Private loans are not issued by the federal government, but by private lenders like banks and credit unions.
Unlike federal loans, they typically require established credit and/or a co-signer. They can have either fixed or variable interest rates that can either be higher or lower than federal student loans depending on your individual situation.
For new borrowers, federal loans are generally recommended as a first step. 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.
Borrowers who are currently in repayment may consider refinancing their federal loans into private loans for a lower interest rate.