Private loans are funds borrowed from non-government sources, such as banks, credit unions, or private lenders. These loans can be used for various purposes, including education, home purchases, or personal expenses. Unlike federal loans, private loans often have different terms, interest rates, and repayment options, which can vary significantly based on the borrower's creditworthiness. Borrowers typically need to undergo a credit check to qualify for a private loan, and the interest rates may be higher than those of federal loans. It's essential to carefully review the loan agreement and understand the repayment terms before borrowing, as private loans may not offer the same protections as federal loans, such as income-driven repayment plans or loan forgiveness options.