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.
Advertiser DisclosureThe rates that appear are from companies from which Credible receives compensation. This compensation does not impact how or where products appear within the table. The rates and information shown do not include all financial service providers or all of the displayed lenders' available services and product offerings.
Credible rating
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.
$1,000 to $99,999 annually $180,000 aggregate limit)
Overview
Abe's private student loans are available to undergraduates, graduate students, and students in certificate programs. The lender is unique in allowing you to borrow even if you're enrolled less than half-time.
Abe offers rate discounts and payment relief that other lenders don't, such as a reduction in your rate with autopay and for every six months of on-time payments, up to a total of 0.50 percentage points. Borrowers can also extend their grace period up to an additional six months. Plus, you can lengthen your repayment term by five years, which can be helpful if you need to lower your monthly payments or request a hardship forbearance for 12 months.
pros
- Offers 2% loan reduction after graduation
- Doesn’t charge late fees
- Can reduce interest rate by making on-time payments
- Possible repayment term and grace period extension
cons
- Doesn’t offer parent loans
- Relatively low borrowing limit of $99,999 per year
Minimum income
$1 (must have positive income)
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $225,000)
Cosigner release
Available after 12 monthly principal and interest payment
Eligibility
Must be a U.S. citizen or permanent resident. Available to non-U.S. citizen students (including DACA students) attending a school in the U.S. who apply with a cosigner who is a U.S. citizen or permanent resident alien. Loans not available to permanent residents of West Virginia.
Credible rating
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.
Overview
While Ascent provides traditional student loans for undergraduate, graduate, and medical programs, it also stands out with some options that are uncommon among private student loan lenders. For example, its Outcomes-Based Loan, which doesn't require established credit or a cosigner, is available to juniors and seniors. When assessing your application, Ascent considers factors including your school, major, and GPA to determine if you're eligible.
Ascent also offers its Progressive Repayment plan to qualified borrowers. It allows you to begin with smaller payments at the start of the repayment term and then gradually pay more each month over time. If you borrow with a cosigner, they can be released after you make as few as 12 monthly payments. However, cosigners on loans for international students do not qualify.
pros
- Doesn’t charge application fees or origination fees
- Offers discounts of 0.50 to 1 percentage points when using automatic payment
- Can get a 1% cash-back reward after you graduate
- Grace periods from 9 to 36 months
cons
- May find lower interest rates with some competitors
- International students don’t have option to release cosigners
Loan terms
5, 7, 10, 12, 15, or 20 years
Loan amounts
$2,001 minimum up to your school’s annual cost of attendance; lifetime limits of $200,000 for undergrads and $400,000 for graduates
Eligibility
Must be a U.S. citizen or DACA student enrolled at least half time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Credible rating
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.
$1,000 to $400,000 (depending on degree)
Overview
Citizens Bank offers private student loans for undergraduate and graduate students, as well as parents. With its multiyear approval option, you can apply for a loan once, and as long as you qualify, you won't need to reapply each year. This means you can secure loans for future academic years without multiple hard credit checks.
Citizens borrowers can also take advantage of interest rate discounts. If you or your cosigner has an account with Citizens Bank, you can reduce your rate by 0.25 percentage points. Another 0.25 percentage points can be shaved off by enrolling in automatic payments, giving you the chance to lower your rate by up to 0.5 percentage points.
pros
- Multiyear approval lets you secure funding for future school years
- You can reduce your rate by 0.5 percentage points with autopay and loyalty discounts
- International students can apply with a qualified cosigner
- Cosigner release available after starting full principal and interest repayment
cons
- Fewer repayment terms to choose from than some other lenders
- Parents can’t defer payments while student is in school
- Must be enrolled at least half-time in a degree-granting program
Loan terms
5, 10, or 15 years for student loans; 5 or 10 years for parent loans
Loan amounts
$1,000 minimum, up to a maximum of $225,000 for undergraduate and graduate degrees; $300,000 for MBA and law; and $225,000 or $400,000 for health care student loans, depending on the degree type
Cosigner release
After starting full principal and interest repayment
Eligibility
Must be a U.S. citizen or permanent resident enrolled at least half-time in a degree-granting program at an eligible institution. International students can apply with a cosigner who’s a U.S. citizen or permanent resident.
Credible rating
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.
