If scholarships and grants don’t fully cover your college costs, student loans could help you take care of your remaining expenses. Many students rely on loans to pay for school — in fact, 43.2 million U.S. adults have student loans, according toEducationData.org.
However, if you need to borrow for school, it’s important to understand the requirements for federal and private student loans first.
How to apply for a student loan
If you’re ready to apply for a student loan, follow these three steps:
- Fill out and submit the FAFSA
- Apply for scholarships and grants
- Take out federal student loans
1. Fill out and submit the FAFSA
If you need to pay for college, your first step should be completing theFree 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 qualify for.
Tip:Be sure to submit the FAFSA before the deadline so you don’t miss out on any aid you’re entitled to. For the 2023-2024 academic year, you have until June 30, 2024.
Also keep in mind that some aid is given on a first-come, first-served basis — so it’s a good idea to complete the FAFSA as early as possible, especially if you have high financial need.
2. Apply for scholarships and grants
Unlike student loans,college scholarshipsandgrantsdon’t have to be repaid — which makes them a great way to pay for school. There’s no limit to how many scholarships and grants you can get, so it’s a good idea to apply for as many as you can.
Some organizations that might offer scholarships and grants include:
- Nonprofit organizations
- Local and national businesses
- Professional associations in your field
Additionally, you can use sites likeFastwebandScholarships.comto easily search for scholarships that you might qualify for. You might also be eligible for school-based scholarships depending on your FAFSA results.
3. Take out federal student loans
If you need to borrow for school, it’s usually best to take outfederal student loansfirst. This is because these loans come with federal benefits and protections — such as access to income-driven repayment plans and student loan forgiveness programs.
Here are the three main types of federal student loans that you might be eligible for:
- Direct Subsidized Loans:These are available to undergraduate students with financial need. The government will cover the interest on subsidized loans while you’re in school.
- Direct Unsubsidized Loans:These loans are available to both undergraduate and graduate students regardless of financial need. Unlike with subsidized loans, you’re responsible for all the interest that accrues on unsubsidized loans.
- Direct PLUS Loans:There are two categories of PLUS Loan — Grad PLUS Loans that can be used by graduate students and Parent PLUS Loans that can be used by parents who want to cover their child’s education costs. UnlikeDirect Subsidized and Unsubsidized Loans, Direct PLUS Loans require a credit check. They also typically come with higher interest rates.
Tip:
After you submit the FAFSA, your school will send you a financial aid award letter detailing which federal student loans and other federal financial aid that you qualify for. You can then decide what aid you’d like to accept.
4. Consider private student loans
After you’ve exhausted your scholarship, grant, and federal student loan options, private student loans could help fill any financial gaps left over. While these loans don’t come with federal protections, they do provide some benefits of their own — for example, you can apply at any time, and you might be able to borrow more than you’d get with a federal loan.
If you decide to take out a private student loan, be sure to consider as many lenders as possible to find the right loan for your needs. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in just two minutes.
4.94.9
Credible rating
Fixed (APR)
4.07% - 15.48%
Loan Amounts
$1,000 up to 100% of the school-certified cost of attendance
Min. Credit Score
Does not disclose
Check Rates
on Credible’s website
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Overview
College Ave offers a wide range of in-school loans for nearly every type of degree. There are a number of repayment options, and borrowers can choose a unique eight-year repayment term. Plus, graduate, dental, and medical students receive extended grace periods.
You may get easy funding for multiple years — 90% of undergraduates are approved for additional student loans when they apply with a cosigner. However, it can be difficult to remove a cosigner for your loan later on, as you must complete at least half of your repayment term before becoming eligible. That’s significantly longer than some lenders, which may only require one to two years of payments before releasing a cosigner.
Interest rates
Fixed or variable
Minimum credit score
Does not disclose
Minimum income
Does not disclose
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
After half of the scheduled repayment period has elapsed
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.
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4.84.8
Credible rating
Fixed (APR)
4.09% - 15.66%
Loan Amounts
$2,001* to $400,000
Min. Credit Score
Does not disclose
Check Rates
on Credible’s website
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Overview
Ascent offers several unique borrowing options that you don’t typically see with private lenders. In addition to traditional student loans for undergraduate, graduate, and medical programs, college juniors and seniors may qualify for its Outcomes-Based Loan — which doesn’t require established credit or a cosigner. Instead, Ascent reviews alternate factors such as your school, major, and GPA to determine your eligibility.
