Loans are funds that must be paid back within a specified period of time after the student graduates or leaves college for any reason. Loans provide students and their families with flexibility because the money may be used for tuition and other expenses associated with college attendance. In addition, student loans usually carry lower interest charges than the standard commercial rates.
Just like any other loan student loans must be repaid with interest. After you graduate you will be required to repay what you have borrowed. If you fail to meet the terms of the loan with regard to repayment it will impact on your ability to borrow for a car, a home and other purchases in your future. If you have any questions about the repayment terms of a loan you should not sign the promissory note.
