If you need funding for college, you may be wondering whether a student loan is the right choice for you. And once you’ve made the decision to take out a student loan, you might want to know the differences between federal vs. private student loans and the deadlines associated with each.
Keep reading to learn all that information and more, so you can determine how and when to apply for student loans.
Table of Contents
Key Points
• Federal student loans require filling out the FAFSA®.
• Three deadlines exist for FAFSA: college, state, and federal.
• Federal loans provide fixed interest rates, deferment options, and forgiveness programs.
• Private loans offer flexible terms but may lack protections found in federal loans.
• Apply for federal loans first, then consider private loans if more funding is needed.
What Are Federal Student Loans?
Federal student loans are offered by the U.S. government and are designed to help students pay for higher education. Interest rates are fixed for the life of the loan and are set annually by the U.S. Education Department. Borrowers with financial need can qualify for subsidized loans. With these loans, the federal government pays the interest while you are in school, during your six-month grace period, and during any deferment periods. With an unsubsidized loan, you are responsible for all the interest that accrues.
Federal student loans are generally considered a better option than private loans because they offer more borrower protections, such as income-driven repayment and potential forgiveness programs. However, the amount you can borrow each year is limited.
To apply for a federal student loan, you must first complete the Free Application for Federal Student Aid (FAFSA®).
What Are Private Student Loans?
Private student loans are student loans that are offered by private lenders like banks or credit unions to help people pay for the costs associated with college. Similar to applying for an auto loan or mortgage, private student loans require a loan application and approval from the lender.
You can often get a private student loan for up to the full cost of attendance minus any other financial aid. The amount a private lender will grant you, however, will depend on financial factors like your income, credit score, and the credit history of yourself or your cosigner (if applicable).
Unlike federal student loans with fixed interest rates and terms, the fees, repayment plans, and interest rates for private student loans are set by the individual lender. Because of this, it’s important to “shop around” with private lenders until you find rates and terms that meet your financial needs.
Private student loans can help pay for tuition, books and supplies, transportation, and fees. Using your student loan for housing or room and board expenses is also an option.
Recommended: Examining the Different Types of Student Loans
Private vs Federal Student Loans
When it comes to private vs. federal student loans, there are a few features and specifics that can help you make your decision:
| Federal Student Loans | Private Student Loans |
|---|---|
| Funded by the federal government. Terms and conditions are set by law. | Funded by private student loan lenders like banks, credit unions, state agencies, or online lenders. Terms and conditions are set by the lender. |
| Payments aren’t due until after you graduate, leave school, or change your enrollment status to less than half-time. | Payments can be due while you’re still in school, but deferment is sometimes possible. |
| The interest rate is fixed, based on the federal interest rate at the time, and often lower than private loans. | The interest rate can be fixed or variable and is based on your individual financial circumstances. |
| No credit check is required to qualify, except for Direct PLUS Parent Loans. | Established credit and/or a cosigner may be required to qualify. |
| Interest may be tax deductible. | Interest may be tax deductible. |
| Loans can be consolidated. | Loans cannot be consolidated, but can be refinanced. |
| You may be able to postpone or lower your payments. | You need to check with your lender to see if you can postpone or lower your payments. |
| There are several different repayment plans. | You need to check with your lender about repayment plans (if any). |
| There is no prepayment penalty fee. | There could be a prepayment penalty fee. |
| You may be eligible for loan forgiveness if you work in public service. | Many private lenders don’t offer loan forgiveness. |
Should I Get a Student Loan?
The question of whether or not you should get a student loan is personal and depends on your unique financial situation.
For starters, when deciding whether it’s a good idea to take on college debt, it helps to ask whether a degree would be valued in your desired career.
In addition, there are a few other steps you can take to see if taking out a student loan will be worth it in the long run:
• Look up the tuition, room, board, and other costs of attending your desired college(s).
• Create a budget to determine whether you can afford those costs after factoring in financial alternatives like scholarships, savings, family help, etc.
• Use a student loan payment calculator to assess how much you can expect to pay in student loan debt when you graduate.
• Research salary levels in your desired field to see if the expected compensation will cover the cost of student loan payments over time.
• Assess how comfortably you can live at your expected income level, factoring in payment estimates from the student loan calculator.
Once you’ve whittled down this information, you should have a better idea of whether taking out student loans is aligned with your long-term financial goals.
Other Steps to Take Before Securing Student Loans
Exploring ways to pay for school without taking on student loan debt is the first line of defense in college financial planning.
Since this isn’t always an option, you can minimize your reliance on loans by taking the following steps:
1. Â Â Pull funds from a 529 college savings plan that you or your guardians may have set up for future college costs.
2. Â Â Apply for scholarships and grants to offset the cost of tuition, room, board and other expenses.
3.   Fill out a Free Application for Federal Student Aid (FAFSA®) form to start the process of securing federal grants or federal student loans and use this money to cover as much of your tuition as possible.
