11 Best Small Student Loans of July 2025

Half of bachelor's degree recipients in the 2022-23 school year graduated with an average of $29,300 in student debt, according to the College Board. However, you may only need a small student loan to cover your education costs.

Borrowing as little as possible for school helps you minimize what you must repay after college. If you must take out a loan, federal student loans should be your first choice. However, private lenders like SoFi and Abe stand out as some of the best on the Credible platform for features like graduation bonuses and free financial planning sessions.

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.

Why you can trust our Credible experts

The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.

Methodology

To determine the best small private student loan lenders, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.

• Repayment options: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• Customer support: 10%

While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.

Learn more about our methodology.

What is the minimum student loan amount?

Federal student loans don't have a minimum loan amount. However, if your school determines that you qualify for a Direct Subsidized Loan of $200 or less, it can choose to include that amount in a Direct Unsubsidized Loan instead.

Minimum amounts for private student loans vary by lender, but are often $1,000 or $2,000. If you're unsure of a private lender's minimum loan amount, contact the lender before applying.

Student loan limits for the 2025-26 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.

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:

How to minimize student loan borrowing

It's best to limit your borrowing, as you must repay all student loans plus interest. You can minimize the amount you take out in student loans using these strategies:

• Maximize gift aid: Gift aid is money that doesn't have to be repaid, such as scholarships and grants. Maximizing gift aid opportunities allows you to borrow less and save more. In addition to gift aid, take advantage of the federal work-study program if you qualify. With work-study, you can apply for a part-time job on or off campus and use the funds to cover education expenses.
• Consider living at home: Living at home with your parents rather than on campus can help you save thousands of dollars. Consider commuting to school if you'll be attending college locally.
• Take AP classes in high school: You can test out of general education college classes by passing Advanced Placement (AP) exams in high school, therefore reducing the number of classes you must take. Just keep in mind that not all colleges accept AP class credits, so you'll need to find out if your school will allow you to test out of courses.

How to take out a small student loan

If you’re ready to take out a small private student loan, follow these four steps:

1. 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.
2. 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.
3. 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.
4. 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.

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 Student Aid Index, that’s calculated through 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.
• Apply for a work-study job: After filling out the FAFSA, you might have the option to apply for a work-study program. Jobs offered through this program generally don't pay very much, but they can help you cover small costs while also adding to your resume.
• Get a part-time 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.

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.