What is the FFEL Program?

The Federal Family Education Loan (FFEL) Program makes loans available to students and their families through some 7,100 participating private lenders. The federal guarantee protects FFEL lenders against loss from borrower default. In 2001-02, the program made 6.3 million loans for a total amount borrowed of over $29 billion. These loans are guaranteed by the federal government, and are designed to give students flexible repayment options.