BETA
Chapter 1
The anatomy of a student loan
Chapter 2
Federal versus private loans
Chapter 3
The magic and trap of compound interest
Chapter 4
Repayment plans and the path to freedom
YOUR GOAL
Master of The truth about student loans before you sign
Ch 1 · The anatomy of a student loan
dash Decode the fine print of student contracts to discover the real cost of borrowing money.
dash Student Loan Hardship
Student loan debt, A heavy weight. Bankruptcy's bar, Is undue hardship's gate.
dash Loan servicers are third-party companies hired by lenders to manage billing, payments, and customer service.
dash A loan consists of the principal, which is the borrowed amount, and interest, which is the cost of borrowing.
Fun Fact
Harvard's first loan: In 1838, Harvard University established its first student loan fund, offering small, interest-free loans to students who promised to pay them back after graduation.
Glossary
interest rate (noun)
The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage. In the United States, federal undergraduate loans disbursed in 2023 carried a fixed 5.50 percent rate.
The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage. In the United States, federal undergraduate loans disbursed in 2023 carried a fixed 5.50 percent rate.
Quiz
What percentage of the average public college budget did room and board consume in 2023-2024?