Which Student Loan Is Best

Q: I will be applying for financial aid and student loans next year, but am beginning to research my options now. Which student loan is best to start with?

A: Before you start with student loans, you will want to make certain you utilize grant, scholarship and other loan alternative options available for college. Free money options (such as the ones listed above) will provide you with money for college, which unlike student loans will not have to be repaid. For most college students however, free money options will not cover your full costs of college, and you will need to obtain student loans.

The question of “which student loan is best?” can be subjective, however the student loans you should begin with are federal student loans for college. Federal student loans generally offer the lowest interest rates, most flexible repayment terms and are not based on credit. To get started with federal student loans for college, you will need to file a FAFSA at www.fafsa.gov.

If you still need more money for college after federal student loans, you will need to secure a private student loan for college. Private student loans are based on credit, so be prepared to have a creditworthy cosigner if you have poor or little credit history. “Which student loan is best?” can be a subjective question depending on the situation, but those utilizing student loans for college should always utilize federal student loans first, before moving onto private student loans. To learn more about federal student loans visit our Federal Student Loans section. To learn more about private student loans visit our Private Student Loans section.