In the U.S., college students leave school with an average student loan debt of $39,351 — but in some cases, you might only need to take out a small student loan to fully cover your education costs.
For example, maybe you’ve received a large amount of federal financial aid and need just a bit of extra money to cover leftover expenses.
Best student lenders offering small loans
If you decide to take out a small private student loan, it’s important to consider as many lenders as possible to find the right loan for your needs.
Here are Credible’s partner lenders that offer small student loans:
Advertiser DisclosureOverview
Ascent offers several unique borrowing options that you don’t typically see with private lenders. In addition to traditional student loans for undergraduate, graduate, and medical programs, college juniors and seniors may qualify for its Outcomes-Based Loan — which doesn’t require established credit or a cosigner. Instead, Ascent reviews alternate factors such as your school, major, and GPA to determine your eligibility.
Ascent also offers a wide range of loan terms and repayment plans to choose from. You may even qualify for its Progressive Repayment plan, which allows you to start with small payments that gradually increase over time. Borrowers who use a cosigner can release them after as few as 12 payments, though international students don’t qualify for this option.
Loan terms
5, 7, 10, 12, 15, or 20 years
Loan amounts
$2,001 minimum up to your school’s annual cost of attendance; lifetime limits of $200,000 for undergrads and $400,000 for graduates
Eligibility
Must be a U.S. citizen or DACA student enrolled at least half time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Read full reviewLoan Amounts
$1,000 to $350,000 (depending on degree)
Overview
Citizens offers a variety of student loan types, including loans for undergraduates, graduate students, and parents. Perhaps the most unique feature of Citizens student loans is the option for multiyear approval. If you qualify, you can apply once and borrow for future years with a more streamlined process that only involves a soft credit inquiry.
Student borrowers can defer payments while in school and for six months after graduating. You can also score a 0.25 percentage point reduction on your interest rate for setting up autopay, as well as an additional 0.25 percentage point loyalty discount if you or your cosigner already have a qualifying account with Citizens.
Loan terms
5, 10, or 15 years for student loans; 5 or 10 years for parent loans
Loan amounts
$1,000 minimum, up to a maximum of $150,000 for undergraduate and graduate degrees; $250,000 for MBA and law; and $180,000 or $350,000 for health care student loans, depending on the degree type
Eligibility
Must be a U.S. citizen or permanent resident enrolled at least half-time in a degree-granting program at an eligible institution. International students can apply with a cosigner who’s a U.S. citizen or permanent resident.
Read full reviewLoan Amounts
$1,000 up to 100% of the school-certified cost of attendance
Overview
College Ave offers a wide range of in-school loans for nearly every type of degree. There are a number of repayment options, and borrowers can choose a unique eight-year repayment term. Plus, graduate, dental, and medical students receive extended grace periods.
You may get easy funding for multiple years — 90% of undergraduates are approved for additional student loans when they apply with a cosigner. However, it can be difficult to remove a cosigner for your loan later on, as you must complete at least half of your repayment term before becoming eligible. That’s significantly longer than some lenders, which may only require one to two years of payments before releasing a cosigner.
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
After half of the scheduled repayment period has elapsed
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Read full reviewLoan Amounts
$1,000 to $99,999 annually ($180,000 aggregate limit)
Overview
Powered by Cognition Financial, Custom Choice offers student loans for undergraduate and graduate students starting at $1,000. You can borrow up to $99,999 per year with a total aggregate limit of $180,000.
If you apply with a cosigner, you may be able to release them from your loan after 36 on-time payments. You can also receive a 0.25 percentage point discount on your interest rate by setting up autopay, as well as a 2% reduction of your principal balance after graduating.
Custom Choice doesn’t charge application, origination, prepayment, or late fees. It also lets you pause payments through forbearance if you qualify for its natural disaster or unemployment protection programs.
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $180,000)
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. You must also meet Custom Choice’s underwriting criteria for income and credit, or apply with a cosigner who does. Eligible noncitizens such as DACA residents can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Read full reviewLoan Amounts
$1,001 up to 100% of school certified cost of attendance
Overview
INvested is an Indiana company that offers affordable student loans exclusively to state residents. Loans are available to Indiana students and parents who can meet income and credit requirements, or who have an eligible cosigner. Borrowers can borrow as little as $1,001 or as much as the school-certified cost of attendance minus other aid.
