Student Loan

Student loans are borrowed funds used to pay for educational expenses, including tuition, books, and living costs. In the U.S., there are federal student loans (offered by the government) and private student loans (offered by banks and other financial institutions). Federal loans generally offer lower interest rates and more flexible repayment options.

Repayment options for federal student loans include standard repayment, graduated repayment (starting lower and increasing every two years), extended repayment (longer terms for lower monthly payments), and income-driven repayment plans (based on income and family size).

Making extra payments toward the principal can significantly reduce the total interest paid over the life of the loan. Federal student loan interest may also be tax-deductible, subject to income limits.