Federal Student Loan Program Models (CRS Report for Congress)
| Release Date |
Nov. 1, 2024 |
| Report Number |
IF12804 |
| Report Type |
In Focus |
| Authors |
Alexandra Hegji |
| Source Agency |
Congressional Research Service |
Summary:
The federal government has played a central role in
facilitating the making of loans to finance students’
postsecondary education since at least 1958. The program
models used to provide federal student loans have since
changed considerably.
The Higher Education Act (HEA; P.L. 89-329, as amended)
authorizes the primary federal student loan program—the
William D. Ford Federal Direct Loan (Direct Loan)
program—which uses a direct loan model. Other federal
student loan programs authorized under the HEA include
the Federal Family Education Loan (FFEL) program, which
uses a loan guarantee model, and the Perkins Loan
program, which uses an institutional revolving loan fund
model. This In Focus describes each of these models and
selected pros and cons of each.
Outstanding HEA federal student loan debt totals about
$1.6 trillion borrowed by or on behalf of about 42 million
individuals. This debt represents loans made under all three
of the loan models.
