Student loans, unlike grants and student employment, are borrowed money that must be repaid, with interest. When you apply for financial aid, your aid package will likely include student loans. It’s important to understand what types of loans you are offered. Generally, there are two types of student loans:
- Federal student loans - These loans are funded by the federal government
- Private student loans - These loans are non-federal loans, made by a lender such as a bank or credit union
Borrowing loans is a huge responsibility, it is important you understand the responsibilities and obligations as a student loan borrower. The more informed you are now, the more prepared you will be in the future.