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Things are looking up. However, it may take a long time for the economy to completely bounce back to normalcy. Students continue to look for ways and means of funding their college education and are constantly on the lookout for scholarships, grants and savings.

Working part time is an excellent method of funding at least a part of your college education. However, it is important to see that your grades and graduation chances are not affected by this. A better option is to shop around and locate a safe student loan. However it is important ensuring that you borrow the exact amount required, not more or less.

Here are a few tips for students to follow safe student loan shopping and funding their college education–

Federal Loans are the safest option. The reason for this is there will not be changes in the interest rates which will remain constant throughout. Federal student loans will also not be affected by your credit rating. If you face any financial problems or if you are unable to find employment after college, Federal loans offer guaranteed borrower protection.

One of the most affordable and safe Federal loans is the Perkins and Subsidized Stafford Loans. If you qualify for this loan, your interest will be paid by the government through your schooling years. This loan is offered at a fixed interest rate of 5%.

The next best option is to take the Unsubsidized Stafford Loans. This loan is offered to everyone irrespective of their income. You can start the loan repayment six months after graduation for the built up interest. This loan comes with the Federal borrower protection and is offered at a fixed interest rate of 6.8%.

Graduate students and parents can benefit from the PLUS Loans which are better than private loans and are offered at an interest rate of 8.5%.

Private loans are also referred to as “alternative” loans. These loans resemble credit card borrowing and can be categorized under high risk loans. Interest rates keeps fluctuating and you end up paying much higher rate of interest than what you began with. Private loans do not have any borrower protection like the Federal loans.

If the situation is desperate and you are forced to opt for a student loan, consider the Federal loan options before reaching out for the private loans.
 
Take time shopping around for student loan options. If you are recommended to take a loan from a certain lender by your school, be sure to check the reason behind it. Before making a commitment, be sure to check the terms and deal offered by the preferred lender. It is a good idea being aware of the fact that colleges can do nothing about it if you opt to take a loan from lenders who are not in their preferred lender list.

Federal loans on the other hand are offered by many lenders and banks and most of them offer interest rate and fee discount. Take time shopping around to identify and settle on the best student loan deal.