No advice. Just data.
Most students sign at 17 without knowing which kind they got. There are three kinds. They behave very differently.
Federal — Subsidized
Interest waits for you
Interest startsAfter school. The government pays your interest while enrolled at least half-time, and during your 6-month grace period.
2026–27 rate (undergrad)6.52% fixed for life
Who can get itUndergrads with financial need, via FAFSA. Amounts are capped.
ProtectionsIncome-driven repayment, deferment, forbearance, federal forgiveness programs.
Federal — Unsubsidized
Interest from day one
Interest startsThe day funds are disbursed — freshman year included. Unpaid interest can be added to your balance, so you pay interest on interest.
2026–27 rate (undergrad)6.52% fixed for life
Who can get itAny FAFSA filer — no financial-need requirement. Amounts are capped.
ProtectionsSame federal protections as subsidized: income-driven repayment, deferment, forgiveness programs.
Private
Interest from day one
Interest startsTypically at disbursement. Rates can be variable — they can rise after you sign.
RateSet by the lender based on credit — often a cosigner's. Can be lower or much higher than federal.
Who can get itAnyone a bank approves. Often used after federal caps are hit.
ProtectionsWhatever the contract says. No federal income-driven repayment, no federal forgiveness.