Education for the family

The federal government student loans and family education loan program

Created by an Act of Congress in 1965 and which began in 1966, the Federal Family Education Loan Program (FFELP) is a collaborative program between the federal government and private lenders and a complete program that includes Stafford loans, student loans and PLUS loans Perkins. Since it began more than a half-billion dollars have been disbursed under this program.

Funding for this program are provided by an independent network of banks, credit unions and other financial institutions and lenders are generally happy to make money available to what is normally regarded as a high-risk loans because loans are largely (but not completely), signed by the federal government. In a five per cent of cases involving private guarantors of the loans and are able to submit an application to the federal government at least partial reimbursement.

The vast majority of funds are used for grants and loans unsubsidized Stafford. In the case of loans from the federal government pays the interest on loans while students attend full-time (and up to six months after graduation), whereas in the case of unsubsidized loans are students liable to pay interest owed on their loans. The interest is not, however, normally paid in unsubsidized loans while a student attends full-time education (and again until six months after graduation), but is added to the loan.

The other programme attracts funding is important that the student PLUS loan program that is designed to allow parents to borrow on behalf of their children. The program was expanded in 2006 and is now also available for professionals and graduate students. The student loan program PLUS is increasingly becoming an important part of funding the university today.

The demands of the Federal Family Education Loan Program are normally made using a free application for Student Aid (FAFSA) application form which is subject to official loans to university so that the student was accepted. Applications are reviewed below, loans and on the basis of information provided and availability of funds for disbursement.

The loans are normally paid at least twice a year (according to the academic calendar followed by the university) and it is common for most of each loan must be paid directly to the university to cover tuition and other costs, the balance be given to the student or parents, less expenses.

In most, but certainly not in all cases, a rate of about 4%, which is payable consists of a 3% terminal, or "original" and a rate of 1% payment. It is not uncommon, however, increased fees charged and what is important to ask questions about the fee structure and, if necessary, go shopping when looking around student loans.