What are some lesser-known types of student loans?
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    What are some lesser-known types of student loans?
    Updated:04/09/2024
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    1 Answers
    NightWatcher
    Updated:05/05/2024

    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
    Loan Type Interest Rate (%) Repayment Period Common Borrowers
    Income Share Agreements N/A Varies by contract Bootcamp Graduates
    Peer-to-Peer Loans 4.5 – 35 3-5 years General Students
    State-Specific Loans 3 – 10 10 years In-State Students
    Loan Forgiveness Programs N/A 10-20 years Public Service Workers
    Parent PLUS Loans 7.54 10 years Parents
    Graduate PLUS Loans 7.54 10-25 years Graduate Students
    Employer-Sponsored Loans Variable Depends on Employer Employees
    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
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