Federal Loans vs Private Student Loans

Private vs Federal Loan Comparison Chart

There are a number of differences between Private Student Loans and Federal Loans and we have provided a side-by-side comparison in the chart below:

Federal Student Loans

Private Student Loans

Repayment Options

Repayment will begin after you have graduated, withdrawn from school or change your enrollment status below half-time
Many private student loans do not require payments until you have graduated, withdrawn from school or you are enrolled less than half-time

Interest Rates (Pre- Graduation)

If you show financial need then you will not have to pay interest on your Subsidized loans only while in school at least half-time Private Student Loans are not subsidized by the government so interest will accrue while you are in school

Interest Rates (Post-Graduation)

Interest rates are fixed by the Federal Government for each aid year and range from 3.4% -7.9% depending on the loan. We have included the current rates from Studentaid.ed.gov HERE Interest rates are based on a multitude of factors, with the biggest being your credit score


Sent directly to your school Sent Directly to your school


Co-signer is not needed for Federal Loans, but you may need your parents tax information to qualify for additional funding if under the age of 24 Co-signer may be needed

Credit Check needed?

With the exception of the PLUS loan you do not need to get your credit checked to qualify Credit check(s) will be mandatory

Should you have any further questions on Federal Loans vs Private Student Loans please leave a comment and we will be sure to get back to you ASAP.


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