Best Student Loans in 2024: Student loans are a common way to pay for college fees. However, student loan debt is a big burden for many graduates. That’s why it is important to make smart choices if you need to take out loans. You should consider the best student loan options before taking loans with less favourable terms.
Table of Contents
When thinking about student loans, consider three main things: interest rates, repayment terms, and student experience.
Here are our top picks for the best student loans. This includes both federal and private student loans.
Best Overall: Federal Direct Loans
Federal Direct Student Loans are a great option for many students. They include both subsidized and unsubsidized loans. Graduate students can only get unsubsidized loans. These loans are issued by the Department of Education. To apply, students need to submit the FAFSA.
The Department of Education offers live chat, email support, and phone support to help with questions.
- Eligible degrees: Undergraduate and Graduate
- Interest rate: Undergraduates: 5.5% (fixed), Graduate students: 7.05% (fixed)
- Repayment terms: Wide range of repayment options including income-based repayment plans
Our take: Federal student loans are the best for most students. They have competitive interest rates and flexible repayment options. Students pursuing careers in public service may be eligible for loan forgiveness.
Best for Low-Income Students: Subsidized Federal Direct Loans
Subsidized Federal Direct Loans are great for low-income students. These loans do not accumulate interest while you are in school, in deferment, or during the grace period after graduation. This can save you money. However, these loans are capped at $2,000 per academic year.
For questions, students can contact the Department of Education via live chat, email, or phone.
- Eligible degrees: Undergraduate only
- Interest rate: Specific rates vary depending on the lender
- Repayment terms: Loan terms range from 5-10 years
Our take: Subsidized student loans are the most favourable if you qualify. The only downside is the annual cap.
Best Marketplace for Comparing Private Student Loans: Credible
Credible is the best marketplace for comparing private student loans. It allows you to shop around and compare different options. Credible offers a great user experience and does not require a credit check. It compares reputable lenders like Ascent and Sallie Mae.
- Eligible degrees: Undergraduate and Graduate
- Interest rate: Variable and Fixed rates, depending on the lender
- Repayment terms: Loan terms range from 5-10 years
Our take: If you are considering private loans, start with Credible. It makes it easy to find the best loans for both undergraduate and graduate students.
Learn more: Credible
Best Private Student Loan Lender: Ascent Student Loans
Ascent offers student loans for both undergraduate and graduate degrees. Ascent does not charge any application fees and offers loans with and without a co-signer. They also offer a “future income-based” loan for students who don’t meet credit requirements or don’t have a co-signer.
Ascent provides perks like discounts for automatic payments and up to 24 months of forbearance.
- Eligible degrees: Undergraduate and Graduate
- Interest rate: Fixed (3.39 – 14.50%) and Variable (2.4 – 12.98%)
- Repayment terms: Loan terms range from 5-10 years
Our take: Ascent offers a great user experience and student-centric benefits.
Learn more: Ascent Student Loans
Best Income Share Agreement Provider: Stride Funding
Stride Funding offers Income Share Agreements (ISAs). With an ISA, students agree to pay back a percentage of future earnings in return for funding. You only pay back when you are earning above a certain amount. Stride does not require a co-signer. If you are unemployed or earning less than $40,000 per year, you don’t pay back anything.
Stride ISAs are available for specific majors and at certain colleges.
- Eligible degrees: Undergraduate juniors and seniors, and graduate students within 2 years of graduating
- Interest rate: N/A
- Repayment terms: Percentage of income for about 5 years
Our take: Stride ISAs are great if you qualify based on your major and college. The flexible repayment terms are a big benefit.
Learn more: Stride Funding Review
Best of the Rest
Here are some other student loan options to consider:
Federal Direct PLUS Loans
- Interest rate: 5.30% (fixed)
- Pros: Eligible for most federal repayment plans, loans can be taken up to the cost of attendance
- Cons: Above-average fixed interest rates
Learn more: Direct PLUS Loan Guide
Funding U
- Interest rate: 7.49% to 12.99% APR (fixed)
- Pros: No cosigner required, minimum GPA and graduation rate needed
- Cons: Available in only 30 states, higher than average fixed rates
Learn more: Funding U
Sallie Mae (for Undergraduate Students)
- Interest rate: 4.50% to 15.49% APR (fixed), 5.37% to 15.70% APR (variable)
- Pros: Loans for part-time students, non-U.S. citizens, and DACA students
- Cons: Hard credit check required for quotes
Learn more: Sallie Mae
Summary of the Best Student Loans
- Federal Stafford Loans
- Subsidized Federal Stafford Loans
- Credible
- Ascent Student Loans
- Stride Funding
For most students, federal Direct Student Loans are the best choice. They offer the best interest rates and repayment options. Always use these loans before considering private loans or Parent PLUS loans. Every student should submit the FAFSA regardless of financial need.
Income share agreements are an exciting new option. They can be less daunting than traditional loans. The flexible repayment schedule is a big benefit. If interested, contact your school and third-party providers to see if you qualify.
Application Process for Best Student Loans in 2024
- Submit the FAFSA: This is essential for federal loans and many state and institutional aid programs.
- Compare Loan Options: Use tools like Credible to compare private loans.
- Apply Directly with Lenders: For private loans, you’ll apply directly with the lender.
- Complete Entrance Counseling: For federal loans, complete the required counselling to understand your responsibilities.
- Sign the Master Promissory Note (MPN): This is a legal document in which you promise to repay your loans and any accrued interest and fees.
Final Thoughts about Best Student Loans in 2024
Navigating student loans can be challenging. But with careful planning and the right information, you can make smart choices. Federal loans are often the best option, but private loans and ISAs can also be good choices if you compare terms carefully. Always explore scholarships and grants first, as these do not need to be repaid.
To Know More Keep Visiting USA Govt Jobs.In
FAQs Of Best Student Loans in 2024
What are Federal Direct Loans?
Federal Direct Loans are loans provided by the Department of Education. They include both subsidized and unsubsidized loans. Subsidized loans do not accrue interest while you are in school or during deferment periods. Unsubsidized loans accrue interest at all times.
Who is eligible for Subsidized Federal Direct Loans?
Subsidized Federal Direct Loans are available to undergraduate students with demonstrated financial need. The interest on these loans is paid by the government while you are in school, during the grace period, and deferment.
What is the FAFSA?
The FAFSA (Free Application for Federal Student Aid) is a form that students must fill out to determine their eligibility for federal financial aid, including grants, loans, and work-study programs.
What is the interest rate for Federal Direct Loans?
For the 2024 academic year, the interest rates are 5.5% for undergraduate students and 7.05% for graduate students. These rates are fixed and do not change over the life of the loan.
