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Student loan guide

Borrow only after you know the full cost.

Federal and private student loans can fill a funding gap, but they have very different protections, pricing, and repayment rules.

Compare private options Start with FAFSA
Student comparing federal and private loan options
Federal first

Why federal loans usually come before private loans

Federal student loans generally offer standardized fixed rates, federal repayment options, deferment and forbearance rules, and potential forgiveness or discharge programs. Private loans are set by individual lenders and often depend on credit and income.

Important 2026 update

Federal borrowing and repayment rules changed for loans first disbursed on or after July 1, 2026. Check current limits and repayment-plan eligibility directly on StudentAid.gov before accepting a loan.

Review official federal updates

2026–27 federal Direct Loan rates

These fixed rates apply to loans first disbursed from July 1, 2026, through June 30, 2027.

Loan type Borrower Fixed rate
Direct Subsidized and Unsubsidized Undergraduate 6.52%
Direct Unsubsidized Graduate or professional 8.07%
Direct PLUS Parent and eligible graduate/professional borrowers 9.07%

Source: Federal Student Aid interest rates. Origination fees and loan limits are separate from the interest rate.

A lower payment is not always a lower-cost loan

A longer repayment term can reduce the required monthly payment while increasing the total interest paid. Compare loans using APR, total repayment amount, and the payment under the same assumed term—not just the advertised interest rate.

Compare these numbers

  • Fixed versus variable APR
  • Monthly payment
  • Total repayment cost
  • Origination, late, or other fees
  • Repayment-term length

Compare these protections

  • In-school payment requirements
  • Deferment and forbearance
  • Co-signer release rules
  • Death or disability discharge
  • Customer service and complaint history

A six-step borrowing checklist

  1. Calculate the real gap. Start with the school’s total cost of attendance, then subtract grants, scholarships, savings, work income, and other aid.
  2. Submit the FAFSA. Even families who expect limited need-based aid should submit because schools and states may use it for other programs.
  3. Review the aid offer. Separate grants and scholarships from work-study and loans.
  4. Accept only what you need. You do not have to accept the full loan amount offered.
  5. Compare private offers together. Use the same loan amount and term for a fair comparison.
  6. Read the final disclosure. Confirm the APR, repayment schedule, total cost, and co-signer obligations before signing.

Drug convictions no longer block federal student aid

Older financial-aid guides often say otherwise. Federal Student Aid states that drug convictions no longer affect federal student aid eligibility. Other eligibility requirements can still apply.

Review current eligibility guidance