INvested provides detailed information on eligibility so borrowers can quickly determine whether to apply for a loan — however, there’s no option to prequalify with a soft credit check. Cosigner release is also available after just 12 on-time payments, considerably shorter than many other lenders.
Loan amounts
$1,001 minimum, up to the school certified cost of attendance
Eligibility
Loans are available to Indiana residents only. Borrowers must have a FICO score of 670 or higher, a 30% maximum debt-to-income ratio or minimum monthly income of $3,333, continuous employment over two years, and no major collections or defaults in recent years. Borrowers who do not meet income or credit requirements can apply with a cosigner.
Read full reviewLoan Amounts
$1,500 up to school’s certified cost of attendance less aid
Overview
Massachusetts Educational Financing Authority (MEFA) is a not-for-profit lender that offers low-cost undergraduate and graduate school loans to students nationwide. While only fixed-rate loans are available, interest costs may be lower than what you see with other private loans.
While you can apply with a cosigner to lock in the best rate possible, removing that cosigner later may be tough. Only one repayment plan allows cosigner release, and you must make four years of consecutive on-time payments and meet other credit and income requirements to qualify.
Loan amounts
$1,500 minimum up to school-certified cost of attendance
Eligibility
Must be a U.S. citizen or permanent resident, enrolled at least half time at a degree-granting, nonprofit institution, and must maintain satisfactory academic progress. Must have no history of default on an education loan and no history of bankruptcy or foreclosure in the past 60 months. Applicants who can’t meet the minimum credit and income requirements may apply with a cosigner.
Read full reviewLoan Amounts
$1,000 up to 100% of school-certified cost of attendance
Overview
Sallie Mae offers the Smart Option Student Loan to undergraduate and graduate students. You can borrow up to your school-certified cost of attendance and apply just once annually to get the funds you need for the entire academic year. Plus, it may be easy to get reapproved for your future years of study — undergraduates have a 97% approval rate when they return to Sallie Mae with a cosigner.
Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for MBA programs, law school, bar study, medical school, medical residency, dental programs, dental residency, and other health profession programs. However, this lender no longer offers a career training loan.
Loan terms
10 to 15 years for Smart Option Student Loan; up to 15 years for law school and bar study loans; up to 20 years for medical school, medical residency, dental school, dental residency, and health professions loans
Loan amounts
$1,000 up to school-certified cost of attendance
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens may qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Read full reviewAscent
Minimum loan amount: $2,001
If you have fair credit, Ascent could be a good option for a small student loan: You can borrow $2,001 to $400,000 (depending on whether your credit is tested) with repayment terms from five to 20 years (depending on your loan type).
Additionally, borrowers can get a rate discount of 0.25% to 2% by signing up for autopay as well as earn a 1% cashback reward if they graduate within five years.
Variable APR
6.16 - 16.09%
Loan Amount
$2,001* to $400,000
No application or origination fees
Autopay discounts of 0.25 to 1.00 percentage points
1% cash back reward at graduation
Extended grace periods of 9 to 36 months
Doesn’t offer parent loans or refinance loans
Higher interest rates than some competitors
International students can’t release their cosigner
Overview
Ascent offers several unique borrowing options that you don’t typically see with private lenders. In addition to traditional student loans for undergraduate, graduate, and medical programs, college juniors and seniors may qualify for its Outcomes-Based Loan — which doesn’t require established credit or a cosigner. Instead, Ascent reviews alternate factors such as your school, major, and GPA to determine your eligibility.
Ascent also offers a wide range of loan terms and repayment plans to choose from. You may even qualify for its Progressive Repayment plan, which allows you to start with small payments that gradually increase over time. Borrowers who use a cosigner can release them after as few as 12 payments, though international students don’t qualify for this option.
Loan terms
5, 7, 10, 12, 15, or 20 years
Loan amounts
$2,001 minimum up to your school’s annual cost of attendance; lifetime limits of $200,000 for undergrads and $400,000 for graduates
Eligibility
Must be a U.S. citizen or DACA student enrolled at least half time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Citizens
Minimum loan amount: $1,000
Citizens offers private student loans from $1,000 up to 100% of your school’s cost of attendance (aggregate limits might apply). If you already have an account with Citizens, you could get a 0.25% loyalty rate reduction — plus another 0.25% off your rate if you sign up for autopay.
