forgiven if you haven’t repaid your loan in full after 20 years (if all loans were taken out for undergraduate study) or 25 years (if any loans were taken out for graduate or professional study).
Will subsidized Stafford loans be forgiven?
If you have Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, Direct Consolidation Loans or FFEL Loans owned by the U.S. Department of Education, they’re all included in the forgiveness plan. Additionally, borrowers who applied for consolidation of privately held FFEL or Perkins Loans before Sept.
Do you have to pay back a Stafford loan?
Yes, Direct Stafford Loans are loans that need to be paid back. The type of loan you have determines when you need to start paying it. Subsidized Stafford Loans: the government pays the interest while you are in school, during grace periods, and during any deferment periods.
How do I know if my FFELP loan is federal or private?
Check the top of your federal loan promissory notes, applications, and billing statements, as these state the name of the federal loan program at the top of the document. Federal loan programs include the William D.
Navient no longer services federal student loans, but it still services private student loans.
Why is it called a Stafford loan?
In 1988, Congress renamed the Federal Guaranteed Student Loan program the Robert T. Stafford Student Loan program, in honor of U.S. Senator Robert Stafford, a Republican from Vermont, for his work on higher education.
Do FFELP Stafford subsidized loans qualify for loan forgiveness?
All government-held federal student loans, including undergraduate, graduate, and Parent PLUS loans, are potentially eligible for relief. This would include Direct federal student loans, as well as FFELP loans that are in default or already administered by the Education Department.
What type of loan is direct unsubsidized Stafford?
A Federal Direct Unsubsidized Stafford Loan is awarded as a non-need-based loan after all other need- based loans, grants, scholarships and other resources are subtracted or up to the annual maximum loan limit, whichever is lower.