$1,000 up to 100% of the school-certified cost of attendance
Overview
College Ave offers student loans for almost every type of degree program, with a range of repayment options, including a unique eight-year repayment term. Additionally, you can get extended grace periods of as long as 36 months on graduate, dental, and medical student loans.
About 90% of undergraduates applying with a cosigner are approved for additional student loans. However, you must complete at least half of your repayment term before you can remove a cosigner for your loan. Some lenders allow cosigners to be released much sooner, after as few as one to two years of payments.
pros
- Rate discount of one-quarter of a percentage point for using autopay
- Does not charge origination or application fees
- Grace periods between 9 and 36 months for graduate, MBA, law, dental, and medical school loans and 36 months
cons
- Parents borrowers are required to pay at least the interest while the student is in school
- Cosigners not eligible for release until at least half the repayment term of the loan is completed
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
Available after more than half of the scheduled repayment period has elapsed and other requirements are met
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Credible rating
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.
$1,000 to $99,999 annually $180,000 aggregate limit)
Overview
Custom Choice is a student loan lender that offers loans between $1,000 and $99,999 per year. Undergraduates and grad students can borrow up to a lifetime limit of $180,000.
You can get a rate discount of 0.25 percentage points if you set up autopay, plus a 2% reduction of your loan principal after graduation. You may apply with a cosigner if you can't qualify on your own, and you can release them as soon as you enter principal and interest repayment if you meet the requirements.
Custom Choice doesn't charge any fees whatsoever, even late fees. The lender also offers a forbearance program that lets you pause payments if you experience a natural disaster or unemployment.
pros
- Multiyear approval lets you secure funding for future school years
- You can reduce your rate by 0.5 percentage points with autopay and loyalty discounts
- Cosigner release available upon entering principal and interest repayment
- Offers parent student loans
cons
- Fewer repayment terms to choose from than some other lenders
- Does not offer refinancing options for existing student loans
- Parents can’t defer payments while student is in school
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $180,000)
Cosigner release
Upon entering principal and interest repayment
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. You must also meet Custom Choice’s underwriting criteria for income and credit, or apply with a cosigner who does. Eligible noncitizens such as DACA residents can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Credible rating
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.
$1,000 up to cost of attendance
Overview
ELFI a division of Tennessee-based SouthEast Bank, offers private student loans and refinancing for undergraduates, graduates, and parents. Borrowers can take out loans starting at $1,000, with options up to the full cost of attendance at their school.
ELFI student loans are available to students nationwide who are enrolled in a bachelor's degree program or higher. Borrowers can choose from multiple repayment terms and benefit from competitive interest rates and support from a dedicated Student Loan Advisor. However, ELFI doesn't offer cosigner release or rate discounts, which may limit flexibility for some borrowers.
pros
- Receive support from a dedicated Student Loan Advisor
- Transparent credit and income requirements
- Doesn't require full-time enrollment
- Flexible repayment terms
cons
- Must be enrolled in a bachelor’s degree program or higher
- Cosigners can’t be released from the loan
- No autopay rate discounts available
Loan amounts
$1,000 - Cost of attendance
Cosigner release
A cosigner may not be taken off a loan, but the borrower can apply for a new loan without their cosigner.
Eligibility
All 50 states as well as Washington DC and Puerto Rico.
Credible rating
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.
$1,001 up to 100% of school certified cost of attendance
Overview
INvested is an Indiana company that offers affordable student loans exclusively to state residents. Loans are available to Indiana students and parents who can meet income and credit requirements, or who have an eligible cosigner. Borrowers can borrow as little as $1,001 or as much as the school-certified cost of attendance minus other aid.
INvested provides detailed information on eligibility so borrowers can quickly determine whether to apply for a loan — however, there’s no option to prequalify with a soft credit check. Cosigner release is also available after just 12 on-time payments, considerably shorter than many other lenders.
pros
- Low minimum borrowing limits
- Autopay discount of 0.25 percentage points
- Short cosigner release requirements
- Transparent qualification requirements
cons
- Loans are available only to Indiana residents
- No prequalification option to view your rates
- No loan options for international students
Loan amounts
$1,001 minimum, up to the school certified cost of attendance
Eligibility
Loans are available to Indiana residents only. Borrowers must have a FICO score of 670 or higher, a 30% maximum debt-to-income ratio or minimum monthly income of $3,333, continuous employment over two years, and no major collections or defaults in recent years. Borrowers who do not meet income or credit requirements can apply with a cosigner.
