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PPACA - The Patient Protection and Affordable Care Act - HR 3590


Definition: The Patient Protection and Affordable Care Act (HR 3590), also known as the PPACA, is the legislative act that eventually led to the Federal government ending support of the FFEL loan program. Technically however, the actual elimination of the FFEL program occurred as part of the Health Care and Education Reform Reconciliation Act (HR 4872), which was added onto the PPACA shortly after its original passage.

The primary purpose of PPACA was to provide healthcare reform. However, during the legislative process, previous student loan reforms suggested by President Obama were wrapped into the legislation, bring both strong praise and criticism.

As a result of these two acts and the cancellation of the FFEL program, the government will no longer back student loans made by private corporations. All Federal student loans made after this date will be made directly from funds provided by the U.S. Treasury through the Department of Education.

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