Author: Jocelyn Segoviano

An important factor when shopping for student loans is looking at the interest rate. But interest rates can be a little confusing. You may ask yourself questions like: 

• What is a good interest rate?
•  How do they vary? 
• What should I even look for? 

Before you panic, don’t worry. We’ve got your back. To give you an idea of what to look for in interest rates, let’s go over the average student loan interest rates. 

Average Student Loan Interest Rate 

Interest rates influence the total repayment costs you’ll have. So, to help you make a better-informed decision, it’s a good idea, then, to learn what interest rates are now. The interest rates will vary depending on a variety of factors. This includes what type of loan you get, your lender, and sometimes even your credit score. 

>> MORE: Compare interest rates across top student lenders

For example, let’s take a look at the different federal student loan interest rates. These all vary depending on the type of loan and student. According to the federal student aid website, the current federal student loan interest rates are as follows: 

1. Direct Subsidized Loans and Direct Unsubsidized Loans for Undergraduates – 4.99% 
2. Direct Unsubsidized Loans for Graduate or Professional Students – 6.54% 
3. Direct PLUS Loans for Parents or Graduate/Professional Students – 7.54%

These interest rates are only applicable for the 2022-2023 school year. This includes any loans taken out on or after July 1, 2022, and before July 1, 2023. 

>> MORE: What are direct consolidation loans?

Meanwhile, the average private student loan interest rate ranges from 6% to 7% according to Education Data. The exact interest rate you might get depends on your lender and financial situation. The overall average student loan interest rate, though, is 5.8%. This number includes data from both private and federal loans. 

Student Loan Interest Rates on Sparrow 

When shopping around for student loans, you want to look for the best interest rates. Sparrow partners with private lenders to get you those best rates. Here’s a quick overview of what interest rates you can find on Sparrow.

What is a Good Student Loan Interest Rate? 

Keeping in mind that you’ll repay not only the loan principal but the interest also, a good student loan interest rate is going to be low. In general, the lower, the better. This is because the interest rate is an indicator of how much interest you’ll pay. The higher the interest rate, the more you can expect to pay during repayment. For example, let’s say you took out a $30,000 loan on a 15-year repayment term. Using that information, let’s create two scenarios with different interest rates. 

>> MORE: Which is better: variable or fixed interest rate?

In the first scenario, you’ll have an interest rate of 7%. With this interest rate, you’ll pay $48,537 over the course of your repayment period.

In scenario two, you’ll have an interest rate of 5.8%. With this interest rate, you’ll pay $44,987 throughout your repayment period. 

Here’s a table to help you understand the information easier: 

	Scenario 1	Scenario 2
Loan Principal	$30,000	$30,000
Repayment Period	15 years	15 years
Interest Rate	7%	5.8%
Total Paid	$48,537	$44,987

Notice how even just a 1.2% difference in interest rates results in saving thousands of dollars. That’s why the best interest rates are the lowest rates you can get along with good repayment terms. Doing this will help you save a lot of money in the long run. 

Final Thoughts from the Nest 

Interest rates can be a little tricky. They vary a lot depending on the type of loan you have (or are looking for). The most important thing to keep in mind is to try to get as low an interest rate as you can with good loan terms. 

As you saw earlier, Sparrow offers great interest rates from our partnering lenders. All you have to do to take advantage of these rates is fill out the Sparrow application. Once you do, it will match you with what you are qualified for from any of our 15+ partner lenders. So, get started now to find great private loans that best match what you need.

Sparrow aims to give you the tools and confidence you need to improve your finances. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

Rates in this article were last updated on 11/07/2023. Rates may include an autopay discount and they are subject to change.

So, your kid is going to college? That’s great! Yet, as great as it is, you are a little worried. How are you going to afford the college tuition? Or the living expenses? You want to take out a loan. If you have bad credit, this process can be more difficult. However, there are many student loans for parents with bad credit.

Here is everything you need to know about student loans for parents with bad credit. 

Look to Parent PLUS Loans First 

The first thing you’ll want to look at is a Parent PLUS Loan. Since it’s a federal student loan, it’ll have greater benefits and be easier to qualify for. Also, the maximum loan amount you can get is the full cost of attendance minus financial aid. Federal loan interest rates also won’t change regardless of your credit score. 

However, Parent PLUS Loans do tend to have higher interest rates than even some private loans. So, before you sign off on one, compare the loan with the pre-qualified offers you get through Sparrow. That way, you can figure out which loan option is really best for you. 

>> MORE: Parent PLUS Loans: everything you need to know

If you decide to get a Parent PLUS Loan, then your next step is meeting the loan eligibility requirements. To qualify for a Parent PLUS Loan, you have to be a parent (biological or adoptive) of a dependent undergraduate student. The student must also be enrolled at least part-time in college. 

Additionally, while there is no credit score requirement, you can’t have any adverse credit history. Adverse credit history includes having: 

• Delinquent or defaulted accounts 
• A foreclosure or repossession 
• Bankruptcy discharge 
• Wage garnishment 
• Tax lien 
• Write-off of federal student debt

If you have any of these on your credit report, you may not qualify for a Parent PLUS Loan on your own. However, you can add an endorser to the application to help you qualify. Endorsers work similarly to cosigners. As long as they don’t have any adverse credit history, they should help you qualify. 

If you meet all the requirements, apply for the loan by filling out the application online. 

Private Student Loan Options 

If you do not qualify for a Parent PLUS Loan, you should look into private parent loans. Keep in mind, though, that these usually have stricter requirements. Qualified borrowers have, at least, a steady income and a good credit score. A good credit score means a score in the mid-600s or higher. 

>> MORE: What credit score is needed for a student loan?

While it’s possible to get a loan with poor credit, you will receive much higher interest rates. If you do have a poor credit history, think about getting a cosigner. This will bring down the loan’s interest rate. 

When shopping around for private loans, also make sure to prequalify for each lender. Pre-qualification is a way to see what rates lenders can offer you without doing a hard credit check. They do a soft credit check instead. Once you have done that, compare the rates from each lender to help decide which is right for you. You can do this on the Sparrow website. 

>> MORE: Find your pre-qualified parent student loan rates

Private Parent Loans for Bad Credit 

To help get you started, we’ve made a list of lenders who offer the best private parent loans for bad credit. 

>> MORE: Compare the best student loans for parents with bad credit

Arkansas Student Loan Authority

The Arkansas Student Loan Authority (ASLA) is a state lender that offers educational funding for Arkansas residents. Through their Family Loan, they offer different repayment options, an autopay discount, and strong customer service.

Fixed APR range: 3.20% to 6.42%
Variable APR range: N/A
Minimum credit score: 650

Apply with ASLA.

See disclosures.

College Ave

College Ave is a well-known private student lender. They offer affordable financing, flexible repayment options, and strong customer service.

Fixed APR range: 5.05% to 16.99%
Variable APR range: 5.49% to 16.99%
Minimum credit score: mid-600s

Apply with College Ave.

See disclosures. 

Earnest

Earnest is a well-known private student loan lender. They offer flexible repayment options and longer grace periods. Residents in Nevada do not qualify for a loan with Earnest.

Fixed APR range: rates start at 4.42%.*
Variable APR range: rates start at 5.62%.*
Minimum credit score: 650

Apply with Earnest.

See disclosures.
*Rates include a 0.25% AutoPay discount.

INvestED

INvestED is a student loan lender that offers educational funding for Indiana residents and students. They offer affordable financing options and have a variety of repayment plans.

Fixed interest rates range from 4.61% to 7.62%. Variable interest rates range from 7.88% to 12.34%.
The minimum credit criteria is 670.
See disclosures.

SoFi

SoFi is a well-known private lender. If your child is enrolled less than half-time, however, you will not qualify.

