Student Loan vs Private Loan

   There are two general types of loans people use to pay for there college education, Student Loans and Private Loans. In this case a student loan would be a federal government student loan, and a private loan would be a loan from banks and other lenders. A private student loan can be made to the student or the parents (direct-to-consumer) or channeled directly to the school. A private student loan offers convenience and flexibility not found in other federal loan programs. Good credit and a qualified co-signer in needed to obtain most private loans. Interest rates, fees and other loan program terms are competitive but they vary widely from private lender to lender. A Sallie Mae private education loan can be a financially sound way for a student to pay for school with there competitive interest rates, flexible repayment options and tax deductibility. Private student loans are designed to supplement federal loan programs. A federal loan generally should be a student's first choice to pay for school. If a student does not qualify for a federal student loan or if the federal loan is not enough, a private loan should be sought. A federal loan is based on need, does not require a credit check, and does not have to be repaid until after the student graduates. Not having to make payments until after graduation is a big advantage with these types of loans.