Student Loan
A loan used to pay for higher education expenses. Federal student loans (offered through the US Department of Education) have fixed interest rates and income-driven repayment options. Private student loans are offered by banks and lenders and depend heavily on credit history for approval and rates.
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- Installment Loan
A loan repaid in fixed monthly payments (installments) over a set period of time. Examples include mortgages, auto loans, student loans, and personal loans. Unlike revolving credit, installment loans have a fixed balance that decreases with each payment.
Frequently Asked Questions About Student Loan
What does Student Loan mean?
A loan used to pay for higher education expenses. Federal student loans (offered through the US Department of Education) have fixed interest rates and income-driven repayment options. Private student loans are offered by banks and lenders and depend heavily on credit history for approval and rates.
Is Student Loan important for my FICO® score?
Understanding Student Loan helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.