Ascent also offers a wide range of loan terms and repayment plans to choose from. You may even qualify for its Progressive Repayment plan, which allows you to start with small payments that gradually increase over time. Borrowers who use a cosigner can release them after as few as 12 payments, though international students don’t qualify for this option.
Interest rates
Fixed or variable
Minimum credit score
Does not disclose
Minimum income
Does not disclose
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
Cosigner release
12 months
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.
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4.44.4
Credible rating
Fixed (APR)
4.43% - 14.04%
Loan Amounts
$1,000 to $99,999 annually ($180,000 aggregate limit)
Min. Credit Score
Does not disclose
Check Rates
on Credible’s website
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Overview
Powered by Cognition Financial, Custom Choice offers student loans for undergraduate and graduate students starting at $1,000. You can borrow up to $99,999 per year with a total aggregate limit of $180,000.
If you apply with a cosigner, you may be able to release them from your loan after 36 on-time payments. You can also receive a 0.25 percentage point discount on your interest rate by setting up autopay, as well as a 2% reduction of your principal balance after graduating.
Custom Choice doesn’t charge application, origination, prepayment, or late fees. It also lets you pause payments through forbearance if you qualify for its natural disaster or unemployment protection programs.
Interest rates
Fixed or variable
Minimum credit score
Does not disclose
Minimum income
Does not disclose
Loan terms
7, 10, or 15 years
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $180,000)
Cosigner release
36 months
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.
Read full review
4.34.3
Credible rating
Fixed (APR)
4.50% - 15.49%
Loan Amounts
$1,000 up to 100% of school-certified cost of attendance
Min. Credit Score
Does not disclose
Check Rates
on Credible’s website
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Overview
Sallie Mae offers the Smart Option Student Loan to undergraduate and 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, it may be easy to get reapproved for your future years of study — undergraduates have a 97% approval rate when they return to Sallie Mae with a cosigner.
Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for MBA programs, law school, bar study, medical school, medical residency, dental programs, dental residency, and other health profession programs. However, this lender no longer offers a career training loan.
Interest rates
Fixed or variable
Minimum credit score
Does not disclose
Minimum income
Does not disclose
Loan terms
10 to 15 years for Smart Option Student Loan; up to 15 years for law school and bar study loans; up to 20 years for medical school, medical residency, dental school, dental residency, and health professions loans
Loan amounts
$1,000 up to school-certified cost of attendance
Cosigner release
12 months
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens may qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Read full review
4.64.6
Credible rating
Fixed (APR)
4.56% - 8.34%
Loan Amounts
$1,001 up to 100% of school certified cost of attendance
Min. Credit Score
670
Check Rates
on Credible’s website
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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.
Interest rates
Fixed or variable
Minimum credit score
670
Minimum income
Does not disclose
Loan terms
5, 10, or 15 years
Loan amounts
$1,001 minimum, up to the school certified cost of attendance
Cosigner release
12 months
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.
Read full review
4.84.8
Credible rating
Fixed (APR)
5.35% - 7.95%
Loan Amounts
$1,500 up to school’s certified cost of attendance less aid
Min. Credit Score
670
Check Rates
on Credible’s website
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Overview
Massachusetts Educational Financing Authority (MEFA) is a not-for-profit lender that offers low-cost undergraduate and graduate school loans to students nationwide. While only fixed-rate loans are available, interest costs may be lower than what you see with other private loans.
While you can apply with a cosigner to lock in the best rate possible, removing that cosigner later may be tough. Only one repayment plan allows cosigner release, and you must make four years of consecutive on-time payments and meet other credit and income requirements to qualify.
Interest rates
Fixed
Minimum credit score
670
Minimum income
Does not disclose
Loan terms
10 or 15 years
Loan amounts
$1,500 minimum up to school-certified cost of attendance
Cosigner release
48 months
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.
Read full review
4.84.8
Credible rating
Fixed (APR)
5.99% - 14.00%
Loan Amounts
$1,000 to $350,000 (depending on degree)
Min. Credit Score
720
Check Rates
on Credible’s website
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Overview
Citizens offers a variety of student loan types, including loans for undergraduates, graduate students, and parents. Perhaps the most unique feature of Citizens student loans is the option for multiyear approval. If you qualify, you can apply once and borrow for future years with a more streamlined process that only involves a soft credit inquiry.
