| Most students do not have a college education handed | | | | loans that are provided for students whose families |
| to them. They have to figure out where they are going | | | | can reasonably afford to pay for college. These |
| to obtain college funding for housing and other needs, | | | | college loans have interest attached to them, but at a |
| and college tuition for the schooling itself. Many | | | | reasonable rate, usually lower than private loans. There |
| students have saved money for college during their | | | | are also private loans, usually through a bank or |
| high school years by working. Many parents give their | | | | financial institution, but the interest rates are higher than |
| children some funding towards college. But there is | | | | federal student loans. |
| usually a gap between what funds the student has | | | | Some students find that their first student loan did not |
| and what he or she really needs to attend college, | | | | cover all their years of schooling and all their needs |
| whether it is a local school or not. | | | | during that time. They may opt to take out another |
| There are two main sources for education financing. | | | | student loan at a later date. That leaves them with |
| One of these resources is federal financial aid, | | | | multiple loans to repay after they finish college and can |
| provided for students whose families are not able to | | | | be overwhelming. After they finish college and it |
| afford the expenses of a college education. This | | | | comes time to repay the loans, the federal |
| financial aid must be repaid, but there is no interest on | | | | government offers to allow them to consolidate |
| the loan unless the student does not repay it after the | | | | student loans, sometimes at a lower rate than the |
| grace period expires. | | | | original loans. |
| Another resource is financial aid or federal student | | | | |