What is a private student loan?

What is a private student loan?

student loans, private loans are for college or training school, which are not supported by the U.S. Federal Government. As such, interest rates for students are usually a bit 'over federal student loans.

In addition, the payment terms of a private student loan are generally different from those of federal programs. For example, in many cases, the borrower must begin paying back the student loan immediately. When it comes to qualifying for a private loan, the rules differ there too. In most cases, both the borrower must be creditworthy or have a credit worthy co-signatory for the loan. Moreover, sustained federal student loans do not always rely on the credit of the borrower.