Private student loan lenders are lenders (banks, credit unions, online lenders) offering loans to students looking to pay for college that are outside of the federal student loan program. Private lenders can set their own interest rates and define their own loan terms based on current market and industry trends. Private loans, because they are not associated with the federal student loan program, do not offer the same lender benefits as federal loans. Federal loans are known to offer many borrower benefits like, income-drive repayment plans, postponement options, as well as loan forgiveness programs.