🏦Student loans: how they work and where to apply

Golden rule: government first, private second

Government (federal/national) loans almost always beat private loans: lower interest, income-based repayment, deferment if you lose your job, and sometimes forgiveness. Exhaust grants, then government loans, and only then consider private lenders.

Government loan programs by country

• USA — Federal Direct Loans via FAFSA: subsidized (government pays interest while you study) and unsubsidized. PLUS loans for graduate students and parents.
• UK — Student Finance covers tuition + maintenance; you repay only after earning above a threshold, and the balance is written off after 30–40 years.
• Canada — Canada Student Financial Assistance: integrated federal + provincial loans and grants in one application.
• Australia — HELP (HECS): tuition deferred and repaid through the tax system once income passes the threshold.
• Germany — BAföG (half grant, half interest-free loan) for eligible students; KfW student loans for others.
• India — Education loans from public banks under the Model Education Loan Scheme via Vidya Lakshmi portal; collateral-free up to ₹7.5 lakh.

Loans for international students

Most government loans only fund their own citizens, but dedicated cross-border lenders fund international students without a co-signer, based on your future earning potential.

• Some universities offer their own loan or installment plans — ask the financial aid office directly.
• A co-signer in the destination country usually unlocks much better private rates.

Borrow safely: the checklist

• Total debt at graduation should stay below your expected first-year salary — check the ROI on any Unigree program page.
• Compare APR, not the monthly payment. Fixed rates protect you from surprises.
• Understand the grace period (usually 6 months after graduating) before repayment starts.
• Never borrow for a program you haven't compared — a cheaper equivalent program often exists in another country.