Education loans come in three major categories: student loans (e.g., Stafford and Perkins loans), parent loans (e.g., PLUS loans) and private student loans (also called alternative student loans). A fourth type of education loan, the consolidation loan, allows the borrower to lump all of their loans into one loan for simplified payment.

Few students can afford to pay for college without some form of education financing. Two-thirds (65.6%) of undergraduate students graduate with some debt, and the average federal student loan debt among graduating seniors is $19,202 (Stafford and Perkins Loans), according to the 2003-2004 National Postsecondary Student Aid Study (NPSAS).

FinAid provides numerous calculators that can help you better understand your borrowing options. The loan calculators offer estimates of monthly loan payments, estimates of the amount of debt you can afford to repay, an analysis of the cost of capitalizing the interest and tools for comparing loan costs.

Some students, because they do not have prior experience with debt and loan amortization, do not appreciate how much their loans will cost them. FinAid provides some tips concerning calculating the cost of interest.

In addition to the primary sources of financial aid (loans and scholarships), other kinds of aid are available to many students. These other types of aid fall into eight broad categories:

1. Free Scholarship Lotteries
2. Federal and State Government Aid
3. College-Controlled Aid
4. Student Profile-Based Aid
5. Aid for Graduate and Professional School
6. Aid for Elementary and Secondary School
7. Aid for Specific Activities
8. Innovative Programs

This page provides links to federal student loans and grants.