Today many children dream of going to college. They want to go to the best school they can in hopes of having a good job and good life when they grow up. For many this is also the first time they will truly be out in the world on their own making this a very unique time in their life.

However, going to college isn’t cheap. Many students discover that they need to take out student loans to help finance their dreams. Student loans have extremely low-interest rates making them the best option for paying for many people.

There are two types of loans available to students to choose from. They can get federal student loans or private student loans. The federal loans should always be considered first. Private loans should only be taken out as a last resort.

Government loans always offer the best interest rates, most lenient repayment options and very flexible terms. These loans also don’t perform credit history checks or require collateral when people apply for them. This is extremely beneficial for the teenager that hasn’t had the opportunity to begin building their credit yet. These loans will be administered through either the Direct Federal Loan Program or the Federal Family Education Loan Program. Students will have to talk with the financial aid office of their school to determine which program that college participates in.

There are different types of federal loans available. Which a student chooses will be based upon their demonstrated needs. For those with the most need they can get a subsidized Stafford Loan. In this type of loan the interest is paid by the government. With an unsubsidized loan the student is responsible for the interest payments. However, most companies will defer these payments until after graduation.

The Federal Parent PLUS Loan was created for parents to help them meets the costs of their children’s education. This type of loan does require a credit check and will have to repaid beginning immediately after the funds are released.

The Federal Perkins Loan is disbursed to campuses each year. Each school only gets a certain amount of funds for the program so once it’s gone, it’s gone. The students that receive these loans usually demonstrate the greatest financial need.

The final type of loan available isn’t really a loan. It’s the Federal Consolidation Loan Program. This will allow a student to consolidate all the loans they have taken out during college into one. By consolidating loans in this manner a student can save hundreds in their monthly payments and thousands over the term of the loan.

Any student that wants to apply for a government loans will have to fill out the Free Application for Federal Student Aid. This form will determine the amount of assistance that you qualify for. It will also apply to other aid programs such as grants and work-study. Many colleges will require that form be filled out when applying for their school.

For detailed information on Government Student Loans, visit GovernmentLoanTips.com