Fixed interest rates range from 6.50% to 14.83%. Variable interest rates range from 6.32% to 14.83%.
The minimum credit criteria is the mid-600s.
See disclosures.

Other College Financing Options

If you are unable to qualify for a parent loan due to your credit score, there are other options to consider:

Consider Scholarships and Grants

One of the first options your child should look into before loans are scholarships and grants. These are great because they provide money to cover educational expenses and don’t have to be paid back. You can find these opportunities through the FAFSA, your child’s college, and looking on scholarship sites. 

>> MORE: Different types of financial aid for college

Cosign Your Child’s Student Loan

Another option you have is to cosign your child’s loan. If you are unable to take out a private loan yourself, you can have your child take out a loan with you as a cosigner. That way, you are still helping and contributing to their college costs, but you don’t have to take out a loan on your own. 

Have Your Child Borrow the Loan By Themself

In cases where you can’t cosign a loan with them, talk to your child about borrowing the loan on their own. Let them know you’ll be there to guide them throughout this process so they still feel your support. 

Work on Raising Your Credit Score

Of course, in the long run, raising your credit score is a move that will benefit you immensely. Start by checking your credit report to see what’s bringing it down and work on those weak points. You’ll also want to make payments on time, pay off old debt, and lower the amount of credit that you use. It takes time but, eventually, you’ll start to see a difference. 

>> MORE: How to improve your credit score

Final Thoughts from the Nest 

You have many options to help you cover your child’s education costs, even if you have bad credit. There are many great student loans for parents with bad credit.

Sparrow can help you find them. By filling out the Sparrow application, you’ll be matched to what parent loans you qualify for from our partnering lenders. You can even compare each student loan option side-by-side so you’re confident in your decision. Our goal is to help you find the best loan for you and your child to help maximize their college experience. 

Sparrow’s goal is to give you the tools and confidence you need to improve your finances. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

Interest rates shown in this article may include a 0.25% auto-debt interest rate reduction.

College is on the horizon and you’ve never felt more excited. You’ve already got plans for what you’ll do to your dorm and what classes you’re going to take. But there’s just one little problem: student loans. You know you might need to take out some student loans for college, but you just don’t know if you should. And if you did decide to get student loans, you wouldn’t know where to start. Sound familiar? 

If you’ve ever thought “what is a student loan?,” here’s what you need to know. 

What Is a Student Loan? 

A student loan is a form of financial aid where you borrow money for college from a lender with the expectation that it’s going to be paid back. There are two main types of student loans you need to know about — federal and private.

Federal Student Loans 

Federal student loans are issued by the federal government. There are four basic types of federal loans that you can get.

1. Direct Subsidized Loans are for eligible undergraduate students who have financial need.
2. Direct Unsubsidized Loans are available for undergraduate, graduate, and professional students.
3. Direct PLUS Loans are available to graduate or professional students and parents of students.
4. Direct Consolidation Loans let you combine your federal loans into one.

Because these are all part of a federal student aid program, you can find the applications on the Federal Student Aid website. To apply for Direct Subsidized and Unsubsidized Loans, fill out the FAFSA. This application will also determine if you have any financial need based on factors like your annual income or your income level. To apply for Direct PLUS and Direct Consolidation loans, complete their individual applications. 

Private Student Loans 

Private student loans are issued by private lenders such as banks, credit unions, and financial institutions. To be eligible for private student loans, you must have at least a strong credit score and a steady income. Additionally, each lender will also have their own set of requirements that you’ll have to meet. Be sure to talk to lenders about their qualifications. You’ll also want to ask them about their application since each private loan will have its own application process. 

How Do Student Loans Work? 

The basic idea of student loans is that, unlike with scholarships and grants, you are borrowing the money which will have to be paid back over time with interest. Calculated as a percentage of your loan amount, student loan interest is essentially the cost of borrowing student loans. It’s what lenders will get for letting you borrow their money.

The amount you pay in interest will depend on a variety of factors such as your interest rate, your loan amount, and the length of your loan term. Generally speaking, the higher your interest rate and the longer your loan term, the more you will pay over the life of the loan. Take a look at the table below to get a better idea of this. 

	Loan #1	Loan #2	Loan #3
Loan Amount	$10,000	$10,000	$10,000
Interest Rate	5%	3%	5%
Loan Term	10 years	10 years	5 years
Total Interest	$2,727.86	$1,587.29	$1,322.74

Notice how although all the loans have the same loan amount, the differences in their interest rates and loan terms impact how much total interest is paid. Both Loan #1 and Loan #2 have a loan term of 10 years but two different interest rates. The difference in those interest rates results in saving nearly $1,200 with Loan #2. Similarly, Loan #1 and Loan #3 have the same interest rates but different loan terms. This time the difference results in about $1,400 in savings. 

Even the smallest changes to your loan term or interest rate can have an impact on how much you’ll pay over the life of the loan. 

Why Do Students Get Student Loans? 

Student loans are a great resource to help fill in the gaps in paying for college. Because the cost of college is getting so high, students often don’t have the money to pay for it out of pocket. So, they’ll resort to financial aid like scholarships, grants, and loans. 

Do You Have to Pay Back Loans? 

Yes. The money is borrowed, which means it has to be paid back. You’ll do this by making monthly loan payments over a period of time. There are different repayment plans available to federal and private student loans. The exact repayment plan you should get will depend on your financial situation and what you think is best for you. 

Federal Student Loan Repayment Options

There are four different types of repayment plans for federal student loans: 

Standard Repayment Plan 

• Higher monthly payments based on loan amount 
• Repayment period over 10 years 
• Pay less interest over time 

Income-Driven Repayment Plans 

• Four different types of IDR repayment plans 
• Monthly payment is 10-20% of your discretionary income 
• Repayment period is between 20-25 years 

Graduated Repayment Plan 

• Monthly payments start out low and gradually increase over repayment term 
• Repayment period is 10 years 
• Can be difficult if your future income doesn’t grow as expected 

Extended Repayment Plan 

• Lower monthly payment compared to other plans 
• Repayment period is extended to 25 years 
• Pay more interest over time 

Private Student Loan Repayment Options 

The private student loan repayment options available to you will depend on what your private lender offers. That said, there are four standard plans that you’ll typically hear about: 

Immediate Repayment 

• Start repayment as soon as the loan is disbursed 
• Must make full payments even while in school (monthly loan payment + monthly interest payment) 

Interest-Only Repayment 

• Start repayment as soon as the loan is disbursed 
• Only make full interest payments while in school 

Partial Repayment 

• Start repayment as soon as the loan is disbursed 
• Only make partial interest payments while in school 

Deferred Repayment 

• Start repayment after grace period ends, usually 6 months after graduation 
• Must make full payments (monthly loan payment + monthly interest payment) 

Is a Student Loan a Good Idea? 

Student loans are a great form of aid that can help college students afford an education that would otherwise be challenging to pay for. But, it’s important to be realistic. Keep in mind that you’re borrowing money you will pay back with interest, so only take out what you need, and have an idea of how you’ll pay it back. Also, do your research on loans and how they work to help you stay ahead. As long as you do these things, you can keep your loans from becoming the ghost that haunts you at night. 

Final Thoughts from the Nest 

Student loans are a great resource to help pay for college as long as you are mindful about how you use them. Think about what kind of loan you want, how much money you need, and how you’ll start repayment. 
Don’t forget that Sparrow is here to help. The Sparrow application can match you with what private student loans you qualify for with any of our 15+ partnering lenders. Sign up to get started now.

As a college student, you’ll no doubt hear about the massive rise in the average student loan debt. Rightfully so, you might get scared and overwhelmed at the idea of incurring a lot of debt. However, the amount of debt you’ll incur is based on factors like the type of loan you take out, the program you’re in, the type of school you go to, and more. Let’s explore these factors further and take a look at the debt averages.  

