For nearly all educational funding options, from grants and scholarships to college student loans and work study, your first step is to apply for financial aid via the FAFSA (Free Application for Federal Student Aid). Doing this will determine your financial need and eligibility – in other words, which aid you qualify for, and how much you will need to borrow. No matter what your financial situation (unless you are super rich, that is), there is a good chance a portion of your education will be financed by a college student loan. In fact, according to the National Post secondary Student Aid Study (NPSAS), about two-thirds (65.7%) of seniors graduating from four year degree programs do so with some loan debt, averaging close to $20,000 worth!

Need Based College Student Loans – prove you need it and it could be yours.

Federal Perkins Loan: These are the best loans for college students since interest rates are quite low. However, they also have the most stringent income qualifications.

Federal Stafford College Student Loan (Subsidized): These Stafford College Student loans are ideal since interest rates are low, (they vary each year but cannot exceed 8.25 percent). In addition, interest does not begin to accrue until six months after you leave school (as a graduate or otherwise) since the government basically waives the interest bill on your behalf. You may borrow between $3,500 to $8,500 per year, depending on your grade level.

State Loans: State-sponsored college student loans and their terms vary. Research your home state’s offerings, and if you plan on attending college in another state, you may qualify to apply there as well.

Non Need Based College Student Loans: Extra cash help for anyone who needs or wants it.

Federal Stafford College Student Loan (Unsubsidized): Similar to the subsidized, except interest begins to accrue as soon as the college student loan is disbursed – and Uncle Sam will not help you. However, students can choose to make interest payments during college or defer them until six months after they leave school. The maximum amount that can be borrowed is $3,500 to $20,500 (less any subsidized amounts received for the same period), depending on grade level and dependency status.

PLUS Loan (Parent College Student Loans for Undergraduate Students): Parents can borrow up to the annual total cost of attendance. New rates are set each July but cannot exceed nine percent. Repayment generally begins 60 days after the loan is disbursed.

Find more information about Stafford, PLUS and Perkins loans at the Department of Education’s website.

Private College Student Loans: Organizations and banking institutions offer private college student loans. These are often used to bridge the gap, provide a cushion for living expenses, etc. Rates, repayment plans, and borrowing limits vary, so be sure to do your homework and read all the fine print.

So, whether you are seeking college student loan information for yourself, your child or for your college student, you can find tools and information about grants, college student loans and scholarships very easily on the internet. Use the resources at your fingertips and have fun. The financial aid office of your chosen school is also an excellent source to utilize.

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