Many students rely on loans for their education, but there are lesser-known types that can offer unique benefits.

Q: What are some lesser-known types of student loans?

• 1. Income Share Agreements (ISAs)
  • Students receive funding for education in exchange for a percentage of their future income.
  • Typically used by coding bootcamps and some universities.
• 2. Peer-to-Peer Loans
  • Borrowing from individuals through platforms rather than traditional banks.
  • Can offer lower interest rates depending on the borrower’s profile.
• 3. State-Specific Loans
  • Offered by individual states to residents attending college in-state.
  • May have lower interest rates and more flexible repayment options.
• 4. Loan Forgiveness Programs
  • Forgiveness after a certain period of qualifying payments for public service jobs.
  • Examples include PSLF (Public Service Loan Forgiveness).
• 5. Parent PLUS Loans
  • Loans available for parents to help fund their child’s education, with repayment options.
  • Interest may be higher than federal student loans.
• 6. Graduate PLUS Loans
  • Also for graduate or professional students to cover educational costs.
  • Credit check required, but can borrow up to the full cost of attendance.
• 7. Employer-Sponsored Loans
  • Some employers offer educational assistance or loan repayment programs.
  • Can be a valuable benefit for employees pursuing further education.

Statistics of Student Loans Types

Mind Map of Different Loan Types

Lesser-Known Student Loans  ├── Income Share Agreements  ├── Peer-to-Peer Loans  ├── State-Specific Loans  ├── Loan Forgiveness Programs  ├── Parent PLUS Loans  ├── Graduate PLUS Loans  └── Employer-Sponsored Loans