The Federal Family Education Loan Program
Wednesday, September 5th, 2007The FFELP represents the largest federal source of financial aid for college. The FFELP is a public-private partnership created by Congress in 1965 to deliver and administer guaranteed education loans for students and their parents. The program has provided more than $567 billion in low-cost loans to tens of millions of students and parents.The FFELP provides the following types of loans for postsecondary education and training:
Stafford loans: Stafford loans represent the largest component of the FFELP, supplying nearly $46.8 billion in aid for college each year. Subsidized Stafford loans are available to students who demonstrate financial need. The federal government pays the interest on these loans while the student is in school, during a six-month grace period after the student leaves school, and during authorized periods of loan deferment. Unsubsidized Stafford loans are available to students regardless of their financial need; however, the student is responsible for all interest that accrues on the loan.
