Credible takeaways
- College Ave, Citizens, and Sallie Mae stand out as the top lenders for engineering students due to their low interest rates and high borrowing limits.
- Engineering students can take advantage of federal loans, which offer affordable rates, flexible repayment options, and access to forgiveness.
- Private loans can bridge funding gaps for engineering students, but usually require a strong credit score or a cosigner.
- You can find scholarships and grants tailored to engineering majors to help reduce costs without adding debt.
Engineering degrees are a gateway to a career in one of today's most in-demand fields. Whether pursuing electrical, chemical, civil, or mechanical engineering, earning your degree often comes with significant costs.
Current private student loan rates
If you need help covering tuition and other expenses, student loans can bridge the gap. This guide explores the best loan options to help you finance your engineering education and reach your career goals.
Best loans for engineering students
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Sallie Mae: Best for Specialized Loans
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
2.89 - 17.49%
Variable APR
4.37 - 16.99%
Loan Amount
$1,000 up to 100% of school-certified cost of attendance
Term
10 - 20
Expert Insights
Sallie Mae stands out from the competition with one of the broadest selections of specialized private student loans on the market. Loans cover everything from undergraduate degrees to medical residencies, bar study, flight training, and trade schools. This makes Sallie Mae a good option for students pursuing specialized or less traditional educational paths.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
College Ave: Best for Extended Grace Periods
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
2.89 - 17.99%
Variable APR
4.24 - 17.99%
Loan Amount
$1,000 up to 100% of the school-certified cost of attendance
Term
5, 8, 10, 15 (20 for health professionals)
Expert Insights
College Ave offers a wide range of borrower-controlled features that makes it especially compelling for those who want predictability and planning power with their student loans. From 5 to 20-year terms and multiple in-school payment options to profession-specific grace periods, College Ave offers more structure and flexibility than many of its competitors.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Citizens: Best for Multiyear Approval
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
640
Fixed APR
3.24 - 14.99%
Variable APR
4.99 - 15.47%
Loan Amount
$1,000 to $400,000 (depending on degree)
Term
5, 10, 15
Expert Insights
Citizens could be a great fit for borrowers who already bank with the lender and want to save more on their student loans. Customers can lower their interest rate by 0.25 percentage points with a loyalty discount, and by another 0.25 percentage points for enrolling in autopay. Citizens also offers multiyear approval, making it easier to get additional loans without repeated hard credit checks.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
MEFA: Best for Borrowers With Good Credit
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
670
Fixed APR
3.29 - 8.89%
Variable APR
-
Loan Amount
$1,500 up to school’s certified cost of attendance less aid
Term
10, 15
Expert Insights
MEFA is best for borrowers with strong credit who want stable, low-cost college financing without the extras. It offers low, fixed-interest rates and zero fees. But there are no variable rates, autopay discounts, or short-term repayment options. If you meet its credit standards, MEFA's nonprofit model makes it a reliable, no-frills alternative to traditional private lenders.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Abe: Best for Payment Relief Options
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
660
Fixed APR
-
Variable APR
-
Loan Amount
$1,000 to $99,999 annually $180,000 aggregate limit)
Term
5, 7, 10, 15, 20
Expert Insights
Few private lenders match the borrower protections Abe offers. You'll find options like in-school default protection, extended grace periods, and multiple types of forbearance — including for job loss and illness. These features make Abe an especially good fit for students who want a safety net during unpredictable times.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Nelnet Bank: Best for Competitive Rates
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Mid to high 600’s FICO
Fixed APR
-
Variable APR
-
Loan Amount
$1,000 to $500,000
Term
5, 10, 15
Expert Insights
Nelnet Bank stands out among private student loan lenders for offering low starting rates and high loan limits across undergraduate, graduate, and health professional programs. You can qualify for a Nelnet Bank student loan with mid-600s credit or apply with a cosigner to improve your chances of approval and secure a better rate.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
