When applying for a student loan you'll want to pay close attention to the rates of interest offered you.

There are generally two different ways that interest rates for student loans are determined. One way is to use a fixed rate that is constant throughout the life of the loan. With this type of loan you will always know what your payment will be and you will have the security of knowing that your payment can't increase.

Some student loan packages offer an interest rate that is tied to the interest rate paid on US Treasury Bills. These are variable interest rates and the rate will change across the life of the loan. If interest rates are declining this can be a good advantage for you. If rates are increasing this could be an equally bad surprise because the amount of your monthly payment will be increasing.

Only you can decide which is the best loan for your needs. Just make sure you inform yourself with as much information as possible before committing yourself.