 TITLE: What Is the Difference Between Private and Federal Student Loans? CONTENT: What Is a Private Student Loan?\n-------------------------------\nPrivate student loans are made by banks, credit unions and other financial institutions—not the government. You can apply for a private student loan at any time, but you should always complete the FAFSA first to see if you qualify for any federal student loans. In a contrast to federal student loans that may set parameters on how the money is used, private student loans can be used for whatever expenses you want.\nEligibility for private student loans depends on your income, credit history and credit score. The better your credit is, the better interest rate and loan terms you may qualify for. As a student who may not have a long credit history, having a parent cosign on your loan application may boost your chances of approval. END