Student loans, unlike grants and student employment, are borrowed money that must be repaid, with interest. When you apply for financial aid, your aid package will likely include student loans. It’s important to understand what types of loans you are offered. Generally, there are two types of student loans:
Borrowing loans is a huge responsibility. It is important you understand the responsibilities and obligations as a student loan borrower.
The more informed you are now, the more prepared you will be in the future and knowing what you owe as a student loan borrower is an important step.
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Alternative or private loans are generally issued by a bank or other lending institutions. If you need to borrow money to pay for college start with federal student loans. Students considering educational private loans should apply only after they have applied for financial aid.