
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


