Once you have exhausted all of your other options, it is time to consider student loans to finance the rest of your education costs. Student loans must be paid back (with interest), so it is important that you weigh your options carefully before taking one. If you are going to take out student loans, we recommend that you only take out federal student loans. These loans have lower interest rates, allow you to defer payment until after leaving college, and offer flexible repayment plans. We do not recommend taking out private student loans from banks or other sources, as these loans often carry higher interest rates and other charges. For more information about federal student loans, click here.