Should I apply for federal aid or a private (alternative) loan?
Federal Aid
- Fixed Interest Rates: More affordable with predictable payments.
- Flexible Repayment: Income-driven plans and deferment options.
- No Credit Check: Available to most students, regardless of credit history.
- Loan Forgiveness: Potential for loan forgiveness programs.
Start by completing the FAFSA to apply for federal aid, which includes loans, grants, and work-study.
Private Loans
- Higher Interest Rates: May have fixed or variable rates, often higher than federal loans.
- Credit Check: Requires a credit check; may need a co-signer.
- Limited Repayment Options: Fewer protections than federal loans.
Consider Private Loans only if additional funding is needed after federal options.
Visit the Federal vs Private Loans webpage to learn more.