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Student loans can be taken out to help pay for high education, from undergraduate, graduate, medical school, law school, etc.

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Most student loan borrowers opt to take out federal student loans, which have fixed interest rates. Federal loans can be subsidized or unsubsidized.

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Due to the caps on federal loans, some students choose to take out loans with private companies. Private loans often offer interest rates that are slightly lower than for federal loans, though rates are dependent on each individual's financial situation.

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Subsidized federal loans are meant for students with the highest financial need, as the government makes interest payments on the loan while the student is still in school. This means interest doesn't start collecting until after graduation.

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Federal unsubsidized loans are available for the average student borrower regardless of financial situation. Interest starts as soon as the loan is taken out. Undergraduate students who are still dependent on their parents are allowed to borrow up to $31,000 total. This is higher for people who are independent.

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The 2019-2020 federal student loan interest rates are currently 4.53% for undergraduate loans, 6.08% for unsubsidized graduate loans.

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There are four main types of loans. Student loans, mortgages, auto (car) loans, and personal loans

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Mortgages are used by consumers to finance home purchases. Because most homes cost much more than the average person makes in a year, mortgages are designed to make homebuying accessible by spreading out the cost over many years.

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The most common home loan is the 30 year fixed-rate mortgage. This loan is repaid in fixed monthly installments over the course of 30 years in a process called amortization. Mortgages with term lengths of 15 or 20 years are also offered.

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Mortgage programs also differ depending on which agency sponsors them. There are three main types of mortgages: conventional mortgages, FHA loans, and VA loans.

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Auto loans can be used to purchase either new or used vehicles. The term of an auto loan typically ranges from 24 months to 60 months, though longer loans with 72 or 84 months are becoming more common.

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Most lenders limit the term lengths to 48 or 60 months for older car purchases because used cars are riskier to finance. This is because car value generally declines over time, unlike home value.

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For an older used car, it's quite easy for borrowers to find themselves "upside-down"—meaning that they owe more on their loan than their car is currently worth. To avoid this situation, it's important to not take out money with too long of a repayment schedule, and to evaluate how quickly your car will depreciate.

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Personal loans are the most versatile loan type. While mortgages, car loans, and student loans must be used for a specific purpose, personal loans can be borrowed for debt consolidation, living expenses, vacations, credit building, etc.

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The terms of personal loans vary as widely as their uses, though term lengths are generally under 10 years and the maximum amount is usually capped at $100,000.

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A common use of a personal loan is to consolidate existing credit card debt. Credit card interest can quickly accumulate when the balance isn't paid off, so personal loans are often a more affordable way to pay down debt.

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Conventional mortgages are for the average person and backed by Fannie Mae and Freddie Mac.

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FHA loans are designed for low income or credit poor individuals and are backed by the Federal Housing Administration.

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VA loans which are for veterans and are backed by the Department of Veterans Affairs.