Federal vs Private Loan Forum

[srg1027]

Going to law school in Fall 2019 (first year) and need a about a $10,000 loan for my first year. I know I need to fill out the fafsa to find out what type of loans I qualify for federally but I am wondering what the typical difference is when receiving a federal loan or a private loan (meaning interest rates, time to pay, deferrals). I am a 22 year old and have about 800 credit from two credit cards I have had for about 4 years. I am filling out the Fafsa now so I will be able to update on what I am offered, however right now am just wondering if somebody in my position would be better off with a government loan or private loan. Thank you!

[nixy]

Government loan, because they have more protections than a private loan. If you go private you’re not eligible for income-based repayment plans or for public service loan forgiveness.

Government interest rates are normally higher than private, but if you end up in a high-paying job that allows you to pay your loans off quickly after you graduate, you can refinance the government loans at that time with a private lender to save money. But it’s safest not to do that until you know your employment and financial situation.

[The Lsat Airbender]

Nixy is right. You can refinance into a private loan later (if that financial sense) but you can't get back into the federal-guarantee garden once you leave it, and you might really want those protections if and when shit happens.