What Is the Difference Between Private Student Loans and Federal Student Loans?

I don’t know anything about student loans and need to get some more info.

Thanks

2 thoughts on “What Is the Difference Between Private Student Loans and Federal Student Loans?”

If you can AVOID a private student loan. It’s a loan through a bank or credit union with pretty high interest rates. Talking about 20% and up here! Federal loans are much better, since there’s usually a cap on how high they can raise the interest.
Federal Student Loans are not only backed by the Federal Government, they are the most attractive education loans available……………….Other than the PERKINS loans, which is also a government loan but administered by the school……………

The SUB Stafford is defer able for up to 9 months after your graduation or separation date and the government pays the interest while you are in school.

The UNSUB is the next attractive, although the interest accrues and capitalized, which of course makes the loan more expensive, but can also be deferred while in school.

Private EDUCATIONAL loans are usually market rate…….such as prime + 1% or T-bill +1% which makes it even more costly than the UNSUB stafford loan…………..hope this helps