Loans can help students cover college funding gaps. If your student has already accepted all scholarship and grant opportunities and still needs a loan, sit down together and review this important student loan advice.
Federal Student Loans have low fixed rates and more flexible repayment plans. They can also be taken out without a cosigner. We always recommend using your full federal eligibility before considering any private student loans.
Be sure to use a student loan calculator prior to applying for loans to see what your payments would be. Create a budget and stick to it in school to prevent over-borrowing.
You may not be able to see the big picture when you’re applying for loans year-to-year. Consider the total debt you’ll be taking on over the course of your degree.
Schools will process a private loan up to the total cost of attendance, minus any other financial aid. Non-educational expenses, such as entertainment, cannot be covered by loans.
The loan amount that is disbursed to the school will look different than the total loan you pay back after graduation. That’s because there can be loan disbursement fees and interest will accrue on the loans (except for the federal subsidized loan) while you’re in school.
You can make payments on your loans while still enrolled. Doing so can help prevent the interest from growing on your loan balance.
Federal loans have a six-month grace period. During the grace period, no payments are required. Most private lenders also offer a grace period, but the length depends on the terms.
Many private lenders will offer a discount on interest if you sign up for their auto-debit service. The most common auto-debit discount is .25% off the interest. It may not seem like much, but the savings will add up over the repayment period.
Be certain to check refinance rates with lenders after you graduate. By refinancing, you could qualify for a lower interest rate, saving you money during the repayment process. If they aren’t lower at that time, continue to check back with lenders as interest rates can change weekly.
Be aware: the longer it takes to repay your loan, the more interest you’ll need to pay. Use a student loan calculator to see the difference in the total loan amount you’re paying back based on the number of years in your repayment term. You’ll see that as you increase the length of the repayment period, the total loan amount also increases.
A well-informed student makes smarter choices. When you work together to research loan options, you’ll not only help them with one of the most important financial decisions of their lives, but set an example for how to handle their finances in the future.
Here’s a list of our recommended lenders:
| Lender | Co-Signer Release | Repayment Options | Term | Interest Rates |
|---|---|---|---|---|
 | Yes | - Flat Payment (In-School) - Full (principal & interest) - Deferred - Interest-only | 5, 8, 10, 15 years | 3.99% - 14.96% (Fixed) 3.24% - 14.86% (Variable) Check Rate |
 | Yes | - Deferred - $25 Minimum Amount - In-School Interest Only | 5, 7, 10, 12, 15 years | 4.62% - 16.06% (Fixed) 4.14% - 13.15% (Variable) Check Rate |
 | Yes | - Pay now or late: Make interest payments - Pay a fixed $25 payment - Defer payments until after school | 5-15 years | 3.75% - 13.72% (Fixed) 3.37% - 13.72% (Variable) Check Rate |
 | Yes | - Immediate repayment - Interest-only - Fixed monthly payments in school - Fully deferred | 5, 7, 10, 15 years | 4.99% – 14.75% (Fixed) 4.49% – 13.82% (Variable) Check Rate |
 | Yes | - Full payments (Principal and Interest) | 5, 10, 15 years | As low as 3.99% (Fixed) As low as 4.36% (Variable) Check Rate |
 | - Deferred - $25 Minimum Amount - In-School Interest Only | 5, 7, 10, 12, 15 years | 13.96% - 14.77% (Fixed) 11.78% - 13.74% (Variable) Check Rate |
CONNECT WITH OTHER PARENTS TRYING TO FIGURE OUT
HOW TO PAY FOR COLLEGE
JOIN ONE OF OUR FACEBOOK GROUPS:
When the tuition bill comes due, your college will offer your student a few options. If there’s a balance after
This story was first published in our Paying for College 101 Facebook community. It’s been edited for clarity and flow.
This story was first published in our Paying for College 101 (PFC101) Facebook community. It’s been edited for clarity and
At Road2College you’ll find everything you need to make the admissions and paying for college process less stressful and more transparent.
Explore College Insights™ — your source for finding affordable colleges and merit scholarships.
Get coaching on admissions and college financing.
Join Road2College where parents and experts work together to inform and inspire college-bound families.
By Grade:
By Stage in the Process:
Ad Policy Disclaimer: Product name, logo, brands, and other trademarks featured or referred to within Road2College are the property of their respective trademark holders. Information obtained via Road2College™ is for educational purposes only. Please consult a licensed financial professional before making any financial decisions. This site may be compensated through third party advertisers. This site is not endorsed or affiliated with the U.S. Department of Education. By visiting Road2College’s site, you accept and agree to be bound by Road2College’s Terms of Use.
