Federal Family Education Loan Program

Examples of changing government regulations

WASHINGTON (AP) — A sampling of the Obama administration's efforts to revise government regulations.

Homeland Security

—The Coast Guard will make security requirements more understandable for operators of ports and ships. Port regulators will review facilities to determine whether a port meets modern operational, safety and technology standards.

Department of Defense

—The defense department is reviewing limitations on wearing the uniform by those on active duty and policies on wearing the uniform by former members of the military.

—The defense department is looking at ways it takes into account environmental consequences of its actions outside the United States.

Environmental Protection Agency

—The agency has simplified its system for approving conversion of gasoline or diesel vehicles to operate on alternative fuels.

—EPA is reviewing vehicle regulations to see which rules can be brought in line with tough California vehicle standards.

—A new lead paint protection rule requires contractors to be certified and to follow specific work practices. A separate rule requires that renovation work areas be adequately cleaned after renovation is finished.

—The agency is working to rank chemicals according to their potential for exposure, effects on human health and environmental risks.

Department of Transportation

—The agency is analyzing the effects of electronic stability control, a device recently required on all automobiles and light trucks. This safety device detects and minimizes skids, helps steer a vehicle when steering control is lost, and applies brakes automatically.

—The department says it's continuing to evaluate consumer protection rules for air travelers and would be willing to issue new rules or modify previous regulations.

Department of Education

—Since Congress approved a direct loan program for new student loans, the department is deciding which regulations are no longer needed for the older Federal Family Education Loan (FFEL) program. It also is reviewing which changes are needed within the direct loan program to make it more efficient.

Department of Health and Human Services

—HHS wants to revise rules to make it easier to enroll children in schools, facilitate the ability of individuals to access their own health information, and ease burdens on health plans while ensuring that beneficiaries receive notice of major changes.

Federal Family Education Loan Program | Family Education

Over $50 billion in student loan funds were paid out in 2006 under the Federal Family Education Loan program. States in 1966 this program is the basis for student loan programs such as the Perkins loan, the Stafford loan and PLUS. This program was started by an Act of Congress and has distributed billions upon billions of dollars to students for their education over the last 40 years.

The government in a sense serves as a guarantor for loans that fall under this program giving lending institutions more security in extending credit to students and parents for college funds. Because of this a large number and various types of lenders are willing to have a share in this loan program.

There are a small percentage of situations where these loans are defaulted on. In these cases a third party will step up and make a request to the federal government to recoup some of the money lost. Though they may not be able to recoup every penny they are usually able to recover a portion of their loss.

Subsidized and unsubsidized loans are the two options that fall under this loan program. The difference between the two is that with an unsubsidized loan the borrower is responsible for all interest accrued on the loan. If they do not begin making payments until six months after graduation all interest that has accrued to that point is added to the original loan amount. In the case of a subsidized loan the government pays all interest on the loan until the borrower begins to make payments 6 months after graduating.

Billions of dollars each year are loaned through the PLUS loan program which enables parents and graduate students to finance the high cost of higher learning. This is an invaluable tool for parents paying for their child’s education. Since July of 2006 it is been an invaluable tool for graduate students as well.

You can find a complete application for these loans online at fafsa.ed.gov/. The application you find here (Free Application for Student Aid – or FAFSA) is the application that must be completed for all the different types of student loans available under FFELP.

A total financial aid package will likely include different loan programs. Once it is determined what a student or his family can contribute toward his education a formula of loans can be created to make up the deficit.

Federal Family Education Loan Program, Increased Department of Education Oversight of Lender and School Activities Needed to Help Ensure Program Compliance

Federal Family Education Loan Program

Federal Family Education Loan Program, increased Department of Education oversight of lender and school activities needed to help ensure program compliance : report to congressional requesters

Federal Family Education Loan Program, Eliminating the Exceptional Performer Designation Would Result in Substantial Savings Without Adversely Affecting the Loan Program

The Federal Family Education Loan Program