Variable APR
6.36 - 14.25%
Loan Amount
$1,000 to $350,000 (depending on degree)
Multiyear approval for qualifying applicants
Lends to international students with an eligible cosigner
Customized loans for various programs and parents
Autopay and loyalty discounts
Parent loans don’t have deferred payment option
Limited loan terms to choose from
Relatively long cosigner release requirement
No option to prequalify with a soft credit check
Overview
Citizens offers a variety of student loan types, including loans for undergraduates, graduate students, and parents. Perhaps the most unique feature of Citizens student loans is the option for multiyear approval. If you qualify, you can apply once and borrow for future years with a more streamlined process that only involves a soft credit inquiry.
Student borrowers can defer payments while in school and for six months after graduating. You can also score a 0.25 percentage point reduction on your interest rate for setting up autopay, as well as an additional 0.25 percentage point loyalty discount if you or your cosigner already have a qualifying account with Citizens.
Loan terms
5, 10, or 15 years for student loans; 5 or 10 years for parent loans
Loan amounts
$1,000 minimum, up to a maximum of $150,000 for undergraduate and graduate degrees; $250,000 for MBA and law; and $180,000 or $350,000 for health care student loans, depending on the degree type
Eligibility
Must be a U.S. citizen or permanent resident enrolled at least half-time in a degree-granting program at an eligible institution. International students can apply with a cosigner who’s a U.S. citizen or permanent resident.
College Ave
Minimum loan amount: $1,000
With College Ave, you can borrow $1,000 up to your school-certified cost of attendance (minus any other financial aid you’ve received) with terms from five to 15 years (depending on your degree).
If you’re taking out a parent loan with College Ave, you also have the option to receive $2,500 of the loan directly — allowing you to control your child’s spending on expenses like books, computers, or dorm supplies.
Variable APR
5.59 - 16.69%
Loan Amount
$1,000 up to 100% of the school-certified cost of attendance
Autopay discount of 0.25 percentage points
No application or origination fees
Multiyear approval available
Graduate, MBA, law, dental, and medical school loans have grace periods between 9 and 36 months
Parent borrowers must make at least interest-only payments while student is in school
Must complete half your repayment term before you’re eligible for cosigner release
Overview
College Ave offers a wide range of in-school loans for nearly every type of degree. There are a number of repayment options, and borrowers can choose a unique eight-year repayment term. Plus, graduate, dental, and medical students receive extended grace periods.
You may get easy funding for multiple years — 90% of undergraduates are approved for additional student loans when they apply with a cosigner. However, it can be difficult to remove a cosigner for your loan later on, as you must complete at least half of your repayment term before becoming eligible. That’s significantly longer than some lenders, which may only require one to two years of payments before releasing a cosigner.
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
After half of the scheduled repayment period has elapsed
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Custom Choice
Minimum loan amount: $1,000
The Custom Choice Loan is available from $1,000 to $99,999 annually ($180,000 aggregate limit) with a three- or five-year term. If you graduate with at least a bachelor’s degree, you could get a 2% principal reduction on your loan.
Variable APR
5.38 - 15.56%
Loan Amount
$1,000 to $99,999 annually ($180,000 aggregate limit)
2% reduction of your principal balance upon graduation
0.25 percentage point discount on interest rate for autopay
No fees — not even late fees
Option to check your rates through online prequalification
No loan options for parents or international students
Only three loan term options of 7, 10, or 15 years
Minimum income and credit score requirements not disclosed
Overview
Powered by Cognition Financial, Custom Choice offers student loans for undergraduate and graduate students starting at $1,000. You can borrow up to $99,999 per year with a total aggregate limit of $180,000.
If you apply with a cosigner, you may be able to release them from your loan after 36 on-time payments. You can also receive a 0.25 percentage point discount on your interest rate by setting up autopay, as well as a 2% reduction of your principal balance after graduating.
Custom Choice doesn’t charge application, origination, prepayment, or late fees. It also lets you pause payments through forbearance if you qualify for its natural disaster or unemployment protection programs.
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $180,000)
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. You must also meet Custom Choice’s underwriting criteria for income and credit, or apply with a cosigner who does. Eligible noncitizens such as DACA residents can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
INvestEd
Minimum loan amount: $1,001
INvestEd offers student loans to borrowers living or attending school in Indiana. You can borrow $1,001 up to 100% of your school’s cost of attendance (minus any other aid you’ve received) with terms from five to 15 years.
