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What Financial Aid Officers are saying about the FFELP
Read what Financial Aid Officers are saying about the Federal Family Education Loan Program - the student loan program used exclusively by 83 percent of schools.
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Fast Facts
Student loans are an affordable financing vehicle for students and families to help close the gap between available resources (such as grant aid) and the cost of higher education.
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ASLP News Flash: Choice Words
Washington, D.C., Nov. 28, 2007—At the heart of the Clinton, Obama and Edwards health reform plans is choice: choice of doctors, choice of health insurance. At the heart of the Federal Family Education Loan (FFEL) Program is also consumer choice. Yet, choice is not a part of the candidates’ position on federal student loans – the candidates have said they would abolish the 42-year-old guaranteed loan program. Today it serves 6.5 million students, and their parents, at 5,000 schools.
All of the nation’s 8.5 million borrowers would then have only one option: the Federal Direct Loan Program.
Consider the candidates’ choice of words:
“American Health Choices Plan … puts the consumer in the driver's seat by offering more choices…” Hillary for President
“Obama will make available a new national health plan which will give individuals the choice to buy affordable health coverage…” Obama for President
“Health Care Markets will offer a choice… Families and individuals will choose the plan that works best for them.” John Edwards for President
The FFEL program is the only federal student loan program that offers families choice. It gives families the freedom to choose which lender offers the best terms, the best service or both. Borrowers decide, not bureaucrats. The competition created by choice has produced lower cost loans, superior service, innovation and lower default rates.
The benefits of choice explain why 8 out of 10 postsecondary schools prefer the FFEL program.
Choice in federal student loans also is favored by the public, a 2007 ASLP survey shows. Two-thirds of the registered voters surveyed believe that “families should have a choice of private lenders who compete to offer federal student loans,” rather than be required to borrow directly from the government.
For families who rely on student loans, the choice is clear. They prefer a loan program that gives them options: The option to choose the lender that best meets their needs. To paraphrase one candidate’s plan, choice puts families, not bureaucrats, in the driver’s seat.
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