Understanding Student Loans: What You Need to Know
Navigating the world of student loans can be overwhelming, especially if you're new to the process. Whether you’re planning for college, currently a student, or repaying loans, it’s essential to understand how student loans work, the types available, and tips for managing them effectively.
What Are Student Loans?
Student loans are funds borrowed from the government or private lenders to help pay for college or other educational expenses. Unlike scholarships or grants, student loans must be repaid with interest, making it crucial to understand the terms before borrowing.
Types of Student Loans
There are two main categories of student loans: federal and private.
Federal Student Loans: These loans are funded by the U.S. government and typically offer lower interest rates and m...