Credible
Get Rates
  • Refinance Student Loans
    • Compare Options
      • Best Refinancing Companies
      • Lender Reviews
      • Refinance Student Loans
      • Student Loan Consolidation
    • Learn the Basics
      • Fixed vs. Variable Rates
      • Forgiveness Programs
      • Consolidation vs Refinancing
      • Repayment Plans
      • More on Student Refi
    • How to
      • Consolidate Your Student Loans
      • Pay Off Your Student Loans
      • Lower Your Interest Rate
    • Tools
      • Current Student Loan Refi Rates
      • Refinancing Calculator
      • Repayment Calculator
      • Student Loan Score Calculator
  • Student Loans
    • Compare Options
      • Private Student Loans
      • Parent Student Loans
      • Law School Loans
      • Medical School Loans
      • Graduate Student Loans
    • Learn the Basics
      • Student Loan Limits
      • Living Expenses
      • Applying for FAFSA
      • Federal Student Loans
      • Student Loan Interest Rates
      • More on Student Loans
    • How To
      • Pay for College
      • Take Out Student Loans
      • Apply Without Cosigner
      • Apply for Student Loans
      • Pay for Grad School
    • Tools
      • Best Private Student Loans
      • Current Student Loan Rates
      • Student Loan Interest Calculator: Estimate Payments
      • Lender Reviews
  • Personal Loans
    • Compare Options
      • Best Personal Loan Lenders
      • Lender Reviews
      • Get Personal Loan Rates
    • Learn the Basics
      • How to Qualify
      • How to Get a Loan
      • Where to Get a Loan
      • Personal Loans with Cosigner
      • Pay Off Credit Card Debt
      • More on Personal Loans
    • Best for
      • Credit Card Consolidation
      • Debt Consolidation Loans
      • Home Improvement Loans
      • Good Credit
      • Fair Credit
      • Bad Credit
    • Tools
      • Current Personal Loan Rates
      • Personal Loan Calculator
  • Mortgages
    • Compare Options
      • Mortgage Refinance
      • Home Loan
      • Best Mortgage Refinance Companies
      • Best Mortgage Lenders
      • Mortgage Preapproval
      • Mortgage Payment Calculator
    • Compare Rates
      • Mortgage Refinance Rates
      • 30-Year Fixed Refinance Rates
      • 15-Year Fixed Refinance Rates
      • Home Loan Rates
      • 15-Year Fixed Mortgage Rates
      • 30-Year Fixed Mortgage Rates
    • Learn the Basics
      • How to Buy a House
      • How to Refinance Your Mortgage
      • How to Get the Best Rate
      • Cash-Out Refinancing
      • More on Home Loans and Refi
    • Pay Off Mortgage
      • Home Equity to Pay Off Debt
      • Paying Off Mortgage Early
      • Mortgage Refinance Cost
  • Insurance
    • Insurance Products
      • Insurance Products
      • Learn more about home insurance
    • Compare Options
      • Compare Insurance Quotes
      • Home Insurance Guide
    • Learn the Basics
      • What Home Insurance Covers
      • How Much Home Insurance You Need
      • Estimate Your Home Replacement Cost
      • How to Change Home Insurance
  • Company
    • About
    • Reviews
    • Blog
    • Lenders
    • Editorial Guidelines
    • FAQs
    • Press
  • Find My Rate
Advertiser Disclosure

Guide to Every Type of Student Loan Offered

There are several types of student loans available to help you pay for college, including federal and private student loans.

Eric Rosenberg Eric Rosenberg Edited by Jared Hughes Updated December 1, 2022

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

If you’re thinking of taking on a student loan to help you pay for college, it’s important to understand exactly what you’d be signing up for. You may be eligible for several different types of student loans, and each come with their own benefits and drawbacks.

