Student debt

Hello little one! Student debt happens when someone goes to college or university and they don't have enough money to pay for it all at once. So, this means they borrow money from someone else, like a bank or the government, and they have to pay it back over time with extra money called interest.

Just like when you borrow a toy from a friend and promise to give it back, students borrow money to pay for school and promise to pay it back later. But sometimes, it can be really hard to pay back all the money you borrowed, especially if you don't have a good job after you graduate.

It's important to make a plan to pay back the money you borrowed because if you don't, it can hurt your credit score which can make it hard to buy a car, a house, or even get a job.