How do I apply for a student loan?

You can apply for a student loan through banks, online lenders, credit unions and the federal government. To apply for a federal student loan, you'll fill out the Free Application for Federal Student Aid (FAFSA), which opens up on Oct. 1 each year. Once you fill it out, you will be notified about your eligibility for federal student loans and other financial aid. To apply for a private student loan, first compare a few lenders to determine which offers the best rates and terms for your needs. You can prequalify with most lenders, which lets you see your loan offer before submitting a formal application. When you've selected a lender, you can apply online, over the phone or in person, if the lender has physical locations.

Will I need a co-signer for private student loans?

Whether or not you need a co-signer for private student loans depends on your financial health. If you have poor credit or little income, a creditworthy co-signer could help you get approved or receive a better interest rate. Some lenders also require co-signers for undergraduate borrowers, regardless of financial health.

Can you get a student loan with bad credit?

You can take out new student loans or refinance your existing loans with bad credit. Most federal student loans don't even check your credit, which makes them a great option for borrowers with little to no credit history. If you are applying for private loans, some lenders cater to borrowers with poor credit, although interest rates may be higher and loan amounts smaller. Before applying for any student loan, check for credit score requirements at each lender and get prequalified if possible.

What are the pros and cons of private student loans?

Private student loans appeal to many borrowers because of their high borrowing limits and low interest rates for good-credit borrowers. They also give you the option of fixed or variable rates, so you can choose the best plan for your budget. However, private student loans have fewer deferment and forbearance options than federal student loans, and borrowers with bad credit could see interest rates in the double digits.

When is refinancing student loans a good option?

Refinancing your student loans may be a good option if you'd like to consolidate multiple loans into a single loan or if interest rates have fallen significantly since you first took out your fixed-rate loan. However, refinancing can only be done through private lenders, so you'll lose options like income-driven repayment and COVID-19 relief programs if you refinance your federal loans.

How do I refinance my student loans?

To refinance your student loans, shop around and compare a few lenders to see which one offers the best rate and repayment terms for your situation, getting prequalified where possible. When you're ready to apply, you can typically apply online, over the phone or in person. Once you're approved and have submitted the necessary documentation, the lender will pay off your existing loans, and you'll begin making your new payments.

Best student loans in May 2022

Written by

Hanneh Bareham

Edited By

Chelsea Wing

Reviewed By

Mark Hamrick

As of May 22, 2022

Bankrate's ranking of the best student loan lenders analyzes interest rates, terms and features to help you start your search. It's also a resource for how to decide which student loan is best for you and what to know before applying.

Why you can trust Bankrate

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money.

What To Know First

A student loan is a type of borrowed money designed to cover the costs of college tuition, fees, books, supplies, housing and more. There is currently more than $1.7 trillion in outstanding student loan debt in the United States, held by 42 million borrowers. Even though it's a common form of debt, choosing the right loan for your needs is a big decision.

Students can choose either federal or private student loans to help pay for school. It's usually best to start with federal student loans, which currently have an interest rate of 3.73 percent for undergraduate students for the 2021-22 school year. However, while private student loans have fewer borrower protections, they can fill in any funding gaps and typically have a wider range of repayment terms.

To apply for a student loan, you'll need to start with the following steps:

1. Determine how much you need to borrow.
2. Compare lenders' interest rates and terms.
3. Fill out the FAFSA.
4. Apply with private lenders as needed.
5. Submit required documentation.

How to qualify for a student loan

Every lender has different eligibility requirements for student loans, but generally you’ll need to:

Be enrolled in an eligible school.
Meet age, education and citizenship requirements.
Use the loan for qualifying education expenses.
Have a good credit score and consistent income (or have a co-signer who does).
Maintain good grades while in school.

Methodology

To find the best student loans, Bankrate first looked at lenders that have a national reputation and serve borrowers across the U.S. We then narrowed down the field based on APR ranges, loan options and loan amounts to ensure that the lenders offered competitive loans for a variety of borrowers. Lenders that offered loans for undergraduates, MBA students, medical students and more, for example, scored higher than those offering just one type of loan.

To determine the final rankings, we then evaluated eligibility requirements and any standout features that make a loan uniquely suited to a variety of needs — for instance, the ability to apply for multiple years of school or receive cash rewards upon graduation.


