There are lots of college loan options out there. Read on for expert advice and information about all your options. Some Facts:

• 52 percent of all financial aid comes in the form of loans.
• Some loans are need-based—meaning that they are awarded when the family demonstrates financial need.
• Other education college loans are not need-based. Instead, they are designed to help pay the family share of costs.

I have some advice to offer. Need-based loans tend to have better terms, so you should consider those loans first.

There are four main types of federal student college loans:

Perkins Loans are need-based loans and are awarded by the financial aid office to students with the highest need. The interest rate is very low at 5 percent, and you do not make any loan payments while in school.

Subsidized Stafford College Loans are need-based loans with a fixed interest rate of 6.8 percent. With subsidized loans, the federal government pays the yearly interest while you are in school.

Unsubsidized Stafford College Loans are not based on financial need and can be used to help pay the family share of costs. You are responsible for paying interest on the loan while in school. You may choose to capitalize the interest. The advantage of doing this is that no interest payments are required. The disadvantage is that the interest is added to the loan, meaning that you will repay more money to the lender at the end of your loan.

Grad PLUS College loans are student loans for graduate students sponsored by the federal government that are unrelated to need. Generally, students can borrow up to the total cost of education, minus any aid received. The advantage of this loan is that it allows for greater borrowing capacity. However, students should consider lower-interest loans, such as the Subsidized Stafford or Unsubsidized loans prior to taking out a Grad PLUS loan.

Other Student College Loan Options

Private college student loans: A number of lenders and other financial institutions offer private education loans to students. These loans are not subsidized and usually carry a higher interest rate than the federal need-based loans. This type of loan would be credit worthy based.

College-sponsored loans: Some colleges have their own loan funds. Interest rates may be lower than federal student loans. Read the college’s financial aid information.

Other loans: Besides setting up scholarships, some private organizations and foundations have college loan programs as well. Borrowing terms may be quite favorable. You can use Scholarship Search to find these.

Parent Loans: Parents also have federal and college-sponsored loan options.

Federal PLUS loans: The PLUS College Loan program is the largest source of parent loans. Parents can borrow up to the full cost of attendance minus any aid received, and repayment starts 60 days after money is paid to the college.

College-sponsored loans: A small number of colleges offer their own parent loans, usually at a better rate than PLUS. Check each college’s aid materials to see if such loans are available.