March 16, 2023 | By Maryalene LaPonsie
Financially, it’s hard to argue with the value of a college education. After all, in 2020, young adults with a bachelor’s degree had median earnings that were 63% higher than their peers who had only a high school diploma.
Still, college doesn’t come cheap, and many students find they are unable to cover costs with grants and scholarships alone. In that case, student loans can be a good option. Designed for those in college, these loans may have lower interest rates and more favorable terms than other loan products.
However, not all student loans are the same, and you should carefully consider how much you need to borrow. You also need to know how do student loans work.
If the process feels overwhelming, keep reading. In this guide to student loans, we’ll break down everything you need to know about how to apply for student loans, including how to select the right type of loan and the appropriate loan amount.