4.1 Bankrate Score	Fixed APR From 1.99% with AutoPay	Loan Amount $25k- $500k Term: 5-25 yr	Min. Credit Not disclosed	Apply on partner site
4.6 Bankrate Score	Fixed APR From 3.49- 7.99% with AutoPay	Loan Amount $5k- $500k Term: 5-20 yr	Min. Credit Not disclosed	Apply on partner site
4.6 Bankrate Score	Fixed APR From 2.74% with AutoPay	Loan Amount $5k- $500k Term: 5-20 yr	Min. Credit Not disclosed	Apply on partner site
4.5 Bankrate Score	Fixed APR From 3.74% with AutoPay	Loan Amount $10k- $750k Term: 5-20 yr	Min. Credit Not disclosed	Apply on partner site
	Fixed APR From 2.74- 7.99% with AutoPay	Loan Amount $5k- $500k Term: 5-20 yr	Min. Credit Not disclosed	Apply on partner site
	Fixed APR From 2.15% with AutoPay	Loan Amount $5k- $500k Term: 5-20 yr	Min. Credit 660	Apply on partner site
3.9 Bankrate Score	Fixed APR From 3.74% with Autopay	Loan Amount $5k- $500k Term: 5-20 yr	Min. Credit Not disclosed	Apply on partner site
4.1 Bankrate Score	Fixed APR From 2.73%	Loan Amount $15k- $500k Term: 5-20 yr	Min. Credit Not disclosed	Apply on partner site
4.1 Bankrate Score	Fixed APR From 2.69% with AutoPay	Loan Amount $5k- $300k Term: 5-20 yr	Min. Credit Not disclosed	Apply on partner site

Secure a great loan in 3 easy steps

Answer a few questions

Take just two minutes to answer questions about yourself and the loan you need. This service is free, and it won't affect your credit score.

Compare your offers

Get prequalified and compare loan or other product offers based on the things that matter to you, like APR and monthly payments.

Lock in your rate

Choose a lender and visit its website to complete the application process. If you’re approved, you could get funding within a few weeks.

The Bankrate guide to choosing the best student loans

Why trust Bankrate?

Bankrate wants to empower readers to make smart financial decisions. We’ve been comparing and surveying financial institutions for more than 40 years to help you find the right products for your situation. Our award-winning editorial team follows strict guidelines to ensure the content is not influenced by advertisers. Additionally, our content is thoroughly reported and vigorously edited to ensure accuracy.

When shopping for a student loan, look for a competitive interest rate, flexible repayment terms that meet your needs, generous hardship options and minimal fees. Loan details presented here are current as of March 24, 2022. Check the lenders’ websites for more current information. The top lenders listed below are selected based on factors such as APR, loan amounts, fees, credit requirements and broad availability. To learn more, read our methodology section above.

How do I choose a student loan?

When choosing a student loan, start by looking at federal loans. More than 90 percent of outstanding student loans are federal, and for good reason: With low rates and many options for payment assistance and loan forgiveness, they're the best choice for most borrowers.

If you do look for private loans, the best way to choose a loan is to compare offers from a few lenders — a good rule of thumb is to get prequalified with at least three. Once you have offers in hand, you should choose the lender that gives you the lowest interest rate, the best repayment terms and the fewest fees.

Also consider whether the lender offers unique features. If a lender offers a long deferment period while you're doing a medical residency, for instance, it may be worth it to choose that lender over one with a slightly lower interest rate.

Compare student loan interest rates in May 2022


LENDER	BEST FOR	FIXED APR	VARIABLE APR	LOAN TERM	LOAN AMOUNT	MIN. CREDIT SCORE
Ascent	Loans without a co-signer	4.78%–14.52% (with autopay)	1.64%–11.45% (with autopay)	5–20 years	$2,001–$200,000	Not specified
Citizens Bank	Multiyear approval	3.47%–9.99% (with autopay)	N/A	5–15 years	$1,000–$350,000 depending on program	Not specified
College Ave	Quick application process	3.49%–12.99% (with autopay)	1.19%–11.98% (with autopay)	5–20 years	$1,000–100% total cost of attendance (maximum $150,000 for some degrees)	Not specified
Earnest	Flexible repayment terms	3.24%–12.78% (with autopay)	0.94%–11.44% (with autopay)	Not specified	$1,000–100% total cost of attendance	650
Sallie Mae	Part-time students	3.75%–12.85% (with autopay)	1.62%–11.73% (with autopay)	10–20 years	$1,000–100% total cost of attendance	Not specified
SoFi	Loans without fees	3.47%–11.16% (with autopay)	1.89%–11.92% (with autopay)	5–15 years	$5,000–100% total cost of attendance	Not specified

For more information on private student loan rates, check out our page on private student loans.


