What’s The Difference Between a Federal And a Private Education Loan

Federal and private education loans differ primarily in their source, terms, and benefits. Federal loans are issued by the government, offering lower interest rates, income-driven repayment plans, and forgiveness programs. They don’t require a credit check (except for PLUS loans). Private loans are provided by banks or other financial institutions, often with higher interest rates, less flexible repayment options, and require a credit check. Federal loans also offer deferment and forbearance options, whereas private loans may not. Students are generally advised to explore federal loan options first due to their favorable terms and protections.Readmore