There are many students in the United States who are having a hard time paying their student fees. For most student loans, it requires that you have some collateral, meaning you need to have some equity such as a home or a car before you can even about getting a student loan. So what happens if you do not have both?

I should let you know there is another type of loan known as unsecured student loan. It is particularly useful for students who have no collateral or have bad credit. Unsecured student loan is simply a student loan where the lender knows your financial situation is not good but is still willing to lend you a loan.

Usually, unsecured student loan interest rates are higher than normal student loans but that is to be expected since the lender is taking a larger risk in lending you the money.

Currently, both private and government have unsecured student loans available. I do need to advise you that if you intend to get an unsecured student loan, be prepared to be questioned intensely. That's because such loans are considered high risk by most lenders therefore they will do a lot of background checks and questioning before giving you the loan.

The advantage of an unsecured student loan is intended to pay off all your existing student loans and take up one student loan, repayable on a monthly basis. The interest rate may be higher but at least you don't have to constantly worry about paying various student loans.

Some lenders also impose a limit on the loan amount. Keep in mind the risk the lenders are taking, therefore do not expect to get a huge unsecured student loan. Usually the loan amount is below $20,000.

Like I said earlier, the advantage of taking up such a loan is that you can repay all your existing student loans and take up a new student loan. If you have a good credit, then getting a student loan consolidation plan from either private lenders or the government is fine. Unsecured student loans is really meant for students who cannot qualify for a consolidated student loan.

Nowadays living with debt is part and parcel of life. The main point of getting a student loan is to allow you to concentrate on your education without worrying about the financial part. Also I would like to mention no matter what kind of student loan you are taking, it is important to know how to manage your debt and not be drown by it. Learning how to manage your debt is more important than getting the cheapest student loan.