Credible rating
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.
$1,500 up to school’s certified cost of attendance less aid
Overview
Massachusetts Educational Financing Authority (MEFA) offers student loans to borrowers with good credit. However, you won't be able to see your potential rate before applying.
The lender doesn't charge any fees and its rates are competitive, though MEFA only offers two repayment terms. You can add a cosigner to your loan if you're unable to qualify, but only one repayment plan allows you to release your cosigner.
pros
- Doesn’t charge any fees
- Low maximum rate compared with some lenders
- Can borrow up to the school-certified cost of attendance
cons
- No discounts for borrowers
- Limited repayment terms
- No prequalification available
Loan amounts
$1,500 minimum up to school-certified cost of attendance
Eligibility
Must be a U.S. citizen or permanent resident, enrolled at least half time at a degree-granting, nonprofit institution, and must maintain satisfactory academic progress. Must have no history of default on an education loan and no history of bankruptcy or foreclosure in the past 60 months. Applicants who can’t meet the minimum credit and income requirements may apply with a cosigner.
Credible rating
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.
Overview
Nelnet Bank (Member FDIC) provides private student loans at competitive rates for undergraduate, graduate, and health professional degrees. You'll need a FICO credit score in the mid to high 600s to qualify. Borrowers with bad credit can apply with a cosigner, which may help them qualify and could reduce their interest rate.
Cosigners on Nelnet student loans can be released after 24 consecutive on-time payments (see disclaimer). You can also get a 0.25% interest rate reduction when you sign up for automatic payments (see disclaimer). There are no loan origination or application fees, but Nelnet does charge fees for late payments of insufficient funds.
pros
- Rates are competitive for borrowers or cosigners with strong credit
- Rate discount of 0.25 percentage points for autopay
- Cosigners can be released after 24 on-time payments
- Offers deferment and payment assistance programs
cons
- Charges fees for late payment and insufficient funds
- Doesn’t guarantee deferment and forbearance options
Loan terms
5,10,15* (IO, Deferred, Immediate)
Loan amounts
$1,000 to $125,000 for undergraduate, $1,000 to $175,000 for graduate, $1,000 to $500,000 for graduate health professions
Eligibility
All states and US Territories
Credible rating
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.
$1,000 up to 100% of school-certified cost of attendance
Overview
Sallie Mae offers the Smart Option Student Loan for undergraduate students and a suite of loans for graduate students. You can borrow up to your school-certified cost of attendance and apply just once annually to get the funds you need for the entire academic year. Plus, applying for a Smart Option Student Loan with a cosigner may help you get a better rate.
Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for MBA programs, law school, medical school, and health profession programs.
pros
- Can borrow up to school-certified cost of attendance
- No prepayment or origination fees
- Loans available to noncitizens with an eligible cosigner
- Cosigner release after 12 on-time payments
cons
- No parent loan options
- No option to check your rates through prequalification
- Loan terms not disclosed until after you apply
Loan terms
10 to 15 years for the Smart Option Student Loan; 15 years for law school, MBA, and graduate school loans; 20 years for medical school loans
Loan amounts
$1,000 up to school-certified cost of attendance. Student must be listed as the borrower, and a parent may cosign.
Cosigner release
After you graduate, make 12 one-time principal and interest payments, and meet certain credit requirements
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens residing and attending school in the U.S. may qualify by applying with a creditworthy cosigner, who must be a U.S. citizen or permanent resident, and providing an unexpired government-issued photo ID.
Credible rating
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.
Overview
SoFi offers fixed- and variable-rate student loans to help undergraduate, graduate, and professional students and parents of students finance their education. These loans can cover up to the total cost of attendance, with a minimum loan of $1,000. Students must be enrolled at least half-time in a degree-seeking or graduate-certificate program at an eligible school and a U.S. citizen, permanent resident, or non-permanent resident alien.
SoFi has multiple repayment plans, allowing students to pick terms that best fit their financial situations, with cosigner release after 12 months of consecutive on-time payments. Borrowers can choose between fixed and variable rates, with the option to reduce rates by 0.25% when enrolling in automatic payments. They can also qualify for a 0.125% interest rate discount on subsequent loans with SoFi's Continuing Scholar Discount. Plus, a $250 cash bonus with a 3.0 GPA or higher for full-year loans or $100 cash back for single-semester loans.
pros
- Top customer service ratings
- Valuable member benefits
- No fees required policy
- Cosigner release after 12 months of on-time payments
cons
- No disclosed credit or income requirements
- Shorter repayment terms than some lenders
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance
Eligibility
Must be a U.S. citizen or DACA student enrolled at least half-time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may be eligible with a cosigner.
