10 Best Student Loan Sources for Your College Education

The federal government offers a variety of student loans. Some are need-based, meaning the government considers your family’s financial situation when determining how much you can borrow. Others are not need-based. The main types of federal student loans are:

• Direct Subsidized Loans: These are need-based loans. The government pays the interest on these loans while you’re in college and during your grace period (a six-month period after you leave school or drop below half-time enrollment).
• Direct Unsubsidized Loans: These are not need-based loans. You’re responsible for paying the interest on these loans even while you’re in college and during your grace period. The government does not pay the interest for you.
• PLUS Loans: Parents of dependent undergraduate students and graduate or professional students can help pay for their child’s education with a PLUS loan. PLUS loans have a higher interest rate than Direct Subsidized and Direct Unsubsidized Loans but they do offer flexible repayment options.

Private Student Loans

Private student loans are becoming an increasingly popular way to finance a college education. These loans are provided by private lenders and are not backed by the federal government. Private student loans generally have lower interest rates than federal student loans, and they offer a variety of repayment options that can be tailored to your individual needs.

Here are 10 of the best sources for private student loans:

1. Sallie Mae Bank
2. Discover Student Loans
3. Wells Fargo Student Loans
4. Citizens Bank Student Loans
5. Citi Student Loans
6. SunTrust Bank Student Loans
7. PNC Bank Student Loans
8. Chase Bank Student Loans
9. College Ave Student Loans
10. LendKey

Scholarships

There are a number of scholarships available to help you pay for your college education. Here are 10 of the best sources for scholarships:

1. The federal government offers a number of scholarships, including the Pell Grant, which is based on financial need.
2. State governments also offer scholarships, which may be based on financial need, academic achievement, or other criteria.
3. Colleges and universities often have their own scholarship programs, which may be based on financial need, academic achievement, or other criteria.
4. Private organizations often offer scholarships to students who meet their specific criteria, which may include financial need, academic achievement, ethnicity, or other factors.
5. Military organizations offer scholarships to students who meet their specific criteria, which may include financial need, academic achievement, or military service history.
6. Religious organizations often offer scholarships to students who meet their specific criteria, which may include financial need or religious affiliation.
7. Professional organizations often offer scholarships to students who meet their specific criteria, which may include financial need or membership in the organization.
8. Community organizations often offer scholarships to students who meet their specific criteria, which may include financial need or community service involvement.

Grants

Federal, state and local governments award grants to eligible students to help cover the cost of college. To find out if you qualify, fill out a Free Application for Federal Student Aid (FAFSA®) form. You can also search for scholarships through your college or career school, or through private organizations.

• Federal Pell Grants: The Federal Pell Grant program is the largest provider of student grants. Eligible students can receive up to $6,095 for the 2020-21 award year. Federal Supplemental Educational Opportunity Grants (FSEOG) – FSEOG grants are awarded to undergraduates with exceptional financial need—students who display the lowest Expected Family Contributions (EFCs) on their FAFSA forms. Priority is given to students who also receive a Pell Grant. The maximum FSEOG grant is $4,000 per academic year.
• Teacher Education Assistance for College and Higher Education (TEACH) Grants – The TEACH program provides grants of up to $4,000 a year to students who agree to teach for four years at an elementary school, secondary school or educational service agency that serves students from low-income families, and meet other requirements.
• State Grants: Most states have grant programs that help residents pay for college. State grant programs vary widely in their eligibility requirements and award amounts. For example, the California Dream Act provides undocumented students with access to state financial aid programs, including grants, while the Florida Bright Futures Scholarship Program offers merit-based scholarships to Florida high school graduates.
• Private Grants: The best place to start your search for private grants is with the organization offering the grant. For example, if you’re a member of a sorority or fraternity, you may be able to apply for scholarships through your organization. If you’re interested in study abroad programs, check with program providers like CIEE and CAPA International Education. Many religious organizations also offer scholarships to members enrolled in college

Work-Study

The Federal Work-Study program provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay for college. Jobs are available both on and off campus, and students typically work between 10 and 20 hours per week. One of the best things about the Federal Work-Study program is that the money you earn does not have to be repaid!

College Savings Plans

There are a few different types of college savings plans, each with their own benefits. Here are 10 of the best sources for student loans to help you pay for your college education.

1. Federal student loans: These loans are offered by the US government and have low interest rates and flexible repayment terms. You can apply for federal loans through the Free Application for Federal Student Aid (FAFSA).
2. Private student loans: These loans are offered by private lenders, such as banks and credit unions. They typically have higher interest rates than federal loans, but they may offer more flexible repayment terms.
3. College savings plans: College savings plans, such as 529 plans and Coverdell ESAs, are tax-advantaged accounts that can be used to save for college expenses. Contributions to these accounts grow tax-free, and withdrawals are tax-free as long as they’re used for qualified education expenses.
4. Employer-sponsored tuition assistance programs: Many employers offer tuition assistance programs that can help employees pay for college. These programs typically offer reimbursement after you complete your courses or degree program.
5. Military benefits: There are a number of military benefits that can help service members pay for college, including the GI Bill and tuition assistance programs.
6. Scholarships: Scholarships are a great way to help pay for college without taking on debt. There are scholarships available from a variety of sources, including colleges, employers, civic organizations, and religious groups.
7. Free Student Grants: Like scholarships, grants do not have to be repaid and can be a great way to fund your education without taking on debt. Grants are typically need-based, so they’re reserved for students with financial need. The federal government offers a number of grants through the FAFSA process.
8. Student loan consolidation or refinancing: If you have multiple student loans, you may be able to consolidate them into one loan with a lower interest rate or extend your repayment term to lower your monthly payments. You can also refinance your student loans to get a lower interest rate or change your repayment terms. Remember that extending your repayment term will result in paying more in interest over the life of the loan. Both consolidation and refinancing typically require a good credit score and income level to qualify . You can compare lenders side-by-side using credible marketplace tools.