If you're paying for college or university you will often need to use student loans. These types of loans are made specifically to help students meet the costs of a higher education. Most student loans offer good deals on tax credits, payback and interest rates. However, before agreeing to any credit it is important to consider the different types of student loans and where to go to get one.

Lenders can be private companies, colleges or the federal government.

Most federal loans are guaranteed, which means no collateral is needed to obtain the loan. One of the most commonly used government loan is the Federal Stafford Loan that provides low interest rates. Some Stafford Loans are based on income and others are not. Subsidized loans are means tested (based on income) and the government pays the interest until the student begins repayment which is usually once they have completed their study and are earning a reasonable wage. An unstudied loan leaves all interest up to the student. There is also the Federal PLUS loan that parents can take out on behalf of students.

Private lender loans, for example from banks, differ in payment options and interest rates. Most banks will require some form of collateral for the loan which means that if the loan is not paid, the bank can repossess whatever was put up as collatoral. State loans are often more expensive than government loans and are usually handled through banks.

College loans are the most costly and should only be used on an emergency basis. There are also special loans that a student may apply for is particular circumstances, such as military affiliation.

Before the loan is agreed to, the terms and conditions should be read and fully understood by the student. Particulars such as repayment, interest rates and any limits on amounts they can borrow. It is also important to know where to get the loans from. With the cost of study increasing, student loans may be the only way to ensure a student can afford college, so getting a good deal is important!