Credible rating
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.
Loan Amounts
$1,000 to $99,999 annually $180,000 aggregate limit)
Overview
Abe's private student loans are available to undergraduates, graduate students, and students in certificate programs. The lender is unique in allowing you to borrow even if you're enrolled less than half-time.
Abe offers rate discounts and payment relief that other lenders don't, such as a reduction in your rate with autopay and for every six months of on-time payments, up to a total of 0.50 percentage points. Borrowers can also extend their grace period up to an additional six months. Plus, you can lengthen your repayment term by five years, which can be helpful if you need to lower your monthly payments or request a hardship forbearance for 12 months.
pros
- Offers 2% loan reduction after graduation
- Doesn’t charge late fees
- Can reduce interest rate by making on-time payments
- Possible repayment term and grace period extension
cons
- Doesn’t offer parent loans
- Relatively low borrowing limit of $99,999 per year
Minimum income
$1 (must have positive income)
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $225,000)
Cosigner release
Available after 12 monthly principal and interest payment
Eligibility
Must be a U.S. citizen or permanent resident. Available to non-U.S. citizen students (including DACA students) attending a school in the U.S. who apply with a cosigner who is a U.S. citizen or permanent resident alien. Loans not available to permanent residents of West Virginia.
Credible rating
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.
Overview
While Ascent provides traditional student loans for undergraduate, graduate, and medical programs, it also stands out with some options that are uncommon among private student loan lenders. For example, its Outcomes-Based Loan, which doesn't require established credit or a cosigner, is available to juniors and seniors. When assessing your application, Ascent considers factors including your school, major, and GPA to determine if you're eligible.
Ascent also offers its Progressive Repayment plan to qualified borrowers. It allows you to begin with smaller payments at the start of the repayment term and then gradually pay more each month over time. If you borrow with a cosigner, they can be released after you make as few as 12 monthly payments. However, cosigners on loans for international students do not qualify.
pros
- Doesn’t charge application fees or origination fees
- Offers discounts of 0.50 to 1 percentage points when using automatic payment
- Can get a 1% cash-back reward after you graduate
- Grace periods from 9 to 36 months
cons
- May find lower interest rates with some competitors
- International students don’t have option to release cosigners
Loan terms
5, 7, 10, 12, 15, or 20 years
Loan amounts
$2,001 minimum up to your school’s annual cost of attendance; lifetime limits of $200,000 for undergrads and $400,000 for graduates
Eligibility
Must be a U.S. citizen or DACA student enrolled at least half time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Credible rating
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.
Loan Amounts
$1,000 to $400,000 (depending on degree)
Overview
Citizens Bank offers private student loans for undergraduate and graduate students, as well as parents. With its multiyear approval option, you can apply for a loan once, and as long as you qualify, you won't need to reapply each year. This means you can secure loans for future academic years without multiple hard credit checks.
Citizens borrowers can also take advantage of interest rate discounts. If you or your cosigner has an account with Citizens Bank, you can reduce your rate by 0.25 percentage points. Another 0.25 percentage points can be shaved off by enrolling in automatic payments, giving you the chance to lower your rate by up to 0.5 percentage points.
pros
- Multiyear approval lets you secure funding for future school years
- You can reduce your rate by 0.5 percentage points with autopay and loyalty discounts
- International students can apply with a qualified cosigner
- Cosigner release available after starting full principal and interest repayment
cons
- Fewer repayment terms to choose from than some other lenders
- Parents can’t defer payments while student is in school
- Must be enrolled at least half-time in a degree-granting program
Loan terms
5, 10, or 15 years for student loans; 5 or 10 years for parent loans
Loan amounts
$1,000 minimum, up to a maximum of $225,000 for undergraduate and graduate degrees; $300,000 for MBA and law; and $225,000 or $400,000 for health care student loans, depending on the degree type
Cosigner release
After starting full principal and interest repayment
Eligibility
Must be a U.S. citizen or permanent resident enrolled at least half-time in a degree-granting program at an eligible institution. International students can apply with a cosigner who’s a U.S. citizen or permanent resident.
