• An education loan is an amount of money borrowed to finance post-secondary education or expenses related to higher education.
  • Education loans are designed to cover tuition, textbooks and supplies, and living expenses while the borrower is in the process of earning a degree.
  • Payments are often deferred while students are in college and, depending on the lender, sometimes they are deferred for an additional six-month period after graduation.
  • Although there are many educational loans, they can be divided into two main types: federal loans sponsored by the federal government and private loans.