Student loan options can be overwhelming at first glance. But when it comes to federal student loans, there are just a few options.
The first step in getting one of the federal student loans listed below is to fill out the Free Application for Federal Student Aid, or FAFSA. While the FAFSA does determine eligibility for need-based aid, it also acts as an application for student loan options, both for need-based and non-need-based loans. It supplies students who need financial aid with that help as well as provides financing options for those students that would like to borrow with low-interest federal loans but don’t necessarily qualify for need-based aid.
Direct Subsidized Loan – This subsidized loan, sometimes referred to as the Stafford Loan, is available to students who qualify for need as determined by the FAFSA. Students must be a U.S. citizen or eligible non-citizen as well as have a high school diploma or GED. Interest does not accrue while the student is in school. If students qualify for a Direct Subsidized Loan, it will be stated on their award letter notification along with the amount for which they can borrow.
Direct Unsubsidized Loan – This unsubsidized loan, sometimes referred to as the Unsubsidized Stafford Loan, is a little different from the other federal loans. For subsidized loans, students must qualify for need as determined by the FAFSA. However, the Direct Unsubsidized Loan is available to any student, regardless of need. Interest accrues while the student is attending school. If students want to apply for the Direct Unsubsidized Loan, they must complete the FAFSA. Students can also qualify for a federal student loan consolidation after graduating from college or graduate school.
Important Note: Difference between unsubsidized and subsidized loans is interest. Specifically, the allocation of money, known as a subsidy, to cover interest on subsidized loans while the borrower is an active student.
Perkins Loan – The Perkins Loan is a discontinued federal loan option. The authority for schools to make new Federal Perkins Loans ended on Sept. 30, 2017.
Featured Student Loan Provider
Sallie Mae – Undergraduate Student Loans
Special Features/Benefits:
- Get a 0.25 percentage point interest rate reduction when you enroll and make monthly payments by auto debit.*
- You can get the money you need to cover 100% of your school-certified expenses whether you’re studying online or on campus.*
- Choose from multiple repayment options, including no payments while in school.*
Application Process:
Borrower can initiate the application process at SallieMae.com. It only takes about 15 minutes to apply online and get a credit result.
Sallie Mae reserves the right to modify or discontinue products, services, and benefits at any time without notice and provides compensation to Finaid for the referral of loan customers. Terms, conditions, and limitations apply.
*More Sallie Mae Loan Information.
Information advertised valid as of 5/25/2023.
Index is the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent.
Loan
For undergraduate and career training students. (School Certified)
Pay now or later – choose an in-school repayment option that fits your needs or defer your payments until after school.*
• Make interest payments each month
• Pay $25* per month
• Defer payments
Limits
COA-Aid ($1,000 minimum)*
Rates
• Variable Rates: 30-day SOFR + 6.25% (5.99% APR) to 30-day SOFR + 17.38% (16.33% APR)*
• Fixed Rates: 4.75% (4.50% APR) to 15.88% (14.83% APR)*
• Lowest APRs shown include the auto debit discount.
Fees and Terms
• 10-15 years based on cumulative Sallie Mae loan balance, repayment option and year in school.*
• No origination fee or prepayment penalty.
• Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note — first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.
We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.
Student Loan Providers
Edvisors
Edvisors connects borrowers to the lenders that meet their needs. The process is simple. By typing your school name into the School Picker, you can easily compare lenders and interest rates you might qualify for at no cost to you.
Edvisors works with some of the best companies in the student loan business:
- Sallie Mae
- CollegeAve
- Discover Student Loans
- SoFi
- Ascent
- and more
Please be advised that the operator of this site accepts advertising compensation from companies that appear on the site, and such compensation may impact the location and order in which the companies (and/or their products) are presented.
Loan
The lenders we work with offer loans for undergraduate, graduate, parent and professional students.
Borrowers have several repayment options to choose from with our lenders, including interest-only payments while in school, full deferral while in school, immediate full repayment, and even the ability to repay based on a fixed percentage of future income.
Limits
Borrow up to the Cost of Attendance (COA) minus Student Aid annually.
Aggregate loan limits apply and vary by lender.
Rates
Variable rates as low as 4.99% APR (with autopay)*.
Fixed rates as low as 4.44% APR (with autopay)*.
*Some lenders may offer interest-rate discounts not offered by other lenders.
Fees and Terms
Many lenders offer no fees for loan origination or paying off your loan early.
Choose between a variety of terms ranging from 5 to 15 years.
