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If you’ve been paying any attention at all to the headlines of early 2008, you’ve undoubtedly been bombarded with bad news about the economy. The United States is being hit hard by a crisis in credit and housing, precipitated largely by the subprime crisis. To avoid becoming a victim of risky loans or lenders when you finance your education, you should choose fixed rate student loans.

There are a seemingly infinite number of lenders out there who exist only to make loans to students. This might be discouraging, but if you get overwhelmed, you won’t be able to make the best decision for yourself. With a little work, you can find a respectable lender who will not try to take advantage of you.

Students are a key demographic for predatory lenders, who try to take advantage of inexperience. One way these lenders exploit students is by offering adjustable rate student loans. These seem very appealing on paper: the lender offers you a loan at an incredibly low rate, making the rates offered by fixed rate lenders seem unfair.

But the “adjustable” in adjustable rate loans means that the interest rate can change, and most of the time, that rate can go up. Even if you think you’re saving money initially, remember to think long-term.

By choosing a fixed rate loan, you can avoid many of the problems associated with adjustable rate loans. Fixed rate loans promise you one certain rate that you will pay for the duration of the loan, which can help protect you in many ways. With a fixed rate loan, you are less likely to be negatively affected by macroeconomic trends. You will also never get an unexpected, unwelcome surprise on your monthly bills.

Have you ever wondered why it takes so long to pay off loans? It’s often because of high interest rates. In fact, a little research into loan repayment will show you that many borrowers get sucked into the trap of low “teaser” rates that eventually skyrocket. Then, they are stuck with huge bills just to pay off the interest – never even touching their initial loan. As interest rates climb higher, the problem only gets worse.

You have worked hard to earn your education, and you should not have to spend the rest of your life worrying about how to pay for it. A good education can be expensive, but it’s valuable, and you shouldn’t let the fear of predatory lenders keep you from getting a loan.

As long as you get a fixed rate student loan and stick to a responsible payment schedule, you’ll be on your way to a great credit score and financial success.