# Understand student loan options before I borrow

A plain-language explanation of federal and private student loans and a borrowing estimate based on your own numbers.

- Topic: Finance & Accounting
- Framework: RTF
- Level: Standard
- Tags: Finance, Education, Explain & Teach, Fill-in Template
- Source: https://www.thinkwithprompt.com/prompts/understand-student-loan-options-before-i-borrow

## Prompt

```text
Help me understand student loans before I borrow, in plain language.

**My situation:** [high school senior / current college student / parent borrowing], school type: [public / private / community college]
**Amount I think I need per year:** [AMOUNT and how you got it]
**Loans I've been offered:** [e.g. federal Direct Subsidized, Unsubsidized, Parent PLUS, private loan offer with its terms]
**Expected major or career and possible starting income:** [if known]
**Questions I have:** [LIST]

Explain:
1. The main loan types and how they differ: federal subsidized vs. unsubsidized, Parent PLUS, private loans. Cover who's responsible, when interest starts, whether a co-signer is needed, and repayment protections such as income-driven repayment, deferment, and forbearance.
2. Why the usual advice is to use grants, scholarships, and federal loans before private loans.
3. Key terms: interest rate, fixed vs. variable, origination fee, capitalization, grace period.
4. A borrowing estimate using my numbers: total borrowed over all years and a rough monthly payment range, clearly showing the assumptions (rate, term). Mark rates as [CHECK CURRENT RATE ON STUDENTAID.GOV OR LENDER] rather than inventing them.
5. A common rule of thumb: keep total borrowing below the expected first-year salary.

Return the explanation, the estimate table, and 5 questions to ask my school's financial aid office.

This is general information, not financial advice. Rules and rates change; confirm with official sources and the financial aid office before signing anything.
```

## What to fill in

- public / private / community college
- AMOUNT and how you got it
- if known
- LIST
- CHECK CURRENT RATE ON STUDENTAID.GOV OR LENDER

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