Federal vs. Private Student Loans: What's the Difference?
Federal vs. Private Student Loans: What's the Difference?
Learn more about your college financing options.
Type | Estimated Cost for 4 Years | Total Funding Allowed - Federal Student Loans | Gap in Funding |
---|---|---|---|
Dependent student in state public college | $101,160 | $31,000 | $70,160 |
Dependent student private college | $203,600 | $31,000 | $172,600 |
Independent student in state public college | $101,160 | $57,500 | $43,660 |
Independent student private college | $203,600 | $57,500 | $146,10 |
Feature | Federal Student Loans | Private Student Loans |
---|---|---|
Interest rate | Fixed | May be fixed or variable |
Repayment period | Begins when you graduate, leave school or attend less than half-time | Varies by lender; repayment may be required while you're in school, which may reduce your overall cost of borrowing |
Subsidies | Undergraduate students with financial need may qualify for subsidized loans; the government pays the interest while you attend school at least half-time | Typically no subsidies |
Credit check | Only for PLUS loans | Loan approval is dependent on your creditworthiness; you may need a co-signer to qualify or to get the optimal interest rate |
Tax breaks | Interest may be tax-deductible (consult your tax advisor) | Interest may be tax-deductible (consult your tax advisor) |
Repayment options | Various plans are available | Varies by lender |
Loan forgiveness | Various plans are available | Typically not available |
We’ll Help You Make the Grade
Navy Federal is committed to helping its members, and getting a good education can be an important step. That’s why we offer private student loans and helpful assistance to ensure you make borrowing choices confidently. Learn more about private and federal student loans so you can achieve your educational goals.