Student borrowers can defer payments while in school and for six months after graduating. You can also score a 0.25 percentage point reduction on your interest rate for setting up autopay, as well as an additional 0.25 percentage point loyalty discount if you or your cosigner already have a qualifying account with Citizens.
Interest rates
Fixed or variable
Minimum credit score
720
Minimum income
Does not disclose
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 $150,000 for undergraduate and graduate degrees; $250,000 for MBA and law; and $180,000 or $350,000 for health care student loans, depending on the degree type
Cosigner release
36 months
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.
Read full review
4.84.8
Credible rating
Fixed (APR)
8.42% - 13.01%
Loan Amounts
$1,000 up to cost of attendance
Min. Credit Score
680
Check Rates
on Credible’s website
View Details
Overview
Education Loan Finance (ELFI) is a division of Tennessee-based SouthEast Bank owned by Education Loan Finance, Inc., a non-profit whose mandate is to provide access to higher education. ELFI launched in 2015 and offers undergraduate, graduate, and parent private student loans as well as student loan refinancing.
ELFI student loans and refinance loans are available to residents in all U.S. states including Puerto Rico. Borrowers can benefit from no application, origination, or prepayment fees. ELFI also offers flexible repayment terms and competitive rates, however there’s no cosigner release option and the lender doesn’t offer any discounts.
Interest rates
Fixed or variable
Minimum credit score
680
Minimum income
$35,000
Loan terms
5, 7, 10, or 15 years
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.
Read full review
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
Federal vs. private student loan requirements
While federal and private student loans can both help youcover your college expenses, they each come with their own requirements. Here’s what you should keep in mind as you consider your student loan options:
Federal student loan requirements
If you’ve maxed out your scholarship and grant options (or don’t qualify), federal student loans could be a good alternative to pay for college.
Here are the main requirements for federal student loans:
- Demonstrate financial need.Financial need is calculated when you complete the FAFSA and is required to qualify for Direct Subsidized Loans. However, you might be able to qualify for Direct Unsubsidized or PLUS Loans regardless of financial need.
- Be a U.S. citizen or eligible noncitizen.Some legal U.S. residents without citizenship might still qualify.
- Have a Social Security number.Outside of residents from a few U.S. territories, you must have a valid Social Security number.
- Enroll in an eligible degree or certificate program.You can’t use federal student loans unless you’re attending an accredited or recognized program.
- Make satisfactory academic progress.Each school sets its own academic standards. If you don’t maintain the minimum grades your school requires, you risk getting cut off from federal aid programs.
- Register with Selective Service.Men between ages 18 and 25 must sign up for the draft through Selective Service.
- Enroll at least half time for Federal Direct Loans.For most student loan programs, you must sign up for at least ahalf-time course load.
- Complete and sign the FAFSA.Your FAFSA information is used to calculate your financial need, which is the difference between what your family is expected to contribute and your estimated cost of attendance.
- Have qualifications needed for your program:A high school diploma,GED, homeschool program, or equivalent is required.
Tip:
If you don’t qualify for a federal student loan, consider searching for more scholarships and grants or applying for a private student loan instead.
Federal student loan requirements
If you’ve maxed out your scholarship and grant options (or don’t qualify), federal student loans could be a good alternative to pay for college.
Here are the main requirements for federal student loans:
- Demonstrate financial need.Financial need is calculated when you complete the FAFSA and is required to qualify for Direct Subsidized Loans. However, you might be able to qualify for Direct Unsubsidized or PLUS Loans regardless of financial need.
- Be a U.S. citizen or eligible noncitizen.Some legal U.S. residents without citizenship might still qualify.
- Have a Social Security number.Outside of residents from a few U.S. territories, you must have a valid Social Security number.
- Enroll in an eligible degree or certificate program.You can’t use federal student loans unless you’re attending an accredited or recognized program.
- Make satisfactory academic progress.Each school sets its own academic standards. If you don’t maintain the minimum grades your school requires, you risk getting cut off from federal aid programs.
- Register with Selective Service.Men between ages 18 and 25 must sign up for the draft through Selective Service.
- Enroll at least half time for Federal Direct Loans.For most student loan programs, you must sign up for at least ahalf-time course load.
- Complete and sign the FAFSA.Your FAFSA information is used to calculate your financial need, which is the difference between what your family is expected to contribute and your estimated cost of attendance.
