What is the Federal Family Education Loan Program? FFEL Program Overview. Prior to 2010, all federal lending occurred under two programs: the Federal Family Education Loan Program and the Direct Loan Program.
Student Loan Consolidation Basics. Student loan consolidation is a relatively easy concept to understand: it is the process of taking multiple student loans and combining them into one. Before consolidation, a student borrower. Federal Student Aid Fact Sheet for SCDC Applicants Loan Forgiveness for Public Service Employees What is the Public Service Loan Forgiveness Program? Through the College Cost Reduction and Access Act of 2007, Congress created. Public Service Loan Forgiveness Program. On September 27, 2007, President Bush signed the College Cost Reduction and Access Act (CCRAA) of 2007. Part of the act included a new Public Service Loan Forgiveness Program.
What is the Federal Family Education Loan Program? The Federal Perkins Loan is a separate program. Department of Education, FFEL began in 1. Nearly three decades later, the Higher Education Amendments of 1.
You Have Four Options to Get Out of Default. Department of Education offers four ways to get out of default on a federal student loan, and some options will be more helpful than others. Edit Article How to Consolidate Student Loans. Three Methods: Making the Decision to Consolidate Your Student Loans Consolidating Your Federal Student Loans Consolidating Your Private Loans Community Q&A. Most students need to.
Direct Loan Program. From July 1, 1. 99. Direct Loan Program has provided $2.
However, as the U. S. Department of Education reports, no new loans are being made under the Federal Family Education Loan Program (FFEL or FFELP). FFEL ended with the enactment of the Health Care and Education Reconciliation Act of 2. As of July 1, 2. 01. FFEL loans ceased.
But student borrowers were not left in the lurch; after the law changed, all federal student loans (not including Perkins Loans) came under the administration of the Direct Loan Program. The FFEL program included Stafford, PLUS, and Consolidation Loans. But to avoid confusion, it is important to note that the Direct Loan Program also included (and still includes) Stafford, PLUS, and Consolidation Loans. As President Obama remarked on the topic of higher education, the elimination of FFEL was a measure to save taxpayers billions of dollars each year. The FFEL program, as it was structured, involved banks serving as costly intermediaries between the federal government and student borrowers.
The Direct Loan Program does not involve a middleman, since the federal government lends directly to borrowers, and it is therefore more administratively cost- effective. Repayment of FFELFFEL has not been phased out to the extent that borrowers under this program are required to repay their loans, and these loans have retained their original titles. According to Federal Student Aid, the following repayment plans are available for FFEL Subsidized and Unsubsidized Stafford Loans, and the additional loans noted below: Standard Repayment Plan: FFEL PLUS Loans. Graduated Repayment Plan: FFEL PLUS Loans. Extended Repayment Plan: FFEL PLUS Loans. Income- Based Repayment Plan: FFEL PLUS Loans (only those made to students), and FFEL Consolidation Loans (excluding PLUS Loans to parents)Income- Sensitive Repayment Plan: FFEL PLUS Loans, and FFEL Consolidation Loans. Borrowers interested in the Pay As You Earn Repayment Plan or Income- Contingent Repayment Plan should contact their loan servicer to learn about a Direct Consolidation Loan.
Income- Sensitive Repayment Plan. According to Federal Student Aid, highlights of this plan include: Only available to FFEL borrowers. Based on annual income (monthly payments can therefore increase or decrease)The loan servicer or lender can enroll a borrower in this plan. FFEL loans are either under the ownership of the U. S. Department of Education or another lending entity. Borrowers who need information on which organization owns their loans can check via the National Student Loan Data System. Public Service Loan Forgiveness Program.
According to Federal Student Aid, FFEL loans are not eligible for this program. An FFEL borrower may consolidate their FFEL loans into a new Direct Consolidation Loan and thereby qualify for the program. Only payments that are made under the new Direct Consolidation Loan will count toward the 1. At Simple. Tuition, our dedicated research staff members stay on top of important developments in student lending to get you the information you need to help ensure your repayment success.
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