Student loan debt is the money borrowed by individuals to finance their education, covering tuition, fees, books, and living expenses. This debt can come from federal student loans, which are funded by the government, or private student loans, which are issued by banks and other financial institutions. Federal loans often offer more favorable terms, such as fixed interest rates, income-driven repayment plans, and potential forgiveness programs, whereas private loans typically have variable rates and fewer repayment options. Managing student loan debt involves understanding the terms of each loan, exploring consolidation or refinancing opportunities, and making consistent payments to avoid default. High levels of student loan debt can impact financial stability, delaying milestones such as homeownership and retirement savings, making effective management and repayment strategies crucial.
