What Is a Student Loan?
A student loan is a loan designed to help cover tuition and other education-related expenses. Student loans can be obtained by students themselves or by their parents.
The money from a student loan can be used for a variety of education-related expenses, including tuition, fees, room and board, textbooks, supplies, transportation, and personal expenses.
Student Loan Terms to Know
Origination Fees – Small charges taken for processing a loan, deducted from the money you receive.
Prepayment – Prepayment is when you pay off part or all of your loan before the scheduled due dates.
Deferred Payment – An arrangement that allows you to postpone your loan payments until a later date.
Disbursement – The process of releasing loan funds to the borrower or directly to the school.
Late Fees – Charges you incur if you don't make your loan payment by the due date.
Fixed vs. Variable Interest Rates – Fixed-rate loan interest always stay the same while variable-rate loans fluctuate with market conditions.
What Kinds of Student Loans Are Available?
| Federal Student Loans | Fixed-rate loans set by Congress; loan amount by financial need; for undergraduate, graduate, and other accredited programs. |
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Private Student Loans | Fixed + variable-rate loans based on creditworthiness; flexible loan amounts; for undergraduate, graduate, and other accredited programs. |
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Parents PLUS Loan | Fixed-rate loans set by Congress; loan amount by financial need; for parents of undergraduate, dependent children. |
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Parent Student Loans | Fixed + variable-rate loans based on creditworthiness; flexible loan amounts; for parents of undergraduate children. |
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Federal Student Loans vs. Private Student Loans
Private student loans are school loans that come from banks, credit unions, or online lenders, whereas federal student loans are issued by the U.S. Department of Education.
Federal loans are a great starting point, but may not cover everything. Private student loans can help bridge this gap, with higher borrowing limits to help cover any remaining expenses.
What Are the Best Private Student Loans?
In general, the best private student loans are low-interest student loans because they can reduce overall debt faster. Current student loan rates change with economic conditions, credit score, loan amount, and more.
To find the best place to get student loans for college or student loans for graduate school, it’s advised to compare current student loan rates from multiple student loan companies to find the cheapest student loans available.
Am I Eligible for the Best Private Student Loan Rates?
When applying for school loans for college, eligibility is mainly influenced by credit score, debt-to-income ratio, and employment history. If you're still building a credit profile, options are available.
Cosigners (typically a parent or guardian) with strong credit can increase your chances of approval for good private student loan rates companies by agreeing to share the responsibility of repaying the loan.
How to Apply for Student Loans
The student loan application form is much simpler to complete nowadays thanks to modern student loan company websites. Follow these five simple steps for easy student loan applications:
- Compare Student Loans
- Compare the top studet loan servicers to find the best private student loans available.
- Find the Best Place to Get Student Loans
- The best student loan rates depends on market competition, your credit score, and specific lenders, and other factors. Be sure to compare multiple options to find the lowest rate and help you save money over time.
- Gather Your Information
- Collect documents including driver's license, proof of enrollment, and pay stubs/bank statements.
- Consider a Cosigner
- Consider involving a cosigner to improve approval chances and secure the lowest student loans interest rates.
- Complete the Student Loans Application
- Fill out the student loan application form accurately to ensure fast student loan approval.
Are College Loan Options Different than Student Loan Options?
Student loan companies offer many types of school loans for students, including school loans for college and other educational loans, including non-college programs.
These loans may cover expenses for vocational schools, trade schools, and certification courses including culinary, cosmetology, auto-repair, plumbing, IT schools, and so much more.
Are there Parent Loans for College?
Parents can absolutely secure loans for their own educational pursuits, including federal and FASFA loans, private student loans, personal loans, and possibly even home equity lines of credit.
These loans are different than Parents PLUS Loan (aka Direct PLUS Loan) or college loan options for parents that are intended to fund a child’s education.
Private School Loans vs Public School Loans
Borrowing limits between private and public institutions may differ due to the varying tuition fees, but traditional student loan programs and the best student loans interest rates do not.
Students attending private schools may have access to additional institutional scholarships and grants to help offset the higher tuition fees associated attending a private school or university.
How to Connect with a Student Loans Company?
If you're seeking school loans for college (undergraduate student loans, student loans for graduate school, or other certified programs), start by visiting lender websites to explore options and get multiple quotes.
Many private loan companies offer free, personalized quotes so you can compare student loans interest rates, repayment terms, and other loan features, helping you find the best student loans for your needs.
Can I Get Quick Student Loan Approval?
It’s possible to get quick student loans – many lenders offer fast student loans designed to expedite your application. If you're trying for instant student loan approval, have this information on hand:
Identification – Driver's license, passport, or social security number.
Proof of Enrollment – Acceptance letter, enrollment status, and/or yearly tuition fees.
Income/Credit Information – Pay stubs, tax returns, bank statements, W-2, and/or credit report.
Co-Signer Details – A co-signer with a strong credit can help with quick student loan approval.
Additional Resources
The best student loan to apply for depends on your financial situation. Take time to compare the best student private loans and find student loans with the best rates based on your specific needs.
Company Comparisons
» Check out our top student loan servicers to secure the funding you need for your education.
Shop Around or Learn More
» Explore our tips and tricks for easier student loan repayment and our best student loan companies reviews before you apply.
Disclaimers
Sallie Mae
Undergraduate loan: Variable rates: 4.92% - 15.08% APR and Fixed rates: 3.49% - 15.49% APR. Lowest rates shown include the auto debit discount.
*Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment.
Information advertised valid as of 11/25/2024.
College Ave
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
¹ All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
² As certified by your school and less any other financial aid you might receive. Minimum $1,000.
³ This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 12/04/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