LENDER	FIXED APR	VARIABLE APR	LOAN TERM	LOAN AMOUNT
SoFi	3.49%–7.99% (with autopay)	1.74%–7.99% (with autopay)	5–20 years	$5,000–full balance of education loans
Earnest	2.74%–7.99% (with autopay)	1.74%–7.99% (with autopay)	5–20 years	$5,000–$500,000
Laurel Road	2.74%–5.75% (with autopay)	1.64%–5.65% (with autopay)	5–20 years	$5,000–full balance of education loans
CommonBond	4.49%–7.74% (with autopay)	4.44% to 8.09% variable; 4.48% to 7.62% hybrid	5–20 years	Up to $500,000
Citizens Bank	3.74%–8.63% (with autopay)	1.99%–8.38% (with autopay)	5–20 years	$10,000–$750,000
LendKey	2.69%–7.93% (with autopay)	2.05%–5.25% (with autopay)	5–20 years	$5,000–$300,000
College Ave	3.49%–6.74% (with autopay)	3.44%–6.64% (with autopay)	5–15 years	$5,000–$300,000
Splash Financial	1.99%–8.27% (with autopay)	1.74%–8.27% (with autopay)	5–25 years	$5,000–full balance of education loans

For more information on student loan refinancing rates, check out our page on student loan refinancing.


LENDER	CURRENT APR RANGE	LOAN TERMS	MIN. LOAN AMOUNT	MAX. LOAN AMOUNT
Federal student loans	3.73%–6.28%	Standard repayment is for 10 years	None	$7,500 annually for dependent undergraduates, $12,500 annually for independent undergraduates and 100% total cost of attendance for graduate students
Earnest	0.94%–11.44% variable, 3.24%–12.78% fixed(with autopay)	Not specified	$1,000	100% total cost of attendance
Ascent	1.64%–11.45% variable, 4.78%–14.52% fixed(with autopay)	5–20 years	$2,001	$200,000
Sallie Mae	1.62%–11.73% variable, 3.75%–12.85% fixed (with autopay)	10–20 years	$1,000	100% total cost of attendance
Credible	1.09%–11.98% variable, 3.52%–14.08% fixed (with autopay)	5–20 years	Varies	Varies

For more information on bad-credit student loan rates, check out our page on bad-credit student loans.


LENDER	APR	LOAN TERMS	MIN. LOAN AMOUNT	MAX. LOAN AMOUNT
Department of Education: Direct Unsubsidized Loan	5.28% fixed	Standard repayment term is 10 years	Not specified	$20,500 per year (lifetime limit $138,500)
Ascent	Fixed: 4.90%–14.52% (with autopay); Variable: 1.66%–10.98% (with autopay)	7–20 years	$2,001	$200,000
Citizens Bank	Fixed: 4.47%–9.49% (with autopay)	5–15 years	$1,000	$350,000
College Ave	Fixed: 3.99%–11.98% (with autopay); Variable: 1.99%–10.97% (with autopay)	5–20 years	$1,000	100% total cost of attendance ($150,000 maximum for some programs)
Department of Education: Grad PLUS loan	6.28% fixed	Standard repayment term is 10 years	Not specified	100% total cost of attendance
Discover	See rates at Discover.com	20 years	$1,000	100% of school-certified costs. Aggregate loan limits apply.
Sallie Mae	Fixed: 4.75%–12.11% (with autopay); Variable: 2.37%–11.87% (with autopay)	15–20 years	$1,000	100% total cost of attendance
SoFi	Fixed: 4.60%–11.06% (with autopay); Variable: 2.59%–11.82% (with autopay)	5–15 years	$5,000	100% total cost of attendance

For more information on graduate student loan rates, check out our page on graduate student loans.


