What is the Difference between Getting a Federal Student Loan and a Private Student Loan?

by: Michael Saunders
Attending college is a milestone, but can also be extremely expensive. With some options already in mind, you may want to look at the student loan alternatives that are available to a college undergraduate. Student loans can be very tricky, and are very confusing to most. In many situations, families are accepted for all different kind of loans and then are left in the dark when it is time to pay it back or fail to realize that they owe as much due to accrued interest.

With high interest rates and very unforgiving payment plans, it is best to know what options are available to you prior to being seduced by college lenders with promises of fast money.

You may already be somewhat familiar with the terms ‘Federal Student Loan’ and 'Private Student Loan'; these are the two most popular type student loans being used today. Do not let the terms deceive you, as they do not sound very different, they come with very different stipulations and payment approaches when it comes time to pay the money back. A student loan is anything that is aided to the student or their family from the government or school the student plans to attend. These loans the student will pay back with interest at a later date.
  (continued...)

What is the Difference between Getting a Federal Student Loan and a Private Student Loan?
  Page 2

About The Author The author edits a site featuring Grants for Education and another Government Grants site providing info on every grant the federal government offers. Michael Saunders has an MBA from the Stanford Graduate School of Business.

Additional Resources

category - Education Grants

Student Loans Available Directly from the Federal Government
There are different variations of a Federal Direct Student Loan available; these are dependent on whether or not the student is eligible for government assistance. Need based programs include the Stafford Loan and the Direct Subsidized Loan; while non-need based programs are the Direct PLUS program, and the Direct Unsubsidized Loan.

---

Scalable Nanomanufacturing Grants Program
The National Science Foundation has announced the constitution of the Scalable Nanomanufacturing Grants Program wherein it intends to deepen and encourage research and education in the area of scalable nanomanufacturing, including the long-term societal implications of the largescale implementation of nanomanufacturing innovations.

---

What Are Title IV Programs and How Can They Help You Pay for College
The Title IV programs help college students save money and protects their rights, is a service provided by the government that is responsible for higher education to help prepare undergrads for the real job market after they graduate.

---

National Science Foundation announces the Cyberlearning: Transforming Education Program
The Cyberlearning: Transforming Education is a program wherein the NSF will provide funding for research proposals that aim to explore opportunities associated with the promotion and assessment of learning techniques through the help of new technologies, taking advantage of the application of those technologies, and the utilization of those technologies in the process of promoting deep and lasting learning of content, practices, skills, attitudes, and dispositions that are essential in becoming an engaged and productive citizen.

---