Average Student Loan Debt Overall 

First off, let’s get a quick overview of the average student loan debt here in the U.S. On average, according to a report done by the Education Data Initiative, graduates with student loans have a debt of about $37k. And, collectively, that adds up to trillions of dollars in student debt.

Average Student Debt	$37,693
Average Student Monthly Payment	$393
Total Student Loan Debt	$1.75 trillion
Number of Student Loan Borrowers	45.3 million borrowers

Average Student Loan Monthly Payment 

Next, let’s talk about monthly payments. Your monthly student loan payment is where you’ll feel the weight of your debt the most. But, there are different factors that go into calculating your payment, such as the length of the loan term, the principal amount, and your repayment plan. To give you an idea of how much money you’re looking at, here is the data on monthly payments.

Average Monthly Student Loan Payment	$393
Median Monthly Student Loan Payment	$250

Average Student Loan Debt: Federal vs Private 

Now, let’s get more into it. Your student debt will be affected by the types of loans you take out. The two biggest loan types are federal student loans and private student loans. Recently, private student loan debt has grown much faster than federal loan debt. The data here shows a difference of about $18,000 between the two.

Average Federal Student Loan Debt	$36,510
Average Private Student Loan Debt	$54,921

Average Student Loan Debt by State 

You’ll also want to think about where you’ll go to school. Most states’ student debt average falls in the $30,000-40,000 range. There are a few outliers, however. The District of Columbia, Georgia, and Maryland all have average debts higher than $40,000. Meanwhile, North Dakota and Puerto Rico have averages under $30,000.

Alabama	$36,826
Alaska	$33,083
Arizona	$35,047
Arkansas	$33,113
California	$36,351
Colorado	$36,610
Connecticut	$34,677
Delaware	$37,221
District of Columbia	$54,983
Florida	$38,160
Georgia	$41,256
Hawaii	$35,803
Idaho	$32,425
Illinois	$37,460
Iowa	$30,381
Kansas	$32,352
Kentucky	$32,622
Louisiana	$34,165
Maine	$32,543
Maryland	$42,592
Massachusetts	$34,075
Michigan	$34,819
Minnesota	$33,252
Mississippi	$36,508
Missouri	$35,260
Montana	$32,626
Nebraska	$31,726
Nevada	$33,573
New Hampshire	$33,459
New Jersey	$35,095
New Mexico	$33,632
New York	$37,639
North Carolina	$37,217
North Dakota	$28,402
Ohio	$34,496
Oklahoma	$31,376
Oregon	$36,988
Pennsylvania	$35,205
Puerto Rico	$26,918
Rhode Island	$31,954
South Carolina	$38,063
South Dakota	$30,946
Tennessee	$36,035
Texas	$32,671
Utah	$32,150
Vermont	$37,284
Virginia	$38,903
Washington	$35,117
West Virginia	$31,532
Wisconsin	$31,766
Wyoming	$30,476

Average Student Loan Debt by School Type 

The type of school you attend will also contribute to how much debt you’ll have. Usually, public colleges are cheaper than private ones. Similarly, for-profit colleges are cheaper than non-profit schools. 

Public Institution	$26,382
Private, Non-Profit Institution	$37,971
Private, For-Profit Institution	$21,244
Foreign Institution	$90,500

Average Student Loan Debt by Degree

Different college degrees are going to cost you different amounts of money. Generally, the longer you have to be in school to get that degree, the more it’ll cost you. As you can see in the table below, the higher you go in your degree, the more money you’ll need. 

Bachelor’s Degree	$28,400
Master’s Degree	$71,318
Doctorate, Research	$117,198
Law Degree	$157,315
Doctorate, Professional	$210,736
Medical Degree	$265,996

Final Thoughts from the Nest

While a college education can get expensive and leave you with a lot of debt, many factors go into it. Knowing these factors will help you make a good decision about where you should go to school. 

Either way, debt can be hard to manage. So, you want to get good loans right off the bat. Sparrow can help with that. Sparrow partners with 15+ lenders that offer great private student loans. Fill out our Sparrow application to get matched with what you qualify for at each of these lenders. Let us take some of the weight so you can focus on getting your school diploma. 

*All data sourced from EducationData.

There’s no doubt that college can get expensive, and a lot of times you may need a student loan to pay for it. But what if you’re denied a loan? Here’s what you can do. 

Why You’re Getting Denied a Student Loan 

There are many different reasons why your student loan applications might be getting denied. It’s important to know what they are and why you got denied. That way, you can take steps to fix it so it doesn’t happen again. Here are some of the reasons you might get denied a student loan. 

You Don’t Meet the Credit Requirements 

Most private lenders have a credit requirement. They need to know that you’re trustworthy enough to pay back the loan, and your credit score is how they determine that. Not meeting the minimum credit score requirement makes you risky to lenders and a lot more likely to get denied a student loan. 

You’ve Already Reached Your Borrowing Limit 

Private lenders will have their own borrowing limits, often dependent on your school’s cost of attendance. These amounts are what institutions believe to be the amount you’ll need for college. If you’ve already borrowed either the lender’s limit or the total of your school’s cost of attendance, lenders may deny your loan application requesting more.  

You Don’t Meet the Basic Eligibility Requirements 

There are other requirements lenders will look at such as meeting a minimum income, your debt-to-income ratio, your employment and income history, and your future earning potential. All these, in one way or another, relate to your ability to pay back the loan. If you fall short on any of these according to the lender’s requirements, they may deem you too risky to give money.  

What to Do If You’re Denied a Student Loan 

Being denied a student loan can make you feel like there’s nothing left that you can do. But that’s not true. There are certain steps you can take to help your situation, even if you’ve been denied a loan. The following is a list of actions you can take that’ll help you. 

#1: Submit An Appeal 

If you were denied but now believe you would be eligible due to extenuating circumstances or incorrect information, you can appeal the decision. This is true for both federal and private student loans. In general, you’ll need to provide a written statement explaining your situation with evidence backing up your claim. Because each private lender is a unique entity, they each may have a unique appeal process, so be sure to check with them directly. 

#2: Consider Adding a Creditworthy Cosigner

A lot of lenders require you to meet a minimum credit score. If you don’t meet that credit score, consider adding a cosigner. A cosigner is someone who signs onto the loan, taking legal responsibility for the loan alongside you. A good cosigner is someone with a good financial history and someone you can trust. Typically, a cosigner is a parent or a family member, but, in reality, they can be anyone, including friends, so long as they are able and willing. Even if you don’t need a cosigner, it’s still a good idea to get one because they can help you secure better loan terms. 

#3: Check Your Credit Report 

You’ll also want to check your credit report to see why you have a bad credit history and what you can do to fix it. Go to the Annual Credit Report website where you can get a free credit report. These reports provide a detailed overview of your credit history. You can see where you fall short and take steps to fix it. This will raise your credit score and make it easier to apply for loans in the future. Even paying your bills on time can raise your credit score in as little as six months. 

#4: Apply for More Scholarships and Grants 

Loans aren’t the only source of funding you can use for a college education. You can also apply for college scholarships and grants. Since they are free money, you’ll never have to pay them back, making them a great help in covering the costs of college. You’ll want to apply to as many scholarships and grants, small and large, as you can to help your chances of winning.

#5: Find a Job That Offers Tuition Assistance 

There are many different jobs out there that offer to pay for part or all of your school tuition if you work for them. The steady income you’ll get can help take care of college expenses. You might even have extra income left over to cover other things. This is great because not only do you get work experience but you’re, in essence, getting paid to go to school. 

#6: Consider Community College 

Community college is also another great option if you’re denied a student loan because it’s often more affordable than traditional 4-year schools. In some cases, you may not pay anything because your aid covers all the college costs. Or, you will more easily be approved for loans because you’re asking for a lesser amount. Community colleges also have a lot of different programs that might interest you. This includes partnering with 4-year schools and having their own bachelor’s programs. 

