Just like borrowing for a home or car loan, one thing to look at is definitely the interest rate and what the lending institution can offer you. The best thing about student loans is that the government is very willing to help American citizens get a good education. One of the best places to get a student loan is definitely from the feds, among others.

The top three places to get a good student loans are:

1. Federal student loans – The good thing is, federal loans are going straight to the colleges, without having to go through the banks. Stafford federal loans dropped 4.5 percent last year, from 5.6 percent in 2009. Plus the government pays interest while you’re still in school, up to six months.

Qualifying for a government aid depends on income and assets as assessed by the FAFSA. Families earning an income of about $80,000 usually qualify for the loan.

2. State programs – State loans are granted to students who attend college there. Rates range from 6-8.19 percent and variable rates from 1.78 to 3 percent. Stafford loans are generally more advisable because of the fixed interest rates and the best repayment terms.

3. Plus Loans – PLUS loans allow parents to help the student with the loan. Fixed interest rate is at 7.9 percent, although some parents paid 8.5 percent last 2010. An extra 4 percent fee will be added to the loan.

These three loan options give the best choices for those seeking to have a student loan at the best terms. These certainly beats the bank in terms of interest rates and monetary leeway.

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