The Federal Family Education Loan (FFEL) Program was a system of private student loans that were subsidized and guaranteed by the United States federal government. The program issued loans from 1965 until it was ended in 2010. The FFEL Program included Subsidized Federal Stafford Loans, Unsubsidized Federal Stafford Loans, Federal PLUS Loans (also known as FFEL PLUS Loans), and Federal Consolidation Loans (also known as FFEL Consolidation Loans) . The program was initiated by the Higher Education Act of 1965 and was funded through a public/private partnership administered at the state and local level. Since 1965, 60 million Americans have used FFEL loans to pay for education expenses.
Some FFEL Program loans are held by the U.S. Department of Education (ED), but most are held by a guaranty agency or a commercial lender. Loans granted under the FFEL program are not eligible for the Public Service Loan Forgiveness program. However, FFEL borrowers can gain access to loan forgiveness by consolidating an existing loan with the Federal Direct Student Loan Program, but payments made before consolidating do not typically count toward loan forgiveness.
In summary, FFEL loans were a type of private student loan that were subsidized and guaranteed by the U.S. federal government. The program ended in 2010, and similar loans are now provided under the Federal Direct Student Loan Program.
