--- title: Student Loans 101 description: Navigating the world of student loans can be a daunting task for many. With various types of loans available, it's crucial to understand how they work. image: https://myjurna.com/hubfs/arrangement-education-growth-concept%20(1).jpg --- [Skip to content](https://myjurna.com/blog/student-loans-101#main-content) [![Orange swirl logo followed by white Jurna wordmark](https://myjurna.com/hs-fs/hubfs/Jurna%20Logo%20White-3.png?width=283&height=75&name=Jurna%20Logo%20White-3.png)](https://myjurna.com/) - [Student Funding](https://myjurna.com/student) - [Resource Guide](https://myjurna.com/blog) - [About Us](https://myjurna.com/about) - [Funded Support](https://myjurna.com/jurna-funding-repayment-support) Open main navigation Close main navigation - [Student Funding](https://myjurna.com/student) - [Resource Guide](https://myjurna.com/blog) - [About Us](https://myjurna.com/about) - [Funded Support](https://myjurna.com/jurna-funding-repayment-support) - [Get Qualified](https://myjurna.com/startjurna) [Get Qualified](https://myjurna.com/startjurna) # Student Loans 101 Sep ![](https://myjurna.com/hubfs/arrangement-education-growth-concept%20(1).jpg) ![Picture of Guest Journalist](https://myjurna.com/hs-fs/hubfs/AI-Generated%20Media/Images/The%20image%20is%20of%20a%20platform%20providing%20financing%20for%20college%20students%20and%20making%20them%20happy%20by%20doing%20it-1.jpeg?width=50&name=The%20image%20is%20of%20a%20platform%20providing%20financing%20for%20college%20students%20and%20making%20them%20happy%20by%20doing%20it-1.jpeg) [Guest Journalist](https://myjurna.com/blog/author/brooke) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://myjurna.com/blog/student-loans-101) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://myjurna.com/blog/student-loans-101) [Twitter icon](https://twitter.com/intent/tweet?url=https://myjurna.com/blog/student-loans-101) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://myjurna.com/blog/student-loans-101) [envelope icon](mailto:?body=https://myjurna.com/blog/student-loans-101) Navigating the world of student loans can be a daunting task for many individuals pursuing higher education. With various types of loans available, it's crucial to understand how they work, the differences between federal and private loans, and the implications of borrowing. In this blog post, we will provide a comprehensive guide to help you make informed decisions about financing your education. ## **Federal Student Loans** Federal student loans are loans provided by the U.S. Department of Education to help students cover the cost of their education. These loans offer several advantages over private loans, including fixed interest rates, flexible repayment options, and borrower protections. #### Types of Federal Student Loans - ##### Direct Subsidized Loans: These loans are need-based and available to undergraduate students. The government pays the interest while you're in school and during deferment periods. - ##### Direct Unsubsidized Loans: These loans are available to both undergraduate and graduate students and are not based on financial need. Borrowers are responsible for the interest that accrues, even while in school. - ##### Direct PLUS Loans: These loans are available to parents of dependent undergraduate students. PLUS loans have higher interest rates and require a credit check. They are paid by the parent, not by the student. #### Interest Rates and Fees Federal student loans typically have fixed interest rates, which means your rate won't change over the life of the loan. The interest rates are determined by Congress and are generally lower than those of private loans. Additionally, federal loans often have lower fees. #### Repayment Plans Federal loans offer various repayment plans, including Income-Driven Repayment (IDR) plans that base your monthly payments on your income and family size. This flexibility can make repayment more manageable. #### Loan Forgiveness and Discharge Federal loans may be eligible for forgiveness programs like Public Service Loan Forgiveness (PSLF) or Teacher Loan Forgiveness. In certain situations, such as total disability or school closure, loans can be discharged. ## **Private Student Loans** Private student loans are offered by banks, credit unions, and private lenders. These loans are not backed by the government and typically have higher interest rates and fewer borrower protections compared to federal loans. #### Eligibility and Credit Checks Private loans often require a credit check, and eligibility may depend on your credit history. If you have a limited credit history or poor credit, you may need a co-signer to qualify. #### Interest Rates and Fees Private loan interest rates can be fixed or variable, and they are often higher than federal loan rates. Be sure to carefully review the terms and conditions, including any fees, before borrowing. #### Repayment Terms Private loans may offer various repayment terms, but they tend to be less flexible than federal loans. Some private lenders offer deferment or forbearance options, but they may not be as generous as federal programs. ## **Choosing Between government Loans, Private Loans, or Other Options** When deciding between government loans, private student loans, or other options consider the following factors: ##### Financial Need: If you have demonstrated financial need, federal loans are usually the better choice due to lower interest rates and better borrower protections. ##### terms & RepAyment options: Compare interest rates or financing terms to determine what is the most favorables. A few items to consider include when payments start, overall repayment plan, how it is repaid, and what grace periods are allowed. For more information on alternatives, check out our [blog](https://myjurna.com/blog/what-is-ebf) on earnings based financing. ##### Borrower Protections: Federal loans offer various protections, including loan forgiveness, deferment, and forbearance options, which