Home Finance What Are FFEL Loans? – NerdWallet

What Are FFEL Loans? – NerdWallet

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Key takeaways

  • FFEL loans are federally backed loans that had been initially funded by personal firms.

  • The FFEL Program led to 2010, and a few FFEL loans at the moment are owned by the federal authorities.

  • Debtors with FFEL loans might need to consolidate to make the most of extra scholar mortgage advantages.

The Federal Household Schooling Mortgage Program, or FFEL Program, supplied scholar loans to debtors till 2010. FFEL loans had been issued by personal lenders however assured by the federal authorities.

Though the federal authorities has ended the FFEL Program, there are nonetheless 11.2 million debtors with excellent FFEL loans totaling over $248 billion in accordance with the latest knowledge from the Schooling Division.

Are FFEL loans eligible for PSLF?

FFEL loans aren’t eligible for:

To entry these applications, you’ll should consolidate FFEL loans right into a federal direct mortgage. However consolidation comes with some trade-offs.

Consolidating FFEL loans right into a direct mortgage will trigger any unpaid curiosity to capitalize and enhance your principal mortgage steadiness. Consolidation will even wipe out any progress you’ve made towards income-driven cost forgiveness.

Unconsolidated FFEL loans are eligible for:

How do I do know if I’ve FFEL loans?

You probably have federal scholar loans from 2010 or earlier, they’re seemingly FFEL loans. Some excellent FFEL loans are held by the federal authorities (referred to as ED-held FFEL loans), however most are nonetheless privately owned by firms, like Navient.