Student Loans

Understanding Student Loans

Student loans are used expressly to cover educational expenses, such as tuition, room & board, and other related costs. Payments on student loans can be deferred while the student is enrolled in school. There are several types of student loans:

• Federal student loans are backed by the U.S. Government and have fixed, low interest rates. Federal loans for students include Perkins, Stafford, and Graduate PLUS loans and require the student to fill out the FAFSA (Free Application for Federal Student Aid). Undergraduate students may find that federal loans available to them have borrowing limits, so undergraduate students - and some graduate students - often need to find funding from other sources in addition to federal student loans.


• Private student loans are taken out from banks, lending companies or other private entities, in the student's name or in the name of a parent or sponsor, usually with a co-signer. These loans usually have variable interest rates and higher borrowing limits.

How to Use the Student Loan Comparison Tools

Save time, energy and money by comparing multiple student loan options from a variety of leading lenders. Simply enter the amount you need to borrow and a little bit about yourself, when you need the student loans, and where you go to school to see a customized list of student loan options.

What to Look for in a Student Loan

Use the comparison tools on this site to consider all of the costs of a student loan, including fees and rates. Students should always borrow the most they can in federal loans first (such as Perkins and Stafford) and then compare private student loans for the best rates, fees and costs.

• the annual percentage rate (APR)
• the total cost of the loan
• the monthly payment
• the loan's borrower rewards
• student loan deferment options

Students should also consider their own credit history and credit rating - little or no history or a low credit score means a borrower will most likely need a co-signer to be qualified for a private student loan.