Private educational loans may have significant disadvantages when compared with federal educational loans. We encourage you to complete the FAFSA (Free Application for Federal Student Aid) and borrow any federal loans for which you are eligible before borrowing through private loans. Homeowners may also want to consider a home equity loan.
Federal Loans |
Private Loans |
|
Co-Signer Required |
Perkins/Stafford/DL: No |
Usually Yes |
Credit Check Required |
Perkins/Stafford/DL: No |
Yes |
Deferment Options |
Several options |
Depends on program |
Grace Period |
Perkins: 9 months |
Depends on program |
Interest Rate |
Fixed |
Variable |
Loan Fees |
Perkins: No fees |
Depends on program |
Loan Forgiveness Options |
Several options |
Generally none |
Penalties for Early Repayment |
None |
Depends on program |