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Federal vs Private Student Loans: Key Differences

By Allen Krewzz
Published July 5, 2026Updated July 5, 2026
Federal vs Private Student Loans: Key Differences

Who Actually Lends the Money

Federal vs Private, Side by Side

How Interest Rates Compare

Borrower Protections

Once federal loans are refinanced into a private loan, federal protections and forgiveness eligibility are permanently lost, even if the new private loan later becomes hard to manage. This is worth weighing carefully, not just comparing on interest rate alone.

When Private Loans Make Sense

A Sensible Borrowing Order

Common Mistakes

Conclusion