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The best education loan available is the federal Stafford Loan. There are two types of Stafford loans: subsidized and unsubsidized. You can find out more about Stafford loans and why you should use federal student loans in this previous college blog post of mine:
Another type of student loan is the PLUS loan (Parent Loan for Undergraduate Students). In this instance, the loan for the student is taken out by the parent(s) at a low, government interest rate. For more information on these loans, see How can I help my child pay for college (Q15). Back to top.