Student Loans - NerdWallet

Student Loans

Get help finding the right type of student loan or the right payment plan — and find options if you're having trouble.Advertiser disclosure

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We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners.COLLEGE PAYOFF See if the debt is worth itSee the average student loan debt and income by major.PAY FOR COLLEGESee the FAFSA guideSee how to qualify for federal student aid to help pay for college.PAY FOR COLLEGEFind a private student loanTop-rated lenders to fill your school funding gaps.PAY OFF LOANSHow to pay off loans fastFind strategies to get rid of your student loans sooner.PAYING LOANSFind student loan reliefOptions when you have student loan payments you can't make.REFI LOANSRefinance your student loansCompare multiple lenders and see your potential savings.There are three types of student loans: federal loans, private loans and refinance loans once you leave school. Here’s a guide to your college student loan options.

Types of federal student loans

Most federal loans don’t require a co-signer or good credit; nearly every student with a high school diploma is eligible to receive them. Fill out the Free Application for Federal Student Aid, known as the FAFSA, to apply.Direct subsidized loans There are two types of federal direct loans: subsidized and unsubsidized; undergrads with financial need can get subsidized loans. The government pays the interest on these loans while you’re in school, in your grace period or pausing payments through deferment. Your college will tell you whether you’re eligible and how much you can borrow.Direct unsubsidized loans You don’t need to show financial need to get unsubsidized loans, and they’re an option for both undergrads and graduate students. Interest starts accruing on unsubsidized loans immediately and you'll be responsible to pay all interest through the life of the loan. » MORE: Which to borrow: Subsidized vs. unsubsidized student loansPerkins loans Until September 2017, these were available to undergraduates and graduates with particularly high financial need. Students borrowed money from, and repaid it to, their school. Those with outstanding Perkins loans who work in public service careers may be eligible for Perkins loan forgiveness.PLUS loans Federal direct PLUS loans are available to both graduate students and parents. They have higher interest rates and origination fees than other federal loans, and they require a credit check. Borrowers with “adverse credit history” will have a harder time qualifying, but they can apply with an endorser, also known as a co-signer.

Types of private student loans

When you apply for private loans, the lender will want to see proof you can repay it, usually in the form of a good credit score. A co-signer can help you qualify; that person will be responsible for the loan if you can’t pay it back.Private student loans Private student loans can cover any costs related to attending college and are originated from a bank, credit union or an online lender. Since private student loans come with less flexibility for borrowers, look to these loans only after exhausting all of the federal loans available to you. » MORE: Private student loansStudent loans for bad credit Most federal student loans don’t require a credit check, so they’re your best option. If you need more money for school, a handful of private lenders offer loans specifically for borrowers with bad credit. They’ll decide whether to lend to you based on additional factors like earning potential. » MORE: Student loans for bad creditStudent loans without a co-signer Undergraduates in particular often need a co-signer to get a private loan. But if you don’t have access to one, a few lenders will assess your ability to repay according to factors beyond credit history, making it more likely you’ll qualify on your own. » MORE: Student loans without a co-signerGraduate student loans Graduate student loans are offered by both the federal government and private lenders. Take advantage of the unsubsidized federal student loans offered to you before taking on any federal grad PLUS loans or private student loans. » MORE: Graduate student loansInternational student loans Students who aren’t U.S. citizens generally won’t qualify for federal student loans (unless you’re an eligible noncitizen). Several private lenders offer loans for international students, and they often require a U.S. citizen co-signer. » MORE: International student loansState and nonprofit loans Many states offer their own loan programs, but they generally behave more like private loans than federal loans. » MORE: State student loans and nonprofit lendersCredit union loans Credit unions and community banks offer private loans, too. If you have an existing relationship with one of these institutions, you may have access to more favorable terms and discounts on your loan than larger financial institutions offer. » MORE: Review: Credit union student loans through LendKeyIncome share agreements An income share agreement, or ISA, offers funding for college that you repay based on your future salary. Consider an ISA instead of high-interest loans, such as federal PLUS loans or private student loans — especially if you plan to enter a high-paying profession. You'll likely get the most favorable repayment terms. » MORE: ISAs vs. Student Loans: Which Cost Less?Medical school loans Private student loans may offer lower interest rates than federal loans for medical students with good credit. But they don’t come with forgiveness options if you work for a nonprofit hospital after graduation, which would qualify you for federal Public Service Loan Forgiveness. » MORE: Medical school loansInstitutional loans This is a type of loan offered directly by a college. An institutional loan doesn't come with standard features such as interest rates, terms and repayment options, so consider all attributes of the loan before accepting it. » MORE: What is an institutional loan?Bootcamp loans If you need to borrow money for your coding bootcamp, steer toward personal loans designed for bootcamp costs and away from credit cards or high-interest personal loans. Bootcamp loans may have lower interest rates and more favorable repayment terms for students. » MORE: How to pay for a coding bootcampBar exam loans These loans cover expenses traditional student loans won’t — like prep classes, living expenses and exam application fees — while law students or graduates study for the bar exam. Bar loans also typically have higher interest rates than private or federal student loans do. » MORE: Bar loans

Types of student loan refinancing

After you graduate and have shown responsible payment history, you may be able to refinance student loans. That’s when a private lender pays off your loans and gives you a new repayment schedule and lower interest rate. Generally, you need a credit score of 690 or higher to refinance. You’ll lose federal loan protections if you include federal loans in the package.Refinance student loans Refinancing your student loans can save you money by replacing your current loan with one from a private lender at a lower rate. Before refinancing your student loans, make sure it is the right decision for your loans. » MORE: Refinance parent PLUS loansParent PLUS refinance loans Parents are often especially good candidates to refinance PLUS loans. PLUS loan interest rates start off higher, and if parents have long credit histories and strong credit, they’re likely to get a lower interest rate. » MORE: Refinance parent PLUS loansMedical school refinance loans: During residency Some lenders have student loan refinancing programs specifically for medical residents, which could make your monthly payment or interest rate cheaper. Consider refinancing again after residency to get an even lower interest rate. » MORE: Refinancing options during residencyMedical school refinance loans: After residency As an attending physician with strong income and good credit, you’re an excellent candidate for refinancing. Steer clear if you plan to take advantage of federal loan programs like income-driven repayment or forgiveness. » MORE: Refinancing options after residency

Keep Up With All the Changes to Student Loans Forgiveness and Repayment

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The latest

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The basics

Does Refinancing Student Loans Save Money?Student loan refinancing can save you money, but how much depends on your credit history, income and financial health.Who Is My Student Loan Servicer?They are the middleman between you and the company that lent you money. Find the most common ones here.What Are Student Loan Deferment and Forbearance?They’re ways to temporarily halt your loan payments, and they prevent your loan from going into default.