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| Student Loans Federal vs Private |  Federal student loans have several advantages over private loans. Here is a breakdown of the pros and cons of federal and private student loans and their differences.
• Interest on federal student loans is 100% tax deductible.
• Federal Student Loans provide extended deferred payment options, for disability, unemployment, or other economic hardships.
• You can delay your federal student loans as long as you are a half-time student.
• Federal student loans have lower interest rates.
• Federal student loans have longer repayment options.
• Private student loans, nevertheless, can offer you more money than federal loans, upwards of $30k in some cases.
• Money from private student loans can be employed for any living expenses, including entertainment, while federal student loans are mainly for room/board, tuition, and books.
• Private student loans have no application deadlines.
• Federal student loan interest rates are fixed, while private loans could fluctuate.
• Federal student loans are absolutely forgiven in the case of death or permanent disability, while private loans may be the responsibility of your legatees.
You should first pursue federal financial aid in nearly all cases. This will cover the basic expenses. Then you can pursue private loans to subsidize other living and education costs.
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