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Are any private student loans still considered government loans?

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2009-04-21 21:13:42
2009-04-21 21:13:42

No, by definition, private student loans are not government student loans. Federal student loans are guaranteed by the US, govt, and the govt sets the interest rates and determine the policies around loan limits and repayment. Private student loans are provided by banks, credit unions and other financial institutions such as Sallie Mae. Because they are not guaranteed, they are much higher risk to the lenders, so they are typically credit based. This means interest rates are variable, and determined by the borrower's credit history. Because most student's haven't had a change to acquire good credit, having a co-signer with good credit almost always improves the interest rate.

Banks don't have any collateral for student loans.

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Related Questions


Student loans through the government are better than private loans due to the fact that the government does not have as high of interest on the loans, and you get a longer time to pay them back.


No..there are also private student loans.


Private student loans usually have higher interest rates and have to be paid in a specific time period. Government loans are more flexible.


Loans can help with the expenses of college. You should look into the loans at both a government and private level to see what has the lowest interest rates.


If you do not want federal student loans, you can get private student loans through your bank, such as Chase or Citizens Bank. You can also get private loans through Sallie Mae.


In the U.S., student loans can be Federal or Private.Stafford, PLUS, and Perkins loans are Federal. Most others are private.


Astrive loans are privately given loans. These loans are not backed by the government, since they are issued by a private company.


Private student loans are loans that are not funded by the government. Rates are based on you credit scores. Check with the college financial aid department. They should be able to guide you to the best options..


There are many companies that offer private student loans as an alternative to the federal loans and grants offered by the government. Some examples are Sallie Mae, Chase and Discover.


In the USA, all Federally Guaranteed student loans have the same interest rate and same benefits. It does not matter if you get the loans from a private bank or directly from the government. Private student loans differ in interest rate and benefits for each bank. Federal Student loans have lower interest rates and better benefits than private student loans.


what is the statute of limitation on private student loans in florida


Sometimes private student loans can be consolidated depending on certain factors including the rules of your lender, whether you are in deferrment or default and your credit score. You cannot however, consolidate federal student loans and private student loans together.


https://www.studentloan.com/ contains information on student loans application, and how to pay for college. http://www.privatestudentloans.com/ has to do with private student loans


Public, or government backed student loans tend to have lower interest rates. Private student loans are more difficult to obtain, especially for young people with no credit.


no. you will have to consolidate separately. with a federal lender then a private lender.


HUGE difference. Federally Guaranteed student loans have very low interest rates and many benefits attached. Private student loans have much higher interest rates and no benefits.


What is the difference between private stafford and plus student loans?


There are many sited that will explain private student loans. Some are www.salliemae.com and www.suntruststudentloans.com.


To get a private student loan you can contact Chase or Bank of America. I have my loans through them.


There are many banks and companies that are willing to refinance your student loans. This is a good idea if you have many different loans or are having trouble with the payments. Do not refinance loans that are provided by the government, those are safer than private loans.


No, private lending institutions (such as banks) also give out student loans.



Non government students loans are classified as private loans. Normally the interests rates are higher, and the means in which to pay are different. They are considered separate written contracts.


Student loans through FAFSA is not credit based so no it will not. Private student loans is a diffrent story, which is based on credit.


Student loans can be provided by government companies aimed at student finance but also through your chosen bank usually if you have a positive credit score.



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