A student loan is designed to help students pay for college tuition, books, and living expenses. It differs from other types of loans in that the interest rate is substantially lower and the repayment schedule is deferred while the student are still in school. Before accepting any kind of student loan one should be familiar with its basic attributes.

A student loan has two major advantages over conventional loans – lower interest rates and easier repayment terms. The interest rate on a student loan will generally be at least two percentage points lower than the going market rate for conventional loans, but this will vary somewhat.

Repaying a student loan is different, too. In most cases, payment can be can deferred on the principal and the interest until the student is out of school. Repayment typically begins anywhere from six to twelve months after they leave school, regardless of whether or not they complete their degree program. In some cases, repayment begins if course load drops to half time or less, so it is important to check the exact terms and conditions of any student loan.These loans are also given by many multi nationals in order to promote talented people and groom them. In turn this directly increases their resource pool and helps them immensely in the long run.