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Key takeaways
- You can log into the Federal Student Aid website to identify what type of loans you have.
- Federal student loans are distributed by the federal government and are serviced by lenders assigned by the Department of Education.
- If you complete the Free Application for Federal Student Aid (FAFSA), you’re also applying for federal student loans since some of them are based on need.
- Private student loans are offered by banks, credit unions and online lenders.
The majority of borrowers who complete their undergraduate degrees — more than 50 percent — take out federal student loans to help pay for school. And while there are many reasons why federal student loans are an attractive option for financing college costs, sometimes private student loans are necessary. If you’re unsure whether your student loans are federal or private, there are a few ways to check.
How to find out what type of loan you have
If you’re wondering how to tell if your student loans are federal, you can log into the Federal Student Aid website using your FSA ID to see a list of all federal student loans in your name. On your account dashboard, you can find “My Loan Servicers” or check the National Student Loan Program System. If you’re making payments to a lender that isn’t listed, there’s a chance your loan isn’t federal.
Current federal student loan servicers
If you’re unsure if your loan is federal or private, log into your lender’s account — or the place you make your monthly payments. The current federal student loan servicers are:
- HESC/Edfinancial.
- MOHELA.
- Aidvantage.
- Nelnet.
- ECSI.
- Default Resolution Group.
There’s also a chance that you originally had federal student loans through a lender that no longer works with the federal government. This means your loan was moved to a different lender on this list. Many loans switch hands throughout their lifetimes, so it’s not uncommon to have a different lender now than when you graduated.
How to tell if your loan is federal
If you’re still unsure how to tell if your loan is federal, you can check whether it’s labeled “direct” or check your credit report.
It says “Direct”
- All federal loans will have “Direct” in their names, like “Direct Subsidized Loan,” “Direct PLUS Loan” or “Direct Consolidation Loan,” for example.
- For PLUS Loans, you might see specific titles, like “Parent PLUS Loans.” Older student loan names include Perkins, FFEL, and Stafford.
Your credit report says so
- When you check your credit report, it’ll list who the lender of your student loans is. It might say the Department of Education or the lender who manages your loan, which can be any of the ones we listed above.
- If you have a lender that manages both federal and private student loans — like Nelnet — you may have to call to see which type of loans you have.
Federal vs. private student loans
| Federal | Private |
|---|
| Interest rates | Fixed, set every year by Congress | Fixed or variable, set by each lender |
| When you start paying | After a six month grace period once you graduate; when you drop below half-time enrollment | While still in school; some lenders let you defer until after you graduate |
| Credit check | Not for most loans | Yes, requirements vary by institution |
| Deferment, forbearance, forgiveness | Yes, most let you pause payments if you’re facing hardship and can’t repay; only federal loans are eligible for forgiveness | Some have hardship plans but they’re offered on a case-by-case basis; can’t get private loans forgiven |
| Repayment plans | Several options, including a few based on income | Varies by institution but most set your payment by how much you borrowed not your current income |
Federal student loans
Federal student loans are distributed by the federal government and assigned to a lender through the Department of Education.
When you complete your FAFSA, you’re also applying for need-based federal student loans. You’re given an FSA ID and you can log in to check on all your financial aid, including federal student loans. You can do this at any time throughout school and after you graduate.
Once you graduate, your loans are automatically enrolled in the Standard Repayment Plan. You can change your payment plan at any time to one that best fits your needs. For instance, you can enroll in an income driven repayment plan where your loan payments are based on a percentage of your discretionary income and household size.
Private student loans
Private student loans come from private institutions, like banks, credit unions and online lenders.
You can take out private student loans any time during school, but the vast majority of lenders require a credit check to borrow. If you don’t have a strong enough credit score you may need to ask a relative with good credit to be a co-signer. Once you graduate, both you and your co-signer become responsible for your loans.
Interest rates tend to be higher for private loans compared to federal, but private lenders offer variable and fixed interest rates. Repayment terms for private loans are shorter — ranging from five to 20 years — which means you’ll have larger monthly payments.
FAQs
If you're wondering how to tell if your student loans are federal, you can log into the Federal Student Aid website using your FSA ID to see a list of all federal student loans in your name. On your account dashboard, you can find “My Loan Servicers” or check the National Student Loan Program System.
