Student Loans

Student loans are basically unsecured loans made by lenders that recieve government assistance to make the loans more practical to underwrite. In order to be eligible for such loans in the U.S., the student must complete a financial aid form called the FAFSA. This form establishes the students eligibility for all manner of assistance, including low interest loans.

Student loans are also available to those who turn out to be ineligible for the regular unsecured low interest student loans. These other loans are normally called Parent Plus loans or private alternative loans. These are basically loans made with a co-signature from the parents.

Because of the govornment regulation involved with the unsecured student loans, this is one of the few types of loans that does not require a whole lot of shopping around. There is not a lot of variability in the interest rates and other features of those loans. The same is not true for the Parent Plus loans or private alternative loans. With those you do need to shop around.

So the first step is really to fill out a FAFSA form well in advance of the time tuition is due and use that to start your quest for college money. This will help you to determine what kind of student loans you are eligible for and assist you in greatly in your loan shopping.

Along with student loans, it's also often a good idea for a new student to start establishing credit by obtaining a credit card.