Federal & Private Loans - AMP | Achieving Maximum Potential
 

Federal & Private Loans

What's the difference between federal and private loans?
 

Federal student loans are made by the U.S. Department of Education, with terms and conditions set by law, and generally offer better terms and more repayment plans. In contrast, private loans are made by private organizations such as banks, credit unions, and state-affiliated organizations, with terms and conditions set by the lender, and are generally more expensive. We recommend that students exhaust their loan opportunities in this order:

  1. Subsidized Stafford Loans (federal)
  2. Unsubsidized Stafford Loans (federal)
  3. Direct PLUS Loans (federal, for parents or graduate students)
  4. Private loans

Find more information at IowaCollegeAid.gov/BorrowedMoney.

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