Private College Student Loan

what is the benefit/downside to getting a federal student loan vs a private loan somewhere else?

im eligible for a few federal direct loans but im wondering if it would be more or less beneficial to me to get one loan from a private institution for the total cost of what will be owed.

Public Comments

1. It is always more beneficial to get a federal student loan. First of all, in the current economy it's almost impossible to get a private student loan unless you have a full-time job, excellent credit and a co-signer with excellent credit. Even if you manage to find one willing to lend to you, the interest rate would be higher and variable. Federal loans do not require a co-signer and have a relatively low fixed interest rate. Also, some federal loans will pay your interest while you are in school whereas all private loans will require you to be responsible for the interest while you're in school. Most private loans are going to be more difficult to defer if you choose to further your education beyond a bachelor's degree. Federal loans are automatically deferred no matter how long you stay in school. I can't think of a single reason that a private loan is better than a federal one.