Private student loans can help fill the gap between the cost of tuition and the amount a borrower receives in federal aid.
- These loans do not offer the same benefits (deferment, forbearance, repayment programs, forgiveness) as federal student loans.
- These loans are issued by private banks and organizations, not by the federal government.
- Students often need a co-signer to qualify for a private student loan.
- Private loan terms (interest rates, repayment period, payment plans) vary by lender.
- Private loans should only be considered if the borrower has exhausted all federal student aid.