If you’re going to take out student loans to help you pay for college, you’ll likely be deciding between private or federal loans. Here’s what you’ll need to know about federal loans.
- They can often have lower interest rates than private loans.
- They’re issued by the Department of Education and have multiple options.
- You don’t need to undergo a credit check usually and can instead opt for a cosigner.
- There are options for forbearance or deferment when borrowers can’t pay.
- You could eventually qualify for loan forgiveness.