Student loan
A student loan is money given to students to pay for their education. The student must return this money later, usually with interest. This loan may pay for tuition fees, books, supplies, or living expenses.
In some countries, college or university education is free, but in others, the price is very high. This means student loans are much more important in some countries than others.[1]
If a student cannot pay for their education, they may also apply to get a scholarship.
Student loans may be given by state-owned or private companies. State-owned companies will sometimes pay all interest while the student is in school. This is called a subsidized loan.
The simplest type of loan is time based repayment, meaning a person must pay the same amount of money each month. Another type is income contingent loans, in which the amount of money to be paid depends on the person's income. This helps the recipient if they have no job, or their job doesn't pay enough.[2]
Student debt is the money owed from student loans.
Related pages
changeReferences
change- ↑ Warren, Katie (June 18, 2018). "Here's what college costs in 28 countries around the world". Business Insider. Retrieved February 23, 2024.
- ↑ Farmer, Catherine (October 21, 2020). "A global look at student loans". University College London. Retrieved February 23, 2024.
