Nowadays obtaining of the university degree is very expensive and majority of the student so not have opportunity to pay for their studying. The student’s loans can help. There are two main types of student loans – the federal and private student loans.
 
The first type of loans is provided by the federal government of United States and administrated by the department of Education of United States. The common name for all federal student loan is Federal Student Loans Aid Program. There are quite little list of requirements for American students, which have a right to apply for the receiving of student loan. The international students have fewer chances to obtain the financial aid from the US government. Every year the US government provides the student loans on the sum of 60 billion. Besides, the federal loans have very important advantage – the interest rates are quite low.
 
The second type of loans, private loans, is offered by the companies and funds from the private sector. The interest rates on these loans are higher in comparison with federal student loans. The most widespread private student loans are the Sallie Mae loans and Citibank loans.
 
Usually after graduation the students have several student loans, which must be repaid in the same time. The consolidation of student loans can help to avoid the financial stress of the debtor. Consolidation means that several loans of one debtor are integrated into one manageable loan and the debtor has to make one monthly payment to one lender. There are many benefits of student loan consolidation. Usually the interest rates of the consolidated loan are lower. According to the special law, the interest rate of the consolidated loan can not be higher than 8.25 per cent.
 
Besides, the conditions of the consolidated loan agreement are very flexible. The students can begin the repayment of the debt after graduation. One more advantage of consolidation is that it can improve the credit history of the debtor.