Student Loans
If you need a loan to get through college, you're not alone. You probably know to fill out the FASFA, the Federal Application for Student Financial Aid. This paperwork is a lot simpler than it used to be, which does not mean it is simple. You'll need information about your income, whether you're dependent on your parents, and their income. The good news is that once you've assembled all this, one application counts for all kinds of government financial aid.
You might qualify for a Pell Grant, which is free money you don't have to pay back. Otherwise, you may be offered a federal Stafford loan. If your FASFA demonstrates financial need, the government will pay the interest if you are in school at least half-time. This is a subsidized loan. You also don't have to make payments while you're enrolled at least half time.
There are also unsubsidized Stafford loans. The interest rate is very low compared with a loan from a bank, but you will pay interest on what you borrow, even while you're in school. You can still defer payments until you graduate, but the interest you're charged will increase the total you owe.
A loan from a private lender is also a possibility. This is a more expensive option, and has become something of a national public policy issue because so many students have taken on expensive debt that they have a hard time paying back. Before you sign for a private student loan, read Student Loan Secrets.