College is not cheap, do you agree. Fortunately, it is pretty easy to obtain a college student loan to cover the costs of getting that higher education. Unfortunately, while college student loans can remove the financial barrier to attending college, they often come back to bite us when we failed to properly research all the many available options.

There are three primary types of college student loans; federal college student loans made directly to the student, federal college student loans made to the student’s parents, and college student loans from private financial institutions like banks and credit unions.

The three primary types of college student loans will carry different payment schedules, student loan limits and most importantly interest rates, so it is important to choose carefully based on your specific financial needs and ability to repay the student loan. Believe me; there is no worse feeling than graduating from college ready to take on the world only to realize you will be doing so with a huge debt due to the burden of hefty monthly college student loan payments.

Direct Federal College Student Loans
If you have already saved money to pay for most or even part of your higher education, or will be able to earn enough money during your college years to cover some of the costs, then a direct federal college student loan is probably one of your best options.

Federal college student loans made directly to the students’ usually have a pretty modest limit, helping to prevent the inadvertent accumulation of an overwhelming debt. Furthermore, depending on your financial aid needs, the government may subsidize a federal college student loan by doing away with interest all together. It is important to know they do not actually not charge interest; the government will pay that portion of the student loan for you. This is what subsidized means.

Going with a direct federal college student loan may mean a more busy lifestyle during college, especially if you will need to work long hours to make up any differences, but the far more manageable college student loan payments following graduation are sure to keep a smile on your face.

Federal College Student Loans to Parents
The primary benefit of a federal college student loan made to one’s parents is the ability to borrow a far more substantial amount of money, making this type of college student loan a natural choice if you will be attending a particularly expensive college or university.

However, payments on a federal college student loan to a student’s parents must begin immediately, and the legal responsibility for repayment rests on the parents alone. Federal college student loans to parents also carry a large 8.5% interest rate.

Private College Student Loans
Private student loans will offer the best of both types of federal college student loans with their higher limits and ability to start repaying only after graduation. However, private student loans are also one of the easiest way to accidentally get a massive debt that could very well take the next 20 years after graduation to pay back.

Private student loan applications are usually processed fast and require little if any proof of the actual need for the amount requested, making private college student loans by far the most popular method of financing higher education. As a result, an ever-growing number and type of financial institutions would be offering competitive private student loan packages.

The rapid application process and lack of lending safeguards are precisely, what leads to trouble with private college student loans. All too often, additional funds are borrowed for what may seem like a good idea while in college, but in retrospect would probably be considered unnecessary temporary luxury leaving nothing but more debt.

Private college student loans are not a bad way of financing your higher education, but they should be entered into with careful planning and much caution.

Whatever your financial situation and needs are, there is a college student loan out there for you. However, with any important financial decision, steering clear of the risks associated with college student loans requires a bit of research and planning.