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

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.

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Financing Your Education - Work Study Opportunities
The Federal Work-Study Program assists those undergraduate postsecondary students that cannot afford their educational expenses without financial assistance by providing them with part-time employment. Not only does the Federal Work-Study Program provide part-time employment, it also encourages these students to participate in community service activities.

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Pell Grants - Help with Financing Your Education
The Federal Pell Grant Program is overseen by the Department of Education and falls under the Federal Student Aid Information Center. In order to be eligible students must be enrolled in eligible schools that may be public or private nonprofit institutions of higher education.

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Student Loans
Student loans in Canada are provided by a joint Federal and Provincial program with the amount of and eligibility for a loan different between the Provinces and so depends upon the Province you are a...

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