The rising costs of college tuitions make it nearly impossible for anyone but the very wealthy to afford college on their own. Student loans are the answer for most average people needing some extra help as they work their way through college. Luckily there are several types of affordable federal student loans available to students and their parents.

Federal student loans can be issued to either the student, if they are independent or their families are in financial need of assistance. They are also available to parent of undergraduate students. The Federal Perkins student loan is one issued to those in financial need as determined by the individual colleges. These types are available in different amount for both undergraduate and graduate studies.

The Federal Stafford Loans are very common and available to anyone. Subsidized Stafford Loans are based on need and can be repaid over a 10 year period. However, anyone can get an unsubsidized Federal Stafford Loan whether or not they are claimed as a dependant. There are limits to the amount that can be borrowed each year, and the repayment terms are usually 10 years beginning six months after finishing school.

Private student loans may be option for bad credit borrowers. There are many borrowing options for college students or those seeking higher education through certificate and continuing education programs. Private student loans are those offered by a private lender, maybe a local bank or credit union or the school itself, as opposed to those issued by government agencies. Bad credit student loans, for which a government loan may not be available, can often be obtained through private student loan originators.

Banks, universities and others offering private loans will issue them either to the student or the student’s parents. There are usually very few restrictions if any, other than the ability to repay the loan and credit worthiness. But even if a student has a bad credit, the parent may be able to co-sign or own the responsibility of repaying it completely.

Bad credit student loans may carry a higher interest rate than other private student loans as does most borrowing targeted toward those with poor credit. However, if obtaining an education is the ticket toward more earning power, then a private loan may be just the step toward restoring good credit. Private loans that are repaid promptly over the course of time improve credit ratings, gearing the student for better borrowing options in the future.