Variable APR
7.76 - 11.80%
Loan Amount
$1,001 up to 100% of school certified cost of attendance
Low minimum borrowing limits
Autopay discount of 0.25 percentage points
Short cosigner release requirements
Transparent qualification requirements
Loans are available only to Indiana residents
No prequalification option to view your rates
No loan options for international students
Overview
INvested is an Indiana company that offers affordable student loans exclusively to state residents. Loans are available to Indiana students and parents who can meet income and credit requirements, or who have an eligible cosigner. Borrowers can borrow as little as $1,001 or as much as the school-certified cost of attendance minus other aid.
INvested provides detailed information on eligibility so borrowers can quickly determine whether to apply for a loan — however, there’s no option to prequalify with a soft credit check. Cosigner release is also available after just 12 on-time payments, considerably shorter than many other lenders.
Loan amounts
$1,001 minimum, up to the school certified cost of attendance
Eligibility
Loans are available to Indiana residents only. Borrowers must have a FICO score of 670 or higher, a 30% maximum debt-to-income ratio or minimum monthly income of $3,333, continuous employment over two years, and no major collections or defaults in recent years. Borrowers who do not meet income or credit requirements can apply with a cosigner.
MEFA
Minimum loan amount: $1,500
The Massachusetts Educational Financing Authority (MEFA) works only with borrowers attending public or nonprofit universities — for-profit schools aren’t eligible. With MEFA, you can borrow $1,500 up to your school-certified cost of attendance.
Undergraduate students can choose between a 10- or 15-year term while graduate students are limited to only 15-year terms.
Borrowers with Good Credit
Loan Amount
$1,500 up to school’s certified cost of attendance less aid
No fees whatsoever
Competitive interest rates
Can borrow up to the cost of attendance
Flexible repayment options
No rate discounts available
No variable interest rates
Only two repayment terms
Strict cosigner release requirements
Can’t prequalify with a soft credit check
Overview
Massachusetts Educational Financing Authority (MEFA) is a not-for-profit lender that offers low-cost undergraduate and graduate school loans to students nationwide. While only fixed-rate loans are available, interest costs may be lower than what you see with other private loans.
While you can apply with a cosigner to lock in the best rate possible, removing that cosigner later may be tough. Only one repayment plan allows cosigner release, and you must make four years of consecutive on-time payments and meet other credit and income requirements to qualify.
Loan amounts
$1,500 minimum up to school-certified cost of attendance
Eligibility
Must be a U.S. citizen or permanent resident, enrolled at least half time at a degree-granting, nonprofit institution, and must maintain satisfactory academic progress. Must have no history of default on an education loan and no history of bankruptcy or foreclosure in the past 60 months. Applicants who can’t meet the minimum credit and income requirements may apply with a cosigner.
Sallie Mae
Minimum loan amount: $1,000
Sallie Mae offers private student loans from $1,000 up to 100% of school-certified cost of attendance with repayment terms from 10 to 15 years (depending on your degree).
If you have a cosigner, you can apply to release them from the loan after making just 12 consecutive, on-time payments — much less time compared to several other lenders.
Variable APR
6.37 - 16.70%
Loan Amount
$1,000 up to 100% of school-certified cost of attendance
Can borrow up to school-certified cost of attendance
No prepayment or origination fees
Loans available to noncitizens with an eligible cosigner
Cosigner release after 12 on-time payments
No parent loan options
No option to check your rates through prequalification
Loan terms not disclosed until after you apply
Overview
Sallie Mae offers the Smart Option Student Loan to undergraduate and graduate students. You can borrow up to your school-certified cost of attendance and apply just once annually to get the funds you need for the entire academic year. Plus, it may be easy to get reapproved for your future years of study — undergraduates have a 97% approval rate when they return to Sallie Mae with a cosigner.
Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for MBA programs, law school, bar study, medical school, medical residency, dental programs, dental residency, and other health profession programs. However, this lender no longer offers a career training loan.
Loan terms
10 to 15 years for Smart Option Student Loan; up to 15 years for law school and bar study loans; up to 20 years for medical school, medical residency, dental school, dental residency, and health professions loans
Loan amounts
$1,000 up to school-certified cost of attendance
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens may qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Student loan limits for the 2023-24 school year
Both federal and private student loans come with student loan limits that determine the maximum amount you can borrow. But if you only want a small student loan and are approved for a higher loan amount, you’re free to accept just the amount you want — you don’t have to take the full amount you’re offered.
