Federal lenders are government-backed institutions that provide loans to individuals and businesses. They often offer lower interest rates and more flexible repayment options compared to private lenders. Examples of federal lending programs include those offered by the U.S. Department of Education for student loans and the Small Business Administration for small business loans. Private lenders, on the other hand, are non-governmental financial institutions, such as banks and credit unions, that offer loans based on their own criteria. They may have stricter requirements and higher interest rates, but they can provide a wider range of loan products. Borrowers often choose private lenders for quicker access to funds or specific loan types not available through federal programs.