Most of the college student needs loans to go to college. Few students can afford to pay for college without some form of education financing. Two-thirds of undergraduate students graduate with some debt, and the average federal student loan debt is $16,888 (Stafford and Perkins Loans). When one includes PLUS Loans in the total, the average cumulative debt incurred is $19,785. Graduate and professional students borrow even more.
Grants, scholarships, work-study and other forms of gift aid just do not cover the full cost of a college education. Many students find that they must supplement their savings with government and private loansEducation loans come in three major categories: student loans, parent loans and private loans. A fourth type, consolidation loans, allows the borrower to lump all of their loans into one loan for simplified payment
