In a letter to Congress Thursday, Andrew Cuomo stated some private lenders are setting interest rates for student loans based on the college the student attends.

Instead of looking at each individual student's credit history, the lenders base rates on factors such as previous graduate default rates, graduation rates or the credit trends of the colleges' neighborhoods, according to The New York Times.

Cuomo wrote the letter to Congress in an effort to expose a trend of unfair lender discrimination. He wrote that, in one example, a student at Duke University with solid credit history paid 8 percent in interest for a private loan, but a student with the same record at the University of Phoenix paid 11 percent because of the difference in the two schools.

This does seem unfair to the students who have to take out loans already to afford school, but banks need to base rates on something. If 10 percent of the students graduating from a certain university default on loan payments, it seems reasonable to charge incoming students more. Unfortunately, this often means paying for a predecessor's mistakes.

Also, these rather high rates only apply to private loans. Federal loans generally offer students lower interest rates and greater leniency if the student has any trouble paying them back.

For example, the Federal Stafford Loan, a popular student loan, offers subsidized student loans - the government pays the interest while the student is still in school - to students who demonstrate financial need.

The Federal Stafford Loan also offers unsubsidized student loans to any student in the United States regardless of need, and students can defer all payments until they have graduated. The only catch is students have limits on how much they can borrow.

If students need or want to borrow more money than they can receive from federal loans, it's only reasonable they should pay a little more.

Students often don't have any credit history upon entering college, and banks take big risks when they give a student thousands of dollars with no indication the bank will get that money back.

It's important for students to begin building a sound credit history when they turn 18 or enter college.

People's credit history determines how much they pay in interest on various loans for the rest of their lives and if they can buy a house or a car.

Students may have to pay high interest for private student loans, but if they practice financial awareness and responsibility, it may be the last time they pay such steep rates.

In college, it's easy to lose track of spending, miss a few bill payments or fall into credit card debt, but bad decisions can haunt a student. Just be honest about how much you have and what you can afford, and be careful.