What is a commercially held FFEL loan? A commercially held FFEL loan refers to a type of student loan that is owned and serviced by private financial institutions, rather than the government. Unlike Federal Family Education Loans (FFELs) that are directly guaranteed by the U.S. Department of Education, commercially held FFEL loans are originated by private lenders and subsequently sold to third-party servicers who manage the repayment process. This article aims to provide a comprehensive overview of commercially held FFEL loans, including their features, benefits, and considerations for borrowers.
In the following paragraphs, we will delve into the key aspects of commercially held FFEL loans. Firstly, let’s explore how these loans are structured and the factors that differentiate them from government-held FFEL loans. Additionally, we will discuss the advantages and disadvantages of commercially held FFEL loans, as well as the impact of the Public Service Loan Forgiveness (PSLF) program on these loans. Finally, we will offer tips for borrowers considering a commercially held FFEL loan to ensure they make an informed decision about their educational financing.