LENDER	CURRENT APR RANGE	LOAN TERMS	MIN. LOAN AMOUNT	MAX. LOAN AMOUNT
Federal grad PLUS student loans	6.28% fixed	Standard term is 10 years	Not specified	100% total cost of attendance
College Ave	Fixed: 3.99%–11.46% (with autopay); Variable: 1.99%–10.45% (with autopay)	5–15 years	$1,000	$150,000
SoFi	Fixed: 4.60%–11.06% (with autopay); Variable: 2.59%–11.82% (with autopay)	5–15 years	$5,000	100% total cost of attendance
Sallie Mae	Fixed: 4.75%–12.11% (with autopay); Variable: 2.37%–11.87% (with autopay)	15 years	$1,000	100% total cost of attendance
Citizens Bank	Fixed: 4.43%–9.49% (with autopay)	5–15 years	$1,000	$225,000
Discover	See rates at Discover.com	20 years	$1,000	100% of school-certified college costs. Aggregate loan limits apply.
Earnest	Fixed: 3.24%–10.99% (with autopay); Variable: 0.94%–9.89% (with autopay)	Not specified	$1,000	100% total cost of attendance

For more information on MBA student loan rates, check out our page on MBA student loans.

Best student loan without a co-signer

Ascent

4.5

See offers

Check rate with Bankrate

Min. credit score:: Not disclosed
Fixed APR From:: 4.64% –14.52%
Loan amount:: $3,000–$20,000
Term lengths:: 5 to 20 years
Min. annual income:: $0

Overview: Ascent offers undergraduate and graduate private student loans in all 50 states. Borrowers without a co-signer have their own loan option, which is a rarity in the private student loan space. If you don’t have a co-signer, you may be able to qualify for a loan based on your school, graduation date, major and cost of attendance. The lender also offers a longer-than-average period of forbearance, which is a hardship program that allows you to temporarily stop making payments.

Why Ascent is best for students without a co-signer: Ascent is one of the only lenders to give undergraduates the chance to qualify for a student loan based on future income rather than credit score, removing the need for a co-signer.

Pros
Loan option based on future income instead of credit score.

Forbearance of up to 24 months over the life of the loan.

Grace period of nine to 36 months, depending on degree type.
Cons
High rate caps.

Borrowers without a co-signer must have a GPA of at least 2.9.

Undisclosed credit requirements for credit-based loans.

Best student loan for multiyear approval

Citizens

4.5

See offers

Apply on partner site

Min. credit score:: Not disclosed
Fixed APR From:: 3.47%
Loan amount:: $1,000–$350,000
Term lengths:: 5 to 15 years
Min. annual income:: $12,000

Overview: Citizens Bank offers private student loans to undergraduate students, graduate students and parents. Citizens Bank will run a hard credit inquiry when you apply and will let you know if you qualify for the multiyear loan program. If approved, you can request funds in subsequent years without supplying additional income documentation or going through hard credit checks, so the process is faster.

Why Citizens Bank is best for multiyear approval: Borrowers can get approved for multiple years of student loans without needing to go through a hard credit check every time, which is convenient if you know that you'll need funding every year.

Pros
Multiyear loan option.

0.25 percent APR discount for eligible Citizens Bank accounts.

Scholarship opportunities available.
Cons
$150,000 limit for undergraduate loans.

No firm deferment or forbearance policies.
Borrowers must be a U.S. citizen or permanent resident. Eligible noncitizens must apply with a co-signer who is a U.S. citizen or permanent resident. Borrowers must also be enrolled at least half time, have no prior student loan defaults and be the age of majority; younger borrowers must apply with a co-signer.

Citizens Bank states that applicants must have "good credit," though it doesn't specify a minimum credit score. Citizens Bank charges a late fee of 5 percent and a returned payment fee of $15.

Best student loan for quick application process

College Ave

4.4

See offers

Apply on partner site

Min. credit score:: Not disclosed
Fixed APR From:: 3.49%
Loan amount:: $1,000–$500,000
Term lengths:: 5 to 15 years
Min. annual income:: $35,000

Overview: College Ave is an online lender that offers private student loans to undergraduate students, graduate students, parents and students attending community college and career programs.

Why College Ave is best for a quick application process: College Ave has a simple online application that only takes a few minutes to complete, and borrowers can accept terms and e-sign documents immediately after approval.

Pros
Three-minute application process.

Loans available for community college and career programs.

$150 reward upon graduation.
Cons
Loan cap of $150,000 for most graduate school loans.

