If you plan to attend college and apply for student loans - expect to graduate with a ton of student loan debt. College is expensive. However, some occupations and fields require a college degree. Since most college students don't have parents flipping the bill, there are several ways to obtain financial aid. Student loans are extremely helpful. Applying for a loan is easy, and the money is sent directly to the school.

There are two types of student loans - private student loans and Federal student loans. Most college students apply for Federal loans because they require no credit history or credit check. These loans have low fixed rates, and repayment doesn't begin until after graduation. Unfortunately, Federal loan programs feature a yearly cap. If your college tuition exceeds this cap, you'll have to pay the remaining balance out-of-pocket. Private student loans can help in this situation.

Private student loans come from non-Federal lenders such as your local bank or credit union. These loans can "fill in the gap." In turn, you won't have to dip into your personal savings or use a credit card to pay tuition. Yet, there is a drawback. Private loans involve credit checks, and the loan rate is high than Federal loans.