How to Get a Student Loan for Online College

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Online schools come with benefits like a flexible schedule and potentially lower costs (and the option to go to school in your pajamas).

If you’re considering a school like this, you might be wondering if you can pay for it with online college student loans. The good news is that yes, you can use both federal and private student loans to cover the cost of attending online college.

Here’s how to get student loans for online college:

Check your school’s accreditation status for federal loans
Fill out the FAFSA
Apply for scholarships and grants
Take out federal student loans
Compare rates on private student loans

1. Check your school’s accreditation status for federal loans

If you’re considering federal vs. private student loans, it’s usually a good idea to start with federal student loans.

This is because they come with several borrower protections and benefits, including deferment and forbearance options, income-driven repayment, and student loan forgiveness programs.

Keep in mind: To be eligible for federal student loans, an online college has to be accredited by the U.S. Department of Education.

You can check the Database of Accredited Postsecondary Institutions and Programs to see if your school is accredited.

Top accredited schools with fully online degrees

As of 2021, here are 10 of the top accredited online colleges that offer bachelor’s degrees, according to Accredited Schools Online.

Keep in mind that these rankings are based on a variety of factors, including academic quality, affordability, reputation, and program offerings.

Learn More: How to Take Out a Student Loan

2. Fill out the FAFSA

Your first step in finding student loans for online colleges should be to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA helps determine your eligibility for federal student aid, including federal student loans and grants.

If you’re ready to complete the FAFSA, follow these four steps:

Create an FSA ID. To fill out the FAFSA online, you’ll need to create a Federal Student Aid (FSA) ID with a username and password at StudentAid.Gov. If you’re a dependent student, one of your parents will also need to create an FSA ID so they can can sign your application. Keep in mind that you’ll need your Social Security number to register an FSA ID.
Gather your documents. You’ll need your financial information, most recent tax return, and documentation regarding any assets to fill out the FAFSA. If you’re a dependent student, you’ll need this information from your parents as well. Keep in mind that if you filed a U.S. tax return, you’ll likely be able to transfer it directly to your FAFSA using the IRS Data Retrieval Tool, which is linked within the FAFSA itself.
Fill out the FAFSA. Once you have your FSA ID and have gathered your information, you’re ready to complete the FAFSA at StudentAid.gov. As you fill out the form, you’ll provide your financial and tax information. You’ll also need to list at least one school that will receive your FAFSA information. When you’re done, sign and submit the form.
Get your financial aid award letter. Once you’ve completed the FAFSA, your school’s financial aid office will send you a financial aid award letter. This letter will detail the federal student loans and grants you qualify for. You can then decide which aid you’d like to accept.

Don’t miss the deadline! Be sure to complete the FAFSA as soon as possible to avoid missing out on federal student aid. Keep in mind that some aid is given on a first-come, first-served basis, so submitting the FAFSA as early as you can is especially important if you have high financial need.

For the 2023-2024 academic year, the deadline is June 30, 2024. Some colleges and states also have their own FAFSA deadlines — double-check with your school’s financial aid office so you don’t miss any important dates.

Check Out: 5 Steps to Take If You Can’t Afford College

3. Apply for scholarships and grants

Unlike student loans, college scholarships and grants don’t have to be repaid — which makes them a great way to pay for college.

There’s also no limit to how many scholarships and grants you can get, so it’s a good idea to apply for as many as possible.

Some of the organizations that might offer scholarships and grants for online classes include:

Nonprofit organizations
Local and national businesses
Professional associations in your field

You can use sites like Fastweb and Scholarships.com to easily search for scholarships that you might be eligible for. Also keep in mind that you might qualify for school-based scholarships, depending on your FAFSA results.

Tip: There are also other options that might help you pay for school while keeping your student loan costs low.

For example, you could consider getting a job or participating in the federal work-study program, which provides part-time employment to undergraduate and graduate students with financial need.

Learn More: How to Pay for College With No Money Saved

4. Take out federal student loans

After you fill out the FAFSA and receive your financial aid award letter, you can decide what federal financial aid and federal student loans to accept.

Tip: If you need to take out federal student loans for school, it’s typically best to start with Direct Subsidized Loans, which are available to undergraduate students with financial need.

