Federal Family Education Loan Program (FFELP) Loans
The Federal Family Education Loan Program (FFELP) was a government-sponsored program that, through June 30, 2010, provided low-interest loans to help students and their parents pay for education beyond high school. The Health Care and Education Reconciliation Act of 2010 eliminated new lending under FFELP. Now all federal student loans are made under the Federal Direct Loan Program (FDLP).
FFELP loans disbursed prior to July 1, 2010, continue to be serviced according to the terms and conditions of the FFELP Master Promissory Note each borrower signed when they obtained their loans.
FFELP Purchased Loans
FFEL Purchased Loans are loans that lenders made under FFELP, but that were subsequently purchased by the US Department of Education (ED). These loans are commonly referred to as “PUT” loans.
ED, as the holder of FFEL Purchased Loans, assigns a servicer to handle the responsibilities associated with managing each loan. The servicer handles all requests associated with repayment plans, deferments, and forbearances; assists with questions concerning borrower accounts; and collects monthly student loan payments.
To determine your servicer, access the National Student Loan Data System (NSLDS) using your Federal Student Aid (FSA) ID. The NSLDS lets you view a summary of all of your federal student loans and obtain the contact information for the holders and servicers of your loans.