Best Student Loans for Online College in August 2025

Online college has become a standard option for many students. In fall 2023, more than half of undergraduates took at least one online course, according to the National Center for Education Statistics (NCES).

While online programs often cost less than in-person learning, they can still be expensive. Student loans can help cover those costs, along with other types of financial aid. Here's what you need to know about using student loans for online college and other financial aid options to consider.

Current private student loan rates

Can you get student loans for online college?

Both federal and private student loans can help you pay for your online education.

If your program is at a Title IV-accredited school, you may qualify for federal student loans if you meet the eligibility requirements. These loans are available to undergraduate, graduate, and professional students, as well as parents of students. You don't have to be full-time to qualify, either.

“Federal loans are still available for part-time students, though the amounts will be prorated,” says Jack Wang, a wealth adviser who specializes in helping families pay for college. “This was made possible with the recent passage of the One Big Beautiful Bill.”

If you can't get federal loans or they aren't enough to fully cover your costs, private student loans are another option. These loans are offered by banks, credit unions, and private lenders. Most lenders require your school to be accredited, but some will lend even if it isn't Title IV accredited.

Federal student loans for online college

To use federal student loans for an online degree, your school must be eligible for federal student aid.

“You can determine if a college is eligible for federal student aid by checking if they have a Federal School Code,” says Mark Kantrowitz, financial aid expert and author of “How to Appeal for More College Financial Aid.” They'll also be among the colleges you can list when you file the Free Application for Federal Student Aid (FAFSA).

If your school is accredited, you may qualify for several types of federal student loans, including:

• Direct Subsidized Loans: These loans are for undergraduates with financial need. They have the lowest interest rates of all federal loans, and the government covers the interest while you're in school and during the 6-month grace period after leaving school.
• Direct Unsubsidized Loans: These loans are for undergraduate and graduate students and do not require financial need. They have higher borrowing limits than subsidized loans, but interest starts accruing right away.
• Direct PLUS Loans: Parent PLUS loans are available to parents of undergraduates, while grad PLUS loans are for graduate and professional students. As long as you don't have adverse credit, you can borrow up to your school-certified cost of attendance. Note that grad PLUS loans will be eliminated from the federal aid program starting July 2026.

Best private student loans for online college

Many private lenders allow you to borrow for an online degree. Unlike federal loans, private student loans are credit-based. Most lenders look for a credit score of at least 670. The higher your score, the more likely you are to qualify for a lower interest rate. If you don't meet the requirements on your own, you may need a cosigner with strong credit to be approved.

The lenders below offer some of the best private student loans for online college:

How to choose the best loan for an online degree

Federal student loans should often be your first choice when paying for an online degree. They typically offer lower interest rates, flexible repayment plans (including income-driven options), and access to forgiveness programs. Because federal loans aren't based on credit history, they're also more accessible than private loans.

If federal aid doesn't cover your full costs, you can turn to private student loans. When comparing lenders, focus on these factors:

• Interest rates: Look at both the monthly payment and the total interest you'll pay over the life of the loan. Prequalifying with multiple lenders can give you an estimated rate based on your credit profile.
• Repayment options: Review when repayment begins (does the lender offer a grace period?) and what terms are available. Most private lenders let you choose repayment terms between 5 and 20 years.
• Borrower protections: Check whether the lender offers forbearance or deferment options that let you pause payments temporarily if you run into financial hardship.

More financial aid for online students

Online college students have other financial options at their disposal.

“In general, all types of aid that are available to a traditional student generally apply to online and virtual students, too,” Wang says.

Before turning to student loans, explore the following financial aid options:

• Grants: Grants don't accrue interest and don't need to be repaid. Federal Pell Grants are one option, and you can apply for them through the FAFSA. Private organizations may also offer grants for online students.
• Scholarships: Scholarships also don't need to be repaid. Your school or academic department may offer them, or you can search for opportunities from private companies, trade groups, and professional organizations.
• Work-study: The federal work-study program lets you earn money to help cover educational costs. Jobs are usually on campus or in the community, and you can apply by submitting the FAFSA.
• Tuition assistance: Many schools offer need-based assistance for low-income students or those facing financial barriers. Check with your school's financial aid office to see what's available.

Some schools also offer tuition payment plans that let you spread out the cost of a semester or school year. While these plans can make payments more manageable, it's important to review the details carefully.

“If the school is working with a third party, the student needs to fully understand the terms and conditions of the payment plan,” says Elaine Rubin, director of communications at Edvisors.

“It's important to understand what the company's relationship with the school is, what would happen if they withdraw or the school closes, fees, penalties for late payments, and what happens if you are unable to pay,” she adds.

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 loans for online college, 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.