The government pays the interest on these loans while you’re in school, which can help keep your repayment costs lower.

If you aren’t eligible for subsidized loans or have met your limits, Direct Unsubsidized Loans are generally the next-best choice. While the government doesn’t cover any interest on these loans, they have lower rates compared to Direct PLUS Loans.

If you’re considering Direct Subsidized vs. Unsubsidized Loans, here are several important points to keep in mind:

	Direct Subsidized Loans	Direct Unsubsidized Loans
Who qualifies?	Undergrad borrowers with financial need	Undergrad, graduate, and professional students (regardless of financial need)
Available to graduate or professional students?	No	Yes
Interest rates	Undergrad: 5.50%	Undergrad: 5.50% Graduate or professional: 7.05%
Aggregate loan limits (for dependent students)	Undergrad: $23,000	Undergrad: $31,000
Aggregate loan limits (for independent students)	Undergrad: $23,000 Graduate or professional: $65,500	Undergrad: $57,500 Graduate or professional: $138,500
Interest covered by the Department of Education	While in school at least half time During grace periods During forbearance periods	None

Check Out: Guide to Every Type of Student Loan Offered

5. Compare rates on private student loans

After you’ve exhausted your federal student loan options, private student loans could help fill in any funding gaps.

If you have excellent credit, you might even find lower interest rates with private student loans compared to federal PLUS Loans.

Tip: When shopping around for private student loans for online colleges, be sure to review each lender’s list of approved schools.

Some private lenders only offer loans to students enrolled at certain schools, which might not include the online colleges you’re considering.

If you decide to take out a private student loan, be sure to shop around and consider as many lenders as possible. This way, you can find the right loan for your needs.

Here are Credible’s partner lenders that offer private student loans for online college:

