Create Account

Student Loans

Overview

More than 40% of US adults who pursued education beyond high school have taken out student loans. These borrowed funds are used to cover tuition, fees, living expenses, and other costs of college—and they must be repaid, usually with interest, upon leaving school. About two in five students in any given academic year take out some form of student loans.

There are two primary types of student loans: Federal or "public" loans, which are student loans borrowed from the US federal government, and private student loans, which are any student loans financed by a lender other than the government—such as a bank, credit union, or a student's university. Private loans accounted for only about 8% of the roughly $1.8T in total outstanding US student debt as of early 2026.

A student loan's interest rate determines the ultimate cost of borrowing, as well as how quickly the amount owed grows. Federal student loans tend to have lower interest rates than their private counterparts. Interest rates on federal student loans typically range from about 6% to 9% as of the 2026-27 academic year, whereas interest rates on private student loans can exceed 17%.

1440 Findings

Hours of research by our editors, distilled into minutes of clarity.

  • Posted by

    College sticker prices can be misleading, as most students don't actually pay the advertised price due to financial aid.

    How College Tuition Tricks You
    1440 Exploreshttps://www.youtube.com/watch?v=qiAZd_Ut9sg

  • Posted by

    Student loans are typically just one part of a college student's overall financial package that will often include other categories as well, such as grants, scholarships, merit-based awards, and more.

    - YouTube
    The Financial Diethttps://www.youtube.com/watch?v=FyLRxU5mJPM

  • Posted by

    Student loans weren't always so prevalent—decades of rising tuition and the 1965 Higher Education Act contributed to their proliferation.

    How Did We Get Here: Growth of Federal Student Loans (Part 1)
    Lumina Foundationhttps://www.youtube.com/watch?v=6Cha6bWhuD0

  • Posted by

    Some borrowers end up with higher student loan balances than they started with, even after years of paying, due to 'negative amortization.'

    Buzzfeedhttps://www.youtube.com/watch?v=I5o1w5TlCaE&t=13s

  • Posted by

    From wage garnishment to a credit score hit, a multitude of consequences can occur if a borrower doesn't repay their student loans.

    WCNChttps://www.youtube.com/watch?v=Fj055dXKXH4

Explore Business & Finance

The United States is home to more than 33 million businesses, the vast majority of which are small businesses, with millions being created (and others closing shop) every year. These businesses often rely on loans, provide the goods and services that keep the economy flowing, and sometimes even grow large enough to enter public markets or provide private investment opportunities. Explore key topics central to business and finance, from the role of the Federal Reserve to how initial public offerings work, how millions of American students finance higher education, and more.

Featured Topics

View All Business & Finance