How to Get the Federal Family Education Loan Program

This article on how to get the Federal Family Education Loan program teaches you everything about the program. The Federal Family Education Loan (FFEL) program is a private student loan system backed and guaranteed by the United States federal government.

From 1965, the program provided loans until it ended in 2010. Similar loans are now being issued under the Federal Direct Student Loan Program, which are federal loans issued directly by the US Department of Education.
FFEL was initiated by the Higher Education Act of 1965 and is funded through a public/private partnership administered at the state and local levels. During 2007-2008, FFEL served 6.5 million students and parents, lending a total of $54.7 billion in new loans (80% of all new federal student loans). Since 1965, 60 million Americans have used FFEL loans to pay for their education.

Following passage of the Education and Health Care Reconciliation Act of 2010 on January 5, 2010, the program was terminated. As a result, no loans under the program were authorized after June 30, 2010.


How do I know I have Federal Family Education Loan Program credits?

If you have a federal student loan from 2010 or earlier, it is likely an FFELP loan. Some of the outstanding FFELP loans are held by the federal government (known as ED-owned FFELP loans), but most are still owned by private companies, such as loan management companies. Check to see what type of student loan you got and whether it was from the federal government or a private company.

What are the repayment options for Federal Family Education Loan Program debt?

Eligible FFELP Credits:

Refunds and discounts based on profits.
CARES Act payments and interest are suspended if held by the federal government. Deferring student loans and forbearance.

Are FFELP loans eligible for cancellation?

President Biden announced a plan to write off student loan debt of up to $20,000 per borrower earning less than $125,000 for individual applicants and $250,000 for co-payers. If the currently frozen plan survives legal challenges, eligible borrowers will be relieved of $20,000 if they are a Pell Grant recipient and $10,000 if they are not.

FFELP loans held by the federal government will be eligible for this revocation; If your payment has been held, you will be eligible.
FFELP loans held by companies qualify if the borrowers apply for consolidation. Borrowers with FFELP loans from companies that also have loans from the Direct Loan Program are only eligible for cancellation of their Direct Loans.

This is a reversal of previous guidance on eligibility for cancellation of FFELP loans held by businesses. More than four million business debt borrowers hold FFELP. Contact a repair technician to confirm the type of FFELP loan you have. Other relief efforts could be undertaken, but the Education Department has not released any details of a proposed plan.

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Are Federal Family Education Loan Program loans eligible for PSLF?

FFELP loans are not eligible for:

PSLF Public Service Loan Cancellation.
Pay as you earn. Payments are adjusted to your earnings.
Refunds are based on income.

To access these programs, you willl need to consolidate your FFELP loans into a Federal Direct Loan.
In October 2021, the Department of Education announced a limited exemption allowing FFEL loan payments to be made to PSLF. To qualify for the limited forgiveness, borrowers with FFEL loans must consolidate their loans into a Federal Direct Loan and then file Form PSLF by October 31, 2022. Any payments made on your FFEL loans after 2007 will be charged retroactively to the PSLF.

However, the department has revealed a unique new IDR waiver to the same effect for those who missed that period. You will need to apply for the PSLF before the end of 2023.

Can I (or Should I) Consolidate My FFELP Loan?

Indeed, you can consolidate an FFELP loan in many situations. You can’t consolidate on a direct loan if you’ve done a marital union – you can split a marital union loan if necessary – or if you have a lawsuit or judgment against you. If you qualify for consolidation, there are still trade-offs. Consolidating FFELP loans into one direct loan will capitalize any unpaid interest and increase the principal balance of your loan.

The consolidation can also undo any progress you made on earnings-based payment deductions.
None of these disadvantages apply to borrowers who benefit from a one-time IDR waiver which allows for a period of deferrals and some deferrals to be counted towards income-based loan forgiveness. Consolidation by the end of 2023. This applies to FFELP loans held by the federal government and corporations.

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The application process for the Federal Family Education Loan Program

The federal student loan application process is as follows:


The first thing you need to do is complete the Free Application for Federal Student Aid, or FAFSA. This is a sheet of paper to help you determine which programs and loans you may be eligible for to help you get into college. In fact, you can apply for a FAFSA online.
Remember, it is important to complete the FAFSA as fast as you can to qualify for the next semester. The form requires a lot of information, some of which must be obtained from tax documents and financial forms. Therefore, it’s highly recommended that you get your information ready before you begin. The FAFSA must be completed each year when you go to school. After the first year though, it will become much easier for you.

Student Support Report

Upon completion of the FAFSA, the schools you apply to will receive a student aid report containing your family’s expected contribution, or EFC. This is the amount that you or your family can pay for your education. If your application is incomplete, your SAR will not include the CFE, but it will tell you what you need to do to resolve any issues.
When you receive your SAR, read it carefully for accuracy and completeness.

The school or schools listed in the FAFSA will use your information to determine your eligibility for federal—and possibly non-federal—financial aid. Schools may ask you to verify the accuracy of the dates you provide on the FAFSA, so you need to make sure the information is correct.

Financial assistance options

A letter with information about financial aid options and grant programs will be sent by the school. You will need to secure these apps and start the process as soon as possible.

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Evaluate the loan offer

Once your school has informed you of the loan amount you are offering, usually in an “award letter” listing all financial aid offered (your award program), you must carefully evaluate your loan offer. Remember that anything you borrow must be paid back with interest. If the cost of living is not as high as your school’s projected spending level, you may not have to borrow as much as the amount stated in your grant letter.
You have the right to refuse the loan or to request a lower loan amount. Your school will tell you how to do this in your award letter.

Counseling stage

With the exception of Direct PLUS Parent Loan Borrowers, if you have not previously received a loan, you must have an Entry Counseling before your school can make your first loan payment. Entry tips help you understand your responsibilities for your loan. Your school may require in-person counseling or you may receive counseling online.

Loan disbursement

If you qualify for federal loans, the money will usually go to the school and the school will pay you. This money will be used for term costs, as well as books, supplies, and, in some cases, living expenses.

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Frequently Asked Questions

Can my current financial aid pay off the balance I still owe from last summer or spring?

Federal regulations prohibit transferring funds to your student account with a balance greater than $200 from any previous school year. The financial aid awarded to you will not be credited to your student account until the outstanding balance has been cleared. Do not delay in resolving this issue so that we can provide you with timely financial support.

There has been a change in my household and/or income. How do I update my Free Application for Federal Student Aid (FAFSA)?

After you submit your FAFSA, our office must facilitate all changes. The Office of Financial Aid and Awards may consider special circumstances when making decisions about financial aid programs.

If I take out Federal Family Education Loan Program and direct loans, will I now have two different service agents to pay them off?

Maybe. It depends on the agent servicing your FFEL program loan. You can consolidate your loans to just one principal if you want to.

How do my parents apply for a Federal Direct PLUS loan?

For college students only, you and your parents must complete a FAFSA. Once a Parent PLUS loan estimate has been issued, parents must log on to to apply for a Direct Parent PLUS.

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Over the years, many people have been helped by the Federal Family Education Loan program. So, anyone who wants to get this loan can follow the above procedures to do so.

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