When people enter the university, they collide with many decisions, events and receive new experience and impressions. First of all future student has to determinate with the major, apply for the students scholarships and prepare for the studying. There are several types of financial aid for the students: grants, student loans, scholarships, etc. The student loans are the most popular, because it is quite simple to apply for them. Students usually prefer to apply for federal loans, because they provide better terms and lower level of interest rate. One of the most widespread federal student’s loans is the Stafford loan. This loan programs offers the lowest interest rates and the most convenient terms of repayment. Besides, the graduate can consolidate all federal loans into one manageable loan with one lender and fixed interest rate.
 
Usually the student loans, especially from private lenders offer high interest rates – about 10 %. In the case of the federal student loan the debtor has to pay from 2% to 5 % of the interest rates. The level of the interest rate depends on the particular lender.
 
Besides the federal loans the students can also apply for the PLUS loans (parent’s loan for undergraduate student). This loan must be taken on the patent’s name. The parents usually have to sign up this loan agreement together with the cosigner. In the case of non – payment the cosigner becomes responsible for the debt. According to the PLUS loan agreement the students receive the money to cover only tuition fee and books expenses. The parents must start repayment of the debt 60 days after approval.
 
The first step for students and parents to receive the federal loan is to fill in the FASFA (free application for student aid). This form informs the government about the level of family’s income and needs for the studying.