#7: Look Into Loan Options with Flexible Eligibility Criteria 

There are lenders who offer bad credit loans or have more flexible eligibility criteria. While you can look for them online one-by-one, you can use Sparrow instead to save both time and money. Sparrow partners with lenders who offer these types of loans. That way more students can take advantage of them. Just fill out the Sparrow application to see what rates you can get. 

Final Thoughts from the Nest 

In some ways, being denied student loans can feel like the end of the world. But don’t worry. There are still plenty of things you can do. And we, here at Sparrow, have got your back. Sign up with us to apply for new loans and take some of the measures we’ve listed above. The important thing is to not give up. Trust us, you will make it to college. 

The average dental student’s debt is around $300,000. While this can be overwhelming, it doesn’t have to be. You can minimize your debt by making educated loan decisions and choosing the right loans for you. Let’s get into it. 

Can I Get Loans for Dental School? 

Yes. The two main loans you’ll hear about are federal student loans and private student loans. Both can be a great help in paying for your dental education.

Federal Loans

With federal loans, you can get Direct Unsubsidized Loans or Direct PLUS Loans. The maximum loan amount you can borrow with Direct Unsubsidized Loans is $20,500 per year with a lifetime limit of $138,500. With Direct PLUS Loans, the maximum amount you can take out is the cost of attendance minus other aid.

Private Loans

Private student loan borrowing limits will vary more. But, you can typically get up to the cost of attendance minus other aid. 

Do You Need a Cosigner for Dental School Student Loans? 

It depends. For federal student loans, you usually won’t need a cosigner. The only instance where you might need one is with PLUS Loans. To qualify for a PLUS Loan, you need to pass an adverse credit check. If you fail that, you will need a cosigner to go forward. 

Private student loans are where you’ll most often see a cosigner requirement. Lenders set certain requirements that if you don’t meet, then you’ll need a cosigner who does. The specifics of the requirements vary from lender to lender. The biggest one is the credit score requirement. Make sure either you or a cosigner have good to excellent credit. This is a score that is at least in the high 600s. 

It’s important to note that a cosigner does more than just help you qualify for a loan. Cosigners can also help get you better terms or a lower interest rate. This can lower your monthly payments and make your loan more manageable. 

How to Reduce Your Dental School Debt 

First, look for scholarships and grants. This is free money that you won’t have to pay back. Plus, the more of these you get, the less you have to take out in loans. Once you get to loans, consider taking out some federal student loans. These are great because they come with lots of federal benefits such as flexible repayment plans, a grace period, and possible loan forgiveness. Finally, you’ll want to look at private student loans. As you search, carefully review the terms of each loan. The terms include interest rates, fees, and periods of deferment among other things. You might even be able to get a lower interest rate than on your federal student loans. 

Use Sparrow to help you look for good private student loans. Fill out our online application to match you with what you qualify for at 15+ lenders. Then, save and compare the ones you liked the most before making a final decision. 

Our Picks for Dental School Student Loans 

Here is a list of lenders that give out great dental school loans: 

Arkansas Student Loan Authority

The Arkansas Student Loan Authority (ASLA) is an Arkansas state entity that provides educational funding for all Arkansas students who wish to attend higher education institutions. ASLA is a great option for Arkansas students.

Ascent – Cosigned Loans & Non-Cosigned Loans

Ascent is an online lender that offers educational funding for students. They offer three types of student loans: a traditional cosigned loan, a non-cosigned credit-based loan, and a non-cosigned outcomes-based loan. Collectively, the three options provide a great selection for those who do not have a cosigner available, are international or DACA students, or have lower credit scores.

Brazos

Brazos is a non-profit lender offering educational funding through private student loans available only to Texas Residents. They offer a wide range of loan options, covering undergraduate, graduate, MBA, law, medical, dental, veterinary, and doctoral degree programs. Brazos is a great option if you live in Texas, have strong credit, and want competitive interest rates.

College Ave Student Loans

College Ave’s student loan offers educational funding for undergraduate, graduate, professional, and career school students, and parents of students. It’s a great option if you are seeking a more flexible repayment term that allows you to find a loan that matches your budget.

Earnest

Earnest’s student loans provide funding that’s available to undergraduate, graduate, and professional students. They’re a great option if you are seeking competitive interest rates, unique borrower perks, and flexible repayment options that allow you to find a loan that matches your budget.

LendKey

LendKey is an institution that offers educational funding to undergraduate and graduate students. By connecting borrowers with a network of 100+ lesser-known credit unions and community banks, LendKey allows you to work with smaller lenders with low rates and good customer service, rather than traditional lending institutions. It’s best for students with strong credit and who want generous cosigner release and forbearance policies.

MPOWER

MPOWER is an online lender that offers educational funding to international, domestic, and DACA students. They offer non-cosigned undergraduate and graduate student loans. It is best for international students and DACA students who don’t have a credit history and can’t access a qualified cosigner. 

Prodigy Finance

Prodigy Finance is an online lender that provides funding to international students. They offer non-cosigned graduate student loans. They’re a good option for international students who don’t have a credit history and can’t access a qualified cosigner. 

Sallie Mae

Sallie Mae is an online lender that provides educational funding to students. They offer cosigned and non-cosigned undergraduate, graduate, and career training student loans. They’re a good option for students seeking competitive interest rates with a creditworthy cosigner. 

SoFi

SoFi offers educational funding to undergraduate, graduate, law, and MBA students, and parents of students. With competitive interest rates, a diverse set of repayment options, and exclusive member benefits, SoFi is a good fit for borrowers with a strong credit score or a creditworthy cosigner.

Final Thoughts from the Nest 

School debt can be overwhelming. Getting the right aid and loans, however, can lower it and make it more controllable. So, when you begin your career in the dental field, you can feel at ease knowing your student debt is under control.

Sparrow’s goal is to give you the tools and confidence you need to improve your finances. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

The average lawyer earns about $148,000 per year. But the average law school debt is $160,000. It is important, then, that you understand law school loans and get the best ones. That way, when you graduate, your loans will be more manageable. 

Student Loan Options for Law School 

You have two main options when it comes to student loans: federal and private. 

To be eligible for federal student loans you must fill out the FAFSA. Law students are eligible for two types of federal loans, Direct Unsubsidized and PLUS Loans. With Direct Unsubsidized Loans, you can take out $20,500 per year. The lifetime total is $138,500. With Direct PLUS Loans, you can take out the cost of attendance minus other aid you’ve received. You will need to pass an adverse credit check to be eligible for a Direct PLUS loan. 

You can also take out private student loans. The loan amounts you can get will be dependent on each lender, but you can typically get up to the cost of attendance minus other aid. To be eligible to borrow, you’ll need to meet certain qualifications, which will vary with each lender. However, you’ll at least need to make sure you have a good credit score, or have a cosigner with a good credit score. This can help you secure a lower interest rate. Some lenders may also offer a lower interest rate to borrowers who sign up for autopay. 

No matter what type of loan you get, you can use the money to pay expenses related to your law degree. You can pay for education expenses like tuition, books, and other supplies you may need or living expenses like room and board and more personal things. Some private student loans will even cover bar exam expenses including the actual cost of the test as well as a prep course and lodging for the exam. 

Do You Have to Pay Back Student Loans While in Law School? 

It depends. With federal loans, you can typically defer until after you graduate. You’ll even get a grace period of six months before you have to start making payments. With private lenders, you may not be able to wait as long. You should talk with your lender to see what deferment options are available to you. You’ll also want to ask if they offer grace periods. 

