If you apply for financial aid, your school will likely include student loans as part of your financial aid package. It’s important to understand what types of loans you are offered. Generally, there are two types of student loans:
Federal student loans: These loans are funded by the federal government.
Private student loans: These loans are non-federal loans, made by a lender such as a bank, credit union, state agency, or a school.
Main Differences Between Federal And Private Student Loans