If you are a student needing financial aid, one of the financial aids available to you is a tuition answer loan. In very simple terms, a student loan is a loan you take out and use to pay the costs of your college tuition. Compared to other types of loans, a student loan has a lower interest rates. While students loans can be privately sponsored, most student loans are government sponsored. There are three things you need to consider before you apply for a student loan. A loan given to a student to help him pay for higher education is termed as Student Loan.