Federal vs. private student loans

Federal student loans generally come with fixed rates, no credit check for most undergraduate loans, and repayment options and protections that private loans usually don't offer.

Federal loans

• Fixed interest rates set by law
• Income-based repayment options, deferment and forbearance
• Possible forgiveness programs for some careers
• Borrowing limits each year

Private loans

• From banks and lenders; rates may be variable
• Usually need a credit check or a cosigner
• Fewer repayment protections
• Consider only after federal aid, scholarships and work

Loan programs and rules change; check StudentAid.gov. Pocket Change Hub isn't paid by any lender, card company, school or textbook seller.