ELFI: Best for flexible repayment
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
680
Fixed APR
2.99 - 14.22%
Variable APR
5.00 - 13.97%
Loan Amount
$1,000 up to cost of attendance
Term
5, 7, 10, 15
Expert Insights
ELFI stands out for offering a broad range of repayment terms — 5, 7, 10, or 15 years — so you can tailor your loan to fit your budget and timeline. Whether you want to pay off your loan quickly or stretch payments over time, ELFI gives you the tools to choose. This flexibility makes it a strong option if you're seeking maximum control over your repayment plan.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Ascent: Best for No-Cosigner Loans
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
2.89 - 14.93%
Variable APR
4.34 - 15.00%
Loan Amount
$2,001 to $400,000
Term
5, 7, 10, 12, 15, 20
Expert Insights
Ascent stands out for offering private student loans to students without a cosigner and who have limited credit. Its outcomes-based loan uses factors such as academic performance and graduation timeline instead of credit to determine eligibility. Students can also qualify for a cash-back graduation reward and choose from a wide range of repayment plans.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Custom Choice: Best for Discounts and Rewards
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
3.24 - 15.71%
Variable APR
4.19 - 16.39%
Loan Amount
$1,000 to $99,999 annually $180,000 aggregate limit)
Term
7, 10, 15
Expert Insights
Custom Choice offers a compelling combination of rate discounts, graduation rewards, and zero fees. You can reduce your interest rate by 0.25 percentage points with autopay and earn a 2% principal reduction after graduating. With no fees, cosigner release after 36 payments, and hardship forbearance, it's a good option for students seeking both savings and support.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
INvested: Best for Indiana Students
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
670
Fixed APR
4.59 - 8.59%
Variable APR
6.74 - 10.79%
Loan Amount
$1,001 up to 100% of school certified cost of attendance
Term
5, 10, 15
Expert Insights
INvestEd offers unique value for Indiana students, with eligibility limited to state residents or those attending school in the state. This includes competitive interest rates, cosigner release after just 12 on-time payments, and generous forbearance and deferment options. As a nonprofit, INvestEd combines affordability with a strong commitment to local borrowers.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
SoFi: Best for Member Perks
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
-
Variable APR
-
Loan Amount
$1,000 to $100,000
Term
5, 7, 10, 15
Expert Insights
SoFi offers borrower-friendly benefits rarely seen among student loan lenders. Perks include cash back for strong grades, a loyalty discount on future loans, and cosigner release after just 12 months. With flexible terms and competitive rates, SoFi is a standout option for students seeking long-term value.
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 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.
Start with federal student loans for engineering school
Federal student loans are available to engineering students both on the undergraduate and graduate level, as long as you're enrolled at least half-time in an eligible program.
“Federal loans are often considered the best option due to their flexible repayment plans, fixed interest rates and potential for forgiveness programs,” advises Chad D. Cummings, certified public accountant and attorney at The Law Office of Chad D. Cummings.
Federal Direct Loans come in three main types, each with unique benefits for engineering students:
- Direct Subsidized Loans: These loans are available to undergraduates with demonstrated financial need. They have annual and lifetime borrowing limits, and the government covers the interest while you're in school or during deferment periods. With a fixed interest rate of 6.53% for the 2024-25 school year, they're one of the most affordable options for borrowers.
- Direct Unsubsidized Loans: Unlike subsidized loans, unsubsidized loans don't require financial need and are available to both undergraduate and graduate students. Borrowing limits still apply, but the fixed rates remain competitive at 6.53% for undergraduates and 8.08% for graduate students for the 2024-25 school year.
- Direct PLUS Loans: PLUS loans are available to graduate students and parents of undergraduate students. They allow you to borrow up to the school-certified cost of attendance. While they come with a higher fixed interest rate of 9.08% and higher origination fees, they can cover gaps not addressed by other federal loans. Applicants must not have adverse credit to qualify.
