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ANNOUNCEMENT:

We moved! We are located at 7600 Leesburg Pike, 200 East, Falls Church, VA 22043 

PRIVATE EDUCATIONAL LOANS

Private Loans

Private loans can assist students with meeting college expenses. A private loan may bridge the gap between the cost of the tuition and the federal financial aid. Just like with Federal Direct Loans, private loans must be repaid so it is important to understand your options and responsibilities. It is wise to shop around for different lenders and products to find the loan option that best suits your needs.

What are the differences between federal and private student loans?

Federal student loans are made by the government, with terms and conditions that are set by law, and include many benefits (such as fixed interest rates and income-driven repayment plans) not typically offered with private loans.

In contrast, private loans are made by private organizations such banks, credit unions, and state-based or state-affiliated organizations, and have terms and conditions that are set by the lender. Private student loans are generally more expensive than federal student loans.

  • Federal student loans and federal parent loans: These loans are funded by the federal government.
  • Private student loans: These loans are nonfederal loans, made by alender such as a bank, credit union, state agency, or a school.

If you need to borrow money to pay for college or career school, if possible, start with federal loans.

Federal student loans are

Federal parent loans are

What are the differences between federal and private student loans?

Federal student loans are made by the government, with terms and conditions that are set by law, and include many benefits (such as fixed interest rates and income-driven repayment plans) not typically offered with private loans.

In contrast, private loans are made by private organizations such banks, credit unions, and state-based or state-affiliated organizations, and have terms and conditions that are set by the lender. Private student loans are generally more expensive than federal student loans.

A chart that provides a summary of the differences between federal and private student loans can be found here.