If you apply for federal financial aid through the FAFSA, you may be offered loans as part of your financial aid package. A loan is money you can borrow, but must pay back.
Important points to remember
- Make sure you understand who is making the loan and the terms and conditions of the loan. Student loans can come from the federal government or from private sources such as a bank or financial institution.
- Student loans are legal obligations. It is borrowed money that must be repaid, with interest, just like car loans.
- Student loans cannot be cancelled because you didn't get - or didn't like - the education you paid for with the loans, didn't get a job in your field of study, or are having financial difficulty.