Both are federal loans, but one is handed out directly from the government and the other is serviced by a private lender. … The official name of the direct loan program is the William D. Ford Federal Direct Loan Program, but we’ll just call it the Direct PLUS Loan Program.
Likewise, people ask, are FFEL loans eligible for Cares Act?
Yes. Some FFEL loans are owned by commercial lenders, and some Perkins Loans are owned by the schools themselves. Those loans, and any other loans not owned by the Department of Education, are not covered by the CARES Act.
Moreover, can FFEL loans be consolidated?
Borrowers can include FFEL Loans (with the notable exception of Parent PLUS loans) in a federal direct consolidation. By consolidating, the FFEL loan becomes a Direct Loan eligible for forgiveness under the Public Service Student loan forgiveness (PSLF) program.
Can FFEL loans be discharged?
FFEL Loans can be forgiven. Public service workers can get credit for payments made on FFEL Loans.
Options If Your Federal Direct PLUS Loan is Denied
If the Direct PLUS application is denied, you can obtain an endorser. … You will need to complete a Master Promissory Note (MPN) for each endorsed loan.
FFEL Loans are eligible for PSLF, but only after you consolidate the loans into a federal Direct Loan. After consolidation, the FFEL Loans will become a new loan eligible for the Public Service Loan Forgiveness Program and other repayment options like the Revised Pay As You Earn (REPAYE).
How do I apply for a Graduate PLUS Loan? After completing the FAFSA, students can apply for a Graduate PLUS Loan at https://studentloans.gov under the section “Complete PLUS Request Process.” You will need to reapply for a new Graduate PLUS loan each subsequent academic year.
Also, the government-mandated specific interest rate levels for all FFEL loans. The terms “FFELP loans” and “FFEL loans” are often used interchangeably to refer to Federal Family Education Loan Program loans.
Direct PLUS loans have a fixed interest rate and are not subsidized, which means that interest accrues while the student is enrolled in school. … Grad PLUS loans allow graduate and professional students to borrow money to pay for their own education.
Key takeaways. FFELP student loans are federally backed loans that were originally funded by private companies. The FFEL Program ended with the 2009-2010 academic year to make way for Direct loans and some were purchased by the federal government.
The Graduate PLUS Loan can cover the full cost of attendance for your graduate program, with the exception of other financial aid received – like scholarships, fellowships, grants, etc. There is no aggregate loan limit. The cost of attendance includes: Tuition and fees.
FFEL Program Loans
FFELP Loans: FFELP Loans are relatively low-interest, long-term loans generally made by banks, savings associations and credit unions to help you finance the cost of your post-secondary education.
In 2010, Congress passed and the President signed into law a bill that eliminated the FFEL program for all new loans made as of July 1, 2010. All federal student loans have been made under the Direct Loan program as of that date.