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Loans

Taking out a loan is another way of helping to pay for your education.  The problem with loans is that you’re borrowing money, which means you have to pay it back, usually with interest.  If you take this route, the best option is taking a federal student loan first, since interest rates are typically lower and they give you choices for how and when you pay that money back.  Remember that FAFSA we talked about earlier?  Filling it out will help determine how much federal aid you qualify for. 

If you take out all the federal loans you qualify for and you still need more, you can go to a private lender for private loans.  These often charge higher interest rates and are generally not as flexible as federal loans though.


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