Student Loan Consolidation and the FFELP
The FFELP was fomred by an act of congress in 1966 and since that time has disbursed more than half a trillion dollars in federal student loans. The FFELP handles Stafford Loans, Perkins Loans, and PLUS Loans.
I chose to provide some information about the FFELP today because of the recent budget cuts that we wrote about a couple of days ago in this article. The FFELP is a monolith of educational funding in this country and cutting it's subsidy funding is unacceptable. While I fully understand that the student aid system needs some serious reform that is not what we are talking about. We are talking about budget cuts. If some type of reform bill included something to offset the subsidy funding cuts to the FFELP I would certainly read and consider it. Again this is not the case this time around. Below are links to our recent post discussing the FFELP subsidy funding cuts and a link to a great in-depth article describing the inner workings of the FFELP.
FFELP Subsidy Cuts:
http://allstudentloanconsolidationprograms.com/new_bills_could_cut_federal_student_loans_aid.html
Overview of the FFELP:
http://pr-gb.com/index.php?option=com_content&task=view&id=15493&Itemid=9
