College Loan Options

Education Loans Come in Many Shapes and Sizes

• 54 percent of all financial aid comes in the form of loans.
• Some loans are need-based—meaning that they're awarded when the family demonstrates financial need.
• Other education loans are not need-based. Instead, they're designed to help pay the family share of costs.

Some Advice

Need-based loans tend to have better terms, so you should consider those loans first.

Student Loans

There are four main types of college student loans:

Private student loans : A number of lenders and other financial institutions offer private education loans to students. These loans are not subsidized and usually carry a higher interest rate than the federal need-based loans. The College Board private loan program is an example of a private education loan for students.

College-sponsored loans : Some colleges have their own loan funds. Interest rates may be lower than federal student college loans. Read the college's financial aid information.

Other loans : Besides setting up scholarships, some private organizations and foundations have loan programs as well. Borrowing terms may be quite favorable. You can use Scholarship Search to find these.

source : http://www.collegeboard.com/student/pay/loan-center/433.html