Here’s what you need to know about the different types of student loans:

  • Federal student loans
  • Private student loans
  • Private student loans can be used to fill in the gaps of federal loans
  • Compare your student loan rates to make the right choice for you

Federal student loans

A federal student loan is a type of loan that’s backed by the U.S. government. Federal student loans don’t require a credit check but do require you to complete the Free Application for Federal Student Aid (FAFSA). After you submit the FAFSA, your school’s financial aid office will send you a financial aid award letter, which might include various student loan options. This offer letter is usually the starting point if you want to apply for student loans.

Learn More: 5 Benefits of Federal Student Loans Over Private Loans

Important: The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 temporarily paused federal student loan payments, applied a 0% interest rate, and halted collections on defaulted loans. This pause on repayment, interest, and collection has been extended to June 30, 2023.

Additionally, the Biden-Harris administration announced a program to forgive up to $10,000 or $20,000 of federal student debt. That program has been blocked by the courts, but the U.S. Department of Education is currently seeking to overturn those court orders.

Keep Reading: Student Loan Forgiveness Officially Blocked: What’s Next?

Direct Subsidized Loans

Undergraduate students with financial need are eligible for Direct Subsidized Loans. With this type of loan, the government covers the interest while you’re in school and during deferment periods. The current interest rate on subsidized loans is 4.99%, with a loan fee of 1.057%, which is deducted from the loan amount you receive. You can borrow up to $23,000 in subsidized loans if you’re a dependent student or $65,500 as an independent student.

Direct Unsubsidized Loans

Both undergraduate and graduate students can qualify for Direct Unsubsidized Loans. With unsubsidized loans, interest accrues while you’re in school. That’s the big difference when it comes to subsidized vs. unsubsidized loans. For undergrads, the interest rate on unsubsidized loans is 4.99%. For graduate and professional students, it’s 6.54%.

Dependent students can borrow up to $31,000 between both subsidized and unsubsidized loans. Independent undergraduate students are limited to $57,000 between both types of loans, while independent graduate students can borrow up to $138,500 in total.

PLUS Loans

Parents and graduate students can take out PLUS Loans. Unlike subsidized and unsubsidized loans, PLUS loans require a credit check.

Two types of PLUS Loans exist:

  • Grad PLUS Loans are available to grad students.
  • Parent PLUS Loans are available to parents of undergraduates.

With PLUS Loans, you can borrow up to the cost of attendance for your school (but this isn’t always a good idea when it comes to paying them back). PLUS Loans carry the highest interest rates of any federal student loan — 7.54% for the 2022-2023 academic year. There’s also a 4.228% up-front fee that’s taken out of your loan.

Also see: FAFSA for Graduate School: What You Should Know

Private student loans

What can you do if your scholarships and federal student loans aren’t enough to cover the total cost of your education? This is where private student loans may be able to help. These loans are available to both undergraduate and graduate students, and many lenders will allow students to borrow up to the cost of attendance.

Unlike federal loans, private loans require a credit check. This means students with poor credit or no credit history may need a cosigner to qualify. In addition, your interest rate is set by the lender and may be higher than federal loan rates, if you or your cosigner don’t have excellent credit. However, it’s also possible for eligible borrowers to qualify for private loans with lower interest rates than those on federal student loans.

Private loans are not subsidized, so you can expect to accrue interest while you’re in school. Some private lenders allow students to defer payments until graduation, but many will require payments while you’re still in school.

Finally, private student loans are not eligible for any federal forgiveness program, including the Biden-Harris Debt Relief program. Expect to pay back every penny (plus interest) of any private student loans you borrow.

Learn More: Student Loans for Bad Credit

Undergraduate student loans

Undergraduate students have a number of options available to them for private student loans. You can borrow money for school from a traditional bank or credit union, or from an online lender. The amount of money you’re eligible to borrow can vary from lender to lender, but it may also depend on your credit score. Your interest rate will also depend on your credit score.