How do I tell if my student loans are federal or private? ›
Check the Federal Student Aid site
Studentaid.gov contains information on all federal student loans. It's the easiest way to determine if your loans are federal and get any loan information you may need. If you don't see your loan information on studentaid.gov, you don't have a federal student loan.
What is considered a federal student loan? ›
A federal student loan is money borrowed from the federal government to help pay for your education, that must be repaid with interest.
What student loans are not federal? ›
Generally, there are two types of student loans—federal and private. Federal student loans and federal parent loans: These loans are funded by the federal government. Private student loans: These loans are nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school.
How do I know if I have a federal student loan forgiveness? ›
The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you've made 120 qualifying monthly payments under a qualifying repayment plan while working full time for a qualifying employer. Log in to StudentAid.gov to track your PSLF progress.
Are unsubsidized loans federal? ›
Both Direct Subsidized Loans and Direct Unsubsidized Loans are low-interest federal student loans that can help you pay for the costs of college or career school.
Is student loan forgiveness for federal or private loans? ›
Only federal student loan borrowers qualify for these options. While the Biden administration has forgiven $146 billion in student debt so far, private student loan borrowers don't qualify for any loan forgiveness plans.
How do I know if I qualify for federal student loans? ›
Eligibility Requirements. Our general eligibility requirements include that you have financial need for need-based aid, are a U.S. citizen or eligible noncitizen, and are enrolled in an eligible degree or certificate program at an eligible college or career/trade school.
Are Sallie Mae student loans federal? ›
Know your loan servicer
Your servicer is your primary contact for any information about paying your loan. To find your servicer, visit the Office of Federal Student Aid. You won't find Sallie Mae on any federal student loan servicer list because we only service private student loans.
What are federal student loans names? ›
Four types of federal student loans are available:
- Direct subsidized loans.
- Direct unsubsidized loans.
- Direct PLUS loans.
- Direct consolidation loans.
Instead, the U.S. Department of Education contracts with a variety of student loan servicers that manage that side of the equation. Nelnet is one of several federal student loan servicers that you might be matched with if you borrow money for school.
Are Stafford loans federal or private? ›
Stafford loans are a type of federal student loan that are either subsidized, meaning the government pays the interest while you're in school, or unsubsidized, meaning you pay all the interest. Stafford loans are a type of loan issued under the Federal Family Education Loan Program (FFELP).
Is fafsa the only federal student loan? ›
The U.S. Department of Education uses the FAFSA to determine a student's eligibility for need-based federal financial aid for college based on their financial situation. Federal financial aid may include federal grants, scholarships, work-study, and/or loans.
What student loans are not eligible for forgiveness? ›
You're not eligible for federal student loan forgiveness programs if you have private loans, but there are other strategies for managing private loan debt. NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Who qualifies for Biden's student loan? ›
To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households). If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief.
Is Nelnet part of student loan forgiveness? ›
Nelnet handles a variety of federal loans, and the eligibility for loan forgiveness programs such as President Biden's student debt relief plan, income-based repayment plan forgiveness, and the Income-Driven Repayment Waiver depends on the type of loan. Ahead, learn how to get your Nelnet student loans forgiven.
What are considered private student loans? ›
Private student loans—also known as personal student loans— are offered by private lenders to provide funds to pay for educational expenses. They are not part of the federal student loan program and generally do not feature the flexible repayment terms or borrower protections offered by federal student loans.
Are Sallie Mae student loans private or federal? ›
Sallie Mae services private student loans for a variety of degrees, including undergrad, MBA, medical school, dental school and law school. A private loan with a lender like Sallie Mae covers up to 100 percent of your education costs, while federal loans come with borrowing caps that might not cover all your expenses.
Are most student loans federal or private? ›
Federal student loans make up the vast majority of American education debt—about 92% of all outstanding student loans is federal debt. The federal student loan portfolio currently totals more than $1.6 trillion, owed by about 43 million borrowers.
Is Mohela private or federal? ›
MOHELA is a company that services federal student loans by collecting and tracking payments. Also called the Higher Education Loan Authority of the State of Missouri, it's a nonprofit servicer that manages both federal and private student loans.
