Even during the best of times getting a student loan is a real challenge. With the problems the banks have been having it is even more important to research your options as this is a hard job that has been made harder.

The first thing you need to think about is how much you are going to need. There are costs that are factored into tuition with say under graduate school but these costs are your responsibility in graduate school. If you are still comparing acceptance offers between schools be sure to check out how they measure up against each other. One school may provide better value for a great education. Be sure not to forget that things like textbooks, they are not cheap.

You may qualify for scholarships, check out Scholarships.com to find out if there are any you qualify for and don't know about. There are also grants you may qualify for, don't miss out on a chance to get help with the costs by assuming you wont qualify, there is a good chance you will qualify for some help. Talk with your family, they may be able to help with some of the costs, even if its just food costs every little bit helps.

Once you have figured your final budget and know about any contributions you will receive you can calculate the amount you need using something like the 'How Much to Borrow' calculator at FinAid.org. You can also consult their student loan advisor to calculate the average starting salaries so you can see what kind of loan payments you can afford. Do not limit yourself to the loans recommended by your college or university because many schools receive kickbacks from these preferred lenders. The loans you take out today will be with you for years to come, you want to be confident that your loan debt wont compromise your professional choices, your life style and other important financial decisions in your future.

I would just like to emphasize this, find everything you qualify for and apply for that help, it is a good investment of your time!

Federal Loans are a good bet because they are often subsidized by the government. This means that your interest will not accrue while you in school, can be locked in after graduation at a comparatively lower rate and will offer more flexibility in terms of repayment.

There are a few options with Student Loans:

There are two types of Stafford Loans, those financed directly through the U.S. government (Direct loans) and those financed through a private lender, usually a bank or credit union. These grants are either subsidized or unsubsidized, basically with a subsidized loan the government will pay the interest while you are in school and with unsubsidized loans you are responsible for the interest payments while in school, usually deferred until graduation. To receive a subsidized loan you will need to be able to demonstrate financial need. With a Stafford loan you may be allowed to borrow but there may be limits, you will need to look at this with your lender.

Another student loan is a Perkins loan. This loan will lock you into an interest rate of 5% and the schools pay the interest while you are in school. The repayment term is 10 years. Students receive Perkins loans based on financial need and the loans will come directly from your school. For teachers, public service professionals and some volunteers you Perkins loan may be forgiven over time. 

There are also loans for parents, allowing parents to borrow from the government to pay for their child's college education. These loans may be worth investigating if your parents are willing to help.

Now we move onto the private loans. Private loans may be a necessity for many students, as they will close the gap between other forms of financial aid. You will qualify for these loans mostly based on your credit score. While these loans are expensive they  are less expensive then if you use credit card debt to close that gap. Do your research carefully to make sure you get the terms that will be reasonable at graduation. Be sure you have truly exhausted other federal loan offers and scholarships/grants before turning to private loans as they are vulnerable to market conditions unlike the loans you can get from the government.  It has been said that one in five student borrowers pas up a less expensive federal loan in favor of a private loan because it is faster to apply or easier to apply or even because students are not made aware of their loan options, Don't become that one in five!

To avoid being in the dark about the finer points of your student loans gather as much information before applying as possible. Your school's financial aid office is the right place to ask for advice at the start of your research, they can definitely get you started. Then go out and do your won research to find the best rates available.  There are some good online resources to compare specific lender offers from FinAids private student loan comparison char to Simple Tuition: Compare Student Loans. I will add as many links as possible at the bottom of the page for you to try. You can also research non-profit lending agencies in your state as they will offer lower rates to keep students in-sate for college. Always compare any discount offers carefully.

Before you commit to a lender you want to be sure you know what you are getting into, here are some good questions to ask.

1. What is the lowest interest rate and fee combination I can get and will that rate last the duration of the loan?
2. If the interest rate is variable is there an upper limit?
3. When will I have to start making payments?
4. What happens if I go on to graduate school after college?
5. What are the penalties for late payments?
6. What options are there for deferring or reducing my payments if I suffer an economic hardship?
7. What is the best rate I can get on a fixed-rate loan?
8. How long will it take to re pay the loan and is there any penalty for paying off the loan early?
9. Are your discounts guaranteed or are they subject to change later?
10. How much can I borrow before reducing my eligibility for federal state or institutional aid?