Student Loans: Everything You Need To Know

admin / January 13, 2023

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Going to college is a dream for many young people, but it can come with a hefty price tag. In fact, college tuition has been on the rise for years, making it difficult for many to afford higher education. That’s where student loans come in. In this article, we’ll take a closer look at what student loans are, how to get them, and what to do if you’re struggling to make payments.

What are Student Loans?

Student loans are a type of loan designed specifically for students who need financial assistance to pay for college. These loans can come from the government or private lenders, and they must be paid back with interest.

Types of Student Loans

There are two main types of student loans: federal loans and private loans. Federal loans are provided by the government, while private loans are provided by banks, credit unions, and other financial institutions.

Federal Loans

Federal loans are generally the best option for students because they come with lower interest rates and more flexible repayment options. There are three types of federal loans:

  • Direct Subsidized Loans: These loans are based on financial need and the government pays the interest while the student is in school.
  • Direct Unsubsidized Loans: These loans are not based on financial need and the student is responsible for paying the interest while in school.
  • PLUS Loans: These loans are for graduate students or parents of undergraduates and require a credit check.

Private Loans

Private loans are an option for students who need additional funds beyond what is available through federal loans. However, they come with higher interest rates and less flexible repayment options.

How to Get Student Loans

The process for getting student loans varies depending on whether you’re applying for federal or private loans.

Applying for Federal Loans

To apply for federal loans, you must complete the Free Application for Federal Student Aid (FAFSA). This form will determine your eligibility for federal loans, grants, and work-study programs.

Applying for Private Loans

To apply for private loans, you’ll need to go through a private lender. You’ll need to provide information about your credit history and income, and you may need a co-signer if you don’t have a strong credit history.

Repaying Student Loans

Once you graduate, you’ll need to start repaying your student loans. The repayment process can be overwhelming, but there are options available to help make it more manageable.

Repayment Plans

There are several repayment plans available for federal loans, including:

  • Standard Repayment Plan: This plan has fixed payments for 10 years.
  • Graduated Repayment Plan: This plan has lower payments at first that increase over time.
  • Income-Driven Repayment Plan: This plan adjusts your payments based on your income and family size.

Loan Forgiveness

There are also options for loan forgiveness, which means you may not have to repay all of your loans. Some examples include:

  • Public Service Loan Forgiveness: If you work in a public service job for 10 years, your loans may be forgiven.
  • Teacher Loan Forgiveness: If you’re a teacher, you may be eligible for loan forgiveness after five years of teaching.
  • Income-Driven Repayment Forgiveness: If you’re on an income-driven repayment plan, any remaining balance may be forgiven after 20-25 years.

What to Do if You’re Struggling to Make Payments

If you’re having trouble making your student loan payments, there are options available to help you.

Deferment and Forbearance

Deferment and forbearance are options that allow you to temporarily stop making payments on your loans. Deferment is typically for those who are in school, while forbearance is for those experiencing financial hardship.

Loan Consolidation

Loan consolidation allows you to combine multiple federal loans into one loan with one monthly payment. This can make it easier to manage your loans and may even lower your monthly payment.

Loan Rehabilitation

Loan rehabilitation is an option for those who have defaulted on their loans. It involves making nine consecutive on-time payments to get your loans back on track.


Student loans can help make college more affordable, but they also come with the responsibility of repayment. By understanding your options and making a plan for repayment, you can successfully manage your student loans and achieve your educational goals.

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