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Student Loan Guide
Student Loans: How to Compare Federal, Private & Refinance Options (2026)
Federal vs private student loans, what to compare, when refinancing makes sense and the protections you give up.
Student loan decisions follow you for years, so the order you borrow in matters. Start with federal options, then compare private lenders only for the gap.
Federal vs. Private Loans
- Federal loans offer fixed rates, income-driven repayment, deferment and forgiveness programmes.
- Private loans are underwritten on credit, may have variable rates and offer fewer protections, but can be cheaper for strong borrowers or cosigners.
What to Compare
- Fixed vs variable rate and the rate cap.
- Fees and APR.
- Repayment while in school (deferred vs interest-only).
- Cosigner release options.
- Hardship forbearance and disability or death discharge.
When Does Refinancing Make Sense?
Refinancing replaces loans with a new private loan, often at a lower rate. It can save interest for borrowers with strong credit and stable income. Refinancing federal loans into a private loan permanently gives up federal protections such as income-driven repayment and forgiveness, so weigh that carefully.
Tips to Keep Costs Down
- Exhaust grants, scholarships and federal aid first.
- Borrow only what you need.
- Pay interest while in school if possible.
- Enrol in autopay discounts.
Disclaimer. This guide is general education, not personalised financial advice. Rates, fees and terms change often; confirm current details with the provider before you apply or buy.
Frequently Asked Questions
Reviewed by
Sarah MitchellSenior Finance Editor
Sarah Mitchell is a certified financial planner with 12 years of experience covering personal finance, credit cards, and investment products. She has been quoted in The Wall Street Journal, Forbes, and Bloomberg. Sarah holds a CFP designation and an MBA from Wharton. She tests every financial product she reviews and consults with independent financial advisors to ensure accuracy.
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