- Have qualifications needed for your program:A high school diploma,GED, homeschool program, or equivalent is required.
Tip:
If you don’t qualify for a federal student loan, consider searching for more scholarships and grants or applying for a private student loan instead.
Learn More:How Do Federal and Private Student Loans Work?
Private student loan requirements
Unlike federal loans, there isn’t just one set of private student loan requirements. Instead, each lender has its own rules.
However, there are some common requirements to qualify forprivate student loansthat you’ll likely come across, including:
- Enroll in an eligible program.You can’t use private student loans if you aren’t a student, and you must be enrolled in an eligible program.
- Meet demographic requirements.Most lenders require you to be a U.S. citizen or legal resident with a Social Security number. You’ll also generally need to be at least 18 years old and hold a high school diploma or equivalent.
- Use the loan for education purposes.While lenders won’t watch where you spend every dollar, you should plan to use your loans only for school expenses — mainly because you’ll have to pay everything back in the future, including any extra funds left over after paying tuition, fees, and other direct costs.
- Have a good credit history.Unlike most federal loans, private loans require a credit check. You’ll typically need good to excellent credit to qualify — a good credit score is usually considered to be 700 or higher. If you have poor or fair credit (or even no credit), you might need to apply with a creditworthy cosigner to increase your approval odds.
- Have verifiable income.Lenders will review your income and debt-to-income ratio to determine if you’re able to repay what you borrow.
Tip:Most of these requirements are firm. But in some cases, you might be able to get around a lender’s minimum credit score or income requirement if you canfind a cosignerwith good credit. Because most undergraduate students haven’t yet established a good credit history, over 93% of student loans are taken out with a cosigner.
Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own. Just remember your cosigner will share responsibility for the loan — which means they’ll be on the hook if you can’t make your payments.
When to apply for student loans
If you’re eligible for student loans, it’s important to apply well in advance of when you’ll need the funds. Here when you should generally plan to apply for student loans:
- Federal student loans:You’ll need to complete the FAFSA to apply for student loans, which means you’ll have to meet the FAFSA deadline. For the 2023-2024 academic year, you have until June 30, 2024, to fill out the FAFSA. Keep in mind that some financial aid is given on a first-come, first-serve basis — so it’s a good idea to submit the FAFSA as early as possible, especially if you have high financial need.
- Private student loans:Unlike federal student loans, private loans don’t have an application deadline. But even if you’re approved, it could take around three weeks from the time you submit your application until you get your funds — and sometimes up to two or three months if there are any delays. Because of this, it’s wise to apply for a private student loan as soon as you know you’ll need one so you’ll have plenty of time.
If you decide to take out a private student loan, remember to shop around and consider as many lenders as you can. This way, you can find the right loan for your situation.
This is easy with Credible: You can compare your prequalified rates from multiple lenders in two minutes — without affecting your credit.
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Student loan requirements FAQ
Here are the answers to a few commonly asked questions about getting student loans:
How long does it take to get a student loan disbursem*nt?
This depends on the type of student loan you apply for.
- Federal student loansare typically disbursed at the start of each term. If there are any funds left over after paying for your tuition and fees, they’ll be refunded to you — usually within a couple of weeks of receiving your loan funds.
- Private student loansare usually disbursed within a few weeks of your application being approved, depending on the lender and your school’s certification process. Like with federal loans, any funds left over after paying for your tuition and fees will be refunded to you.
Is there an age minimum to get a student loan?
This depends on the type of loan you want to get.
- Federal student loans:There’s no minimum age requirement for federal loans. However, you must have the qualifications needed for your program — meaning a high school diploma, GED, homeschool program, or equivalent.
- Private student loans:Most private lenders require borrowers to be at least 18 to take out a loan.
What is a student loan cosigner?
A student loan cosigner can be anyone with good credit — such as a parent, another relative, or trusted friend — who is willing to share responsibility for a private student loan with you. Having a creditworthy cosigner could help you get approved for a loan if you have poor or no credit.
Even if you don’t need a cosigner to qualify, having one might get you a lower interest rate than you’d get alone. However, remember that because your cosigner is equally responsible for the loan, they’ll be liable if you don’t make your payments.
Eric Rosenbergcontributed to the reporting of this article.
Meet the expert:
Dori Zinn
Dori Zinn is a personal finance journalist with work featured in Huffington Post, Quartz, Wirecutter, Bankrate, and others. She loves helping people learn to be better with money.
