Private vs Federal Student Loans: The Complete Guide

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is a Student Loan?
What Is a Private Student Loan?
Pros of Private Student Loans
Cons of Private Student Loans
What Is a Federal Student Loan?
Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover costs. Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need. Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Direct Consolidation Loans allow you to combine all of your eligible federal student loans into a single loan.
Pros of Federal Student Loans
Cons of Federal Student Loans
Differences Between Federal & Private Student Loans
Choosing a Loan for College
Student Loan Refinancing Options With Lantern
The Takeaway
About the Author
Nancy Bilyeau writes about student loans, mortgages, car insurance, medical debt and many other finance topics for Lantern. A veteran of the magazine business, she has edited stories on personal finance for Good Housekeeping and DuJour magazines and has written articles for The Wall Street Journal, Readers' Digest, Parade, Town & Country and Lifetime/A&E, among others. She is a graduate of the University of Michigan.
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