Lender	Fixed Rates From (APR)	Variable Rates From (APR)	Loan amounts	Loan terms (years)
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	3.69%+¹⁰	5.66%+¹⁰	$2,001* to $400,000	5, 7, 10, 12, 15, 20
Fixed APR: 3.69%+¹⁰ Variable APR: 5.66%+¹⁰ Min. credit score: Does not disclose Loan amount: $2,001* to $400,000 Loan terms (years): 5, 7, 10, 12, 15, 20 Repayment options: Full deferral, fixed/flat repayment, interest only, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: None Discounts: 0.25% to 1.00% automatic payment discount, 1% cash back graduation reward Eligibility: Must be a U.S. citizen or permanent resident or DACA student enrolled at least half-time in a degree-seeking program Customer service: Email, phone Prequalified rates with a soft credit check: Yes Cosigner release: After 12 on-time principal and interest payments Loan servicer: Launch Servicing, LLC
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	3.99%+¹	5.5%+	$1,000 to $350,000 (depending on degree)	5, 10, 15
Fixed APR: 3.99%+¹ Variable APR: 5.5%+ Min. credit score: 720 Loan amount: $1,000 to $350,000 Loan terms (years): 5, 10, 15 Loan types: Any private or federal student loan Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay, loyalty Eligibility: Available in all 50 states (international students can apply with a creditworthy U.S. citizen or permanent resident cosigner) Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: After 36 months Loan servicer: Firstmark Services
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	3.59%+^2,3	5.34%+^2,3	$1,000 up to 100% of the school-certified cost of attendance	5, 8, 10, 15, 20
Fixed APR: 3.59%+^2,3 Variable APR: 5.34%+^2,3 Min. credit score: Does not disclose Loan amount: $1,000 up to cost of attendance Loan terms (years): 5, 8, 10, 15, 20 Repayment options: Full deferral, full monthly payment, fixed/flat repayment, interest only, immediate repayment, academic deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident and be making satisfactory academic progress. Customer service: Email, phone Prequalified rates with a soft credit check: Yes Cosigner release: After half of the scheduled repayment term has been completed Loan servicer: College Ave Servicing LLC ^{Learn more about cosigner release requirements. Requesting prequalified rates on Credible is free and doesn't affect your credit score. However, applying for or closing a loan will involve a hard credit pull that impacts your credit score and closing a loan will result in costs to you.}
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.24%+	4.97%+	$1,000 to $99,999 annually ($180,000 aggregate limit)	7, 10, 15
Fixed APR: 4.24%+ ¹¹ Variable APR: 4.97%+ ¹¹ Loan amount: $1,000 to $99,999 annually ($180,000 aggregate limit)¹¹ Loan terms (years): 7, 10, 15¹¹ Repayment options: Full deferral, immediate repayment, interest-only repayment, flat/full repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: None Discounts: Autopay¹¹ Eligibility: Available to borrowers in all 50 states. Must be a U.S. citizen or permanent resident. Customer service: Phone, email Prequalified rates with a soft credit check: Yes Cosigner release: After 36 months¹¹ Loan servicer: American Education Services Min. income: $1
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.8%+⁸	7.77%+⁸	$1,001 up to 100% of school certified cost of attendance	5, 10, 15
Fixed APR: 4.8%+⁸ Variable APR: 7.77%+⁸ Min. credit score: 670 Loan amount: $1,001 up to cost of attendance Loan terms (years): 5, 10, 15 Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, forbearance Fees: Late fee Discounts: Autopay, reward for on-time graduation Eligibility: Must be an Indiana resident or a U.S. citizen attending an eligible Indiana school Customer service: Email, phone, chat Prequalified rates with a soft credit check: Yes Cosigner release: After 12 months Loan servicer: American Education Services
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	5.75%+	N/A	$1,500 up to school’s certified cost of attendance less aid	10, 15
Fixed APR: 5.75%+ Variable APR: N/A Min. credit score: 670 Loan amount: $1,500 up to cost of attendance less aid Loan terms (years): 10, 15 Repayment options: Full deferral, interest only, immediate repayment, academic deferral, forbearance Fees: None Discounts: None Eligibility: Must be a U.S. citizen or permanent resident and be making satisfactory academic progress. Customer service: Email, phone Prequalified rates with a soft credit check: Yes Cosigner release: After 48 months Loan servicer: American Education Services (AES)
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	3.490%⁹ - 15.49%⁹	5.04%⁹ - 15.210%⁹	$1,000 up to 100% of school-certified cost of attendance	10 to 20
Fixed APR: 3.490%⁹ - 15.49%⁹ Variable APR: 5.04%⁹ - 15.210%⁹ Min. credit score: Does not disclose Loan amount: $1,000 up to 100% of school-certified cost of attendance Loan terms (years): 10 to 20⁹ Repayment options: Full deferral, fixed/flat repayment, interest only, academic deferment, forbearance, loans discharged upon death or disability Fees: Late fee, non-sufficient funds (NSF) fee Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident. Also available to non-U.S. citizen students (including DACA students) attending a school located in the U.S. who apply with a qualifying cosigner. Customer service: Phone, chat Prequalified rates with a soft credit check: Yes Cosigner release: Borrowers can apply after graduation, 12 consecutive on-time principal and interest payments, and meeting certain credit requirements. Loan servicer: Sallie Mae
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Only borrow what you need

If you’re attending an online school, you can save on common costs like room and board. This means you can likely pay for your education with fewer student loans than the average student.

Tip: While it can be easy to take out student loans, keep in mind that you’ll eventually have to repay the money you borrow — so be sure to borrow only what you need.

This way, you’ll have lower loan balances to pay back in the future.

Find out how much you’ll owe over the life of your federal or private student loans using our student loan calculator below.

Enter your loan information to calculate how much you could pay

Loan amount ? Enter the total amount borrowed $

Interest rate ? Enter your annual interest rate %

Loan term ? Enter the amount of time you have to repay your loan years

Total Payment $

Total Interest $

Monthly Payment $

With a $ loan, you will pay $ monthly and a total of $ in interest over the life of your loan. You will pay a total of $ over the life of the loan, assuming you're making full payments while in school.

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About the author

Eric Rosenberg

Eric Rosenberg is an expert on personal finance. His work has been featured at Business Insider, Investopedia, The Balance, The Huffington Post, MSN Money, Yahoo Finance, Mint.com and more.

Home » All » Student Loans » How to Get a Student Loan for Online College

How to Get a Student Loan for Online College

1. Check your school’s accreditation status for federal loans

Top accredited schools with fully online degrees

2. Fill out the FAFSA

3. Apply for scholarships and grants

4. Take out federal student loans

5. Compare rates on private student loans

Only borrow what you need

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