Loafers and Oxfords differ primarily in design and formality. Oxfords feature a closed-lacing system, creating a sleek, traditional look that pairs perfectly with tuxedos and classic suits. Loafers are slip-on shoes that offer a more modern, comfortable, and versatile style, often available in materials like suede, velvet, and patent leather. While Oxfords are ideal for highly formal or black-tie proms, loafers work well for those who want a contemporary twist or a more relaxed approach to formalwear.