Media type · Borrowed money for study costs, repaid with interest over an agreed term.
Student loan
Borrowing that converts a funding gap into a repayment schedule.
Key facts
| What it is | Borrowed money for study costs, repaid with interest over an agreed term. |
|---|---|
| Who sets it | The lender or government scheme sets the rate, term, fees and eligibility. |
| Check before paying | The total cost of credit, whether the rate is fixed or variable, when repayment starts, and what the loan may be used for. |
Total cost, not monthly payment
The monthly payment is the visible part of a loan; the interest over the term is the cost. Two offers with the same payment can differ substantially in total repaid if the terms differ.
Fees, insurance and any interest that accrues before repayment starts belong in the comparison. Ask for the total cost of credit rather than comparing advertised rates alone.
Frequently asked questions
Fixed or variable rate?
Fixed payments are predictable; variable payments move with the reference rate. The choice depends on how much rate risk the budget can absorb.
Can the loan cover living costs?
Depends on the lender and the purpose. Check what the loan may be used for before counting it as funding.