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Student Loans 101

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Student loans are like a helping hand to pay for your education. Learn what to know about student loans so you can make smart choices about your education.

What is a student loan? A student loan is borrowed money for post-secondary education, divided into federal and private loans.

Federal Loans vs Private Loans

  • Lower Interest Rates / Higher Interest Rates
  • More Flexible / Less Flexible
  • Direct Subsidized Loans, Direct Unsubsidized Loans, Direct Plus Loans / Loans from Banks, Credit Unions, and Schools

Loan Repayment

Federal Loans have three options for repayment:

  1. Standard Repayment
  2. Graduated Repayment
  3. Income Driven Repayment

Private loan repayment terms vary by lender, so understand them before signing.

Loan Forgiveness

Loan forgiveness or discharge may apply in certain cases, such as public service work or during emergencies like COVID-19 under the CARES Act.

By understanding how student loans work and making smart choices, you can use student loans to invest in your education and build a bright future.

Topics:
College Debt Recovery Financial News

The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its subsidiaries and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.

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