Low-interest loans come in various types. The government offers subsidized and unsubsidized loans to students attending college. Subsidized loans don't start compounding interest while you are attending college. Once you graduate or leave school, interest starts accruing and you'll have to start making payments within a few months of leaving school.
Unsubsidized loans do charge interest while you're attending school, but the interest can be repaid with the loan after you finish school. Loans are repaid after you finish or leave school. Although having lots of loans is not a good financial decision, the loan companies work to help you pay the loans back over a long period of time.
Even with government loans, scholarships and working, some students still need a little more to make ends meet. For these students, there are increasing numbers of alternative student loan programs, some of which are very aggressive in advertising to students.
Be sure you and your family completely understand the obligations of any loans you take out while in school.