Student loans vary dramatically from program to program with respect to the interest rate and fees that may be charged, the subsidies that may apply, the repayment and postponement options that may be available, and many other program benefits and responsibilities. Carefully review the terms and conditions of any loan program before you apply for a loan. Remember that you will have to repay all loan funds that you receive, plus interest, so you should never borrow more than you need.

Some key factors you should consider when evaluating student loans:

• Federal or Private: Loans offered through one of the federal loan programs generally offer more favorable terms than loans offered through a private loan program. Private loans usually should be considered only after you have explored your options under the federal loan programs.
• Interest Rate: Every loan program has its own interest rate structure. Review the interest rate that will be charged, whether it is a fixed or variable rate, and under what circumstances, if any, the interest rate might change.
• Subsidized or Unsubsidized: Subsidized loans are those in which someone, usually the federal government, pays some or all of the interest on a loan during qualifying periods. Some, but not all, federal loans offer a subsidy. Private loans typically do not offer a subsidy.
• Repayment Conditions: Loan programs vary with respect to when you will be required to begin making payments, how your payments will be structured, what options you are offered for postponing payments, how long you are given to repay the loan.

Review the All About Loans section for more details about loan programs.