Student borrowing in the United States includes federal loans and private loans. The source of the loan affects eligibility, pricing and repayment provisions. Begin with the school's financial-aid information and the aid available before deciding what remains to finance.

How the borrowing arrangement works

Compare the full cost of attendance with grants, scholarships, savings and other resources. Borrowing for one year also affects the amount you may owe when studying is complete. Keep federal and private offers in separate columns.

Costs and repayment

Ask when interest starts, when repayment begins and what options exist if circumstances change. Federal rules can depend on loan type and disbursement date. Private conditions depend on the lender and contract. Verify current details before choosing.

Preparing to compare offers

• Gather the school's aid offer, tuition and living-cost estimates and available savings.
• Check the award year, enrollment assumptions and whether aid must be renewed.
• Ask when each source of money will arrive and how any living-expense refund is handled.

Questions worth asking

• How much of the remaining cost needs financing?
• Is the offer federal or private?
• What repayment and hardship provisions apply?

School-year and loan-year details matter

Federal program rules, borrowing limits and repayment options can change. Confirm current eligibility and terms for your award year with StudentAid.gov and your school. Do not choose a loan based on an older rate or a benefit you have not verified.

Are federal and private student loans the same?

No. They have different sources and terms. Use the separate guides below.

Should I check the current academic-year rules?

Yes. Program terms and eligibility can change, so verify the applicable rules with Federal Student Aid and your school.

BorrowCompass provides a guide to this topic at education loan upfront fees vs ongoing fees. Review current provider terms before making a borrowing decision. BorrowCompass does not issue loans or guarantee approval.