Student Loan

Banking & Credit

A student loan finances higher education costs. Federal loans (Direct Subsidized, Direct Unsubsidized, PLUS) offer fixed rates, income-driven repayment options, deferment/forbearance, and forgiveness programs (PSLF, IDR forgiveness). Private student loans from banks generally have higher rates, fewer borrower protections, and no forgiveness — best avoided when federal options exist. The standard repayment period is 10 years; income-driven plans extend up to 25 years and cap payments at a percentage of discretionary income. Student loan interest up to $2,500 is tax-deductible above the line (phases out at higher incomes). Refinancing federal loans into private waives federal protections.