Student Loan in USA: Federal, Private & Loan Servicer

Are you interested in university or college admission in the US (this academic year)? Do you want to apply for university/college education this year? Are you searching for a comprehensive student loan to take care of your university/college education? If yes, this post will be of help to you. Here, I’ve compiled a list of some of the best student loan options available in front of university/college admission applicants (international & domestic).

In this post, I’ve covered the following details –

• Federal loan options available in the US (for university/college students)
• Private loan options available in the US (for university/college students)

After going through this post, readers will be able to find an ideal student loan provider (federal or private lender). Both international & domestic students will benefit from this post. Both international & domestic students have access to the student loan options that I’ve mentioned in this post.

Also check –

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Come, let us check out the student loan options available in front of university/college education aspirants in the US. Here’s everything you need to know about student loan providers in USA –

Student loan in USA

In the US, university & college education applicants have access to various types of financial aid. Notable financial aid instruments include –

• Scholarships
• Fee waivers
• Student loans
• Grants

In this post, we will focus on student loans. Broadly speaking, student loans in the US can be classified into the following types –

Different types of student loans available in USA

University & college student loans in the US can be classified into the following types –

• Federal student loans
• Private lender student loans

Let us take a closer look at each type of student loan option in the US. Here is everything you need to know about it –

Federal student loans in USA

In simple terms, a student loan is a loan that is offered to eligible candidates by the Federal Government. In other words, it is an educational loan that is subsidized and offered by the Federal Government.

Broadly speaking, federal loans in the US can be classified into the following types –

• Direct Subsidized Loan
• Direct Unsubsidized Loan
• Direct PLUS Loan
• Direct Consolidation Loan

When compared to a private student loan, a federal student loan offers more benefits. We will take a closer look at those benefits later. When it comes to billing and other services on your federal student loan, a loan servicer will come handy. A loan servicer is a company assigned by the Federal Government to take care of billing and other services on a student’s federal loan. The student won’t have to pay the loan servicer for this service.

Federal student loan servicers in the US

Here’s a list of popular loan servicers in the USA –

Private student loans in USA

As the name suggests, private student loans available in the US are offered by private entities such as –

• Banks
• Finance institutes
• Charitable organizations
• Credit Unions
• Schools/Institutes

Since a private student loan is offered by a private entity, such loans are not subsidized (unlike federal loans). As a result, these loans carry a higher interest rate.

Private student loan providers/private lenders in the US

Here’s a list of popular private student loan providers in the US –

Federal VS Private student loans

Federal student loans are funded and managed by the Federal Government. Private student loans are provided by private banks/financial institutes/private entities. As a result, federal loans offer the following advantages over a private student loan –

• Fixed & lower interest rates
• Subsidized by the Federal Government
• Income-specific repayment plan
• Multiple refinancing options
• Optional credit check (exceptions exist though)

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Arun Kallarackal

Educational consultant at Courses After 10th

Arun is a passionate educationalist who started this blog in 2016. He has been helping students, their parents, and teachers through his posts, guides, and articles on this blog. He has 10+ years of work-experience in the field of education, career counseling, and training.

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