If you don’t have an established credit history or have less-than-stellar credit, applying for an undergraduate private student loan with a cosigner can help you qualify for a loan amount and rate that will work for your situation. Your cosigner is equally responsible for repaying your loan in case you default, so it’s important to choose a cosigner you have a trusting relationship with.

Some schools offer private loans, and this can be a good option for students at such schools. That’s because your school is motivated to make sure you can attend. Check with your school’s student loan office to learn more about these private loans.

International student loans

If you live outside of the U.S., you might still be able to get international student loans for your studies at a U.S. college or university. You’ll need to show legal U.S. status to qualify and will likely need a cosigner from the U.S., depending on the lender.

Keep in mind that if you don’t have a credit history in the United States, you might have to pay higher interest rates — or you might struggle to get approved in the first place.

Graduate student loans

Federal student loans don’t always cover the total cost of school. If you need cash between terms or need to borrow more than your financial aid package offers, private student loans could be a good fit. And if you have excellent credit, you might qualify for lower interest rates with graduate student loans than you would with federal student loans (particularly PLUS Loans).

MBA student loans

An MBA can be an investment in your long-term career success — but depending on your school, it can also be quite expensive. Like other private student loans, limits vary for MBA student loans based on your cost of attendance and credit history.

Medical student loans

Medical school can come with a six-figure price tag. If you have a positive credit history, medical student loans could help. You might also consider medical residency loans to cover the costs of your continuing medical education.

Law school loans

Law school is another expensive degree for many students. Law school student loans can help you pay for tuition, fees, textbooks, and other costs. And once you finish your degree, bar exam loans could bridge the financial gap until you land a paying job.

The companies in the table below are Credible’s approved partner lenders. Whether you’re the borrower or cosigner, Credible makes it easy to compare rates from multiple private student loan providers without affecting your credit score.

LenderFixed Rates From (APR)
Variable Rates From (APR)


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
4.62%+10 5.74%+10
  • Fixed APR: 4.62%+10
  • Variable APR: 5.74%+10
  • Min. credit score: Does not disclose
  • Loan amount: $2,001 to $400,000
  • Loan terms (years): 5, 7, 10, 12, 15, 20
  • Repayment options: Full deferral, fixed/flat repayment, interest only, academic deferment, military deferment, forbearance, loans discharged upon death or disability
  • Fees: None
  • Discounts: 0.25% to 1.00% automatic payment discount, 1% cash back graduation reward
  • Eligibility: Must be a U.S. citizen or permanent resident or DACA student enrolled at least half-time in a degree-seeking program
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Cosigner release: After 12 on-time principal and interest payments
  • Loan servicer: Launch Servicing, LLC


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
4.99%+1 4.89%+
  • Fixed APR: 4.99%+1
  • Variable APR: 4.89%+
  • Min. credit score: 720
  • Loan amount: $1,000 to $350,000
  • Loan terms (years): 5, 10, 15
  • Loan types: Any private or federal student loan
  • Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability
  • Fees: Late fee
  • Discounts: Autopay, loyalty
  • Eligibility: Available in all 50 states (international students can apply with a creditworthy U.S. citizen or permanent resident cosigner)
  • Customer service: Email, phone, chat
  • Soft credit check: Yes
  • Cosigner release: After 36 months
  • Loan servicer: Firstmark Services


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
4.49%+2,3
4.49%+2,3
  • Fixed APR: 4.49%+2,3
  • Variable APR: 4.49%+2,3
  • Min. credit score: Does not disclose
  • Loan amount: $1,000 up to cost of attendance
  • Loan terms (years): 5, 8, 10, 15, 20
  • Repayment options: Full deferral, full monthly payment, fixed/flat repayment, interest only, immediate repayment, academic deferment, forbearance, loans discharged upon death or disability
  • Fees: Late fee
  • Discounts: Autopay
  • Eligibility: Must be a U.S. citizen or permanent resident and be making satisfactory academic progress.
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Cosigner release: After 24 months
  • Loan servicer: College Ave Servicing LLC

