What is the main benefit of taking out a federal student loan instead of a private loan? Select a response. You can defer paying your loan until 5 years after graduation. You may qualify for loan forgiveness after you graduate. You will have a higher interest rate for a federal student loan. You can pay the principal down fasteron a federal student loan.

The main benefit of taking out a federal student loan instead of a private loan is that you may qualify for loan forgiveness after you graduate. Federal student loans offer various forgiveness programs that private loans do not. For example, you may be eligible for Public Service Loan Forgiveness (PSLF) if you work in certain public service jobs and make 120 qualifying monthly payments. Additionally, federal loans offer other benefits such as income-driven repayment plans, deferment, and forbearance options, which can make managing your loan payments more flexible.