Everything you need to know about student loans

Student loans are financial aid that must be paid back with interest. They are used to help students cover the cost of higher education, including tuition, books, and living expenses.

There are two main types of student loans: federal loans, which are funded by the government, and private loans, which are offered by banks and other financial institutions. Federal loans typically have lower interest rates and more favorable repayment options.

It is important to borrow only what you need and to carefully consider your repayment options before taking out a loan. Repayment typically begins six months after graduation, and there are several repayment plans available based on your income.

Defaulting on a student loan can have serious consequences, including damage to your credit score and wage garnishment. However, there are options available for borrowers who are struggling to make their payments, such as income-driven repayment plans and loan forgiveness programs.

It is important to understand the terms and conditions of your loan before signing any paperwork and to carefully consider the long-term impact of taking on student debt. Planning ahead and staying informed can help you make smart decisions about borrowing money for college.