College loans are designed to help cover the costs of going to college, such as tuition, course materials and living expenses. Direct college loans, or federal student loans, are available from the federal government. To secure a federal direct loan, students must fill out a Free Application for Federal Student Aid (FAFSA) form.
Private student loans are financial products aimed at students. They are provided by financial enterprises such as banks. These tend to be more expensive to repay when compared to federal loans. For this reason it's advisable for students to find out if they are eligible for government aid or other forms of support before taking out a private student loan.
Before applying for a loan, make sure you know the terminology. Our quizzes will help you with that.