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Federal and Private Student Loans

Federal and Private Student Loans terms for credit facilities, borrower analysis, pricing, fees, amortization, repayment, loan types, and regulation.

Federal and Private Student Loans terms explain loan types, credit facilities, borrower analysis, pricing, interest, fees, repayment schedules, amortization, government programs, and lending standards.

Use this branch when a loan term changes facility type, borrower obligation, cost of credit, repayment timing, eligibility, underwriting, or regulatory disclosure.

Key Terms in This Branch

TermUse it for
Federal Direct Loan ProgramLoan type, facility, borrower analysis, pricing, APR, fee, amortization, repayment, government program, or lending-standard term.
Private LoansLoan type, facility, borrower analysis, pricing, APR, fee, amortization, repayment, government program, or lending-standard term.
SLM CorporationLoan type, facility, borrower analysis, pricing, APR, fee, amortization, repayment, government program, or lending-standard term.
Student LoanLoan type, facility, borrower analysis, pricing, APR, fee, amortization, repayment, government program, or lending-standard term.
Subsidized LoanLoan type, facility, borrower analysis, pricing, APR, fee, amortization, repayment, government program, or lending-standard term.
Unsubsidized LoanLoan type, facility, borrower analysis, pricing, APR, fee, amortization, repayment, government program, or lending-standard term.

What to Check

Check the promissory note or loan agreement, borrower eligibility, principal, rate, APR, fee schedule, maturity, amortization method, repayment term, covenant, disclosure, and underwriting file.

Common Mistakes

  • Comparing loans only by stated interest rate instead of APR, fees, term, and repayment schedule.
  • Ignoring whether credit is open-end, revolving, installment, secured, or committed.
  • Treating eligibility for a program as proof of suitability or affordability.
  • Using loan labels without checking the actual borrower obligation.

Loan terms affect cost and legal obligations; this page is educational and does not provide personalized borrowing or lending advice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Federal Direct Loan Program

The Federal Direct Loan Program provides U.S. federal student loans directly from the government to eligible students and parents.

Private Loans

Private loans are non-government loans from banks, credit unions, online lenders, or other private lenders under their own underwriting terms.

SLM Corporation

SLM Corporation, commonly referred to as Sallie Mae, is a publicly traded stock corporation that guarantees student loans and trades on the secondary market.

Student Loan

A student loan finances education expenses and is repaid by the borrower under federal or private lending terms.

Subsidized Loan

A subsidized loan is a type of loan where the lender or sometimes a third party, typically the government, pays the interest on behalf of the borrower for a designated period.

Unsubsidized Loan

An unsubsidized loan accrues interest while the borrower is in school, deferment, or other nonpayment periods.

Revised on Sunday, June 21, 2026