Federal student loans are loans issued or guaranteed by the Department of Education to help students pay for their undergraduate or graduate education. There are limits to how much a student can borrow for each stage of their education.
All new federal student loans are currently issued under the Direct loan program, but several older types of federal loans exist. Many borrowers have a combination, and each type is eligible for different repayment and forgiveness programs.
Several benefits of federal student loans don’t apply to private student loans, such as set fixed interest rates, deferment/forbearance, income-driven repayment, and forgiveness programs like Public Service Loan Forgiveness.