What is student loan debt?

Student loan debt refers to the money that individuals borrow specifically to cover the costs associated with their education, such as tuition, fees, and living expenses. This type of debt is unique in that it must be repaid over time, often with interest. Borrowers typically enter into an agreement that outlines the amount borrowed, interest rates, and the repayment schedule, which can span several years or even decades.

This option accurately captures the essence of student loans, which are designed to make higher education accessible for those who may not have sufficient funds upfront. The necessity of repayment also highlights the financial responsibility and implications of taking on such debt, as graduates are expected to honor their loan commitments regardless of their post-college income situation or job placement.