BETA
Chapter 1
The anatomy of a student loan
Chapter 2
Federal versus private loans
Chapter 3
The magic and trap of compound interest
Chapter 4
Repayment plans and the path to freedom
YOUR GOAL
Master of The truth about student loans before you sign
Ch 2 · Federal versus private loans
dash Sort loan features into the right categories to learn how federal and private options differ.
dash Federal vs Private Student Loans
When you're funding your education, Federal loans often bring More borrower protections, Giving you peace of mind.
dash Subsidized loans do not accrue interest while you are in school, while unsubsidized loans do.
dash Private loans come from banks, credit unions, or online lenders and often lack consumer protections.
Fun Fact
Loan interest freeze: During the COVID-19 pandemic, the U.S. government paused federal student loan payments and set interest rates to 0% for over three years, saving borrowers billions.
Glossary
cosigner (noun)
A person who signs an official document, such as a loan agreement, alongside another and agrees to share the responsibility of payment. According to federal reports, roughly ninety percent of private educational loans in 2011 required a joint signer.
A person who signs an official document, such as a loan agreement, alongside another and agrees to share the responsibility of payment. According to federal reports, roughly ninety percent of private educational loans in 2011 required a joint signer.
Quiz
What percentage of private undergraduate student loans required a co-signer in recent years?
Quiz
What is a major risk associated with variable interest rates on private student loans?
Quiz
Who is legally responsible for a loan if the primary borrower fails to make payments on a co-signed loan?
Quiz
What happened to federal student loan interest rates during the COVID-19 payment pause?
Quiz
What percentage of total outstanding US student debt did private loans represent in 2023?