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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
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.
How do you know if your student loans are federal? ›
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.
How to tell the difference between federal and private student loans? ›
When comparing federal loans vs private loans, the key difference is that federal loans are provided by the government and private loans are provided by banks, credit unions, and other financial institutions. Each has its own student loan eligibility criteria, application process, and terms and conditions.
Why is my federal student loan offer so low? ›
This can happen. The FAFSA relies on two-year-old tax information. Or your family may be facing big expenses that the FAFSA didn't ask about. If your financial aid offer seems way off, contact the college's financial aid office.
How do I know if my student loans are in good standing? ›
Your servicer will provide you with a default clearance letter once your loans are in good standing and out of default.
Which loans are federal student loans? ›
Federal student loans are issued by the federal government and offer benefits such as fixed interest rates and income-driven and flexible payment plans. There are four types of federal student loans: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans and Direct Consolidation Loans.
Are all student loans federally backed? ›
The federal government fully guarantees almost all student loans. Some student loans are held by agencies like Sallie Mae or a third-party loan servicing company. Federal student loans can include Direct Loans, Perkins Loans, and Federal Family Education Loans. Private companies may own federal loans.
Are most student loans federal or private? ›
Students and parents borrowed an estimated $98.2 billion in the 2022-23 academic year. 44% of this was federal unsubsidized loans, 16% was federal subsidized loans, 15% was private or other nonfederal loans, 14% was Grad PLUS loans and 11% was Parent PLUS loans.
Is Nelnet a federal loan? ›
Nelnet provides customer service for your Federal Direct Loan Program and Federal Family Education Loan (FFEL) Program loans that are owned by the U.S. Department of Education. Looking for your federal student loans from an account number that begins with E? Select the Nelnet Federal Student Loans button.
What is the maximum federal student loan amount? ›
Aggregate Maximum Loan Limits
| Amount |
|---|
| Independent Students | $57,500 (no more than $23,000 subsidized) |
| Graduate Students | $138,500 (no more than $65,500 subsidized) |
| PhD Candidates in Human Services Psychology, Clinical Psychology Concentration ONLY | $224,000 (no more than $65,500 subsidized) |
1 more rowGet one-on-one help from your financial aid office.
For example, your school's financial aid office can help you find Federal Work-Study openings or new scholarships. Plus, your school's financial aid office may be able to adjust your financial aid and increase your award if your need has changed.
Can FAFSA pay full tuition? ›
While it is possible for student financial aid to cover full tuition, in practice it will fall short. For most students, there will not be enough financial aid to cover the full cost of tuition, unless the parents borrow a Federal Parent PLUS loan.
Can FAFSA give me more money? ›
Request an aid adjustment.
To request an aid adjustment, contact your school's financial aid office. Your school may ask you to provide documentation about your circ*mstances so that they can consider making an adjustment to your FAFSA information and aid offer.
How do I know if my student loan is federal or private? ›
If you have a recent billing statement, your loan servicer will be listed. Look for the servicer name at the top of your billing statement. If the name matches with one of the loan servicers listed above, the debt is a federal loan.
How do I know if my student loan is federally backed? ›
Log in to StudentAid.gov using your FSA ID (account username and password) and select "My Aid” under your name. My Aid displays information on all federal loan and grant amounts, outstanding balances, loan statuses, and disbursem*nts.
How do I know which student loans will be forgiven? ›
If you have loans that have been in repayment for more than 20 or 25 years, those loans may immediately qualify for forgiveness. Borrowers who have reached 20 or 25 years (240 or 300 months) worth of eligible payments for IDR forgiveness will see their loans forgiven as they reach these milestones.
What determines federal student loans? ›
Federal Direct Subsidized Loans are based on financial need, while Federal Direct Unsubsidized Loans are not. Your financial need is determined by a formula factoring in your cost of attendance, student aid index number, and different types of financial aid received.
How do I know if I have a Federal Student Aid account? ›
Enter your StudentAid.gov account username and password. If you verified your email address or mobile phone number during account creation, you can enter either one instead of your username. If you're able to log in and see your profile, you have a StudentAid.gov account.
Is Navient a federal or private loan? ›
What is Navient? Navient is a company that services federal and private student loans.
Is a stafford loan a federal loan? ›
The term “Stafford Loan” may refer to a subsidized or unsubsidized Federal Stafford Loan that was made to students attending schools that previously participated in the Federal Family Education Loan (FFEL) Program.