custom choice

Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
3.65%+ 5.46%+
  • Fixed APR: 3.65%+
  • Variable APR: 5.46%+
  • Min. credit score: Does not disclose
  • Loan amount: $1,000 to $99,999 annually ($180,000 aggregate limit)
  • Loan terms (years): 7, 10, 15
  • Repayment options: Full deferral, immediate repayment, interest-only repayment, flat/full repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability
  • Fees: None
  • Discounts: Autopay
  • Eligibility: Available to borrowers in all 50 states. Must be a U.S. citizen or permanent resident.
  • Customer service: Phone, email
  • Soft credit check: Yes
  • Cosigner release: After 36 months
  • Loan servicer: American Education Services
  • Min. income: Does not disclose

edvestinu student loan refinance

Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
7.52%+7 6.89%+7
  • Fixed APR: 7.52%+7
  • Variable APR: 6.89%+7
  • Min. credit score: 750
  • Loan amount: $1,000 to $200,000
  • Loan terms (years): 7, 10, 15
  • Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, loans discharged upon death or disability
  • Fees: Late fee
  • Discounts: Autopay
  • Eligibility: Must be a U.S. citizen or permanent resident and have a minimum income of $30,000.
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Cosigner release: After 36 months
  • Loan servicer: Granite State Management & Resources (GSM&R)


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
4.37%+8 5.86%+8
  • Fixed APR: 4.37%+8
  • Variable APR: 5.86%+8
  • Min. credit score: 670
  • Loan amount: $1,001 up to cost of attendance
  • Loan terms (years): 5, 10, 15
  • Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, forbearance
  • Fees: Late fee
  • Discounts: Autopay, reward for on-time graduation
  • Eligibility: Must be an Indiana resident or a U.S. citizen attending an eligible Indiana school
  • Customer service: Email, phone, chat
  • Soft credit check: Yes
  • Cosigner release: After 48 months
  • Loan servicer: American Education Services


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
4.89%+ N/A
  • Fixed APR: 4.89%+
  • Variable APR: N/A
  • Min. credit score: 670
  • Loan amount: $1,500 up to cost of attendance less aid
  • Loan terms (years): 10, 15
  • Repayment options: Full deferral, interest only, immediate repayment, academic deferral, forbearance
  • Fees: None
  • Discounts: None
  • Eligibility: Must be a U.S. citizen or permanent resident and be making satisfactory academic progress.
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Cosigner release: After 48 months
  • Loan servicer: American Education Services (AES)


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
4.509 - 14.83%9 5.37%9 - 15.709
  • Fixed APR: 4.509 - 14.83%9
  • Variable APR: 5.37%9 - 15.709
  • Min. credit score: Does not disclose
  • Loan amount: $1,000 up to 100% of school-certified cost of attendance
  • Loan terms (years): 10 to 209
  • Repayment options: Full deferral, fixed/flat repayment, interest only, academic deferment, forbearance, loans discharged upon death or disability
  • Fees: Late fee, non-sufficient funds (NSF) fee
  • Discounts: Autopay
  • Eligibility: Must be a U.S. citizen or permanent resident. Also available to non-U.S. citizen students (including DACA students) attending a school located in the U.S. who apply with a qualifying cosigner.
  • Customer service: Phone, chat
  • Soft credit check: Yes
  • Cosigner release: Borrowers can apply after graduation, 12 consecutive on-time principal and interest payments, and meeting certain credit requirements.
  • Loan servicer: Sallie Mae
Compare private student loan rates without affecting
your credit score. 100% free!


Compare Private Loans Now



Trustpilot

Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 10Ascent Disclosures | 1Citizens Disclosures | 2,3College Ave Disclosures | 7EDvestinU Disclosures | 8INvestEd Disclosures | 9Sallie Mae Disclosures

Private student loans can be used to fill in the gaps of federal loans

Federal student loan applications have rigid application deadlines, but you can apply for private student loans at any point in the school year. Private loans could be a good way to cover any education-related costs left over after you’ve exhausted your federal student loan, scholarship, and college savings options. There are also Student loans for living expenses are also available.

