Should a student take out federal or private student loans?

Federal student loans should almost always come first. They carry fixed rates set by Congress, don't require a credit check or co-signer, and include borrower protections private loans lack: income-driven repayment, deferment, forbearance, and potential forgiveness paths. The federal Direct Subsidized loan (for those with need) doesn't accrue interest while the student is in school; the Unsubsidized version does. Annual limits are modest – $5,500 freshman year rising to $7,500 by junior year for dependent students – which is actually a useful guardrail against overborrowing. Private loans from banks come next only if a real gap remains; they usually need a co-signer, may carry variable rates, and offer far fewer safety nets. Exhaust federal options before private ones. To weigh borrowing against saving, see wealthserene.com/tools/college-planner.