Types of Student Loans
There are two primary types of student loans:
- Federal Loans: Backed by the government, typically with lower interest rates and flexible repayment options compared to private loans.
- Private Loans: Issued by banks or other lending institutions, typically with higher interest rates and less flexible repayment options.
Understanding Interest Rates
Interest rates on student loans vary depending on the type of loan, lender, and borrower’s creditworthiness. Higher interest rates mean you will pay more in interest over the life of the loan.
Strategies for Minimizing Student Debt
Managing student debt effectively is important for financial well-being after college. Here are some strategies to minimize the impact:
