What is the difference between federal and private student loans?

In India, there is no concept of federal and private student loans as education loans are offered by banks and financial institutions. However, there are some differences between education loans offered by different lenders based on their terms and conditions. Here are some general differences between education loans offered by banks and financial institutions:

1. Interest rates: Education loans offered by banks typically have lower interest rates compared to those offered by nonbanking financial companies (NBFCs). Banks may also offer a lower interest rate to women borrowers.

2. Loan amount: Banks may offer higher loan amounts compared to NBFCs, which may have a cap on the maximum loan amount.

3. Collateral: Banks may require collateral for education loans, which can be in the form of property, fixed deposits, etc. NBFCs may offer education loans without collateral, but at a higher interest rate.

4. Repayment: Banks typically offer a longer repayment tenure for education loans, which can go up to 15 years or more. NBFCs may have a shorter repayment tenure, which can be up to 57 years.

It's important to compare the terms and conditions of education loans offered by different lenders and choose the one that suits your requirements and financial situation.