Skip to main content
Financial Education

Student Loans

Student loans are one way students pay for college. This page covers how student loans work, how repayment works, and what options exist if payments become hard to make.

There are two main types of student loans: federal and private.

Federal student loans

Federal student loans come from the U.S. government. 

  • Have fixed interest rates, set by law
  • Most do not require a credit check
  • Many repayment options, including plans based on your income

There are several types of federal loans, including subsidized and unsubsidized loans. Learn about the types of federal loans at studentaid.gov.

Private student loans

Private student loans come from banks, credit unions, and other lenders.

  • Rates and terms depend on your credit
  • A co-signer may be required
  • Repayment options depend on your loan contract

You apply for private loans directly with a lender. Lenders review your credit, income, and other information.

Repaying your loans

Federal loans: for most, payments start six months after you graduate, leave school, or drop below half-time. The standard plan is 10 years of payments. Other plans exist, including plans based on your income. You can change plans for free, at any time. Learn more at studentaid.gov.

Private loans: some require payments while you are in school. Others wait until after you finish. Your loan contract spells out the rules.

If you cannot afford your payments

Acting early matters. Contact your loan company (your servicer) before you miss a payment - that is when you have the most options.

  • Federal loans offer ways to lower or pause payments, including income-driven plans, deferment, and forbearance. See your options at studentaid.gov.
  • Private loans: ask your lender about hardship programs, lower payments, or a temporary pause. Get any agreement in writing.

Problems with your student loan? Washington's Student Loan Advocate helps borrowers for free. Contact the Advocate through the Washington Student Achievement Council. Student loan servicers in Washington are licensed by DFI. You can also file a complaint with DFI.

Resources