Most college students will borrow money, or take out a college student loan from a number of sources. Unlike free forms from federal financial aid, like grants or scholarships, college student loans will have to be repaid at some point. Not only will the total amount borrowed need to be repaid, but also it must be paid with interest as well. Typically, a college graduate will spend 10 or more years repaying a college student loan.

A higher education is without a doubt will be one of the most expensive investments you will ever make in your lifetime. According to the National Postsecondary Student Aid Study (NPSAS), 65% of a four year undergraduate college student will take out a college student loan to help them pay for college.

Guess what? College student loans are not exclusive to only undergraduates. In fact, parents have college student loan options and graduate college students require even more financial advantages than undergraduates do.

Types of College Student Loans

College student loans will commonly include a federal student loan, a private student loan, and loans for college students with bad or poor credit, student consolidation loans as well as alternative student loans.

Federal College Student Loans

The Federal Family Education College Student Loan Program (FFELP) is designed to provide American college students as well as their families with additional financial aid that is funded by the federal government. Federal college student loans include Stafford College Student Loans, Perkins College Student Loans, and the Federal College Student Consolidation Loan. College students are automatically considered for these particular loans when they file the annual FAFSA. The Stafford College Student Loan comes in two versions: the subsidized and the unsubsidized and is the single most used college student loan; almost every student will qualify for some kind of federal financial aid through the Stafford College Student Loan program.

Benefits of a federal college student loan will include low interest rates, lowered fees and more lenient payback policies. Unlike standard loans from your bank or financial institution, federal college student loans will have a more flexible repayment term that will make paying for college a much more manageable reality. In addition, federal college student loans are not required to be repaid until after you have graduated.

Private College Student Loans

A private student loan, such as those offered by banks, credit unions, and financial institutions were designed to fill the gap between the amount received from a federal college student loan, grant and other forms of federal financial aid. However, private college student loans do require the borrower or co-borrower to have good credit and will often come bundled with high interest rates and extra fees. For this reason, a federal college student loan is always to be considered first. When used appropriately, private college student loans can help a college student pay for extra educational costs, such as textbooks, computers, even room and board and transportation.

Just know it is always very important to weigh your options and make the decision that makes since for you as well as your particular financial situation.