There are two main types of student loans---federal and private. Federal loans include the Stafford, Perkins and PLUS. These loans are funded by the government, while private loans get their funding from private lending institutions and banks.
Federal loans, with the exception of the PLUS Loan, do not require a credit check. They offer low interest and flexible repayment plans. Private loans offer timely processing, unlike federal loans, and there is no need to file federal applications.
Federal loan limits are extremely low when compared to the cost of education. The PLUS loan requires a credit check that may make getting approved more difficult. Private loans have a higher interest rate and require a credit check.
Exhaust all other possibilities before accepting a student loan. Consider the federal work-study program and apply for all of the scholarships that you are eligible for.
If you default on a student loan, you may have your tax refund intercepted, your wages garnished or your federal benefits taken away. There is also the possibility of a lawsuit against you.