Student loan system

A student loan is money borrowed to pay for education costs, such as tuition, books, and living expenses. The government or private lenders provide these loans, which students agree to repay with interest after finishing school or when earning above a certain income. Repayment terms vary, but typically include fixed or income-based monthly payments over several years. Student loans make it possible to invest in higher education without paying everything upfront, but they also create a future financial obligation that can impact finances until fully repaid.