Once you know when your repayment period starts, ask about repayment plans. Federal student loans tend to have more flexible repayment options such as income-driven repayment and graduated repayment. Income-driven repayment bases your monthly payment on a percentage of your income. So, you’ll never pay more than what you could reasonably afford. Graduated repayment extends the repayment term to 25 years, which lowers your monthly payment. And these are just some. While typically not as flexible, private lenders may offer similar support in the form of deferred repayment plans and hardship plans. Deferred repayment plans allow you to postpone making payments on your loans while in school, however, interest will accrue in the meantime. You should talk with your lender for more information on your repayment options. 

How to Minimize Law School Debt 

Generally, when trying to minimize school debt, start with scholarships and grants. Then, federal student loans. Finally, private student loans. 

Scholarships and grants should always be your first options. It’s free money that you receive and don’t have to pay back. It’s a great way to fund your education worry-free. As a bonus, it’ll lessen the load on how much you have to take out in loans. 

Once you’re ready to start looking for loans, first explore federal loan options. In general, federal student loans tend to have lower interest rates and better terms. Additionally, federal student loans have the potential to be forgiven, which private student loans do not. 

If you still need more money after that, then explore private loan options. With private loans, especially, take time to review the terms of each loan carefully. You can even use Sparrow to help you do that. Fill out the Sparrow application to get matched with what you qualify for at top lenders. Then, save and compare your favorite ones before making a final decision. 

Our Picks for Law School Student Loans 

Here are our best picks for law school loans that you can start with. 

Arkansas Student Loan Authority

The Arkansas Student Loan Authority (ASLA) is an Arkansas state entity that provides educational funding for all Arkansas students who wish to attend higher education institutions. ASLA is a great option for Arkansas students.

Ascent – Cosigned Loans & Non-Cosigned Loans

Ascent is an online lender that offers educational funding for students. They offer three types of student loans: a traditional cosigned loan, a non-cosigned credit-based loan, and a non-cosigned outcomes-based loan. Collectively, the three options provide a great selection for those who do not have a cosigner available, are international or DACA students, or have lower credit scores.

Brazos

Brazos is a non-profit lender offering educational funding through private student loans available only to Texas Residents. They offer a wide range of loan options, covering undergraduate, graduate, MBA, law, medical, dental, veterinary, and doctoral degree programs. Brazos is a great option if you live in Texas, have strong credit, and want competitive interest rates.

College Ave Student Loans

College Ave Student Loans offers educational funding for undergraduate, graduate, professional, and career school students, and parents of students. It’s a great option if you are seeking a more flexible repayment term that allows you to find a loan that matches your budget.

Earnest

Earnest’s student loans provide funding to undergraduate, graduate, and professional students. They’re a great option if you are seeking competitive interest rates, unique borrower perks, and flexible repayment options that allow you to find a loan that matches your budget.

LendKey

LendKey is an institution that offers educational funding to undergraduate and graduate students. By connecting borrowers with a network of 100+ lesser-known credit unions and community banks, LendKey allows you to work with smaller lenders with low rates and good customer service, rather than traditional lending institutions. It’s best for students with strong credit who want generous cosigner release and forbearance policies.

MPOWER

MPOWER is an online lender that offers educational funding to international, domestic, and DACA students. They offer non-cosigned undergraduate and graduate student loans. It is best for international students and DACA students who don’t have a credit history and can’t access a qualified cosigner. 

Prodigy Finance

Prodigy Finance is an online lender that provides funding to international students. They offer non-cosigned graduate student loans. They’re a good option for international students who don’t have a credit history and can’t access a qualified cosigner. 

Sallie Mae

Sallie Mae is an online lender that provides educational funding to students. They offer cosigned and non-cosigned undergraduate, graduate, and career training student loans. They’re a good option for students seeking competitive interest rates with a creditworthy cosigner. 

SoFi

SoFi offers educational funding to undergraduate, graduate, law, and MBA students, and parents of students. With competitive interest rates, a diverse set of repayment options, and exclusive member benefits, SoFi is a good fit for borrowers with a strong credit score or a creditworthy cosigner.

Final Thoughts from the Nest 

Law school can be challenging, but paying for it doesn’t have to be. Securing free aid first through scholarships and grants can help ease the financial burden of law school. Then, use this article to help you navigate loans. Get federal student loans first and use Sparrow to help you look for private ones. That way you can focus more on succeeding at law school. 

Sparrow’s goal is to give you the tools and confidence you need to improve your finances. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

Medical school is really expensive. That’s why so many students opt to get student loans. Before you start applying though, let’s go over some things you need to know about medical school loans. 

How Do Medical School Loans Work? 

With medical school loans, you can take out a lot more than you’re probably used to. 

Federal Direct Unsubsidized loans, for example, can lend up to $20,500 per year. Overall, the total amount you can borrow is $138,500.

Federal Grad PLUS Loans can lend you the cost of attendance minus other aid you’ve received. 

Private student loan amounts will differ. It’ll all depend on the lender as well as your finances. 

You can use all this money to pay for tuition, books, room and board, application or test fees, and other similar costs. 

What Makes a Medical School Loan Good? 

Now let’s go into what you should look at when figuring out which loans are best for you.

Cosigner vs No Cosigner 

A cosigner is someone who takes on the legal and financial responsibility of the loan along with you. If you fail to make a payment, then it’s up to them to do so. A creditworthy cosigner can help bring down your interest rate and get you better terms. 

Federal student loans don’t usually need a cosigner. The only instance where you may need one is if you fail the adverse credit history check for Grad PLUS loans. Otherwise, you’re good. But, you may need a cosigner to qualify for private student loans. There are non-cosigned private student loan options, but they tend to have higher interest rates than cosigned private loans.

So, before borrowing loans, look for a qualified cosigner and check the cosigner policies. 

Interest Rate 

Federal student loans have fixed interest rates that don’t change. They usually range anywhere from 3% to 5% depending on the type of loan you are getting. Private loan interest rates vary more. They can go between less than 1% all the way up to 13%+. 

There are some things you can do that can maximize your chances of getting a lower rate. Having good credit, having a cosigner, and opting for an autopay discount are some. 

Compare interest rates on different loans carefully before accepting any. 

Repayment Terms 

You want to take a careful look at the terms to make sure you understand and agree with them. For example, most medical school loans will offer grace periods. Federal student loans have a grace period of six months after you graduate, but with private loans, it can vary. You’ll also want to look at the deferment period, which depends on the lender. Some may even offer residency deferment options. Finally, look at the repayment plans. Federal student loans offer income-driven repayment plans while private lenders may offer hardship plans. 

Again, be sure to read the repayment options and make sure that they are in line with what you need or want for repayment. 

Our Picks for Medical School Loans 

Federal student loans come from the government. But private lenders can range. These are our best picks for private medical school loans. 

Arkansas Student Loan Authority

The Arkansas Student Loan Authority (ASLA) is an Arkansas state entity that provides educational funding for all Arkansas students who wish to attend higher education institutions. ASLA is a great option for Arkansas students.

Ascent – Cosigned Loans & Non-Cosigned Loans

Ascent is an online lender that offers educational funding for students. They offer three types of student loans: a traditional cosigned loan, a non-cosigned credit-based loan, and a non-cosigned outcomes-based loan. Ascent is a great option for those who do not have a cosigner available, are international or DACA students, or have lower credit scores.

College Ave Student Loans

College Ave’s student loan offers educational funding for undergraduates, graduate students, professional school students, career school students, and parents of students. It’s a great option for students seeking a more flexible repayment term that allows them to find a loan that matches their budget.

Earnest

Earnest’s student loans provide funding that’s available to undergraduate, graduate, and professional students. They’re a great option if you are seeking competitive interest rates, unique borrower perks, and flexible repayment options that allow you to find a loan that matches your budget.

