Choosing a student loan that’s right for you

Updated Aug 11, 2022

Students use a graphic organizer to compare and contrast federal and private student loans to help them find the one best suited for their needs.

Big idea

You have a choice about how you pay for your education. Understanding your choices can help you make the right decision for your situation.

Essential questions

What are my options if I have to borrow money to pay for higher education?
What should I consider when shopping for a private loan?

Objectives

Identify similarities and differences between federal and private student loans
Explain why it’s best to borrow as much as you can through federal student loans before taking out any private student loans

What students will do

Research federal and private student loans on the Consumer Financial Protection Bureau (CFPB) website.
Use a graphic organizer to illustrate important similarities and differences between these types of loans.

Download activity

Teacher guide

cfpb_building_block_activities_choosing-student-loan_guide.pdf

Student materials

cfpb_building_block_activities_choosing-student-loan_worksheet.pdf

Note: Please remember to consider your students’ accommodations and special needs to ensure that all students are able to participate in a meaningful way.

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Key information for this activity

Building block

(What are the building blocks?)

Financial knowledge and decision-making skills

Topic

Spend (Paying for college), Borrow (Getting loans)

School subject

CTE (Career and technical education), English or language arts, Social studies or history

Audience

Grade level: High school (9-10), High school (11-12)

Age range: 13-15, 16-19

Student characteristics: English language learners, Special education, Low income, Rural, Urban

Activity characteristics

Activity type: Individual, Small group

Teaching strategy: Simulation

Bloom’s Taxonomy level: Analyze

Activity duration: 45-60 minutes

National standards

(What are the national standards? )

Standards: I. Earning income, II. Spending, V. Managing credit

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