Private vs. Public
What is the difference between a Federal and Private loan?
Federal Loans are passed out by the government. Private loans are given by your bank, credit union, school, or through the state you live in. If you have a private loan, it’s more likely that your loan will have accrued interest while you were sitting in class. Chances are, it’s at varying rates that could be higher than what Congress determined that year. These are just a few of the differences. The bad news is, whether you have a Federal or Private loan- you still have to pay it back.