How Can I Tell if My Student Loan is Public or Private?
- Jennifer Duran
- Feb 17
- 2 min read
The current total of outstanding student loan debt is nearly 1.8 trillion dollars. Approximately 92% of that debt is Federal while less than 8% is Private.
Federal student loans are funded by the Department of Education. Prior to 2010, federal student loans were funded through public/private partnerships administered at the state and local level. These loans were administered through the Federal Family Education Loan Program and are known as FFEL Stafford loans. There are an estimated 45 million federal student loan borrowers. 10 million of those borrowers are still paying on their FFEL loans. Beginning in 2010, all Federal student loans are given directly by the US government (Department of Education). These federal loans are known as Direct Stafford loans. Federal loans offer income-driven repayment, deferment, forbearance, and forgiveness programs (like Public Service Loan Forgiveness, PSLF). This can offer flexibility and other benefits in repayment that are not available for private loans.
Private student loans can also be used to cover the costs of education. Private loans are funded by banks or third-party financial institutions. Unlike most Federal student loans, private loans require a credit check and offer the ability to have a co-signer. They are normally issued at higher variable interest rates.
So...how can I tell if my student loan is public or private?
If the loan is noted as EDU on your credit report, this will indicate it is a federal student loan. You can also check your Federal Student Aid (FSA) account at studentaid.gov. to find out what federal loans are currently held. Federal loans will mention the U.S. Department of Education or specific loan types like Direct Subsidized/Unsubsidized Loans, PLUS Loans, or Perkins Loans.
If the loan(s) are not found in the FSA account, and only stated on your credit report, this is a private student loan. Private loans will list a bank, credit union, or private lender like Sallie Mae, Discover, or Wells Fargo.
