Selecting college student loan is always a bit of a stressful time because there are so many different terms, options and many companies provide very attractive offers. It is very important, however, to understand that lots of the really "to good to be true" types of college student loans are exactly that.

Every year hundreds if not thousands of college student loans are issued that look like a good deal on the surface, but without reading the fine print and understanding exactly what you are getting into you may find out you have cost yourself thousands of dollars in interest or fees over time. Key things to look for in college student loans, in particular with private school or education loans include:

1. Vague information on the interest rate of the loan and how the interest rate will be calculated over the life of the loan. It is much better to lock in your interest rate, if the pertain-able rates are good at the time, to prevent rate fluctuation. Not locking in a rate can result in either a really good option if the interest rates are more favorable to borrowers, but it can also go the other way and have the lender make a lot of money.

2. Your credit score will affect the interest rate as well as the amount of money you are able to borrow. If a lender offers low rates to people with bad credit or to people no matter what their credit score is, you should be very weary of them. While it looks promising, the additional fees, other services, and costs that you end up paying are not so nice. Most commonly, these costs exceed a slightly higher interest rate in the long run.

3. College student loans that promise you money for non-educational items or that indicate they have a loan that falls in a loophole to get around the policies. This is both illegal and against the Higher Education Act policies and typically these types of scams are exposed, often too late for unsuspecting students. If a loan has a loophole to get around policies or that provides money for items not related to education, you should avoid these lenders. Not only is it illegal and against the policies of the Higher Education Act, it also typically is a scam that unsuspecting students get caught in before it is exposed.

4. While it may not seem important, ask if your loan will be sold, as many smaller lenders do, because this can ultimately leave you with someone other than the original lender to deal with and possibly resulting in different interest rates and terms.

A reputable lender will put information about the selling of the loan in writing and will also guarantee that the original terms will continue to apply. Along with guaranteeing the original terms will always apply, a reputable lender will also include every aspect of the loan selling in writing. While it may be tempting to look at some of these newer companies offering college student loans, it is still good advice to stick with companies that have a proven track record and that have a history of working with students in a fair and responsible manner.