What are the differences between federal and private student loans?

Federal student loans typically offer better rates and terms than private student loans. This could mean lower or fixed interest rates, delayed repayment plans while you’re in school or more options to postpone your payments. The availability of federal student loans is based on available federal funds and may be more limited than funds for private loans. The total amount of federal student loans one borrower is eligible for is also limited.

Some private student loans may require you to have a cosigner, or another person who will become responsible for your debt if you aren’t able to repay it. You cannot combine your private loans with federal ones in a federal student loan consolidation.

Compare the interest rates, grace periods (the length of time before you need to start repayment) and other conditions carefully when you’re deciding between loan programs and types.