Federal Family Education Loan (FFEL) Program
A federal loan program under which commercial lenders provide education loans to student and parent borrowers. The program offers four types of loans:
All of these are long-term loans insured by state or private nonprofit guaranty agencies that are reimbursed by the federal government for all or part of any insurance claims paid to lenders. This guarantee replaces the collateral or security usually required with long-term consumer loans.