The economic downturn means that getting a student loan is not as easy as it once was. All is not lost though. Many students are able to get a loan that will cover the majority of tuition fees at local public universities. The government is also doing their bit to help financially-challenged families by reducing interest rates on loans for needy students. As well as this, universities are providing reasonably low-cost supplemental loans in an attempt to fill the loan void.

It is recommended that students get through their university degrees without taking out any loans, to avoid increasing interest rates and getting into financial debt. Ideally, students should choose low-cost colleges or try and win scholarship money to attend university. However, there aren’t enough scholarships to go around to every financially-disadvantaged student. There are so many expenses to deal with as a student – housing, food, travel – that even scholarship money will struggle to cover.

Here are four simple ways of helping you find a cheap student loan:

1. Start with the government.

The government is the largest supplier of student loans. To apply for a government loan, students must first fill out the Free Application for Federal Student Aid (FAFSA). Students attending university on a full-time basis are eligible to receive at least $5,500 a year via the Stafford student loan program. Students who receive a Stafford loan for the fall 2009 school year will have no more than 6.8 percent interest a year plus a 1.5 percent upfront fee on their loans, for an overall median yearly rate of 7.1 percent.

Parents as well can help out with their child’s tuition fees by applying for a federal PLUS program. PLUS loans are a little dear though – as much as 9.4 percent annual interest rate. There are benefits though: the credit checks for PLUS applications are not as severe as other loans and will OK parents who are behind on their mortgages. As well as this, parents can hold off on making payments until after their child has completed their studies.

2. Talk to your school

If you’re hard up to meet the school’s tuition fees and fear you may have to drop out, call the school aid office first and see whether they are able to help. A number of universities are offering loans to parents and students who have been affected by the recession. Some colleges are also providing Perkins loans, which are government loans offered to needy students that charge zero interest while students are studying and only 5 percent after they have left school.

3. Alternative routes

Nowadays, some charities and even new Web businesses are offering students the possibility to borrow loans at zero or low interest. Consider approaching companies such as Virgin Money or GreenNote.

4. Private lenders

Private loans should only be considered as a last resort. This is because they are often times expensive, as well as some requiring students to make payments immediately – whilst they are still in college. Finding an affordable loan involves a lot of work in a short space of time. Lenders normally wait until after you’ve filled out an application to divulge the rate they’ll charge you. There is also a short window of time to shop for a loan – 30 days – before credit rating agencies start to affect the credit score of borrowers.