If you're a student and you need to take out a loan, chances are that you are wondering what a federal student loan is. The answer is - that is the one you want to take out!

I, thankfully, never had to take out loans. But when I thought about going back to school I considered it and in the process I learned a thing or two about loans. Truth is, many loan companies out there try to entice you - the ignorant, naive and desperate student - into a loan situation where you will basically be enslaved to your bills for years to come after you are done. If you don't want this, then go with a federal student loan.

A federal student loan is a fixed, low rate (6-8%) and it is subsidized by none other than the US government. Other loan companies may offer you more money, but the interests can be as high as 20-30%! You will be paying for decades at that rate, so try to avoid that and budget what you can with a more limited but safer loan.

In the end it is your education and your future - make the right move!