Limited eligibility information.

Co-signer cannot be released until at least half of the repayment period has elapsed.
Borrowers must be a U.S. citizen or permanent resident and be making satisfactory academic progress at their school. International students with a Social Security number may apply with a qualified co-signer.

Applicants will receive a credit decision within three minutes. While the process depends on the school, the entire timeline from application to sending the money to a college typically takes at least 10 days. College Ave may charge a late fee.

Best student loan for flexible repayment terms

Earnest

4.6

See offers

Apply on partner site

Min. credit score:: 650
Fixed APR From:: 3.24%
Loan amount:: $1,000–$350,000
Term lengths:: 5 to 20 years
Min. annual income:: $35,000

Overview: Earnest is an online lender that funds private student loans to undergraduate and graduate students and offers unique repayment options. Earnest's grace period is nine months long, which is three months longer than what most lenders offer. Borrowers are also allowed to skip one payment every 12 months.

Why Earnest is best for flexible repayment terms: While Earnest doesn't disclose its range of repayment terms, it does say that borrowers can pick their loan term; plus, once every 12 months, borrowers can choose to postpone a payment.

Pros
Skip a payment once every 12 months.

Nine-month grace period.

Extremely low starting rates.
Cons
No student loans available in Nevada or New Hampshire.

No co-signer release.

Credit score of 650 required.
Borrowers must be attending or enrolled to attend an eligible four-year Title IV institution. Freshmen, sophomores and juniors must be enrolled full time, though seniors may be enrolled half time. Borrowers must also be the age of majority in their state and be a U.S. citizen or permanent resident, or have a co-signer who is the age of majority and a U.S. citizen or permanent resident. Borrowers or co-signers must have at least three years of good credit history, no history of bankruptcy, a minimum annual income of $35,000 and a minimum credit score of 650.

The process of getting a loan from Earnest typically takes two to five weeks, but this can depend on the borrower and the school. Earnest charges a returned payment fee of up to $8. Florida residents may be charged a stamp tax of 0.35 percent.

Best student loan for part-time students

Sallie Mae

4.3

See offers

Apply on partner site

Min. credit score:: Not disclosed
Fixed APR From:: 3.75%
Loan amount:: $1,000–$500,000
Term lengths:: 10 to 15 years
Min. annual income:: $0

Overview: Sallie Mae offers private student loans to undergraduate students, graduate students, parents and students enrolled in career-training programs.

Why Sallie Mae is best for part-time students: Sallie Mae is one of the only private student loan lenders that doesn’t require borrowers to attend school full- or half time, which makes it a standout option if you’re studying abroad, taking just one or two classes at a time or taking a professional certification course.

Pros
Four months of free access to Chegg Study.

Loans for part-time students, students attending online or summer classes and students studying abroad.

Wide range of loan amounts.
Cons
Few eligibility requirements disclosed.

Only 12 months of forbearance available.

Only one term option for graduate students.

Best student loan for no fees

SoFi

4.6

See offers

Apply on partner site

Min. credit score:: Not disclosed
Fixed APR From:: 3.47% –11.16%
Loan amount:: $5,000–$500,000
Term lengths:: 5 to 15 years
Min. annual income:: $0

Overview: SoFi is an online lender that offers private student loans for undergraduate students, graduate students and parents. Among its perks, SoFi says that it doesn’t charge any fees, which cuts down on the overall cost of borrowing.

Why SoFi is best for no fees: It's standard for lenders to charge late fees or nonsufficient funds fees, but SoFi does away with even these fees. Of course, it's still not a good idea to miss payments, but SoFi's no-fee policy provides a nice buffer.

Pros
Member rate discount of 0.125 percent.

Unemployment assistance.

No fees.
Cons
Relatively high minimum loan amount.

High APR caps.

Loans not available for associate degree programs.
Borrowers must be the age of majority and be a U.S. citizen, permanent resident or visa holder. Younger borrowers or borrowers who are not U.S. citizens must apply with a qualified co-signer. Borrowers or co-signers must also be employed or have sufficient income. Borrowers must be enrolled at least half time and be making satisfactory academic progress.

Applicants can get a credit decision in three minutes, and the entire process from application to funds disbursement usually takes four to six weeks. SoFi charges no fees — not even late fees.