some private loans may not provide. Understanding the workings of federal loans, private student loans, and other options is crucial for making informed decisions about financing your education. Federal loans often provide more favorable terms and greater borrower protections, making them a preferable choice for many students. However, in some cases, private loans may be necessary to bridge the funding gap, but often those terms leave students with large, unmanageable repayments. That is why Jurna created [earnings based funding](https://myjurna.com/student). Regardless of your choice, it's essential to borrow responsibly and consider the long-term impact of funding your education on your financial future. [insight](https://myjurna.com/blog/tag/insight) ## Blog comments ## Related posts [![A Young Student Find College Scholarships](https://myjurna.com/hs-fs/hubfs/young-student-learning-library%20(1)-min.jpg?height=200&name=young-student-learning-library%20(1)-min.jpg)](https://myjurna.com/blog/how-to-find-college-scholarships-and-grants-free-aid) [insight](https://myjurna.com/blog/tag/insight) ## [How to Find College Scholarships and Grants](https://myjurna.com/blog/how-to-find-college-scholarships-and-grants-free-aid) ![Picture of Kavitha Davidson](https://myjurna.com/hs-fs/hubfs/kavithaw.png?width=50&name=kavithaw.png) [Kavitha Davidson](https://myjurna.com/blog/author/kavitha-davidson) Oct Pursuing higher education can be a costly endeavor, but it doesn't have to leave you drowning in... [Read more](https://myjurna.com/blog/how-to-find-college-scholarships-and-grants-free-aid) [![](https://myjurna.com/hs-fs/hubfs/What%20is%20EBF%20Blog%20Image.png?height=200&name=What%20is%20EBF%20Blog%20Image.png)](https://myjurna.com/blog/what-is-ebf) [insight](https://myjurna.com/blog/tag/insight) ## [What is Earnings Based Funding?](https://myjurna.com/blog/what-is-ebf) ![Picture of Brandi Bloodworth Connolly](https://myjurna.com/hs-fs/hubfs/Low%20Res%20Web%20Pix/Staff%20Images/BrandiConnolly.jpg?width=50&name=BrandiConnolly.jpg) [Brandi Bloodworth Connolly](https://myjurna.com/blog/author/brandi-bloodworth-connolly) Jan Jurna is offering a new type of education financial aid called Earnings Based Funding that... [Read more](https://myjurna.com/blog/what-is-ebf) [![Students wearing backpacks walking on a college campus discussing Jurna](https://myjurna.com/hs-fs/hubfs/campus.jpg?height=200&name=campus.jpg)](https://myjurna.com/blog/federal-student-loan-collections-are-restarting.-heres-what-that-means-for-students-and-recent-graduates-and-what-to-watch-next) [loan](https://myjurna.com/blog/tag/loan) ## [What Federal Student Loan Collections Mean for Students and What's Next](https://myjurna.com/blog/federal-student-loan-collections-are-restarting.-heres-what-that-means-for-students-and-recent-graduates-and-what-to-watch-next) ![Picture of Brandi Bloodworth Connolly](https://myjurna.com/hs-fs/hubfs/Low%20Res%20Web%20Pix/Staff%20Images/BrandiConnolly.jpg?width=50&name=BrandiConnolly.jpg) [Brandi Bloodworth Connolly](https://myjurna.com/blog/author/brandi-bloodworth-connolly) Jan The federal government is resuming collection on defaulted federal student loans, and it’s a... [Read more](https://myjurna.com/blog/federal-student-loan-collections-are-restarting.-heres-what-that-means-for-students-and-recent-graduates-and-what-to-watch-next) ## Maximize YOUR FUTURE WITH JURNA Jurna believes in your future. Fund your education through Earnings Based Funding and unlock your true potential.  No credit score, co-signer.  We fund you in return for a fixed percentage of future income for a set period and include protections for low-income years and caps for high earners.    [Get Started](https://myjurna.com/qualify) --- ![Component 1-2](https://myjurna.com/hs-fs/hubfs/Graphics/Component%201-2.png?width=162&height=40&name=Component%201-2.png "Component 1-2")   *Jurna is not a traditional lender. Funding is based on projected future income and is subject to eligibility. No credit score or co-signer required.* - Company - [About Us](https://myjurna.com/about) - [Students](https://myjurna.com/student) - [Applicant Login](https://www.campusdoor.com/Jurna/EarningsBasedFunding/Login.aspx) - [Investors](https://myjurna.com/investors) - Learn More - [Contact Us](https://myjurna.com/contact) - [FAQ](https://myjurna.com/faq) - [Funding Calculator](https://myjurna.com/funding-calculator) - Legal - [Terms & Conditions](https://myjurna.com/terms) - [Privacy Policy](https://myjurna.com/privacy) - [Funding Disclosures](https://myjurna.com/disclosure) - [Support](https://myjurna.com/jurna-funding-repayment-support) - [Status Update](https://myjurna.com/emmployment_registration) --- Jurna 2025  | PO BOX 982314, Park City UT 84098 Jurna is a brand extension of BRANDEMPOWER, INC., a registered Delaware Corporation     [Like us on Facebook](https://www.facebook.com/profile.php?id=61576611263416) [Follow Us on LinkedIn](https://www.linkedin.com/company/jurna) [Follow us on Instagram](https://www.instagram.com/my.jurna) - Menu Item 1 - Sub-menu Item 1 - Another Item - Sub-menu Item 2 - Menu Item 2 - Yet Another Item - Menu Item 3 - Menu Item 4 --- [![Orange swirl logo followed by white Jurna wordmark](https://myjurna.com/hs-fs/hubfs/Jurna%20Logo%20White-3.png?width=283&height=75&name=Jurna%20Logo%20White-3.png "Orange swirl logo followed by white Jurna wordmark")](https://myjurna.com) 123 Waverly Pl., Boston, MA 02135 Copyright © 2026, Jurna ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Guest Journalist", "url" : "https://myjurna.com/blog/author/brooke" }, "dateModified" : "2025-05-16T23:22:04.379Z", "datePublished" : "2023-09-20T10:01:10.000Z", "headline" : "Student Loans 101", "image" : [ "https://myjurna.com/hubfs/arrangement-education-growth-concept%20(1).jpg" ], "mainEntityOfPage" : { "@id" : "https://myjurna.com/blog/student-loans-101", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://myjurna.com/hubfs/Jurna%20Logo%20White-3.png" }, "name" : "Jurna" } } ```