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FFEL Loan - Definition and Overview of the FFEL Loan

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Definition:

The Federal Family Education Loan Program (better known as "FFEL") is the largest source of student loan funds in the United States. Under this program, private lenders provide student loans to a variety of students, with the U.S. government protecting the lenders against potential defaults.

Qualifying for a FFEL loan requires completion of the FAFSA form for financial aid.

Repayment of a FFEL loan generally begins six months after graduation, with certain exceptions made for financial hardships and other situations.

Currently, the FFEL program encompasses four student loan programs:

On April 24, 2009, President Obama announced his Congressional proposal to eliminate the FFEL loan program in an attempt to cut costs and strengthen the government's Direct Loan program.
Pronunciation: fell loans
Common Misspellings: fell loans

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