A student loan is money you borrow and pay back over time to cover college costs.
You should always use student loans as a last resort if scholarships, grants, savings, and income from work do not cover your cost of attendance.
There are two main sources of student loans:
1) Federal student loans (from the government – apply at FAFSA.gov), and
2) Private student loans (from a bank, credit union, nonprofit organization, or other entity)
IMPORTANT NOTE: You should always exhaust all federal student loan options before considering private student loans. If you would like to know more about the differences between the two, choose “Federal Student Loans vs. Private Student Loans” in the sidebar to the right.