LendKey

LendKey is an institution that offers educational funding to undergraduate and graduate students. By connecting borrowers with a network of 100+ lesser-known credit unions and community banks, LendKey allows you to work with smaller lenders with low rates and good customer service, rather than traditional lending institutions. It’s best for students with strong credit and who want generous cosigner release and forbearance policies.

MPOWER

MPOWER is an online lender that offers educational funding to international, domestic, and DACA students. They offer non-cosigned undergraduate and graduate student loans. It is best for international students and DACA students who don’t have a credit history and can’t access a qualified cosigner. 

Prodigy Finance

Prodigy Finance is an online lender that provides funding to international students. They offer non-cosigned graduate student loans. They’re a great option for international students who don’t have a credit history and can’t access a qualified cosigner. 

Sallie Mae

Sallie Mae is an online lender that provides educational funding to students. They offer cosigned and non-cosigned undergraduate, graduate, and career training student loans. They’re a good option for students seeking competitive interest rates with a creditworthy cosigner. 

SoFi

SoFi offers educational funding to undergraduates, graduates, law and MBA students, and parents of students. With competitive interest rates, a diverse set of repayment options, and exclusive member benefits, SoFi is a good fit for borrowers with a strong credit score or a creditworthy cosigner.

How to Apply for Medical School Loans 

To apply for a federal student loan, fill out the FAFSA as soon as it comes out in October for every year you’ll be in school. 

To apply for a private student loan: 

1. Check your eligibility with the Sparrow application. You’ll need to meet these basic requirements: 
   1. Be a U.S. citizen, permanent resident, or eligible noncitizen 
   2. Be enrolled in a school 
   3. Meet credit and income requirements 
2. Compare your student loan options. Before you accept any, compare your loan options, their terms, and interest rates. From there, you can use this information to make a final decision.
3. Submit a formal application with the lender, then wait to hear back. It takes time for lenders to verify information and make a decision. Typically, it takes at least a couple of weeks, but it can take longer. 
4. Make sure that the funds get disbursed. Most lenders send the money to your school, so you should always check with them to see if it all went through. 

Final Thoughts from the Nest 

As you start your medical career, we want to make sure that you have everything you need to succeed. That includes being well informed on loans. To make the student loan search process easier, start with Sparrow.

Sparrow’s goal is to give you the tools and confidence you need to improve your finances. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

First off, congratulations on graduate school! That’s an amazing accomplishment. Getting accepted to graduate school might mean having to go through the loan process. Again.

Now, they’re graduate student loans, which can sound more intimidating. The good news is they don’t have to be. The better news? This article will help you on the topic of graduate student loans. So, let’s get into it. 

What Is A Graduate Student Loan? 

A graduate student loan is a type of loan that pays for school expenses that go with a graduate degree program. Usually, you can get a lot more money with graduate loans than you would with undergraduate loans. That’s definitely a perk. On the flip side, most graduate loans will require a credit check of some kind, regardless of the type of loan. No matter the type of loan you decide on, it’s important to secure free aid like scholarships and grants first. It’ll help you out a lot in the long run. 

Now, there are two basic types of graduate loans that you can get. 

Federal Graduate Loans 

Federal student loans are a great source of loan money for many reasons. For one, you’ll get benefits like flexible repayment options and possible loan forgiveness. Additionally, you’ll also get a six-month grace period after you graduate.

There are federal student loans for any kind of student, including graduate students. The two types of federal loans you’ll be able to get as a graduate student are Direct Unsubsidized Loans and Direct PLUS Loans. 

Direct Unsubsidized Loans are available to undergraduate, graduate, and professional students. There is no need to prove financial need. As long as you are enrolled in a school or program at least half time, then you are eligible to receive this. The most amount of money you can borrow each year as a graduate or professional student is $20,500. The interest rate, as of April 2022, is 5.28%. 

Direct PLUS Loans are available to graduate or professional students. They’re also available to parents of dependent, undergraduate students. As a grad student, you’d be getting a grad PLUS loan. There is a credit check for this type of federal loan, but it’s only to check for adverse credit history. An adverse credit means things like bankruptcy, delinquent accounts, and defaults. As long as you don’t have any of that, you’re good. If you do have an adverse credit history, you’ll probably need to add a cosigner to qualify. The most that you can borrow with your grad PLUS loan is the cost of attendance minus other aid received. The interest rate, as of April 2022, is 6.28%. 

Private Graduate Loans 

There are many lenders that offer student loans for graduate students. Like undergraduate private loans, each lender will have their own terms. So, it’s important to look around and inform yourself of the terms of each loan option.

You’ll want to pay close attention to aspects such as the repayment terms, interest rates, and fees. Always ask lenders if they offer borrower protections or loan perks such as an autopay discount. An autopay discount might lower your interest rate if you sign up for auto payments.  

Because private lenders give out the money, there will be a lot more requirements. Some factors considered are your credit score, current income, and potential future earnings. Your current income, especially, may play a big role. You may have to start repayment as soon as it’s disbursed, which is when you’re in school. So, you want to make sure that you afford it. 

The maximum amount you can borrow depends on each lender. Generally, you want to only borrow any remaining cost you have after accepting other forms of aid. And, always be conscious of how much you are borrowing. Remember that while borrowing $10,000 for one year may not seem like a ton, you will likely need to borrow following years as well. Make sure you are thinking of your overall debt, not just the amount you’re borrowing each individual year. 

How to Apply for Graduate Student Loans 

Each type of graduate loan has a different process when it comes to applying. For federal student loans, you have to fill out the FAFSA. Fill it out as soon as it’s available on October 1st. The earlier you fill it out, the better your chances are of getting money. The FAFSA alone is enough to apply for Federal Direct Unsubsidized Loans. Federal Direct PLUS Loans, on the other hand, require an extra application. Check with your school for the application and information on eligibility requirements. 

Now, for private student loans, you’ll generally have to apply with each lender individually. I know. I know. It’s a lot of work. Lucky for you, Sparrow helps make this process easier. With Sparrow, you can fill out a single application. This will match you to what loans you qualify for at 15+ top lenders. Save the ones you like and compare them before deciding. Using Sparrow will save you a lot of time, money, and sanity. All you have to do to get started is create a free account. 

Final Thoughts from the Nest 

This phase of your educational career is no doubt exciting and stressful all at the same time. Let us help you by providing guides such as these and making the loan searching process easier. Take a deep breath, create an account, and let some of the weight fall off your shoulders.

Qualifying for student loans on your own is already hard because chances are you have too limited of a financial history. Now, imagine that you don’t have a cosigner to help with that. It’s even harder. Let’s go through how to find the best student loan for people without a cosigner:

What Is A Cosigner? 

Before getting into it, let’s define what a cosigner is and who that can be. A cosigner is someone who agrees to be legally and financially responsible for the loan, just like you. In the event that you can’t make your monthly payment, your cosigner will have to handle it. That’s why it’s important for your cosigner to be someone you can trust and who has good finances. This means having a good credit score and a steady income. They don’t even have to be a parent or family member. Your cosigner can be a friend or someone else you trust. 

But if you’re reading this, chances are you weren’t able to find someone who is both willing and able to be a cosigner for you. In that case, you want to look for non-cosigned student loans. 

>> MORE: What is a private student loan cosigner?

Can You Get A Student Loan Without A Cosigner? 

Yes! You can get both federal student loans and private student loans without a cosigner. Let’s do a quick overview of how you can do so with each. 

Federal Student Loans 

Most federal loans don’t require a cosigner, so they’re a great option if you don’t have one. Most students need a cosigner because they usually don’t meet the minimum credit score. However, federal student loans don’t look at your credit score. So, there’s not much need for a cosigner in most cases. Normally, as long as you’re enrolled in college and have filled out the FAFSA, you’ll be eligible. An exception to this is the Direct PLUS Loan. To receive a Direct PLUS Loan, they’ll run a credit check for adverse credit history. If you do have an adverse credit history, you’ll need a cosigner to qualify.

