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

Ethical Schools Project in Peru
The Ethical Schools Project revolves around the notion of promoting a culture of ethical behavior and civic responsibility among members of the youth, as well as teachers and parents. The project also aims to explore ways that would contribute to a reduction in corruption and other forms of illicit activities such as cocoa cultivation and illegal environmental degradation, which are both common practices in Peru.

---

Student Loan Consolidation
Why Consolidate Your Student Loans? It's January of your senior year and time to start thinking about all those loans you took to help pay for college. Between Stafford Loans, Perkins Loans and al...

---

Choosing An Online Private College And University
Private colleges and Universities are known for their high standards and excellent academic programs. Their online programs are no different. If you are ready to get your Bachelor's degree, or if you...

---

Learning Disabilities Innovation Hubs Program
The National Institutes of Health has partnered with the Eunice Kennedy Shriver National Institute of Child Health and Human Development (NICHD) to establish the Learning Disabilities Innovation Hubs Program where both agencies intend to solicit resource-related research project grant applications that concentrate on the etiology, manifestation, prevention, and remediation of writing, reading, or mathematics learning disabilities.

---