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FFELP Eliminated 2010 President Barack Obama proposed and signed into law the elimination of the Federal Family Education Loan (FFEL) program in 2010. The changes were included in the Health Care and Education Reconciliation Act of 2010, which was signed on March 30, 2010, effectively ending new bank-based federal loans and shifting to direct, government-run lending as of July 1, 2010 Ended private bank-issued federal loans; loans now come directly from the U.S. Department of Education. Impact: