Life Stages
Topics
Student Loan
Student loans define the financial reality for most people in the starting-out life stage, representing both opportunity and burden.
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Federal student loans offer significantly better protections than private loans, including:
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Income-driven repayment plans
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Deferment and forbearance options
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Potential loan forgiveness programs
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Fixed interest rates
If you’re still in school or just graduating, minimize borrowing by maximizing grants, scholarships, and work-study opportunities.
Understand the difference between:
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Subsidized loans – The government pays the interest while you’re in school.
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Unsubsidized loans – Interest begins accruing immediately upon disbursement.
Private student loans should be viewed as a last resort, after all federal options are exhausted. They lack the flexible repayment terms and borrower protections that can be critical during early-career financial uncertainty.
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If you’re already carrying student debt, prioritize understanding your repayment options:
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The Standard 10-Year Repayment Plan minimizes total interest and builds wealth faster.
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Income-Driven Repayment (IDR) Plans provide breathing room when earnings are tight.
Avoid default at all costs—consequences include wage garnishment, tax refund seizure, and credit score damage lasting up to seven years.
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Consider refinancing only after securing stable employment and exhausting all forgiveness opportunities, since refinancing federal loans into private loans permanently forfeits federal protections.
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Additional Student Loan Resources: