Is a student loan installment or revolving?
Understand the Problem
The question is asking whether student loans are structured as installment loans or revolving credit. An installment loan requires fixed payments over a time period, while revolving credit allows for borrowing up to a limit and adjusting payments based on usage.
Answer
installment loan
The final answer is installment loan
Answer for screen readers
The final answer is installment loan
More Information
Student loans are considered installment loans, meaning the borrower has a fixed balance to pay off in monthly payments over time until the balance reaches zero.
Tips
A common mistake is thinking student loans are revolving because they involve borrowing a substantial amount of money. Revolving credit, like credit cards, allows continuous borrowing and repayment up to a credit limit.
Sources
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