Introduction to Students Loans

 

 

For many students who want to pursue education beyond high school, the cost of this education can be prohibitive. For these students, and maybe even yourself, student loans are a tool that can be used to fund education goals. Student loans are issued to borrowers so that they can pay for things like tuition, books, living expenses, and other costs associated with education. Typically, when you apply for financial aid at an institution, that school will create a financial aid package that most likely includes student loans along with other forms of aid.  Student loans can come in many forms, but generally speaking and for the purposes of this module, you will learn about two types: Federal Student Loans and Private Student Loans.

When you set out to pursue education beyond high school it may seem to be the easiest route to use student loans to fund your education, but the most cost-effective way to continue your education is to first seek scholarship and grant funding. With free money secured you should then consider student loans or income sources to cover your remaining balance.

Throughout the rest of this module, you will become familiar with both federal and private student loans. This educational resource is not intended to sway your decision-making process and it should be made clear that when used appropriately student loans are a valuable tool that allows individuals access to education that may have otherwise been unattainable.

It is also advisable that you visit the US Department of Education website for the most up-to-date information concerning the federal student aid system.  The website can be found here:  https://studentaid.gov/ Links to an external site.

Now you can move on to the Chapters on this topic below:

[Chapter 2]: Federal vs. Private Loans

[Chapter 3]: Terminology and Resources

[Chapter 4]: Being a Responsible Borrower

[Chapter 5]: Student Loan Repayment