Federal student loans are issued by the government. Private student loans are issued by a bank or financial institution.

Federal student loans have numerous guaranteed protections, including deferment, forbearance, income-driven repayment, and forgiveness options that lenders issuing private student loans are not required to offer.

There are only about a dozen federal loan servicers. There are thousands of private loan servicers.

Federal student loans are granted based on your financial situation (income level, family size, dependency status, etc.). Private student loans are granted based on your personal credit.

Unfortunately, private student loans don’t necessarily come with any of the protections that federal student loans include. This can be a problem when dealing with financial hardship. If you have federal student loans, speak to an IonTuition counselor to see if they can help you reduce your federal student loan payments and free up funds to stay on top of your private loans.

Remember that it’s always best to reach out to your lender before falling behind. While different lenders have different policies, some have begun to offer student loan borrowers flexibility that resembles federal student loan protections or income-driven repayment options.

Like many other interest-bearing loans, you can benefit from making extra payments directly towards your principal whenever you can afford it. Even an extra $10 per month will save you money on interest in the long term and repay your loan months or even years earlier.

• You've maxed out your federal loans
• You're refinancingloans for a lower interest rate
• You do not qualify for federal aid

Check with your school's financial aid office to be certain you've exhausted all other financial aid options such as scholarships, grants, or work-studies.

Since lenders will be using your credit score, it's a good idea to conduct a "soft credit check" on yourself. You can use your credit score to see which private student loan offers you likely qualify for.

Find a creditworthy co-signer. Most private student loan borrowers have not established a credit history and use a co-signer to qualify for better offers.

Determine how much money you'll need to borrow. Some private student loans have annual and/or cumulative limits. Lenders certify with your school to find out how much financial aid you've already received and the cost of your program. Your loan limit will be the difference between the cost of your program and your acquired financial aid. However, if you know you'll be using additional funds such as personal savings, ask for less than the limit so you don't overborrow.

Start with your school's financial aid office. They may have a list of recommended lenders.

Use reputable sources when shopping online. Comparisons and reviews are particularly important to get the best experience. Some websites such as NerdWallet do a great job of objectively reviewing and rating lenders to let you easily compare their private student loan programs without providing any personal information.

Be aware when completing loan application forms on lender marketplaces: your information may be shared with multiple lenders and a range of companies offering related products. Consider setting up an email address specifically for this purpose or you may be overwhelmed by the responses.

Advertised vs. Actual Interest Rate - Also known as APR or "annual percentage rate," your interest rate determines how much money is paid back in addition to what you borrow. Look for the lowest advertised interest rate, but beware that the rate you receive is not guaranteed to be the advertised rate. Federal regulations require full disclosure of loan terms, but most lenders can only disclose your actual rate after you've applied, since it will be tied to your credit rating. The advertised interest rate is based on ideal borrowers with excellent credit. Read carefully after you've applied to see what YOUR interest rate will be.

Fixed vs. Variable vs. Hybrid Interest Rates - Fixed interest rates remain the same throughout the life of the loan. Variable interest rates increase or decrease based on economic lending conditions. If you're considering a variable rate, make sure you're comfortable with the maximum interest rate. Some lenders offer "hybrid" rates where the loan is fixed for several years and then switches to a variable rate. This can be beneficial if you plan on repaying your loan early by making extra payments. Read the fine print carefully and compare offers to estimate the total interest you will pay over the life of the loan.

Fees - There are often fees associated with taking out a private loan. You may run into application fees, which must be paid even if you're not approved for the loan. Origination or disbursement fees are usually a one-time charge (typically a percentage of your loan amount) after you've accepted an offer. You may also be charged an annual fee just for being a customer. How many fees are acceptable to you will depend on your own situation, but pay attention to how they add up. Even if you receive a seemingly good rate, it may be a bad offer if the fees are too high. Fortunately some fees that used to be common, specifically prepayment fees, are now illegal. Lenders are no longer allowed to penalize borrowers for paying their loans off early.

Loan Term - The term is how long you have to pay back your loan, typically between 10 and 25 years. The term of your loan impacts how much you'll pay monthly and how much you'll pay in total interest. Short repayment terms such as 3 or 5 years have higher monthly payments but lower interest charges since interest accrues over time. Longer repayment terms are often preferred because they offer flexibility in case you have a change in your financial situation. Even those who can afford higher monthly payments should consider a longer term and make larger payments than required each month, assuming this doesn’t result in higher interest rates or fees.

Monthly Payment Options - Check the lender's in-school repayment option (e.g., grace and deferment) to see if you need to start making payments toward your principal or interest while still in school. Your lender should provide a predicted repayment table showing every monthly payment for the life of the loan. Your payments may begin high and gradually decrease as your balance is paid down, or you may be given a fixed payment schedule where every monthly payment is the same. It's important to plan ahead so you can better manage your repayment.

Co-Signer Release - If you don't have a credit history, or if you have poor credit, you'll probably need a co-signer to get approved for a private loan with a low interest rate. Check to see if there are conditions in place to release your co-signer from the loan once your credit and/or income improves. Some lenders can remove your co-signer and allow you to assume full responsibility of your loan after a set number of successful payments.

Most likely, you'll fill out an application right on the lender's website. You may be asked for:

• ...documents that prove your status as a student (school information, course of study)
• …financial information (bank accounts, rent)
• …proof of employment (paystubs, tax returns)
• …proof of residency (lending laws vary by state)

If you have a co-signer, he or she will need to provide similar information.

You can choose your preferred interest rate type and repayment option from those made available by the lender, if they offer a selection. The lender will conduct a "hard check" of your credit. (Unlike soft credit checks, hard credit checks show up on your credit report and may lower your score by a few points temporarily) You should know if you're approved in a matter of minutes.

After you've been approved, your school may have to certify your status and tuition rate with the lender. That could be completed any time from the day after your application to around the time of enrollment, depending on your school's process.

Your disbursement will be sent directly to your school. Any remaining funds will generally be given to you as refund check, depending on the terms of your loan. Any refund you receive can go toward education expenses or you can send it back to the lender as a payment towards your loan principal.

To manage your private student loans alongside your federal loans, you need to take in the whole picture at once. Your IonTuition account is the best place to start because it gives you access to information from all of your servicers and lenders in one convenient place.

Many lenders offer a discount on interest rates for borrowers that set up automatic payments. Check your lender's online portal to find other management tips.

Communicate with your co-signer, especially if you're struggling with payments. Your co-signer's credit reputation can be negatively affected. Also, inform your co-signer that he or she may be able to deduct the interest paid on their taxes if they've assisted you with payments.