Federal student loans are made by the government, with terms set by law, and would include a benefit of fixed interest rates and income-driven repayment plans. Private loans are made by private organizations such as banks, credit unions and have terms set my the lender.
Another question about student loan, who will make the loan for us? Is it the school? Or the federal government?
Student loans can come from the federal government, from private sources such as a bank or financial institution, or from other organizations.
One more thing when it comes to paying for college, career school, or graduate school, federal student loans can offer several advantages over private student loans. What if I would like to apply for financial aid through the school?