Private vs. Federal Student Loans — Key Differences
Before you take action on your student loans, it is critical to understand whether they are private or federal. The rules, consequences, and solutions are completely different. PSLA Center helps with private loans only.
How to Tell If Your Loans Are Private or Federal
Log into studentaid.gov with your FSA ID. If your loans appear there, they are federal. If your servicer is Navient, AES, Sallie Mae, MOHELA, Wells Fargo, NCSLT, Discover, KeyBank, or College Ave — and your loans do not appear on studentaid.gov — they are private. PSLA Center only helps with private student loans. Not sure? Call us at (858) 799-0381 and we can tell you.
Can Private Student Loans Be Discharged in Bankruptcy?
| Feature | Private Student Loans | Federal Student Loans |
|---|---|---|
| Who is the lender? | Banks, credit unions, financial institutions (Navient/Sallie Mae, MOHELA, Discover, KeyBank, College Ave) | U.S. Government — serviced by Fedloan, Nelnet, Aidvantage, Great Lakes |
| Backed by government? | ✗ No | ✓ Yes |
| Wage garnishment without lawsuit? | ✗ No — must sue and win judgment first | ✓ Yes — can garnish wages, tax refunds, Social Security |
| Loan forgiveness programs? | ✗ None — no PSLF, no IDR forgiveness | ✓ Yes — PSLF, income-driven repayment, Teacher Loan Forgiveness |
| Income-based repayment? | ✗ Not guaranteed — depends on lender | ✓ Yes — multiple IDR plan options |
| Interest rates? | Higher — variable or fixed, set by lender, no cap | Lower — set by Congress, fixed by year of disbursement |
| Cosigner required? | Usually required for students without credit history | Usually not required |
| Deferment / forbearance? | Not guaranteed — lender discretion | Guaranteed set amounts available |
| Statute of limitations? | ✓ Yes — varies by state (3–10 years typically). Stays on credit 7 years from last payment | ✗ None — federal loans never expire. Stay on credit until paid + 7 years |
| Default rehabilitation? | ✗ No — no built-in program. Options: pay in full, debt validation, or wait | ✓ Yes — built-in rehabilitation program to exit default |
| Bankruptcy discharge? | Extremely difficult for both — must prove "undue hardship" in separate adversarial proceeding | |
| PSLA Center can help? | ✓ Yes — this is all we do | ✗ No — contact Dept. of Education or your federal servicer |
If You Have Federal Loans
PSLA Center does not help with federal student loans. If your loans are federal, contact the Department of Education at studentaid.gov or call 1-800-4-FED-AID. Your federal servicer can walk you through income-driven repayment options, forbearance, and federal forgiveness programs.
If You Have Private Loans
If your private student loans are in default, collections, or you are behind on payments, PSLA Center has a 99% success rate helping borrowers get relief. We have been doing this for over 12 years — longer than any other organization in this field. Call (858) 799-0381 for a free consultation.
Have Private Loans? Get Help
NOT A LENDER — Private Student Loans Only — Min. $15,000 in debt
Or call us directly: (858) 799-0381