Very few high school graduates will find themselves in the enviable position to be able to pay for their college tuition as they go. Student loans are usually what new college students get to pay for their education.

Today, federal student loans are the most widely used student loans. Students will find that there are different types of federal loans that exist. The loans most commonly used are subsidized and unsubsidized.

Subsidized loans are designed for the student that has an obvious financial need. The student does not have to pay interest as long as they are in school on a full or part time basis, grace or deferment periods.

The financial need of the student is not a factor in unsubsidized loans. During the period of the loan, interest will be charged. This includes the times when the student is enrolled in school, grace and deferment periods.

PLUS (Parent Loans) Loans are unsubsidized loans. These are loans that parents get and they have dependents that are college students. Graduates and professional students may also get PLUS loans. Education expenses are paid for by federal student loans. During this time, interest is charged throughout.

These loans have a simple application and approval process. Students have to fill out a FAFSA (Free Application for Federal Student Aid). The process has been made easier by submitting it online.

The student application deadline is June 30 of every year. Current tax information from parents who have dependent students will have to be submitted. Students have to submit their own tax information if they have flown their parent’s coop.

The interest on these loans is low and the monthly payments are reasonable. Loan repayment will begin approximately 9 months after college begins. Federal student loans must be paid back.

Extensions can be acquired for a limited time if you are not employed after you get out of college. If these loans are not paid back, the borrowers will have consequences to deal with. Since they are federal student loans, the Federal Government can impose a number of penalties.

You can expect the Federal Government to withhold tax refunds, garnish wages, or litigate in court as a penalty for failure to pay back the loan. Student loans cannot be included in a bankruptcy according to the Federal Government.

Some of the best benefits for students will come from federal student loans. The best student loan will vary depending the individual student’s financial need.