student loan

Student loans are a form of financial aid used to pay for a student's education. In the U.S., these loans have grown significantly, with Americans owing approximately $1.8 trillion as of August 2025. This debt often arises because college tuition has increased faster than incomes, making higher education unaffordable for many.123

Federal student loans are offered by the government and do not require a credit check, with interest rates set by Congress. Subsidized loans have their interest covered by the government while the student is in school, whereas unsubsidized loans accrue interest during that period. Private loans, offered by banks and credit unions, typically require a credit check or a cosigner.456

The burden of student loan debt can delay major life milestones such as homeownership, marriage, and retirement savings. Debates continue regarding solutions like loan forgiveness or making student loans more easily dischargeable through bankruptcy.327