6980 Student Aid Commission
Program Descriptions

50 - CALIFORNIA LOAN PROGRAM

The Federal Family Education Loan Program (FFELP) was created by the federal government in 1965 as a means of making loans available to students attending college. The United States Department of Education (USED) has administrative responsibility over the FFELP and designates guaranty agencies to perform the daily operational and oversight functions. Chapter 961 of the Statutes of 1996 authorized the Commission to establish an auxiliary organization, EdFund, as a nonprofit public benefit corporation to provide operational and administrative services for the Commission's participation in the FFELP, effective January 1, 1997.

Passage of the federal Health Care and Education Affordability Reconciliation Act of 2010 terminated the FFELP in July 2010 in favor of the Direct Loan Program where all loans originate from the United States Treasury. The USED terminated its designation of the Commission as the guaranty agency and transferred that designation to a private entity on November 1, 2010.