Credible rating
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.
Loan Amounts
$1,000 up to 100% of the school-certified cost of attendance
Overview
College Ave offers student loans for almost every type of degree program, with a range of repayment options, including a unique eight-year repayment term. Additionally, you can get extended grace periods of as long as 36 months on graduate, dental, and medical student loans.
About 90% of undergraduates applying with a cosigner are approved for additional student loans. However, you must complete at least half of your repayment term before you can remove a cosigner for your loan. Some lenders allow cosigners to be released much sooner, after as few as one to two years of payments.
pros
- Rate discount of one-quarter of a percentage point for using autopay
- Does not charge origination or application fees
- Grace periods between 9 and 36 months for graduate, MBA, law, dental, and medical school loans and 36 months
cons
- Parents borrowers are required to pay at least the interest while the student is in school
- Cosigners not eligible for release until at least half the repayment term of the loan is completed
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
Available after more than half of the scheduled repayment period has elapsed and other requirements are met
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Credible rating
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.
Loan Amounts
$1,000 to $99,999 annually $180,000 aggregate limit)
Overview
Custom Choice is a student loan lender that offers loans between $1,000 and $99,999 per year. Undergraduates and grad students can borrow up to a lifetime limit of $180,000.
You can get a rate discount of 0.25 percentage points if you set up autopay, plus a 2% reduction of your loan principal after graduation. You may apply with a cosigner if you can't qualify on your own, and you can release them as soon as you enter principal and interest repayment if you meet the requirements.
Custom Choice doesn't charge any fees whatsoever, even late fees. The lender also offers a forbearance program that lets you pause payments if you experience a natural disaster or unemployment.
pros
- Multiyear approval lets you secure funding for future school years
- You can reduce your rate by 0.5 percentage points with autopay and loyalty discounts
- Cosigner release available upon entering principal and interest repayment
- Offers parent student loans
cons
- Fewer repayment terms to choose from than some other lenders
- Does not offer refinancing options for existing student loans
- Parents can’t defer payments while student is in school
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $180,000)
Cosigner release
Upon entering principal and interest repayment
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. You must also meet Custom Choice’s underwriting criteria for income and credit, or apply with a cosigner who does. Eligible noncitizens such as DACA residents can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Credible rating
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.
Loan Amounts
$1,000 up to cost of attendance
Overview
ELFI a division of Tennessee-based SouthEast Bank, offers private student loans and refinancing for undergraduates, graduates, and parents. Borrowers can take out loans starting at $1,000, with options up to the full cost of attendance at their school.
ELFI student loans are available to students nationwide who are enrolled in a bachelor's degree program or higher. Borrowers can choose from multiple repayment terms and benefit from competitive interest rates and support from a dedicated Student Loan Advisor. However, ELFI doesn't offer cosigner release or rate discounts, which may limit flexibility for some borrowers.
pros
- Receive support from a dedicated Student Loan Advisor
- Transparent credit and income requirements
- Doesn't require full-time enrollment
- Flexible repayment terms
cons
- Must be enrolled in a bachelor’s degree program or higher
- Cosigners can’t be released from the loan
- No autopay rate discounts available
Loan amounts
$1,000 - Cost of attendance
Cosigner release
A cosigner may not be taken off a loan, but the borrower can apply for a new loan without their cosigner.
Eligibility
All 50 states as well as Washington DC and Puerto Rico.
Credible rating
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.
Loan Amounts
$1,001 up to 100% of school certified cost of attendance
Overview
INvested is an Indiana company that offers affordable student loans exclusively to state residents. Loans are available to Indiana students and parents who can meet income and credit requirements, or who have an eligible cosigner. Borrowers can borrow as little as $1,001 or as much as the school-certified cost of attendance minus other aid.
INvested provides detailed information on eligibility so borrowers can quickly determine whether to apply for a loan — however, there’s no option to prequalify with a soft credit check. Cosigner release is also available after just 12 on-time payments, considerably shorter than many other lenders.
pros
- Low minimum borrowing limits
- Autopay discount of 0.25 percentage points
- Short cosigner release requirements
- Transparent qualification requirements
cons
- Loans are available only to Indiana residents
- No prequalification option to view your rates
- No loan options for international students
Loan amounts
$1,001 minimum, up to the school certified cost of attendance
Eligibility
Loans are available to Indiana residents only. Borrowers must have a FICO score of 670 or higher, a 30% maximum debt-to-income ratio or minimum monthly income of $3,333, continuous employment over two years, and no major collections or defaults in recent years. Borrowers who do not meet income or credit requirements can apply with a cosigner.