Federal vs. private student loans

Federal student loans are offered by the U.S. Department of Education, while private student loans are offered by banks, credit unions and private lenders. It's almost always best to start your search with federal student loans, though private student loans also offer some unique perks.

The biggest difference between federal and private loans is in the rates and eligibility requirements. Private lenders base your rates on your credit score, with a poor credit score leading to higher rates. Federal student loans, on the other hand, offer every borrower the same rate for each type of loan. The average interest rate on a private student loan can range from around 1 percent to 13 percent, while federal loans charge 3.73 percent, 5.28 percent or 6.28 percent, depending on the loan type.

Some federal loans do have borrowing limits, so borrowers will often turn to private lenders to finance their remaining academic costs. However, while private loans can often finance up to the total cost of attendance, they don't offer as many ways to customize your repayment plan.


	FEDERAL STUDENT LOANS	PRIVATE STUDENT LOANS
Interest rates	3.73% to 6.28%	2.99% to 13.65% fixed, 0.94% to 11.98% variable
Fees	1.057% to 4.228% origination fee	Varies by lender
Borrowing limits	$31,000 total for dependent undergraduates, $57,500 total for independent undergraduates, 100% total cost of attendance for graduates	100% total cost of attendance with many lenders
Benefits	Income-driven repayment plans, robust deferment and forbearance, no minimum credit score	Low interest rates for good-credit borrowers, often zero fees, lender-specific perks
Drawbacks	Potentially higher interest rates than private loans offer for borrowers with good credit, loan amount caps for undergraduate borrowers	Credit check required, high rate caps, fewer borrower protections

How does student loan interest work?

When you apply for a student loan, you'll be offered an interest rate. This interest rate is an extra percentage of your loan amount that you'll have to pay each month.

With federal loans, this rate is the same for all borrowers and is determined by the federal government each year. With private loans, this rate is determined by your credit score, income and more. The most affordable private student loans go to students in good financial health with high credit scores.

Learn more: How Fed rate changes impact student loans

Prospective borrowers can usually choose between a fixed and a variable interest rate. Fixed interest rates remain the same over the life of the loan, while variable rates change based on market trends. Federal student loans are always fixed, while private student loans can be either fixed or variable.

Learn more: Fixed vs. variable student loan rates

How is student loan interest calculated?

While browsing interest rates, you can calculate your student loan interest to estimate how much you will pay each month. Here's how to do it:

Find your daily interest rate: Divide your annual interest rate by the number of days in a year (365).
Determine your daily interest accrual charge: Multiply your daily interest rate by your principal balance.
Calculate your monthly payment: Multiply your daily interest by the number of days in your billing cycle.

If you have $10,000 in student loans and a 6 percent interest rate, with a 30-day billing cycle, you would pay a little over $49 in interest monthly.

You can also calculate how much interest you'll pay over the life of your student loan by using a student loan calculator.

Learn more: How to calculate student loan interest

What are current student loan interest rates?

Current interest rates on student loans vary based on where the loan originates, the type of interest rate and the creditworthiness of the borrower.


LOAN TYPE	FIXED APR	VARIABLE APR
Refinance Student Loan Rates	1.99% to 8.27%	1.74% to 8.02%
Private Student Loan Rates	2.99% to 13.65%	0.94% to 11.98%
Direct Subsidized and Unsubsidized Loans (Undergraduate Borrowers)	3.73%	N/A
Direct Unsubsidized Loans (Graduate and Professional Borrowers)	5.28%	N/A
Direct PLUS Loans (Graduate and Professional Borrowers)	6.28%	N/A

What are interest rates for federal student loans?

Federal student loan rates change each year. Your rate depends on when you took out your loan.


LOAN FIRST DISBURSED	UNDERGRADUATE DIRECT SUBSIDIZED LOANS	UNDERGRADUATE DIRECT UNSUBSIDIZED LOANS	GRADUATE OR PROFESSIONAL DIRECT UNSUBSIDIZED LOANS	DIRECT PLUS LOANS
July 1, 2021 – June 30, 2022	3.73%	3.73%	5.28%	6.28%
July 1, 2020 – June 30, 2021	2.75%	2.75%	4.30%	5.30%
July 1, 2019 – June 30, 2020	4.53%	4.53%	6.08%	7.08%
July 1, 2018 – June 30, 2019	5.05%	5.05%	6.60%	7.60%
July 1, 2017 – June 30, 2018	4.45%	4.45%	6.00%	7.00%
July 1, 2016 – June 30, 2017	3.76%	3.76%	5.31%	6.31%
July 1, 2015 – June 30, 2016	4.29%	4.29%	5.84%	6.84%