Learn More: Subsidized vs. Unsubsidized Student Loans
One of the most significant advantages of federal loans is the flexibility in repayment. Borrowers can opt for income-driven repayment, which adjusts monthly payments based on your income and family size, with loan forgiveness possible after 10 to 25 years, depending on the plan.
Engineering students pursuing public service roles may also qualify for Public Service Loan Forgiveness (PSLF), which forgives remaining balances after 10 years of qualifying payments. Additionally, federal loans offer deferment and forbearance options, making pausing payments during financial hardship easier.
Use private student loans to fill any funding gaps
Private student loans, offered by banks, credit unions, and online lenders, can help fill the gap when federal loans and other aid aren't enough.
“Students who need more funding beyond federal options or who have strong credit — or a creditworthy cosigner — might explore private loans,” says Cummings.
Private loans are credit-based, meaning your credit score and income play a big role in your eligibility and the interest rate you're offered. Most lenders require proof of stable income and a good credit score, which starts at 670 on the FICO scale. If your credit history or income isn't strong enough, adding a cosigner with good credit can improve your chances of approval and may help you secure a better rate.
To get an idea of the interest rate you'll qualify for, here is a look at prequalified rates by credit scores for borrowers who used the Credible marketplace to find a lender:
Private loans also provide flexibility in terms of interest rates and repayment options. You can typically choose between fixed or variable rates and a range of repayment terms to suit your financial situation.
While private loans can be a vital resource for covering the full cost of your engineering degree, they lack the repayment flexibility and forgiveness programs that come with federal loans. For this reason, it's best to consider private loans only after maximizing your federal loan eligibility.
Don't overlook scholarships and grants
Loans can help you pay for school, but they generally shouldn't be your first choice. “Remember to pursue all scholarship and grant opportunities before considering loans,” advises David Rosenstrock, director and founder at Wharton Wealth Planning. “Many STEM-specific financial aid options are available for engineering students,” he adds.
Scholarships and grants don't require repayment, making them a cost-effective way to fund your education. Cummings recommends exploring funding opportunities from universities, professional organizations, and even corporate or industry grants.
“Most universities have scholarship programs specific to their engineering departments,” says Cummings. “Engineering schools often receive endowments from alumni or industry sponsors, offering scholarships based on academic performance, financial need or focus areas within engineering.”
Some organizations that offer scholarships and grants for engineering students include:
- The Society of Women Engineers (SWE)
- The American Society of Mechanical Engineers (ASME)
- The American Council of Engineering Companies (ACEC)
Start your search with your school's financial aid office or online scholarship databases to uncover opportunities to reduce your educational costs without taking on debt.
Loan repayment options for engineering graduates
As an engineering graduate, you have several repayment plans to choose from, each tailored to different financial situations and career goals.
“Income-driven repayment plans can be an excellent option for federal student loans,” advises Rosenstrock. These plans set your monthly payments at a percentage of your income — typically between 5% and 20%. After 10 to 25 years of qualifying payments, depending on the plan, any remaining balance is forgiven.
If you're working for the government or a not-for-profit organization, you might be eligible for the Public Service Loan Forgiveness program. This program forgives your remaining federal loan balance after 120 qualifying payments while you're employed full-time in public service.
The Standard Repayment Plan offers fixed monthly payments over 10 years, allowing you to become debt-free relatively quickly. There's also an Extended Repayment Plan that spreads payments over 25 years, reducing your monthly burden but increasing the total interest paid. The Graduated Repayment Plan starts with lower payments that gradually increase over time, aligning with expected income growth.
The Standard Repayment Plan can allow for the fastest and easiest path to becoming debt-free. “Engineering graduates with high starting salaries may benefit from this plan as it results in the least interest over time,” according to Cummings. However, income-driven options can make monthly costs much more affordable for those burdened with high levels of debt.
FAQ
Are there student loans specifically for engineering students?
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What scholarships are available for engineering majors?
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Can engineering graduates qualify for loan forgiveness?
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