Student loans finance higher education by letting you borrow money to cover costs. While helpful, they are debt and require repayment with interest. Here are some things to know about them.
1
A student loan is a type of financial aid designed to help students cover the costs of post-secondary education.
2
You're essentially borrowing money from a lender, with the promise to repay it with interest over time.
3
Government student loans typically offer lower interest rates compared to private loans.
4
Student loan repayment is deferred while you're still in school. It allows you to focus on your studies before entering the repayment phase.
5
These can include standard repayment plans, income-driven repayment plans, and loan consolidation options.
6
Responsible repayment can build a positive credit history, while missed payments can negatively impact your score.
7
You'll be responsible for paying back the borrowed amount, plus interest, over time.