- \n
- Federal student loans<\/a><\/li>\n
- Private student loans<\/a><\/li>\n
- Private student loans can be used to fill in the gaps of federal loans<\/a><\/li>\n
- Compare your student loan rates to make the right choice for you<\/a><\/li>\n<\/ul>\n
<\/a><\/p>\n
Federal student loans<\/h2>\n
A federal student loan is a type of loan that\u2019s backed by the U.S. government. Federal student loans don\u2019t require a credit check<\/a> but do require you to complete the Free Application for Federal Student Aid (FAFSA). After you submit the FAFSA, your school\u2019s 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<\/a>.<\/p>\n
Learn More: <\/strong>5 Benefits of Federal Student Loans Over Private Loans<\/a><\/em><\/p>\n
Important: <\/b>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 September 1, 2023.<\/div><\/div>\nKeep Reading: <\/i><\/b>Student Loan Forgiveness Officially Blocked: What\u2019s Next?<\/i><\/a><\/p>\n
Direct Subsidized Loans<\/h3>\n
Undergraduate students with financial need are eligible for Direct Subsidized Loans. With this type of loan, the government covers the interest while you\u2019re in school and during deferment periods. The current interest rate on subsidized loans is 5.50%<\/span>, with a loan fee of 1.057%<\/span>, which is deducted from the loan amount you receive. You can borrow up to $23,000 in subsidized loans if you\u2019re a dependent student or $65,500 as an independent student.<\/p>\n
Direct Unsubsidized Loans<\/h3>\n
Both undergraduate and graduate students can qualify for Direct Unsubsidized Loans<\/a>. With unsubsidized loans, interest accrues while you\u2019re in school. That\u2019s the big difference when it comes to subsidized vs. unsubsidized loans<\/a>. For undergrads, the interest rate on unsubsidized loans is 5.50%<\/span>. For graduate and professional students, it\u2019s 7.05%<\/span>.<\/p>\n
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.<\/p>\n
PLUS Loans<\/h3>\n
Parents and graduate students can take out PLUS Loans. Unlike subsidized and unsubsidized loans, PLUS loans require a credit check.<\/p>\n
Two types of PLUS Loans exist:<\/p>\n
- \n
- Grad PLUS Loans<\/b><\/a> are available to grad students.<\/li>\n
- Parent PLUS Loans<\/b><\/a> are available to parents of undergraduates.<\/li>\n<\/ul>\n
With PLUS Loans, you can borrow up to the cost of attendance for your school (but this isn\u2019t always a good idea when it comes to paying them back). PLUS Loans carry the highest interest rates of any federal student loan \u2014 currently 8.05%<\/span>. There\u2019s also a 4.228%<\/span> up-front fee that\u2019s taken out of your loan.<\/p>\n
Also see: <\/strong>FAFSA for Graduate School: What You Should Know<\/a><\/em><\/p>\n
<\/a><\/p>\n
Private student loans<\/h2>\n
What can you do if your scholarships and federal student loans aren\u2019t enough to cover the total cost of your education? This is where private student loans<\/a> 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.<\/p>\n
Unlike federal loans<\/a>, 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\u2019t have excellent credit. However, it\u2019s also possible for eligible borrowers to qualify for private loans with lower interest rates than those on federal student loans.<\/p>\n
Private loans are not subsidized, so you can expect to accrue interest while you\u2019re in school. Some private lenders allow students to defer payments until graduation, but many will require payments while you\u2019re still in school.<\/p>\n
Finally, private student loans are not eligible for any federal forgiveness program. Expect to pay back every penny (plus interest) of any private student loans you borrow.<\/p>\n
Learn More: <\/i><\/b>Student Loans for Bad Credit<\/i><\/a><\/p>\n
Undergraduate student loans<\/h3>\n
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\u2019re 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.<\/p>\n
If you don\u2019t 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\u2019s important to choose a cosigner you have a trusting relationship with.<\/p>\n
Some schools offer private loans, and this can be a good option for students at such schools. That\u2019s because your school is motivated to make sure you can attend. Check with your school\u2019s student loan office to learn more about these private loans.<\/p>\n
International student loans<\/h3>\n
If you live outside of the U.S., you might still be able to get international student loans<\/a> for your studies at a U.S. college or university. You\u2019ll need to show legal U.S. status to qualify and will likely need a cosigner from the U.S., depending on the lender.<\/p>\n
Keep in mind that if you don\u2019t have a credit history in the United States, you might have to pay higher interest rates \u2014 or you might struggle to get approved in the first place.<\/p>\n
Graduate student loans<\/h3>\n
Federal student loans don\u2019t 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<\/a> could be a good fit. And if you have excellent credit, you might qualify for lower interest rates with graduate student loans<\/a> than you would with federal student loans (particularly PLUS Loans).<\/p>\n
MBA student loans<\/h3>\n
An MBA can be an investment in your long-term career success \u2014 but depending on your school, it can also be quite expensive. Like other private student loans, limits vary for MBA student loans<\/a> based on your cost of attendance and credit history.<\/p>\n
Medical student loans<\/h3>\n
Medical school can come with a six-figure price tag. If you have a positive credit history, medical student loans<\/a> could help. You might also consider medical residency loans<\/a> to cover the costs of your continuing medical education.<\/p>\n
Law school loans<\/h3>\n
Law school is another expensive degree for many students. Law school student loans<\/a> can help you pay for tuition, fees, textbooks, and other costs. And once you finish your degree, bar exam loans<\/a> could bridge the financial gap until you land a paying job.<\/p>\n
The companies in the table below are Credible\u2019s approved partner lenders. Whether you\u2019re the borrower or cosigner, Credible makes it easy to compare rates from multiple private student loan providers without affecting your credit score.<\/p>\n\n
- Parent PLUS Loans<\/b><\/a> are available to parents of undergraduates.<\/li>\n<\/ul>\n
- Private student loans<\/a><\/li>\n
![\"Question](\"https:\/\/www.credible.com\/blog\/wp-content\/themes\/credible\/assets\/images\/lender-rating\/icon-help-dark.svg\"){kind=icon}
\n ![\"A](\"https:\/\/www.credible.com\/blog\/wp-content\/themes\/credible\/assets\/images\/lender-rating\/star-light-full.svg\")
\n ![\"A](\"https:\/\/www.credible.com\/blog\/wp-content\/themes\/credible\/assets\/images\/lender-rating\/star-light-three-quarter.svg\")
\n <\/div>\n ![\"A](\"https:\/\/www.credible.com\/blog\/wp-content\/themes\/credible\/assets\/images\/lender-rating\/star-light-half.svg\")
\n <\/div>\n