Step 1:
Know Your Options
When it comes to student loans, there are essentially two types of options: federal and private. As the name implies, federal student loans come directly from the federal government, and they tend to offer borrowers lower interest rates, more flexible repayment options and more protections than options from private lenders. Most experts suggest students look to maximize their federal student loan borrowing options before tapping into private loans, but the problem with federal loans is that the maximum amount a student can take out tends to be relatively low, and won’t often cover the entire cost of college for most students.
Step 2:
Understand the Terms
Whether you go with private or federal loan – or a combination of both – there are some important terms to keep in mind. The first would be the annual percentage rate, or APR, on the loan. This will be how much additional money you’ll owe based on the original amount you borrow. Rates can be either fixed or variable, and understanding the difference between the two is essential. Government loans are all fixed, meaning the amount of interest you’ll pay on them is set and won’t change over time. Private loans can be either variable or fixed.
Government loans can also be subsidized or unsubsidized.
Private loans almost always require a co-signer, and the interest rate a student receives on a loan is usually dependent on both the student’s and the co-signer’s credit history and other financial requirements.
Step 3:
Minimize Your Debt
Once you’ve researched your loan options and are up-to-date on the important terms to know, consider some ways in which it will be possible to borrow the least amount of money before you go any further.
Best Features:
• Multiple repayment options including: full principal and interest, interest-only, deferred and flat payment.
• No origination, application and processing fees. No fees for early repayment.
• Apply online in 3 minutes and receive and instant credit decision.
• Available to all U.S. residents that attend an eligible undergraduate or graduate school.
• Students with little or no credit history will benefit from having a creditworthy co-signer.
• website is, explaining exactly how the repayment terms work.
• you can see your balance, pay your bill and more with 24/7 online self-service.
• 100% of approved school-certified costs are covered.
Best Features:
• Multiple in-school repayment options.
• Flexible repayment options.
• Check application status online.
• Your co-signer can be released after 12 consecutive on-time full payments.
• Borrowers also get 120 free minutes of tutoring through Chegg Tutors or four months of free access to Chegg Study.
• There’s a 0.25% autopay discount, which is fairly standard with private lenders these days.
• Loan e-signing.
• Free scholarship registration.
• BBB A+ rating.
Best Features:
• The service is more personalized than it might be with bigger banks or providers.
• APRs for as low as 5.85% (variable) and 4.68% (fixed) with AutoPay.
• Co-signers can leave the agreement after 24 on-time monthly payments have been made.
• Reduce your rate by 0.25% when you sign up for AutoPay.
• You can make full payments six months after graduating or leaving school.
• epayment options allow you to start making interest-only or $25 a month payments as soon as you take out the loan.
• No application or origination fees.
• Get a private student loan in just 3 minutes.
• A+ BBB Accredited.
Best Features:
• Considers eligibility criteria other than credit score and income.
• Two private student loan products with multiple repayment options.
• Affordable fixed and variable rates.
• You can also release your co-signer after 24 consecutive, on-time payments.
• Ascent offers a 1% cash back graduation reward.
• Ascent offers a 0.25% interest rate reductions for payments made via automatic debit.
• Discounts for automatic payments.
• No application fees or prepayment penalties.
• Mobile app.
• Rates include ACH discount.
• 1% cash back reward on loan principal upon graduation.
Best Features:
• Prequalify for multiple student loan offers from top lenders.
• Variable APRs as low as 3.94% (with discounts applied).
• Live chat support available.
• No origination or service fees.
• The website allows you to compare student loan rates from up to eight lenders for free.
• You can also use Credible to compare student loan refinancing rates.
• The website also has a separate section for co-signers.
• Accredited and rated A+ by the BBB.