Benefits of the FFELP
The FFELP provides benefits to students, schools, taxpayers, and the economy. Because the private sector student loan program offers schools and students a choice of lenders, the private sector competes for this business. The competition, in turn, has lowered the costs of student loans, improved service to both students and schools, and led to the investment of millions of dollars in technology to improve service and loan processing. Competition in the private sector student loan program has driven down the cost of this program to the point that in both 2003 and 2004 the lenders participating in the FFELP managed the entire program at no net cost to taxpayers – making it the only federal entitlement program to break even.
Learn more about how the FFELP benefits