There are loans for undergraduate students, graduate students, professional students, and parents of students. They all have their own predetermined, fixed interest rates and loan limits. Federal student loans are especially helpful because they come with benefits. Some of the most notable benefits are flexible repayment plans and loan forgiveness programs. Each loan also comes with a grace period of about six months before you start repayment. Repayment usually starts after graduation.

>> MORE: FAFSA requirements: Everything you need to know

Private Student Loans 

You can get a private student loan without a cosigner, but it can be a bit harder. There are two ways of doing this. The first is qualifying for a loan by yourself. Because lenders are funding part of your education, they need to be sure that you are a good investment. They do this by setting certain criteria borrowers have to meet. As long as you meet all the eligibility requirements, you won’t need a cosigner. To do this, make sure you have a good credit score. It needs to be at least in the high 600s. Also, verify that you have enough income to support your current lifestyle plus the monthly payment. There are other requirements that will vary from lender to lender. You’ll need to inform yourself of this. But, having good credit and a steady income is a good place to start.

>> MORE: What credit score is needed for a student loan?

If you are in a position where you think you can qualify on your own, then great! The problem is that’s not everyone. The good news is there are financial institutions that offer non-cosigned student loans. These will also have certain requirements set forth by lenders. They may be easier to meet, so you’ll have a better chance of qualifying. Yet, these loans do tend to have higher interest rates than other private student loans. 

With all private student loans, the terms are going to be different depending on the lender. Typically, though, they’ll have higher interest rates than federal student loans. Private student loans may have less flexible repayment options or borrower protections. Before agreeing to accept a loan, make sure you know the: 

• Interest rate and whether it’s fixed or variable 
• Repayment terms and options 
• Length of the loan 
• Grace period (if any) 
• Borrower protections (if any)
• Benefits (if any) 
• Fees and penalties 

What To Do If You Don’t Have A Cosigner

Assuming you’ve already accepted free aid (scholarships and grants), then you’ll first want to complete the FAFSA. If you haven’t, then this is your sign to go apply for some free aid right now. Completing the FAFSA allows you to apply for federal student loans. After you’ve taken a look at and accepted any federal student loans you may have been offered, you can shop around for private lenders. If you don’t qualify on your own, you’ll want to look for lenders that offer loans without needing a cosigner. Interest rates will probably be higher, but it’s a good option if you still need more money with no cosigner to help. 

With all loans, it’s important to look over the terms and conditions carefully. Only use loans to cover the remaining cost of attendance you have after accepting other forms of aid. 

Where to Find the Best Student Loans with No Cosigner 

To help get you started, here are our best picks for student loans with no cosigner. You can use Sparrow to find the best student loan rates for no cosigner and compare across multiple lenders in minutes.

>> MORE: Compare student loan rates

Arkansas Student Loan Authority

The Arkansas Student Loan Authority (ASLA) is an Arkansas state entity that provides educational funding for all Arkansas students who wish to attend higher education institutions. ASLA does not require a cosigner, however, you will need a credit score of at least 670 to qualify. ASLA is a great option for Arkansas students.

Ascent Non-Cosigned Loans

Ascent is an online lender that offers educational funding for students. They offer three types of student loans: a traditional cosigned loan, a non-cosigned credit-based loan, and a non-cosigned outcomes-based loan. Collectively, the three options provide a great selection for those who do not have a cosigner available, are international or DACA students, or have lower credit scores.

Brazos

Brazos is a non-profit lender offering educational funding through private student loans available only to Texas Residents. They offer a wide range of loan options, covering undergraduate, graduate, MBA, law, medical, dental, veterinary, and doctoral degree programs. While you can qualify for a loan with Brazos without a cosigner, their eligibility criteria is fairly strict. To qualify, you must have a credit score of 720 or higher and an income of $60,000+. Brazos is a great option if you live in Texas, have a strong credit history, and want competitive interest rates.

College Ave Student Loans

College Ave Student Loans offers educational funding for undergraduate, graduate, professional, and career school students, and parents of students. To qualify for a student loan with College Ave without a cosigner, you will need a credit score in the mid-600s. College Ave is a great option if you are seeking a more flexible repayment term that allows you to find a loan that matches your budget.

Earnest

Earnest’s student loans provide funding to undergraduate, graduate, and professional students. If applying without a cosigner, you’ll need to meet Earnest’s minimum credit score requirement of 650. You will also have fewer options when it comes to repayment, leaving you with either a 5 or 7-year repayment period. Earnest is a great option if you are seeking competitive interest rates, unique borrower perks, and flexible repayment options that allow you to find a loan that matches your budget.

Edly

Edly Income-Based Repayment (IBR) Student Loans, originated by Edly’s partner FinWise Bank, provide an alternative loan option for students. Students who are approved for an Edly student loan will not have to make payments while in school. Instead, borrowers make payments after graduation based on their income. Due to the structure of IBR loans, borrowers have a variety of benefits when it comes to repayment. An Edly IBR loan is best if you are seeking a loan option with no cosigner, competitive repayment terms, and flexible repayment options.

Funding U
Funding U is an online lender that focuses exclusively on undergraduate students with no cosigner. Rather than looking at your credit score or income, Funding U looks at non-traditional metrics such as your school, major, GPA, and estimated future earnings to assess your creditworthiness. Funding U’s student loan is best if you are a high-achieving undergraduate student with limited credit history and no access to a creditworthy cosigner. 

LendKey

LendKey is an institution that offers educational funding to undergraduate and graduate students. By connecting borrowers with a network of 100+ lesser-known credit unions and community banks, LendKey allows you to work with smaller lenders with low rates and good customer service, rather than traditional lending institutions. LendKey has a proprietary scoring model that assesses your creditworthiness by looking at standard metrics such as your credit score in combination with non-traditional metrics such as your GPA and major. This offers a bit of flexibility for those applying without a cosigner. LendKey is best for students who want a variety of options, competitive interest rates, and generous forbearance policies.

MPOWER

MPOWER is an online lender that offers educational funding to international, domestic, and DACA students. They offer non-cosigned undergraduate and graduate student loans. It is best for international students and DACA students who don’t have a credit history and can’t access a qualified cosigner. 

Nelnet Bank

Nelnet Bank offers private student loans for undergraduate, graduate, MBA, law, and health professional students. While you can qualify for a loan with Nelnet Bank without a cosigner, their eligibility criteria is fairly strict. To qualify, you will need a credit score of at least 680 or higher and an income of $36,000. It’s best if you are seeking competitive rates, a variety of repayment terms, and a flexible forbearance policy. 

Prodigy Finance

Prodigy Finance is an online lender that provides funding to international students. They offer non-cosigned graduate student loans. They’re a good option for international students who don’t have a credit history and can’t access a qualified cosigner. 

Sallie Mae

Sallie Mae is an online lender that provides educational funding to students. They offer cosigned and non-cosigned undergraduate, graduate, and career training student loans. To qualify for a student loan with Sallie Mae, you must have a credit score in the mid-600s. They’re a good option for students seeking competitive interest rates and flexible repayment options. 

SoFi

SoFi began offering private student loans in 2019 and has quickly become a strong option for undergraduates, graduates, law and MBA students, and parents looking to fund the cost of their child’s education. They do not disclose their minimum credit requirements for student loans, so while you may be able to get a loan without a cosigner through them, you may need a higher credit score to do so. Nonetheless, if you do qualify, SoFi will offer you competitive interest rates, a diverse set of repayment options, and exclusive member benefits.

