Some student loans are federally funded, such as the Parent Loans for Undergraduate Students, or PLUS, the Perkins loans and the Stafford loans. A PLUS loan can be easier to obtain because it utilizes the parents' credit instead of a student's credit. Some schools are capable of processing the loans themselves. Others will be able to offer a list of banks and financial institutions that process these types of loans. However, when borrowers have poor credit, federally funded student loans are not an option.
Some states offer their own student loan programs, sometimes offering better terms than those offered by federally funded loans. It is important for parents and students to shop around and find the best interest rates and payback options for their situation. These loans must be acquired in your state of residence. Some of these loans can only be used for schools in your state. Others can be used at any school in the country.
Some schools offer student loans to their students separate from federal and state loan programs. The amounts available and terms of use will vary from school to school, so it is important to do your research. Many of these loans are funded by donations to the schools. Ask about these loans when you sit down with your school's financial adviser to go through your federal financial aid package. Some schools offer loan specials at this time.
Scholarships are widely available to students who meet specific criteria. Online scholarship websites, such as fastweb.com and scholarships.com, allow you to input the information that describes you and find scholarship opportunities that match that information. Organizations that students or their parents belong to may also offer scholarships. Watch the application deadlines and submit the required documentation before the deadlines. Some scholarships require you to write an essay, while others have grade requirements. However, many students will be applying to the same scholarship, so scholarships are a bigger gamble than student loans.