student loans, private student loans The majority of undergraduate and graduate students choose Federal loans because they feature easy approvals. Since the loans are backed by the Federal government, it's possible to get approved with a low credit score or no credit history. Unfortunately, Federal student loans feature annual loan caps. Thus, if your college tuition exceeds a certain amount, you'll have to pay the difference out-of-pocket. Some students meets this expense with credit cards. However, if you can't afford the extra expense, private student loans can help.

Private student loans are available from banks, credit unions, and other financial institutions. Also referred to as alternative student loans, private loans can fill in the gap. Students can use the money for a variety of college-related expenses such as tuition, room and board, meal plans, books, etc.

Although beneficial, qualifying for private student loans isn't easy. These loans require satisfactory credit. Thus, students with bad credit and no credit history will likely require a co-signer. Furthermore, private student loans feature higher rates than Federal loans. Even so, private loans serve a useful purpose, and the loan process is relatively quick.