Final Thoughts from the Nest 

Shopping for student loans can be a pain, especially if you don’t have a cosigner. The good news is that it doesn’t have to be! After accepting other forms of aid, fill out the FAFSA and consider federal loans first. If you still need money after that, use Sparrow to help you look for private student loans. This will make your student loan experience a lot easier. Happy loan shopping!

As you enter the student loan scene, you’ll hear the terms “credit” and “credit score” thrown around a lot. But what credit score is needed for a student loan, and why does it matter?

All student loans have qualifications that you have to meet. For some, one of those qualifications is having good credit. That is why it is so important that you know about your own credit and that you build it up. 

Credit Requirement for Private Student Loans 

There IS a credit requirement for private student loans. However, each lender has a different credit score needed to get a student loan. Rather than searching lenders’ credit requirements one-by-one, we recommend starting the process with an automated student loan search tool. After you complete the free Sparrow application, we’ll show you the rates and terms you’d qualify for with 17+ premier lenders. 

Here are the credit requirements for top student loans:

To get a student loan, you’ll typically need to have good to excellent credit. To check your credit, most lenders will perform a hard credit check. This is to see how risky it’ll be to lend you the money. Unfortunately, a hard credit check can impact your credit score. To mitigate this, some lenders offer pre-qualification. This process is helpful because you’ll get to see if you qualify or not WITHOUT having a hard credit check on your record. This process makes shopping around for private loans a lot easier, so take advantage of it when you can. In just two minutes, you can check your pre-qualification rates for student loans (for free and without hurting your credit score) by using Sparrow. Thanks to its design, you can compare 17+ student loan offers at once.

Credit Requirement for Federal Student Loans

There is no minimum credit score requirement for any of the federal loans. This makes federal loans a great option for most students since they either have no credit or bad credit. But they will run a credit check for PLUS loans. This is just to check if there is any adverse credit history. Adverse credit history includes bankruptcies, foreclosures, or delinquent accounts. As long as you don’t have that, you’re good. 

All this makes federal loans a great first choice when looking for loans to pay for school. Additionally, federal student loans come with flexible repayment options and other benefits. These options and benefits will make repayment easier in the long run. 

What Is the Minimum Credit Score Needed to Get A Student Loan? 

Typically, it’s about 670 or higher, depending on the lender. Some lenders may have the minimum a bit lower. Others, a bit higher. Keep in mind that the higher your score is, the lower your interest rate will most likely be. The opposite is also true. The lower your credit score, the higher your interest rate on the loan. 

You can check your credit score for free through your bank or credit card issuer. Websites like Credit Karma or Mint also allow you to see your score for free. For a more detailed report on your credit, visit annualcreditreport.com. By law, you are entitled to one free credit report per year from each of the three major credit bureaus: TransUnion, Equifax, and Experian. This credit report won’t include your credit score. 

What If I Have Bad or No Credit? 

If you’re worried about your poor credit score preventing you from being able to pay for college, don’t fret. While it may be more difficult, it isn’t entirely impossible. Rather than searching for lenders one-by-one, we recommend starting the process with an automated student loan search tool. After you complete the free Sparrow application, we’ll show you the rates and terms you’d qualify for with 17+ premier lenders. 

Here’s is a list of the top 5 student loans for bad credit:

Nonetheless, bad or no credit might make it a little harder to get a private student loan. While there are other criteria besides the minimum credit score, your credit score is still a big one. Additionally, if you don’t meet the qualifications set out by a lender, they can deny you a student loan. Still, you’re not completely helpless. There are other options. 

Federal Loans 

One of the best options is taking out a federal student loan. As mentioned earlier, there are no minimum credit score requirements for any of the loans. And they come with a lot of benefits like loan forgiveness and income-based repayment plans. All you have to do is fill out the FAFSA every year as soon as it becomes available on October 1st. 

Cosigner 

Adding a cosigner can help out a lot. As long as they have good credit, they can help lower your interest rate and get you qualified for a loan. Most students tend to have one of their parents co-sign with them, but it doesn’t have to be a parent. A relative or even a friend works too. As long as you trust them completely and they have a good credit score, it can be anyone. 

It’s important to note that your cosigner will also take on the financial responsibility of the loan. Meaning that if you miss a payment, they’ll be responsible to make up for it. Missed payments will also impact their credit score. Because of this, you want to make sure to only take out what you need and make your payments on time. 

Talk to lenders to see which will allow you to take out a loan with a cosigner. 

Final Thoughts from the Nest 

As you enter the adult world, your credit is going to become increasingly important. This is only the first time you’ll hear about it. It’s important, then, to check on your credit score and take advantage of your free credit reports. Starting this now will make student loans and any future financial decisions easier. To check your pre-qualification rates for student loans WITHOUT HURTING YOUR CREDIT SCORE, use Sparrow.

With all that in mind, congratulations! Welcome to adulting!

Shopping around for loans is already hard enough. Then, you add in interest rates and APRs, and it’s like a whole new world. A difficult one. But it doesn’t have to be. So, what are interest rates? What is an APR? And is an APR the same thing as an interest rate?

What Are Interest Rates? 

Interest is the amount of money that you are charged for borrowing the loan. It is expressed as a percentage of the principal of your loan.  

For federal loans, your interest rate will be fixed, meaning that it will never change over the life of the loan. The rates are usually determined by the federal government. Because of that, they are non-negotiable. They may change from year to year but that only affects any new loans and not any that are already taken out. 

For private student loans, loan terms are more negotiable. Your interest rate will depend on your creditworthiness and your financial history. The better that is, the lower your rate will probably be. The worse, the higher. Interest rates can also either be fixed or variable. 

What Is An APR?

An APR or annual percentage rate also calculates the interest on your loan. The difference is it also includes any fees or charges that you may incur. Thus, the APR better represents your borrowing cost. Or, the total amount of money it’ll cost you to take out the loan. 

When it comes to private lenders, APRs are like interest rates. Your financial history can also impact how high or low your APR is going to be. Keep that in mind when looking around. 

Nonetheless, lenders may define their APR and any related fees in different ways. For example, some lenders will add the fees into the principal and finance it like that. Others will simply calculate it as a percentage of the principal, in which case it gets added to the APR. It just depends. 

It’s also important to note that every lender has different fees. For example, most lenders charge a loan origination fee. This is a fee that is charged for processing your loan application.

But, other lenders may not charge any fees at all. 

Is APR the Same As Interest Rates? 

No. The interest rate is calculated based on only the interest that you are going to have to pay. But, the APR is calculated based on the interest plus any other fees and charges there might be. So, looking at the APR may give you a better idea of the borrowing cost.

It’s like the difference between the tuition and the cost of attendance when looking at colleges. The tuition gives you a basic idea of how much money it’s going to be. But, the cost of attendance gives a more comprehensive view of how much you’ll really be spending. In that same way, the APR of a loan lets you know what your real borrowing cost is. This can help you make a better financial decision.

Why Is My APR Higher Than My Interest Rate? 

Since it includes other costs and charges you’ll have as a result of accepting that loan, your APR will be higher. It doesn’t mean that the interest on the loan is higher, but it does mean the borrowing cost will be higher. In other words, you’ll probably spend more money than you thought you would. 

However, this doesn’t mean that if the interest rate and the APR are the same, then the loan doesn’t have extra costs. As mentioned earlier, lenders handle their APRs in different ways. This means some charges may not get added into the APR but will still be a part of your loan in other ways. Then, even though the APR and interest rate are the same, you’ll most likely still have other fees and charges. Talk to your lender about any questions you may have about how they handle this. 

Final Thoughts from the Nest

Interest rates and APR can seem like they’re the same thing, but in reality, they’re not. Knowing the difference will help you make a better-informed decision. 

For a more simplified process when shopping for private student loans, use Sparrow. Sparrow allows you to compare real student loan offers through a single application. So, put your new knowledge on APR and interest rates to use by signing up here.