Credible rating
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.
Loan Amounts
$1,500 up to school’s certified cost of attendance less aid
Overview
Massachusetts Educational Financing Authority (MEFA) offers student loans to borrowers with good credit. However, you won't be able to see your potential rate before applying.
The lender doesn't charge any fees and its rates are competitive, though MEFA only offers two repayment terms. You can add a cosigner to your loan if you're unable to qualify, but only one repayment plan allows you to release your cosigner.
pros
- Doesn’t charge any fees
- Low maximum rate compared with some lenders
- Can borrow up to the school-certified cost of attendance
cons
- No discounts for borrowers
- Limited repayment terms
- No prequalification available
Loan amounts
$1,500 minimum up to school-certified cost of attendance
Eligibility
Must be a U.S. citizen or permanent resident, enrolled at least half time at a degree-granting, nonprofit institution, and must maintain satisfactory academic progress. Must have no history of default on an education loan and no history of bankruptcy or foreclosure in the past 60 months. Applicants who can’t meet the minimum credit and income requirements may apply with a cosigner.
Credible rating
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.
Overview
Nelnet Bank (Member FDIC) provides private student loans at competitive rates for undergraduate, graduate, and health professional degrees. You'll need a FICO credit score in the mid to high 600s to qualify. Borrowers with bad credit can apply with a cosigner, which may help them qualify and could reduce their interest rate.
Cosigners on Nelnet student loans can be released after 24 consecutive on-time payments (see disclaimer). You can also get a 0.25% interest rate reduction when you sign up for automatic payments (see disclaimer). There are no loan origination or application fees, but Nelnet does charge fees for late payments of insufficient funds.
pros
- Rates are competitive for borrowers or cosigners with strong credit
- Rate discount of 0.25 percentage points for autopay
- Cosigners can be released after 24 on-time payments
- Offers deferment and payment assistance programs
cons
- Charges fees for late payment and insufficient funds
- Doesn’t guarantee deferment and forbearance options
Loan terms
5,10,15* (IO, Deferred, Immediate)
Loan amounts
$1,000 to $125,000 for undergraduate, $1,000 to $175,000 for graduate, $1,000 to $500,000 for graduate health professions
Eligibility
All states and US Territories
Credible rating
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.
Loan Amounts
$1,000 up to 100% of school-certified cost of attendance
Overview
Sallie Mae offers the Smart Option Student Loan for undergraduate students and a suite of loans for graduate students. You can borrow up to your school-certified cost of attendance and apply just once annually to get the funds you need for the entire academic year. Plus, applying for a Smart Option Student Loan with a cosigner may help you get a better rate.
Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for MBA programs, law school, medical school, and health profession programs.
pros
- Can borrow up to school-certified cost of attendance
- No prepayment or origination fees
- Loans available to noncitizens with an eligible cosigner
- Cosigner release after 12 on-time payments
cons
- No parent loan options
- No option to check your rates through prequalification
- Loan terms not disclosed until after you apply
Loan terms
10 to 15 years for the Smart Option Student Loan; 15 years for law school, MBA, and graduate school loans; 20 years for medical school loans
Loan amounts
$1,000 up to school-certified cost of attendance. Student must be listed as the borrower, and a parent may cosign.
Cosigner release
After you graduate, make 12 one-time principal and interest payments, and meet certain credit requirements
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens residing and attending school in the U.S. may qualify by applying with a creditworthy cosigner, who must be a U.S. citizen or permanent resident, and providing an unexpired government-issued photo ID.
Credible rating
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.
Overview
SoFi offers fixed- and variable-rate student loans to help undergraduate, graduate, and professional students and parents of students finance their education. These loans can cover up to the total cost of attendance, with a minimum loan of $1,000. Students must be enrolled at least half-time in a degree-seeking or graduate-certificate program at an eligible school and a U.S. citizen, permanent resident, or non-permanent resident alien.
