Not many people can get through college without incurring some form of debt. Even with full academic scholarships there can be unforeseen expenses that can mean the difference between a semester of studying and one spent working a part-time job. The sad reality is that most parents never save enough money for their children to attend school. There is money available but only if you make a certain amount or less. Most people must take out student loans in order to attend school. There is a lot of information to process about student loans. If you have questions regarding student loans, this article is for you.

What are the different types of student loans?

There are three types of student loans. The first are loans taken out by the student that are guaranteed by the Federal government. These are not based on credit scores but they do have borrowing limits. The second type of loan is those taken out by parents. These are credit based but do not have a borrowing limit. The third type of student loan is a private loan. These are credit based and can be taken out by the student or the parent. There is no borrowing limit for these except those set by whatever institution you are borrowing the money from.

Do my parents need to cosign?

Whether or not your parents cosign the loan is based on the type of loan you take out. Federal student loans require their financial information if you are beneath a certain age but those are not credit based. Parent loans are loans given to your parents for your education. The loan is based on their financial information and credit history. Private loans taken out by you may require them cosigning if your credit score is not high enough. Check with the lenders to determine what they need in order to give you a private loan.

How much money should I take out?

This is a hard question to answer. Ideally you should take out only what you need to cover tuition, fees, books and living expenses. There are a couple of questions you need to ask yourself. Are you going to be working? If so…how many hours will you be able to work after you factor in class time and study time. If you are involved in collegiate sports you may not have the time to work. Will you be receiving any aid from anyone else such as spouse or parents? Try to take out just what you will need. Remember that you will have to pay all of this back so let that be your guide in determining how much to take out in loans.

When do I have to start paying the loan back?

For Federal student loans you do not have to begin repaying until six months after you leave school. This is considered a grace period. For all other types of loans you will begin repayment within sixty days of your first disbursement. That means you will be paying at least the interest payment while you are enrolled. That is why so many people go with Federal student loans over private loans.

Is there a way to consolidate my student loans and get a lower monthly payment?

Yes, there are ways to get a lower monthly payment. The Federal Loan Consolidation Program is designed to help former students consolidate their loans and get a better interest rate which in turn means a better monthly payment. Check with your lender to see what you qualify for and also do some checking around for the best interest rates for your debt. A great website to begin is www.ed.gov.