In education, a type of financial aid in which a student is given money to help meet the expenses of attending college or private school; unlike scholarships, loans must be repaid, but federal and other subsidies reduce the interest rate, making these loans very attractive, if taken out in the student’s name, such loans often require no repayment until some months after the student leaves school (at graduation or before). If taken out in a parent’s name, payments generally start almost immediately.