SoFi has multiple repayment plans, allowing students to pick terms that best fit their financial situations, with cosigner release after 12 months of consecutive on-time payments. Borrowers can choose between fixed and variable rates, with the option to reduce rates by 0.25% when enrolling in automatic payments. They can also qualify for a 0.125% interest rate discount on subsequent loans with SoFi's Continuing Scholar Discount. Plus, a $250 cash bonus with a 3.0 GPA or higher for full-year loans or $100 cash back for single-semester loans.
pros
- Top customer service ratings
- Valuable member benefits
- No fees required policy
- Cosigner release after 12 months of on-time payments
cons
- No disclosed credit or income requirements
- Shorter repayment terms than some lenders
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance
Eligibility
Must be a U.S. citizen or DACA student enrolled at least half-time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may be eligible with a cosigner.
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.
Credible Rating
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.
Loan Amount
$1,000 to $99,999 annually $180,000 aggregate limit)
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.
Credible Rating
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
Variable APR
4.38 - 15.04%
Loan Amount
$2,001 to $400,000
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.
Credible Rating
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.
Variable APR
4.98 - 15.46%
Loan Amount
$1,000 to $400,000 (depending on degree)
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.
Credible Rating
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
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)
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.
Credible Rating
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
Variable APR
4.18 - 16.38%
Loan Amount
$1,000 to $99,999 annually $180,000 aggregate limit)
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 available as soon as you begin making principal and interest 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.
Credible Rating
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.
Variable APR
4.88 - 13.97%
Loan Amount
$1,000 up to cost of attendance
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.
Credible Rating
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.
Variable APR
6.74 - 10.79%
Loan Amount
$1,001 up to 100% of school certified cost of attendance
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.
Credible Rating
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.
Loan Amount
$1,500 up to school’s certified cost of attendance less aid
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.
Credible Rating
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
Loan Amount
$1,000 to $500,000
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.
Credible Rating
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
Variable APR
4.37 - 16.99%
Loan Amount
$1,000 up to 100% of school-certified cost of attendance
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.
Credible Rating
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
Loan Amount
$1,000 to $100,000
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 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:
| |
|---|
| $3,500 to $5,500 per year ($23,000 total limit) |
Direct Unsubsidized Loans | Dependent undergrad: $5,500 to $7,500 per year ($31,000 total limit)Independent undergrad: $9,500 to $12,500 per school year ($57,500 total limit)Graduate and professional: $20,500 per year ($138,500 total limit) |
| Up to your school’s cost of attendance, minus any other financial aid received |
| Typically up to your school’s cost of attendance, minus any other financial aid received (depending on the lender) |
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:
- 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.
- 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.
- 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.
- 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.
Tip
Most federal student loans don’t require a credit check to qualify — which makes them a good option if you have less-than-perfect credit.
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.
Editor insight: “If you have a job, I recommend looking into tuition assistance programs your employer might offer. Such benefits could cover part, or even all of your college costs, and often go overlooked.”
— Richard Richtmyer, Senior Student Loans Editor, Credible
Tip
Borrowing a small amount isn’t the only way to avoid racking up a high amount of student loan debt. For example, you could live on campus or make payments on your student loans while you’re in school to reduce some of your costs.
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.
FAQ
What is the minimum student loan amount?
Open
Federal student loans don't have a minimum loan amount, though they have annual and aggregate limits. Minimum loan amounts for private student loans vary by lender but often start at $1,000.
What can I use a small student loan for?
Open
You can use a small private student loan for any school-related expenses, such as tuition, fees, textbooks, and room and board. While it likely won't cover all of your costs, it can help you cover some of your expenses.
Can I get a small federal student loan?
Open
If you qualify for federal aid, you can get a small federal student loan. There are no minimum loan amounts for student loans from the Department of Education.
How can I limit the amount I borrow for college?
Open
You can limit the amount you borrow for college by first maximizing any scholarships, grants, and federal work-study that you qualify for. Before you borrow, consider what your actual costs will be. You may qualify for a larger loan than you need, especially if you plan to live at home instead of on campus. Be sure to borrow just enough to cover your educational expenses.
Are small federal or private student loans better?
Open
Smaller federal student loans are generally the better choice due to their unique borrower benefits and protections, such as access to loan forgiveness and income-driven repayment plans. Federal student loans also tend to have lower interest rates than private student loans, and there are no minimum loan amounts, making them ideal if you only need a small student loan.
Meet the expert:
Dori Zinn
Dori Zinn is a personal finance journalist with over 10 years of experience. Her work has been featured by Huffington Post, Wirecutter, Bankrate, and CBS News.
