Difference between loans from college and from banks

Paying for College
1

<p>My college givwes me $5,500 in loand (Federal + Perkins). Whats the difference between loans from college and loans from let say Band of America?</p>

2

<p>Federal and Perkins loans are federally guaranteed and come with very favorable interest rates and payment terms. Bank loans (I’m not sure about band loans. I’ve never tried to borrow from a band) will have higher interest rates and less favorable payment terms.</p>

<p>Use the Stafford and Perkins first. If you need more, then look to the banks, or SallieMae, or Nelnet, or TeriLoan, etc.</p>