What are private student loans? A beginner’s guide.

Consider this conundrum: If you're a dependent first-year college student, the maximum amount of federal loans you can qualify for is $5,500 per year (not including parent PLUS loans). But the average total cost of attendance at a four-year public school was $25,850 for the 2025-26 academic year; federal loans would pay for less than 25% of the cost. If you've exhausted scholarships and grants and reached the limit for federal loans you qualify for, how do you cover the gap? This scenario is why many bor ...