A student loan is money borrowed from the government or a private lender to cover college tuition, room and board, books, and other school fees. The loan must be paid back later, along with interest that builds up over time.
Student debt is the second-largest type of consumer debt, second only to mortgages. Since it can significantly impact your personal and professional life, it is important you do your research.
We put together this guide to help those who are challenged by student debt understand their options. That way, you can make an informed decision that could set you up for future success and the life you want to live.
Did you know?
The total outstanding student debt in the United States skyrocketed from $959,823.95 in 2011 to more than $1.7 trillion as of July 20221
In total, 70% of students who graduate with a bachelor’s degree have $28,400 in debt on average
Students aged 25-34 carry the most student debt
Individuals with student loan debt have lower credit scores on average
If these numbers sound daunting, you are not alone.
We put together this step-by-step student guide to help you find the student debt relief loan that is right for you. That way, you can avoid beginning your career after college drowning in unmanageable debt.
There Are Many Types of Student Loans
The two main types of student loans are federal and private. Within each type are subsets that might appeal to you based on your credit history, financial need, and other factors.
Federal loans were established to help students with limited funds, or a poor credit history, receive a good education. Private loans offer customized options to students with a strong credit history.