If you’re considering PLUS loans, keep in mind that some private student loans might lower have interest rates. Once you factor in origination fees, the annual percentage rate for PLUS Loans can be higher than private student loans.

No matter what type of student loan you choose, take care not to borrow more than you need. You’ll have to pay your student loans back eventually, and smaller loan amounts are much easier to handle.

Compare your student loan rates to make the right choice for you

Paying for your education may mean using a mix of federal and private loans to pay for college, as well as scholarships and grants. It generally makes sense to exhaust your federal loans and scholarship and grant options.

If you need a private student loan, make sure you consider as many lenders as possible. You may think of Sallie Mae as the place to go for private student loans, but a large number of private student loan lenders exist – so there’s no reason to only compare one or two.

Credible makes comparing lenders a breeze — you can compare multiple lenders to find the right loan for you, all without affecting your credit score.

Compare student loan rates from top lenders

  • Multiple lenders compete to get you the best rate
  • Get actual rates, not estimated ones
  • Finance almost any degree

See Your Rates
Checking rates will not affect your credit

Trustpilot

Emily Guy Birken contributed to the reporting for this article.

About the author
Eric Rosenberg
Eric Rosenberg

Eric Rosenberg is an expert on personal finance. His work has been featured at Business Insider, Investopedia, The Balance, The Huffington Post, MSN Money, Yahoo Finance, Mint.com and more.

Read More

Home » All » Student Loans » Guide to Every Type of Student Loan Offered

Student Loan Basics


  • How to Qualify for a Student Loan
  • When to Apply for a Student Loan
  • How to Apply for Student Loans
  • How to Apply for FAFSA

Choosing a Student Loan

  • Types of Student Loans
  • Federal vs. Private Student Loans
  • Subsidized vs. Unsubsidized Loans
  • Parent Plus Loans vs. Private Student Loans

Tools and Resources

  • Find a Private Student Loan
  • Best Private Student Loans
  • Average Cost of College
  • Current Student Loan Rates
  • Find a Student Loan Cosigner
  • Lender Reviews
  • Student Loan Calculator

  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to email a link to a friend (Opens in new window)

Related Articles

Student Loans

Graduate Student Loan Limits: How Much Can You Get?

Student Loans

5 Benefits of Federal Student Loans Over Private Loans

Student Loans

How Do Federal and Private Student Loans Work?

  • Read More
    • Refi Student Loans
    • In School Loans
    • Personal Loans
    • Mortgages
    • Insurance
  • Resources
    • Lender Reviews
    • Loan Calculators
    • Student Loan Score Calculator
    • Data Insights
    • Debt Statistics
    • Sitemap
  • Compare
    • Student Loan Refinance
      • Current Student Loan Refi Rates
    • Student Loan Consolidation
    • Private Student Loans
      • Current Student Loan Rates
    • Personal Loans
      • Current Personal Loan Rates
    • Refinance Mortgage
      • Mortgage Refinance Rates
        • 15-Year Fixed Refinance Rates
        • 30-Year Fixed Refinance Rates
    • Home Loans
      • Home Loan Rates
        • 15-Year Fixed Mortgage Rates
        • 30-Year Fixed Mortgage Rates
    • Insurance
  • Top Lenders
    • Best Student Loan Refi Companies
    • Best Private Student Loans
    • Best Personal Loans
    • Best Mortgage Lenders
    • Best Mortgage Refinance Companies
  • Company
    • About
    • Reviews
    • Blog
    • Editorial Staff
    • Editorial Guidelines
    • News
    • Press
  • Legal
    • Terms of Use
    • Privacy Policy

© 2023 Credible


Credible Operations, Inc. NMLS ID# 1681276 | NMLS Consumer Access | Licenses and Disclosures
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.