Student loans are loans offered to students to assist in payment of the costs of professional education. These loans usually carry lower interests than other loans, and are usually issued by the government. Often they are supplemented by student grants which do not have to be repaid. In the United States, while included in the term “financial aid” Higher Education Loans differ from scholarships and grants in that they must be paid back. They come in several varieties in the United States:

Federal Student Loans made to students directly: No payments until after graduation, but amounts are quite limited

Federal Student Loans made to parents: Much higher limit, but payments start immediately

Private Student Loans made to students or parents: Higher limits and no payments until after graduation, although interest will start to accrue immediately.

No payments until after graduation, but amounts are quite limited.

Much higher limit, but payments start immediately

Higher limits and no payments until after graduation, although interest will start to accrue immediately.

College students are leaving their higher education institutions with more educational loan debt than ever before. From academic year 1994- 1995 to 1999-2000, the amount postsecondary education students borrowed through the federal student loan programs jumped from $24 billion to $33.7 billion (U.S. Department of Education 1999 and 2000a). Cumulative federal student loan debt for bachelor’s degree recipients rose 19 percent, while total debt for borrowers who received master’s and other advanced degrees more than doubled (Scherschel 2000). What has led to the increased use of student loans and personal loans? Is the rising indebtedness harming students’ futures?

While concern about rising student debt levels remains high (Scherschel 1999a and 2000), recent data reveal that much of the increased borrowing occurred due to the expansion of the loan programs rather than to growth in college costs. Further, many of the new loan recipients came from middle- and upper-income families, and most undergraduate borrowers do not appear to have been adversely affected by their added indebtedness. Some students try to think ahead and buy a house thinking that if they rent out the place they can make some money as well as when time comes, they can sell off the house for a profit whatever that may be. In order to do this, they may take out some home improvement loans

Eligibility for federal student loan consolidation
You are eligible to consolidate federal student loans when: