Best Student Loans for College

woman getting a college loan

Going to college can be exciting and is a very big decision to make early on in your life. We will be discussing the best student loans for college and how to use them to your benefit.

When you are 17 or 18 years old you are supposed to make a decision that could end in you having thousands of thousands of dollars of debt.

You may have never had to pay a monthly recurring payment your whole life. Once you get a loan you will need to understand the terms of the loan.

You will need to learn how to pay back the loan and what is involved in paying it back?

The best thing to do is to map out with your parents your plan to pay for college and how you will pay back the student loans.

We’re going to talk a little bit about the different loans you can get and payment options.

If you need a degree for your career, then loans may be the only option for you and that is OK.

Terms to Know When Paying for College

It is important that you understand some of the terms that pertain to your college career and finances.

  • Loans, scholarships, and grants
  • Scholarships you are awarded and do not have to pay back. These are given for achievements for academics, athletics, etc.
  • Grants are usually awarded for financial need. I received the Pell Grant and OIG grant when I went to college because I was poor
  • Loans are taken out by a student and must be repaid once done with schooling

There are scholarships for your parents having a certain job, because of your gender, race, culture, and more.

Either way, scholarships, and grants are going to be money that you were not going to have to pay back.

Even the best college student loans you will have to pay back. No free money when you get a loan.

Best Student Loans for College

Some student loans are going to accrue interest (unsubsidized loans). This is where the interest rate on your loan will continue to accrue while you are in school. There are other loans that you can get that will defer interest (subsidized loans).

The best student loans for college are the ones where the interest is deferred until after you graduate. Once you graduate and get a job then you can start paying back the loan.

Many loans currently require you to have a co-signer.

To get a loan from a lender for college they may require a parent or guardian to co-sign. This means if you do not pay or quit paying, the lender will go after the co-signer.

The lenders are loaning you money for school and they expect you to pay it back.

Having a co-signer is a way to make sure the lender will get their money back.

When choosing a cosigner, you want to make sure that you are choosing someone who is financially stable. This means someone who has a good credit score and has assets.

You want this person to be able to vouch for you and show that they are financially stable.

That is one of the problems with getting a loan when you are in high school and starting college. You may not have any credit history or any financial history at all. You may not actually even have anything to your name.

Obviously, all of the lenders understand this as you are very young. This is why they usually want co-signers.

Subsidized vs. Unsubsidized 

Something that many people get confused about is the difference between subsidized and unsubsidized loans.

These are the most popular types of loans among students.

The best student loans for college are the loans that are subsidized.

The main difference is that subsidized loans do not accrue interest while you are in school while unsubsidized loans do.

Subsidized loans are only available for undergraduate students and they are based on financial need.

Another factor they consider is how much your family is going to contribute towards your college.

If you have the option then getting a subsidized loan is the best option. Anytime you can defer interest on money borrowed do it.

However, subsidized loans or not offered to everyone.

Government Loans

The first thing you need to do when looking to get a loan for college is to fill out the FAFSA.

The FAFSA is one of the most important aspects to paying for your college. Free application for federal student aid is what FAFSA stands for.

There are many things that go into filling out this form.

You’re going to have to fill out all of the financial information about yourself and whoever you are dependent on.

What they look at is how much money they think that your family can contribute to pay for college.

After looking at the families’ financials they decide if they will give you any money and how much.

The smaller your parent’s income, the larger the loan amount you can get from the government.

However, most students are offered one to two different types of loans.

So this means that even if you were not awarded or offered any sort of grant, you will probably be offered a loan.

Government loans are the best options for several reasons.

  • First of all, they do not require any kind of cosigner. This is great because many students have trouble finding cosigners if their parents are not financially stable.
  • FAFSA offers many subsidized loans which means that you will not be accruing interest. This is going to make a difference in the amount of interest paid.

If you were not accruing interest over the time that you were paying off your loan, you were going to be paying a way smaller amount.

Even the loans that you accrue interest, usually offer smaller interest rates than most private loans.

Even if your parents make a lot of money, you need to fill out the FAFSA. Many scholarships and grants applications may require you to attach information from your FAFSA.

Fill out the FAFSA no matter what your family’s financial status is currently.

Private Loans

If you are not offered any loans through FAFSA then a private loan may be needed. If you cannot get any free money or loans then the next best student loans for college will be private loans.

There are many different places that you can get private loans from.

You can get private loans from your bank, companies, organizations from your hometown or county, and groups and organizations.

Sometimes there are groups and organizations that will offer loans along with the scholarships and grants.

I know that many of my friends in high school took out private loans from an organization in our county.

Basically what you’re going to do is look at all of your options. Check out each private lender to see what they are going to offer you.

Your goal is to spend the smallest amount of money as you possibly can. You will need to get the lowest interest rate possible.

Private lenders:

  • Ascent – Offers Variable APR = 2.73% to 13.01% the Fixed APR = 3.62% to 14.50%
  • College Ave – Offers Variable APR = 1.24% to 11.98% the Fixed APR = 3.99% to 12.99%
  • SOFI – Offers Variable APR = 1.90% to 11.66% the Fixed APR = 4.23% to 11.76%

This is why you want to make sure that you look at all of your options before making a decision. The great thing is that you can find out a lot of this information online.

Simply by going to these different lenders websites, you can probably find out all of the information that you need.

If you still can’t find something that you need, you can simply call them and ask them for help.

Private loans are going to look at your credit score. If you have good credit and a good cosigner, you will probably qualify to get a loan.

However, you have to be accepted and qualified in order to obtain a private loan. It is also a longer process of finding out if you were going to be able to get off her for a private loan then a government loan.

Private loans do normally have a little bit of a higher interest-rate.


The best money to get for college is the money you do not have to pay back. Try to get a scholarship or grant to pay for college. It’s free money for school.

Once you received the scholarships and grants then whatever is left get a subsidized loan. The best student loans for college are the ones with low-interest rates and deferring interest until after you graduate.

If that does not cover the cost or you do not qualify then get an unsubsidized loan.

If you still need more money for college then look to a private loan as the last option.

You may also like: How to apply for a student loan

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