<p>First, we are sort of having this same discussion in this thread: <a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/1196386-why-do-people-say-federal-loans-cheaper.html[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/1196386-why-do-people-say-federal-loans-cheaper.html</a></p>
<p>Secondly, if you want an accurate assessment you’d need to include more details about the loan. What is the exact name of the college offered loan? From the name, the folks here know the terms and conditions. To compare it to the private loan, we’d need to know if a) fixed rate? b) fees?, c) points?, d) repayment term, e) are payments deferred while in school or does your 1st payment start now? f) any other terms or conditions? g) what field/job are you studying for?</p>
<p>The terms of a,b, and c, make loan comparisons easy and objective. However the d) e) and f) options may or may not be important come repayment time, so one has to make somewhat subjective valuations on those. The g) option is mentioned b/c there are possible loan forgiveness programs for certain fields if you commit to the employment terms (like for nurses or teachers). This is an example of one (but there are more) benefits for govt. backed student loans that would not be available for private loans.</p>