A student loan is money you borrow to pay for college or university expenses, including tuition, books, housing, and other costs. Unlike scholarships or grants, loans must be paid back—with interest—after you graduate or leave school.
How Do Student Loans Work?
There are two main types of student loans: government (federal) loans and private loans. Government loans often have lower interest rates and more flexible repayment options. Private loans are offered by banks or financial companies and may require a credit check or a co-signer.
When Do You Have to Start Repaying?
Most student loans allow you to postpone payments while you are in school. Repayment usually begins six months after graduation or when you drop below half-time enrollment.
What Should You Consider Before Borrowing?
- Only borrow what you truly need to cover school expenses.
- Compare interest rates and repayment plans.
- Understand your total loan amount and how much you will owe after graduation.
- Ask about deferment, forbearance, and loan forgiveness options.
Conclusion:
Student loans can make college possible, but they are a long-term commitment. Research your options, read the terms carefully, and borrow responsibly.
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