Keep in mind: There are also other factors that can impact what you’re allowed to borrow. For example, federal student loan amounts are affected by whether you’re an independent or dependent student, your year in school, and what other aid you’ve received.
And private student loans can be limited based on your credit (or your cosigner’s credit) and income.
Here are the limits you can expect:
| |
---|
| $3,500 to $5,500 per year |
Direct Unsubsidized Loans | Dependent undergrad: $5,500 to $7,500 per year ($31,000 total limit); Independent undergrad: $9,500 to $12,500 per school year ($57,500 total limit); Graduate and professional: $20,500 per year ($138,500 total limit) |
| Up to your school’s cost of attendance minus any other financial aid received |
| Up to your school’s cost of attendance minus any other financial aid received (depending on the lender) |
How to take out a small student loan
If you’re ready to take out a small student loan, follow these four steps:
- Fill out the FAFSA. If you need to pay for college, your first step should be completing the Free Application for Federal Student Aid (FAFSA). Your school will use your FAFSA results to determine what federal student loans and other federal financial aid you’re eligible for.
- Apply for scholarships and grants. Unlike student loans, college scholarships and grants don’t have to be repaid — which makes them a great way to cover education costs. There’s no limit to how many you can get, so it’s a good idea to apply for as many scholarships and grants as you can.
- Take out federal student loans. If you need to borrow for school, it’s usually best to start with federal student loans as they come with federal benefits and protections — such as access to a variety of repayment options and forgiveness programs. After you’ve filled out the FAFSA, your school will send you a financial aid award letter detailing what federal student loans and other federal financial aid you qualify for. You can then decide what aid — and how much — you’d like to accept.
- Use private student loans to fill in the gaps. Once you’ve exhausted your scholarship, grant, and federal student loan options, private student loans can help you fill any financial gaps left over. These loans can range from as little as $1,000 up to your school’s cost of attendance (depending on the lender).
Taking out a student loan with bad credit
You’ll generally need good to excellent credit to qualify for a private student loan. While there are several lenders that offer student loans for bad credit, these loans tend to come with higher interest rates compared to good credit loans.
If you don’t meet private student loan requirements on your own, applying with a cosigner might help you get approved more easily. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get alone.
Tip: Most federal student loans don’t require a credit check to qualify — which makes them a good option if you have less-than-perfect credit.
No matter which type of student loan you get, it’s important to consider how much that loan will cost you in the future. This way, you can be prepared for any added expenses.
Other ways to pay for college
Student loans aren’t the only way to pay for college. Here are a few other options to consider that could help you keep your student loan debt low:
- Check if a 529 plan was opened for you. A 529 plan is a type of college savings account that helps parents save on taxes while putting away money for their child’s education. If your parents (or even your grandparents) have a 529 plan for you, you can use the money for your qualified education expenses. Keep in mind that a 529 plan held by your parent could affect your Estimated Family Contribution (EFC) that’s calculated by the FAFSA — meaning you might not be offered as much financial aid.
- Start at a community college. Attending a community college can be much less expensive compared to a traditional four-year school. To help keep your costs low, it could be a good idea to start at a community college, then transfer to a four-year school to finish your degree.
- Enroll in a work-study program. After filling out the FAFSA, you might have the option to sign up for a work-study program. Jobs offered through these programs generally don’t pay very much, but they can help you cover small costs while also adding to your resume.
- Get a job. Another alternative is to get a job that can help you pay for expenses while you’re taking classes. Just be sure to find something that won’t interfere with your coursework.
Small private student loans can help fill in funding gaps
A small private student loan can fill in funding gaps after you’ve exhausted your scholarship, grant, and federal student loan options. For instance, a small student loan could help you pay for college textbooks, fees, or living expenses.
Just be sure to borrow only what you need so you can keep your future costs as low as possible.
Tip: Borrowing a small amount isn’t the only way to avoid racking up a high amount of student loan debt. For example, you could live on campus or make payments on your student loans while you’re in school to reduce some of your costs.
A small private student loan could also be a good choice for covering your costs if you run out of money during the semester or find yourself facing unexpected expenses. Unlike federal student loans, you can apply for a private loan at any time while you’re enrolled in school.
If you decide to take out a private student loan, remember to consider as many lenders as you can to find the right loan for your needs.
Meet the expert:
Dori Zinn
Dori Zinn is a personal finance journalist with work featured in Huffington Post, Quartz, Wirecutter, Bankrate, and others. She loves helping people learn to be better with money.