Source: The Federal Register

Student loan news updates

The student loan landscape has been changing in recent months, driven by the coronavirus pandemic and forgiveness policies implemented by the Biden administration. Some current student loans trends to be aware of include:

Federal student loans are in administrative forbearance: President Biden extended the forbearance period for federal loans through August 31, 2022. Federal student loan payments are not required, and interest charges and collections activities are paused.
Borrowers with defaulted FFEL student loans are in forbearance: While FFEL student loans were originally not included in administrative forbearance, borrowers with defaulted FFEL student loans can now benefit from coronavirus relief.
Public Service Loan Forgiveness is undergoing an overhaul: An revision to what constitutes a "qualifying payment" toward PSLF has resulted in thousands of borrowers gaining progress toward loan forgiveness. Borrowers who apply for PSLF through Oct. 31, 2022, can benefit from this temporary waiver.
Student loan forgiveness is now tax-free: The $1.9 trillion stimulus package passed in March 2021 — also known as the American Rescue Plan — made student loan forgiveness tax-free through 2025.
Borrowers with total and permanent disabilities see loan forgiveness: The Department of Education recently revised documentation requirements for total and permanent disability discharge, which makes it easier for borrowers who qualify to see their student loan debt forgiven.

The most valuable college majors

College is a big investment regardless of how you pay for it, and some forward-planning will help ensure that your investment pays off. A Bankrate study of the most valuable college majors found that STEM degrees have consistently high median incomes and low unemployment rates, while arts degrees rank near the bottom in terms of overall value.

Of course, there are plenty of factors that influence the value of your degree, including the cost of your school, the likelihood that you’ll need an advanced degree and the fulfillment you find in your chosen career path. A performing arts degree may not be as financially rewarding as a degree in computer engineering, but it allows many graduates to pursue their dreams and land a satisfying job after college.

If you’re looking for the most bang for your buck, these five college majors at the top of our rankings are a good place to start your search:


Degree	Median income	Unemployment rate
1. Architectural Engineering	$90,000	1.3%
2. Construction Services	$80,000	1%
3. Computer Engineering	$101,000	2.3%
4. Aerospace Engineering	$100,000	1.9%
5. Transportation Sciences and Technologies	$86,000	1.8%

FAQs about student loans

You can apply for a student loan through banks, online lenders, credit unions and the federal government. To apply for a federal student loan, you'll fill out the Free Application for Federal Student Aid (FAFSA), which opens up on Oct. 1 each year. Once you fill it out, you will be notified about your eligibility for federal student loans and other financial aid.

To apply for a private student loan, first compare a few lenders to determine which offers the best rates and terms for your needs. You can prequalify with most lenders, which lets you see your loan offer before submitting a formal application. When you've selected a lender, you can apply online, over the phone or in person, if the lender has physical locations.
You can take out new student loans or refinance your existing loans with bad credit. Most federal student loans don't even check your credit, which makes them a great option for borrowers with little to no credit history. If you are applying for a private student loan, some lenders will cater to borrowers with poor credit, although interest rates may be higher and loan amounts smaller.

Before applying for any student loan, check for credit score requirements at each lender and get prequalified if possible.
Private student loans appeal to many borrowers because of their high borrowing limits and low starting interest rates. They also give you the option of fixed or variable rates, so you can choose the best plan for your budget. However, private student loans have fewer deferment and forbearance options than federal student loans, and borrowers with bad credit could see interest rates in the double digits.
To refinance your student loans, shop around and compare a few lenders to see which one offers the best rate and repayment terms for your situation, getting prequalified where possible. When you're ready to apply, you can typically apply online, over the phone or in person. Once you're approved and have submitted the necessary documentation, the lender will pay off your existing loans, and you'll begin making your new payments.

Next steps

If you're considering financing your college education with loans, maximize your federal student loan potential before turning to private loans. When looking for the best private loan, get prequalified with a few lenders to make sure that you're getting the most competitive rates and terms. A college education is a big investment, so take some time to shop around before signing on the dotted line.

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Best student loan without a co-signer

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