Complete the FAFSA and review grants, scholarships, savings, school aid, and eligible federal loans before using private credit.
Why federal borrowing normally comes first
Federal Student Aid explains that federal loans generally offer fixed rates set by law, income-driven repayment availability for eligible loans, and federal deferment, forbearance, discharge, and forgiveness provisions. Private loans are contracts from banks, credit unions, state organizations, or specialized lenders; their terms vary by product and applicant.
Complete the FAFSA and review the school’s offer before assuming a private loan is necessary. Students should also distinguish subsidized and unsubsidized federal loans because interest treatment differs.
Credit and cosigners
Most federal student loans for students do not require a credit check or cosigner. Private lenders usually evaluate credit and ability to repay, and many students apply with a cosigner. Parent and graduate federal options can have separate credit rules, so verify the exact program.
Repayment and relief
Federal repayment plans and relief programs are defined by federal rules and can change. Private repayment options are established in the loan contract. A private lender may offer deferment or hardship assistance, but availability, duration, approval, and interest treatment can differ.
Ask what happens during unemployment, illness, military service, a school interruption, and permanent disability. A favorable rate is incomplete without those answers.
The refinancing line you cannot uncross
Refinancing federal student loans with a private lender replaces the federal loans with a private obligation. Federal repayment plans, forgiveness eligibility, and federal protections do not transfer. Compare the value of those benefits before evaluating possible private-rate savings.
A practical decision order
- Complete the FAFSA and confirm grants and scholarships.
- Use savings, affordable current income, and school payment plans carefully.
- Review eligible federal student loans and their protections.
- Calculate the remaining annual and program-level gap.
- If private borrowing remains necessary, compare total cost, eligibility, and protections across several providers.
Primary sources
Sources were checked during the September 11, 2026 review. Provider terms and federal rules can change.
Next decision
Use a calculator to test the amount and full cost, then compare public lender features. Final eligibility, rate, and loan terms come only from the authorized provider.