Along with growing awareness about the importance of education to succeed in the knowledge economy, the cost of quality education too is growing fast. Parents too are willing to bear that extra cost to fund their child's higher education. Education loan is the most cost effective means to fund your education if you are unable to get a full scholarship or do not have a generous aunt or uncle willing to sponsor your education.

If you are one of those professionals waiting to save enough before you take up that course which will give an edge to your career, then don't wait any more. There are many banks -- though mainly public sector banks -- now offering educational loan to pursue mid-career education in India and abroad.

Combined billing: If you have a federally guaranteed student loan with Sallie Mae, in addition to the private, credit-based Continuing Education Loan, you will receive a single bill. This bill will itemize and combine loan amounts. You will only need to make one easy monthly payment.

Interest rates: Interest rate on education loan is usually lower than a personal loan but slightly higher than a home loan. Some banks offer a fixed rate of interest while others offer floating rate of interest on education loan. If the difference between fixed and floating rate is one per cent, it is advisable to opt for fixed rate as education loans have shorter repayment tenures of 5-7 years.

When the need for a student loan arises due to the extreme financial challenges in your college years, fear not. Do not be too hard on yourself for incurring those loans. Even if you happen to acquire several student loans, there is no need to panic and run away from your creditors. Remember that there is still an option for you to consolidate federal student loans.

A salaried job does not comfort students who are pursuing full time education. The technological advancement in the field of education has made higher education a bit costlier. Under these circumstances student loan unemployed comes to their rescue by arranging funds for their education. As these loans are for education they are usually given at low rate of interest. Students normally take such loans for a period and amount depending upon their need. These loans can also supplement scholarships, grants and personal savings.

Private student loans are becoming more popular amount college students. In the late nineties the private lenders made about 5% of the student loan market. Today the private lenders have about 20% of the student loans. Although the government limits the amount that the students can borrow, the private lenders are willing to lend much more money, allowing students to get in further debt. However, college student should be wary of the loan that they took out. A lot of college graduates are finding that they are having hard time paying for their college loans after graduation.

Student loans act as a great help for those students who cannot afford the expenses for education. Financial institutions such as banks now provide different such loans to the students at affordable interest rates. Many of them are now availing different loans from various money lenders for education purposes. It often creates difficulty for them to write several loan repayment cheques in a month. In such cases consolidation can appear as a savior to all such students.

Subsidized college loan: The government will pay the interest on the loan while you are in school and during deferment and grace periods. However, students must demonstrate their "financial need" to be eligible for a subsidized student loan.