When first applying for a federal student loan, it is important that you do the proper research to understand the various options available to you, and to make sure you have access to the appropriate reference materials. Thankfully, the net generally has more information, and more accurate information, on federal students loans than those offered by private institutions. Federal Student Loans are often times more desirable than private loans. They can offer lower interest rates. But private institutions generally offer more flexible repayment options, allowing you more freedom in when and how you repay your loans.

Federal student loans are offered only to students taking at least a half-time schedule. They offer fixed interest rates, making the final loan repayment amount easier to calculate.

Stafford loans are the most common of all federal student loans. They are usually used to supplement other types of financial aid, be it Personal Loans, scholarships or grants. These federal student loans are available to all students, no matter the credit score or income level. They may be unsubsidised or subsidised by the federal government, depending upon the student’s situation. At the time of this writing, rates on fereral student loans such as the stafford are as low as 3.4%. To apply, you will want to fill out a FAFSA (Free Application for Federal Student Aid). All applicants must fill out this form to qualify.

The government also offers other types of federal student loans. Perkins loans are offered to students in extreme financial needs. These are subsidised student loans offered at fixed rates. PLUS loans are another type that parents take out in order to pay for their children’s education. These are based upon credit and income levels.

There are a number of good reference pages about consumer loans.

Wikipedia gives a good brief summary of consumer loans here.

Check out also the Federal Trade Commission’s site.