Student loans are funds borrowed to pay for higher education expenses, including tuition, fees, housing, and textbooks. Borrowers are typically required to repay these loans with interest after graduation or leaving school.
Key Types of Student Loans:
- Federal Student Loans
Provided by the government with typically lower interest rates and flexible repayment options. Examples include:
- Direct Subsidized Loans: Interest is covered by the government while the student is in school.
- Direct Unsubsidized Loans: Interest accrues while in school and during deferment.
- PLUS Loans: For parents and graduate students.
- Private Student Loans
Offered by banks and private lenders with varying interest rates, often based on creditworthiness.
Student loan debt remains a critical issue, shaping financial decisions for millions of borrowers. For more tailored advice, consulting financial planners or loan servicers is recommended.
