Education Loan

DEFINITION of 'Education Loan'

Money borrowed to finance education or school related expenses. Payments are often deferred while in school and for a six-month grace period after graduation. There are a variety of federal and private student loans available (see An Introduction to Student Loans and the FAFSA and College Loans: Private vs. Federal).

BREAKING DOWN 'Education Loan'

Your decision about which type of loan to get will affect not just its current interest rate, but your ability to consolidate your loan or have it forgiven down the road. It's generally best to start by trying to get a federal loan before exploring other options. For more, see 10 Tips for Managing Your Student Loan Debt.

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RELATED FAQS
  1. Student loans, federal and private: what's the difference?

    Learn about the differences between federal and private student loans, and discover the types of federal funding available ... Read Answer >>
  2. What are the pros and cons of consolidating my student loans?

    Read about the possible advantages and disadvantages of consolidating your student loan debts, and find out how to determine ... Read Answer >>
  3. Are Sallie Mae loans considered federal loans?

    Identify the differences between federal and private student loans, explore the qualities of each type of loan, and find ... Read Answer >>
  4. Is it legal to invest my student loan money?

    Take a risk investing student loans and encounter a legal and moral gray area as well as possible financial challenges along ... Read Answer >>
  5. Who is eligible for student loan forgiveness?

    If you have a federal loan, you may be able to get all or part of your loan forgiven through volunteer work, public service, ... Read Answer >>
  6. What special powers does the government have to collect student loans?

    Contact student loan companies before student loans default, as the government has the power to get its money. Prior to default, ... Read Answer >>
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