There are two main types of student loans, federal and private, and you need to know the differences to find the best option for your needs., A student loan lets you borrow money to pay for higher education costs. You must eventually pay back what you borrow in monthly installments—plus interest and fees. Student loans can be used to cover costs like undergraduate or graduate school tuition, as well as related costs like fees, books, and living expenses., Most students have two main options for student loans: federal (government) loans or private loans from banks, credit unions, and other lenders. You should research all your options for federal loans, also known as Direct loans, before shopping around for private loans., Eligible enrolled students have the option between federal student loans and private student loans. While both offer money upfront to pay for your education, they differ in significant ways., Federal student loans include Direct Subsidized Loans, Direct Unsubsidized Loans, Parent PLUS Loans, Graduate PLUS Loans, and Direct Consolidation Loans. Private loans can be directly to students, as well as to parents., Here's how to get a student loan, so you can begin earning your degree. Federal student loans should be your first option because of their low, fixed interest rates and borrower protections..