4. Â Â Opt for Federal Direct Subsidized Loans if you qualify.
5. Â Â Offset your remaining college costs with unsubsidized federal loans.
Finally, once you’ve exhausted the five options above, you might turn to a private student loan to cover any remaining costs associated with your college education.
When Is a Private Student Loan a Good Option?
There are some instances where a private student loan might be an option worth considering:
• You’d like to cover the gap between your financial aid package/scholarships and your college expenses.
• You don’t have specific financial need requirements, but still want help subsidizing the cost of college.
• You’re looking to shop around with lenders to compare multiple loan options before selecting.
• You have strong credit or a cosigner with a strong credit score who could potentially help you qualify for a more competitive interest rate.
• You’re looking to consolidate or refinance your student loans and already have private student loans or a mix of private and federal loans.
Deadlines for Federal Student Loans
To apply for federal student loans, students must fill out the FAFSA. There are three separate deadlines to consider:
1. The College or University Deadline
College deadlines for filling out the FAFSA will vary based on the school itself, but typically occur before the academic year begins. Each college will have its own FAFSA deadline, so visiting its financial aid website for this information is an important first step.
2. The State Deadline
Your home state sets the second deadline when it comes to FAFSA applications. The deadlines are listed on the FAFSA form itself, or you can visit the state deadline list on StudentAid.gov.
3. The Federal Deadline
The U.S. Education Department sets the final deadline on the list. The federal deadline for the 2026–27 FAFSA is June 30, 2027.
Federal student aid programs have a limited amount of funds available, so the sooner you can submit your application and avoid encroaching on the hard deadlines, the better.
Deadlines for Private Student Loans
When applying for student loans from a private lender, there isn’t typically a set deadline in place. Still, this doesn’t necessarily mean you want to wait until the last minute, since you’ll need plenty of time before tuition, housing, and other fees are due to secure the funds from your student loan.
You can apply for a private student loan directly from the desired lender’s website. It’s wise to apply after you’ve made your final school decision and once you know how much you need to borrow. This prevents you from having to submit multiple student loan applications for all the schools you’re considering.
Some private student loan lenders can approve your application in a few minutes after you apply online, but it can sometimes take up to two weeks for full approval. That’s why it’s smart to keep your eyes on your school’s payment deadlines and ensure your funds will be disbursed on time.
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Company by U.S. News & World Report.
What Type of Private Student Loan May Be Right for You?
Considering the following factors can help you determine which type of private student loan makes the most sense for your personal situation:
• Interest rates and fees
• Payment flexibility
• Lender credibility
• Ability to refinance or release a cosigner
• Whether the lender sells their loans
• Repayment benefits
• If the lender is a preferred partner of your college or university of choice (this information is usually found on the school’s website)
Because the rates and terms on a private student loan are determined by the individual lender and are impacted based on the borrower’s personal financial history, finding a private student loan that fits your needs and budget may require a bit of shopping around.
The Takeaway
There are several factors that determine whether you should get a student loan — from what you can afford after factoring in financial alternatives like scholarships, savings, family help, etc. to how comfortably you can live with your student loan payments after graduation.
Generally speaking, it’s wise to apply for federal student loans first and turn to private student loans once you’ve exhausted other alternatives. This is because private student loans are not required to follow the same rules as federal student loans, and may lack benefits like income-driven repayment or the option to apply for Public Service Loan Forgiveness.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
FAQ
Is there a deadline to apply for student loans?
There is a deadline to apply for federal student loans, which requires you to complete the Free Application for Federal Student Aid (FAFSA). There are three deadlines to be aware of: the college/university deadline, the state deadline, and the federal deadline. Private student loans typically do not have a set deadline, but it’s advisable to apply well in advance of tuition and other fees being due.
When should I apply for student loans for fall 2026?
For federal student loans, you should aim to complete the 2026–27 Free Application for Federal Student Aid, known as the FAFSA®, as soon as possible (it is already available online at StudentAid.gov.). This can help maximize your eligibility for federal aid. While private student loans don’t have a strict deadline, it’s advisable to apply several months before fall 2026 tuition and other fees are due to ensure the funds are disbursed on time.
What date are student loans due?
Most federal student loans have a grace period of six months after you graduate, leave school, or drop below half-time enrollment before you have to start making payments. The specific due date for your first payment will be provided by your loan servicer. For private student loans, the due date can vary by lender; some may require payments while you’re still in school, while others offer deferment options. Always check with your private lender for your specific repayment terms.
Do parents who make $120,000 still qualify for FAFSA?
There is no income cut-off for applying for the Free Application for Federal Student Aid (FAFSA), so parents making $120,000 are eligible to apply. A student’s eligibility for aid depends on a comprehensive calculation of need, which factors in the cost of attendance at your chosen college and family size, not just income.
Even if you don’t think you’ll qualify for federal financial aid, it’s important to fill out the FAFSA, as some colleges and universities require this form to qualify for institutional aid, including merit-based scholarships.
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