The Key Difference Between Student Loan and Personal Loan

student loan vs personal loan
Feature	Student Loan	Personal Loan
Purpose	Specifically for financing education expenses like tuition, books, and fees.	For general personal expenses such as medical bills, travel, or debt consolidation.
Eligibility	Often requires proof of enrollment in an educational institution.	Based on creditworthiness and income; no specific purpose needed.
Interest Rates	Usually lower and sometimes fixed; subsidized options available.	Typically higher interest rates compared to student loans.
Repayment Terms	Often deferred until after graduation; longer repayment period.	Repayment starts immediately; shorter repayment term.
Loan Amount	Can be larger amounts aligned with education costs.	Usually smaller amounts compared to student loans.
Collateral	Usually unsecured, sometimes government-backed.	Typically unsecured.
Tax Benefits	Interest may be tax-deductible in some countries.	No tax benefits on interest payments.
Use Restrictions	Must be used for qualified education-related expenses.	No restrictions on use of funds.
Co-signers	Often requires co-signer if borrower has no credit history.	May require co-signer depending on credit profile.