Back to glossary

Student loan

A loan used to pay for higher education, from the federal government or a private lender.

Why it matters

Federal loans (Direct Subsidized, Direct Unsubsidized, PLUS) come with income-driven repayment options and forgiveness programs. Private loans usually offer none of those and require underwriting. Federal-first is almost always the right order.

See also

Educational only — not financial, tax, or legal advice.