If you're like most students, you probably don't have a lot of extra money lying around. That's why student loans can seem like a lifesaver when it comes to paying for college. But before you sign on the dotted line, it's important to understand how student loans work and what your repayment options will be after you graduate. Keep reading for everything you need to know about student loans at edfed.com.

When applying for a student loan, it's important to understand the different types of loans available. Federal student loans are funded by the government and typically offer lower interest rates and more flexible repayment options than private loans. If you're not sure which type of loan is best for your needs, speak with a financial aid advisor at your school or consult a loan officer.

Another important factor to consider is interest rates. Each type of loan has its own rate, and you'll want to make sure you understand how much your payments will cost over the life of the loan. Also, be aware that most student loans have variable interest rates, which means they can change over time.

Types of Student Loans

There are two main types of student loans: federal student loans and private student loans. Federal student loans are issued by the government and have fixed interest rates. Private student loans are issued by banks or other financial institutions and typically have variable interest rates. Both types of loans have their own pros and cons, so it's important to do your research before taking out any loan.

Federal Student Loans

Pros:

-Fixed interest rate

-May offer income-driven repayment plans

-May be eligible for loan forgiveness programs

-No credit check required

Cons:

-Interest accrues while in school

-Loan limits may not cover the full cost of attendance

Private Student Loans

Pros:

-No credit check required (for some lenders)

-Can supplement federal loans if you need additional funds

Cons:

-Higher interest rates (on average)

-May require a cosigner