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.

RELATED TERMS
  1. Stafford Loan

    A type of federal, fixed-rate student loan that was available ...
  2. Deferment Period

    1. A time during which a borrower does not have to pay interest ...
  3. Student Loan Interest Deduction

    Student Loan Interest Deduction is a tax deduction for interest ...
  4. Term Loan

    A loan from a bank for a specific amount that has a specified ...
  5. Refinance

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  6. Standing Loan

    A type of loan where payments are made of interest only. Repayment ...
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RELATED FAQS
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    Make the right decision between a federal student loan and a private student loan when looking for financial aid for your ... Read Answer >>
  2. 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 >>
  3. Federal student loan rates: who sets them, why they vary

    Federal student loan rates are set by Congress, not by banks. Learn more about who gets what rate, and how often they get ... Read Answer >>
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