Federal Family Education Loan (FFEL) Program

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CFDA Number: 84.032
Program Type: Guaranteed-insured loans
Also Known As: FFEL Program; FFEL loans. FFEL includes four components: Stafford Loans, Unsubsidized Stafford Loans, Federal PLUS Loans, and Federal Consolidation Loans.


UpdateNote: loans are no longer being made under this program. All new loans will be made under the Direct Loan program.



Program Description

Loan Type Characteristics Interest Rate for New Loans as of July 1, 2006
Stafford Interest paid by government when student is in school and during periods of grace and deferment. 6.8%
Unsubsidized Stafford Interest NOT paid by government when student is in school nor during periods of grace and deferment. 6.8%
PLUS Enables parents to borrow to pay the costs of higher education for their dependent undergraduates and graduate students to pay their costs. 8.5%
Consolidation Combines more than one federal education loan into a single loan. Weighted average of loans rounded upward to nearest 1/8%. Capped at 8.25%

Interest rate for loans made before July 1, 2006: For Stafford and Unsubsidized Stafford, in-school rate is 91-day T-Bill + 1.7%; in-repayment rate is 91-day T-Bill + 2.3%; both rates are capped at 8.25%. For PLUS, in-repayment rate is 91-day T-Bill + 3.1% and is capped at 9%. For Consolidation, see above.

In addition, certain new borrowers after Oct. 1, 1998, who teach for five consecutive years in qualifying schools serving low-income students may qualify for up to $5,000, and, in the case of highly qualified mathematics, science, and special education teachers, up to $17,500, in loan forgiveness.

FSA Handbook: Direct Loan and FFEL Programs


 
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Last Modified: 04/09/2014