Federal Family Education Loan (FFEL) Program offers
Federal Student Loans for Students and
Parents. This is one of the most famous programs when it comes to financial aid. This program offers the great
student loans with very low Interest Rates.
A U.S. House committee has voted to end the issuance of new Federal Family Education Loan Program loans effective next July 1, 2010. Stay tuned for more information.
For Federal Student Loans please visit Federal Direct Loan Program.
The most important student loan is the one with lowest interest rate.
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FFEL Loan Program Overview
Federal Family Education Loan (FFEL) Program is a government sponsored program for students and parents to help pay for the cost of education after high school.
This is a federal program, but the lender is not the federal government. In this case private bank or other financial institution is lending the actual money.
The U.S. Department of Education is acting as the guarantee agency for the loan and covers any loses for the lenders in case of default.
Loans In The Program
Federal Family Education Loan (FFEL) Program contains the following loans:
Program Eligibility
Loans in this program are made for students who are enrolled full time or part time. Some loans were designed for students who demonstrate financial need and other loans no not require
applicants to demonstrate any need.
How To Apply
The first step when applying for loans under this program is to submit your
FAFSA Application.
Interest Rates
Loans under this program offer some of the best Interest Rates in the realm of
Financial Aid. Most of the rates will be around 6% or 8.5% giving students advantage over
other loans.
FFEL Loan Repayment
With this program you borrow money from a private lender, so you repay the money to the private lender or institution that is servicing the loan.
Most of the loans under these programs offer something called: grace period. During this grace period you do not have to pay any principal. With some of the loans you do not
even have to pay the interest. Interest is paid on unsubsidized loans. You have from 10 to 25 years to repay the total amount.
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Student Loan Tips |
Q: Take Out Student Loans As The Last Resort
When you try to get all types of Financial Aid and you do not receive anything or if the amount of money is not enough try borrowing money by taking out loans.
Q: Use Your Grandparents
Everyone talks about parents, but very rarely do we hear Grandparents. They can take out a Loans and help you store some of the assets.
Q: Apply for federal loans first.
Federal loans offer many advantages over other types of loans and they should be the once to apply for first.
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Important Questions |
Q: Can loans from this program be forgiven?
This is possible, but rarely. Loans in this program are made by private investors and there is no free money involved. Loan is a legal obligation and has to be repaid.
Q: How can I get a FFEL Loan?
For this type of loan, you must fill out a FAFSA. After your FAFSA is processed, your school will review the results and will inform you about your loan eligibility.
You also will have to sign a promissory note, a binding legal document that lists the conditions under which you're borrowing and the terms under which you agree to repay your loan.
Problem is this loan program is going to be cancelled, so you may not have a chance to apply.
Q: Is credit history required for FFEL program?
Not really. Good credit history is not required, but you can not have a negative credit history.
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This is/was a large student loans program from the federal government offering compentitive instest rates for Students.
The problem is about to end on July 1, 2010. If you need to apply you should do so by submitting your FAFSA Application.
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