Finding a student loan is not difficult, but it can be tedious if you're just starting out. A few basics will help you get through the beginning and help you find the student loan that suits your educational needs and financial situation.

There are federal student loans and private student loans. Federal student loans are backed by the government, which means that the lending institution is guaranteed to get back the money they lend you from the government. This is why they can offer such low interest rates. Private student loans are not backed by the government and rates are offered based on your credit worthiness. Interest rates are usually higher in these loans.

There are two types of interest rates in student loans: subsidized and unsubsidized. Subsidized student loans either do not accrue interest while the student is enrolled in school or else that interest is paid by someone else. Either way, you can rest assured knowing that your subsidized student loan is not adding interest to the principal while you are getting your degree.

Unsubsidized loans do accrue interest while the student is enrolled in school. If not paid, the interest will be added to the principal or original balance borrowed, and ultimately increase the amount of the loan and the amount of time it will take to pay it off.