Student Loan
In short
A financial arrangement where a lender provides funds to cover the costs of university or college education. These loans are typically repaid after the student finishes their studies and begins working.
In plain words
It is money borrowed to pay for tuition fees and living costs while studying. You do not usually pay it back until you have a job and earn above a certain amount.
A simple example
A student borrows £5,000 to pay for their textbooks and rent during their first year. They only start paying the money back once they graduate and pass a specific salary threshold.
Why it matters
It allows people to access higher education without needing large amounts of savings upfront. This helps improve social mobility by making degrees more accessible to everyone.
Easy to mix up
Do not confuse this with a standard personal loan, which usually requires immediate repayments regardless of your employment status.