What Is a Student Loan?

Student loans are loans used to pay for tuition and other education expenses, including textbooks, housing, food, and transportation. Students can apply on their own or with help from a parent.

Once you're approved for a student loan, your funds will be sent directly to your school’s financial aid office. This applies to both private and federal student loans and helps ensure your tuition and fees are paid on time and correctly.

Each school sets its own student loan disbursement date based on its academic calendar, so even with fast student loan approval, funds won’t be released until the start of the semester.

This doesn’t necessarily mean you should wait until the last minute to apply. Lenders may take a week or more to process your student loan application, especially during peak enrollment seasons, so applying early helps avoid unnecessary delays.

How to Check Your Private Student Loan Eligibility

Student loans can be used for college, accredited non-degree options like vocational schools, certificate programs, coding bootcamps, continuing education courses, and professional licensing programs.

If you want to check your eligibility for private student loans, consider getting prequalified with multiple lenders. You can do this by visiting each lender’s website and answering a few basic questions about your school, income, and credit history. Instant student loan approval through prequalification doesn’t require a credit check and won’t affect your credit score. It’s not a contract, just a simple way to see estimated rates and loan amounts based on the information you provide.

Federal Student Loans vs. Private Student Loans

Private student loans are provided by online lenders, banks, and credit unions. Federal student loans are issued by the U.S. Department of Education.

Federal loans are generally the first option students should explore, as they tend to offer lower interest rates, flexible repayment plans, and potential loan forgiveness programs. When federal aid isn’t enough to cover the full cost of education, private student loans can help bridge the gap and cover any remaining education expenses.

Types of Student Loans

How to Apply for Student Loans

Thanks to user-friendly websites from nearly every major student loan company, the student loan application form is easier than ever. Here’s how to complete an easy student loan application in five simple steps:

1. Compare student loans and rates

• Compare student loans interest rates across multiple lenders, banks, and credit unions to find the best place to get student loans before you apply.


• Look for lenders offering the lowest student loan rates based on your credit score, loan type, and whether you plan to apply with a cosigner.

2. Gather your documents

• Prepare documents like your driver’s license or government ID, school enrollment proof, and recent income or bank statements.


• You’ll typically provide details like your school, major, financial information, and cosigner identification (if applicable).

3. Submit your student loan application

• After comparing lenders and gathering your documents, complete the student loan application online through your chosen lender’s website.


• Most lenders offer fast student loan approval, with initial decisions in a few minutes to a few business days, depending on whether additional verification is needed.

How to Choose the Best Private Student Loans

Low-interest loans are often considered the best private student loans because they help borrowers reduce overall debt more quickly. While current student loan rates are important, they’re just one piece of the puzzle. Loan rates can vary based on more than economic trends, including your credit profile, loan amount, and the lender, bank, or credit union's specific criteria.

To find the best place to get student loans for college, it’s smart to compare rates and terms across multiple student loan companies. Each lender may offer unique rates, discounts, or repayment options. Doing a side-by-side comparison can help you identify the cheapest student loans available for your financial situation.

Many lenders let you view a rate estimate before applying. Answer a few questions about your school, income, and credit history and get a rate estimate before moving forward with a full application. This step typically uses a soft credit check, so it shouldn't affect your credit score.

How to Qualify for the Best Private Student Loan Rates

When applying for school loans for college, your eligibility for good private student loan rates depends heavily on factors like your credit score, debt-to-income ratio, and employment history. These determine how "risky" of a borrower lenders believe you are. Lenders' typically prefer high credit scores, low debt-to-income ratios, and steady employment histories.

If you're still building your credit, adding a cosigner—typically a parent or guardian with strong credit—can improve your chances of qualifying. Many student loan companies consider the cosigner’s financial profile, which can increase your approval chances and help secure lower interest rates. Exploring your options thoroughly will give you a better shot at locking in good private student loan rates from reputable lenders. Rates, fees, and repayment terms can vary widely, so even small differences can save you thousands over time.

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.

» Student loan terms you should know

• Origination fees: Small charges taken for processing a loan, deducted from the money you receive
• Prepayment: 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 y ou incur if you don't make your loan payment by the due date
• Fixed vs. variable interest rates: Fixed-rate loans always stay the same while variable-rate loans fluctuate with the market

» 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

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 1/9/2025. 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.}

Sallie Mae
_{Undergraduate loan: Variable rates: 4.54% - 14.71% APR and Fixed rates: 3.49% - 15.99% 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 4/17/2025.}

SoFi
_{Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. View payment examples.
Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).}