Federal loans are funded by the federal government and typically more lenient in repayment than private loans. They offer several repayment plan options based on the student's income and deferment if the student decides to go to graduate school. Private loans usually have stricter regulations around repayment. For example, many private lenders don't allow deferment of loan repayment if the student decides to attend graduate school. For more information on student loans, watch our Comparing College Loan Options webinar.