The costs for the education in the universities and colleges increase each year and the students do not have opportunity to pay for studying themselves without financial aid. One of the best decisions is to apply for student loan. But there are many different types of student loans so the candidates have to determinate with some detail before application to understand what type of loan they need.
 
There are two main types of student loans: federal student loans which are provided by federal government and private student loans, which are offered by private companies and funds. There are some advantages and disadvantages of each type, but in general usually the federal student loans offer lower level of interest rates and are more accessible because the lenders do not pay attention on the credit history of the candidates. From the other hand, the private student loans have more flexible conditions concerning the repayment.
 
The next difference refers to the student loan amount. The federal loans are usually fixed and depend on the educational level of candidate. The private loans amount is more flexible and depends on the credit history of the student. It is very important to borrow only essential sum of money, which the candidate needs to pay for studying. To determinate with the essential sum the candidate has to take into consideration such expenses as tuition fee, accommodation, book fees, living expenses, etc.
 
Usually the repayment period for student loans is from 1 year to 20 years. But in some cases this period can be extended.
 
It is natural that the repaying of the debt is a financial stress, so the debtor can consolidate the loans if he has several of them. As a result, the debtor will have one manageable loan with lower interest rate and only one monthly payment to one lender.