Student Loan
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A student loan is designed to help students pay for university tuition, books, and living expenses. It may differ from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in education. It also differs in many countries in the strict laws regulating re-negotiating and bankruptcy. Contents
United StatesIn the United States, there are three types of student loans: two of them are federally subsidized and unsubsidized sponsored by the federal government and the other type is private student loans.The unsubsidized program allows students to borrow money with interest accruing during school and subsidized loans allow them to defer interest accrual until they are no longer in school. Student loans may be offered as part of a total financial aid package that may also include grants, scholarships, and/or work study opportunities. Private lenders are also currently guaranteed a return on their investment due to legislatively enacted changes in 2005, prohibiting the discharge of any student loan, unless the debtor is able to demonstrate "undue hardship." From Wikipedia under the
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