Federal student loans are always the best option when it comes to funding your higher education. These loans offer low interest rates and flexible payment terms upon graduation or separation from school. If your costs exceed your federal student aid award, private loans are a good option as well. Reviewing the terms of your loans prior to acceptance, however, is a must. Private loans have much more strict payment terms, and sitting down with a financial aid officer is a great way to be sure that you are getting the best loan possible.