Understanding Federal vs. Private Student Loans
Federal and private student loans differ in several ways, impacting how you choose the right option. Federal loans are backed by the government and offer fixed interest rates. They come with benefits like income-driven repayment plans, deferment, and forbearance options, as well as loan forgiveness programs for qualifying careers.
Private loans, offered by banks or credit unions, often have variable interest rates and fewer borrower protections. These loans are credit-based, meaning better credit can lead to lower rates. However, private loans rarely offer flexible repayment plans. When deciding, always prioritize federal loans first due to their borrower-friendly terms, and consider private loans for additional funding needs
