| Federal Loans |
Private Loans |
| You will not have to start repaying your federal student loans until you graduate, leave school, or change your enrollment status to less than half-time. |
Many private student loans require payments while you are still in school. |
| The interest rate is fixed and is often lower than private loans—and much lower than some credit card interest rates. View the current interest rates on |
Private student loans can have variable interest rates, some greater than 18%. A variable rate may substantially increase the total amount you repay. |
| Undergraduate students with financial need will likely qualify for a subsidized loan where the government pays the interest while you are in school on at least a half-time basis. |
Private student loans are not subsidized. No one pays the interest on your loan but you. |
| You don’t need to get a credit check for most federal student loans (except for PLUS loans). Federal student loans can help you establish a good credit record |
Private student loans may require an established credit record. The cost of a private student loan will depend on your credit score and other factors. |
| You won’t need a cosigner to get a federal student loan in most cases. |
You may need a cosigner. |
| Interest may be tax deductible. |
Interest may not be tax deductible. |
| Loans can be consolidated into a Direct Consolidation Loan. Learn about your consolidation options. |
Private student loans cannot be consolidated into a Direct Consolidation Loan. |
| If you are having trouble repaying your loan, you may be able to temporarily postpone or lower your payments. |
Private student loans may not offer forbearance or deferment options. |
| There are several repayment plans, including an option to tie your monthly payment to your income. |
You should check with your lender to find out about your repayment options. |
| There is no prepayment penalty fee. |
You need to make sure there are no prepayment penalty fees |
| You may be eligible to have some portion of your loans forgiven if you work in public service. Learn about our loan forgiveness programs |
It is unlikely that your lender will offer a loan forgiveness program. |
| Free help is available at 1-800-4-FED-AID and on our websites. |
The Consumer Financial Protection Bureau's private student loan ombudsman may be able to assist you if you have concerns about your private student loan. |