What is a student loan?

A student loan is money borrowed specifically for the purposes of paying for education-related expenses. Students use loan money to cover the costs of tuition, fees, books, and room and board. Some students aren't able to attend college to pursue a degree without student loan assistance.

A benefit of taking out a student loan is that it serves as an investment when a student earns a degree and makes substantial income through holding the degree. In some cases, students borrow the money but don't ever complete a degree. Typically, students begin repaying loan debt after finishing school. Student loan debt normally isn't discharged in a bankruptcy filing like other debt.