What is the difference between direct loans and FFEL?
What’s the difference between the two federal loan programs ( FFEL and Direct )? William D. Ford Direct loans are made directly from the Department of Education to students, without the involvement of a private lender. There are still many FFEL loans in the system, but as of July 2010, no new FFEL loans are being made.
Can FFEL loans be forgiven?
Public Service Loan Forgiveness may be an option for people with FFEL loans if those loans are consolidated into direct loans . Borrowers pursuing Public Service Loan Forgiveness can have any remaining student loan balance forgiven after 120 qualifying payments (which don’t have to be consecutive).
How do I know if my loans are FFEL?
You can also call the Federal Student Aid Information Center, 1-800-4-FED-AID, TDD 1-800-730-8913. The Center’s counselors can help you figure out what types of loans you have. Federal loan promissory notes and applications will state the name of the federal loan program (Stafford, PLUS, Perkins, FFEL , William D.
When did the FFEL program end?
January 5, 2010
How do I know if my loan is a direct loan?
Generally, if you took out a federal student loan or consolidated your loans on or after July 1, 2010, you have a federal Direct Loan . There are four types of Direct Loans : Direct Subsidized Loans .
What type of loan is Stafford?
Stafford Loans are federal loans made by the government, meaning you’re borrowing directly from the U.S. Department of Education. That’s who you’ll repay when it’s time, too. Today, 92% of all student loans are made by the federal government.
Are federal student loans forgiven after 25 years?
Any remaining balance on your student loans is forgiven after 25 years , unless you’re a new borrower as of July 1, 2014, in which case your unpaid balance is forgiven after 20 years .
Do student loans go away when you die?
If you die , then your federal student loans will be discharged after the required proof of death is submitted.
Does student loans go away after 7 years?
Your responsibility to pay student loans doesn’t go away after 7 years . But if it’s been more than 7.5 years since you made a payment on your student loan debt , the debt and the missed payments can be removed from your credit report. And if that happens, your credit score may go up, which is a good thing.
What is the difference between Stafford loans and direct loans?
Overview. Direct Stafford Loans are available to undergraduate and graduate students through the federal government. These loans have a fixed interest rate. Subsidized Direct Stafford Loans —The government pays the interest at different points during the life of the loan (for example, while you are in school).
What type of loan is a Perkins loan?
A Perkins loan is a type of federal student loan based on financial need. Perkins loans are available to undergraduate, graduate, and professional students. A Perkins loan is a subsidized loan, meaning that the federal government pays the loan’s interest while you are in school.
Is Navient a federal loan?
Navient is one of the largest federal student loan servicers. It also services private student loans from various lenders. If you don’t find your loan information through studentaid.gov, you have a private student loan .
Is Navient a Ffelp loan?
For commercially owned Federal Family Education Loan Program ( FFELP ) and private student loans : Navient provides impacted borrowers with the option to suspend payments for three months. To assist borrowers in default, we also ceased filing debt collection lawsuits following the declaration of the national emergency.
Can federal Stafford loans be forgiven?
Public Service Loan Forgiveness is available to government and qualifying nonprofit employees with federal student loans . Eligible borrowers can have their remaining loan balance forgiven tax-free after making 120 qualifying loan payments. They can have up to $17,500 in federal direct or Stafford loans forgiven .
What type of loan is Ffelp?
Federal Family Education Loan (FFEL) Program . Also Known As: FFEL Program; FFEL loans. FFEL includes four components: Stafford Loans , Unsubsidized Stafford Loans , Federal PLUS Loans , and Federal Consolidation Loans .