An education loan is a loan taken to help pay for an education, usually at a college or University school, but may also be used to pay for private schools or prep schools as well. These loans are available in several different types.

These are student loans, parent loans and private loans. Loans are also either guaranteed or unguaranteed. Student and parent loans are most likely to be guaranteed by the government, though many agencies work for the government in this respect. Unguaranteed or unsubsidized loans are usually from private lenders only, and usually can only be obtained if one has a good credit score or significant equity.

The student loan is usually the best choice education loan for a student whose parents cannot pay for his or her education. While the student remains in school, interest on this type of loan accrues and is paid for by the government. When the student stops attending school, the loan is usually paid off in payments. These payments can be quite large if the loan is large, so students should borrow only what they need.