Federal Family Education Loan Program (FFELP)

The Federal Family Education Loan Program (FFELP) was a government-backed initiative that allowed private lenders to offer student loans to help individuals pay for college. Under this program, the federal government guaranteed a portion of the loans to reduce risk for lenders. This meant students could borrow money for tuition and other educational expenses with more favorable terms, like lower interest rates and flexible repayment options. Although FFELP was discontinued in 2010, its impact on student financing remains significant, as it helped millions afford higher education.