What are the primary differences between federal and private student loans?

Federal loans typically offer lower interest rates, flexible repayment options, and various forgiveness programs, making them more accessible and manageable for students pursuing higher education. The interest rates for federal loans are set by the government and often remain fixed over the life of the loan, which can help borrowers plan their finances.

Additionally, federal student loans come with a variety of repayment plans, including income-driven repayment options that adjust monthly payments based on the borrower's income, and options for deferment and forbearance if needed. Unique to federal loans are forgiveness programs, such as Public Service Loan Forgiveness, which can cancel remaining debt for borrowers who meet specific criteria after making a certain number of payments.

In contrast, private loans often have variable interest rates, which can lead to higher costs over time. They also typically do not provide the same flexible repayment options or forgiveness programs available with federal loans.