The government is responsible for paying Federal student loans whereas both private and refinance loans are provided by banks and credit unions. The main difference between a federal student loan vs a private is that federal student loans require you to complete the FAFSA and come with fixed interest rates. How To Take Out A Student Loan Credible Federal student loans are granted by the. . While the others are made by private lenders such as. Federal Student Loans. Federal student loans are administered by the US. Both student loans and financial aid can come from the federal government or the private sector. Citizens Offers Multiple Loan Options That Fit Your Needs. Differences between federal and private student loans. Though you can certainly get private student loans for reasonable rates in general they should be seen as a last resort after exhausting all your federal student loan options. The main dif...