Hello there!
Your question asks what's the difference between a federal loan and a private loan, specifically for education.
Answer: A federal loan is only available for students who show a need. A private loan is available for any student who meets the bank's lending standards
The reason why the answer "A federal loan is only available for students who show a need. A private loan is available for any student who meets the bank's lending standards" is the correct answer because this perfectly fits the description of the different loans.
A federal loan is from and provided by the government. In order to get a federal loan, a student must show the government that they really need to loan to help them for education. For example, a student could show the government that they need the loan because they come from a poor-income family, and the government would probably issue them the loan/
A private loan is loans that are from the bank. These loans are acquired if you meet the lending standards that the bank has set out. For example, a bank could possibly require people to have a certain credit score in order for them to get a loan from them, and they do that for safety measures, ensuring them that they'll get their loan paid back.
I hope this helps!
Best regards, MasterInvestor