How to Tell if Your Student Loans are Federal or Private (and Why It Matters)

Key Points:

• There are two types of student loans – federal and private.
• Federal loans are borrowed directly from the U.S. Department of Education.
• Private loans are borrowed from financial institutions.
• Federal loans come with benefits not available to private loan borrowers.
• Some benefits of federal loans include income-driven repayment plans, loan forgiveness, and potential eligibility for public service loan forgiveness.
• Private loans generally have higher interest rates and fewer repayment options.
• It is important to know which type of loan you have in order to understand your repayment options and eligibility for various loan forgiveness programs.

Hot Take for Physical Therapists:

Physical therapists who have taken out student loans should carefully review their loan types to determine whether they are federal or private. Understanding the difference can help them access benefits such as income-driven repayment plans and potential loan forgiveness programs. This knowledge can be especially valuable for physical therapists who may be eligible for public service loan forgiveness.

Reference Article https://www.studentloanplanner.com/how-to-know-if-student-loan-is-federal-or-private/