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7 Best Small Student Loans for the 2023-24 School Year

A small student loan could help you cover a variety of expenses — such as textbooks or fees — while keeping your future repayment costs low.

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By Dori Zinn

Written by

Dori Zinn

Contributor

Dori Zinn is a personal finance journalist with over 10 years of experience. Her work has been featured by Huffington Post, USA Today, Wirecutter, Bankrate, and CBS News.

Edited by Ashley Harrison

Written by

Ashley Harrison

Contributor

Ashley Harrison has over six years of experience as an authority on personal finance. Her work has been featured by USA TODAY Blueprint, Forbes Advisor, Fox Business, and Yahoo Money.

Updated October 3, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances.

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In the U.S., college students leave school with an average student loan debt of $39,351 — but in some cases, you might only need to take out a small student loan to fully cover your education costs.

For example, maybe you’ve received a large amount of federal financial aid and need just a bit of extra money to cover leftover expenses.

Best student lenders offering small loans

If you decide to take out a small private student loan, it’s important to consider as many lenders as possible to find the right loan for your needs.

Here are Credible’s partner lenders that offer small student loans:

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Ascent

Minimum loan amount: $2,001

If you have fair credit, Ascent could be a good option for a small student loan: You can borrow $2,001 to $400,000 (depending on whether your credit is tested) with repayment terms from five to 20 years (depending on your loan type).

Additionally, borrowers can get a rate discount of 0.25% to 2% by signing up for autopay as well as earn a 1% cashback reward if they graduate within five years.

Best No-Cosigner Loans

Ascent

Ascent

4.8

Credible Rating

Check Rates

on Credible’s website

Min. Credit Score

Does not disclose

Fixed APR

3.69 - 15.04%

Variable APR

5.66 - 15.16%

Loan Amount

$2,001 to $400,000

Term

5, 7, 10, 12, 15, 20

Pros and cons

More details

Citizens

Minimum loan amount: $1,000

Citizens offers private student loans from $1,000 up to 100% of your school’s cost of attendance (aggregate limits might apply). If you already have an account with Citizens, you could get a 0.25% loyalty rate reduction — plus another 0.25% off your rate if you sign up for autopay.

Best for Multi-Year Approval

Citizens

Citizens

4.8

Credible Rating

Check Rates

on Credible’s website

Min. Credit Score

720

Fixed APR

3.99 - 15.61%

Variable APR

5.50 - 16.12%

Loan Amount

$1,000 to $350,000 (depending on degree)

Term

5, 10, 15

Pros and cons

More details

College Ave

Minimum loan amount: $1,000

With College Ave, you can borrow $1,000 up to your school-certified cost of attendance (minus any other financial aid you’ve received) with terms from five to 15 years (depending on your degree).

If you’re taking out a parent loan with College Ave, you also have the option to receive $2,500 of the loan directly — allowing you to control your child’s spending on expenses like books, computers, or dorm supplies.

Best for Extended Grace Periods

College Ave

College Ave

4.9

Credible Rating

Check Rates

on Credible’s website

Min. Credit Score

Does not disclose

Fixed APR

3.59 - 17.99%

Variable APR

5.34 - 17.99%

Loan Amount

$1,000 up to 100% of the school-certified cost of attendance

Term

5, 8, 10, 15 (20 for health professionals)

Pros and cons

More details

Custom Choice

Minimum loan amount: $1,000

The Custom Choice Loan is available from $1,000 to $99,999 annually ($180,000 aggregate limit) with a three- or five-year term. If you graduate with at least a bachelor’s degree, you could get a 2% principal reduction on your loan.

Best for Discounts and Rewards

Custom Choice

Custom Choice

4.4

Credible Rating

Check Rates

on Credible’s website

Min. Credit Score

Does not disclose

Fixed APR

4.24 - 14.02%

Variable APR

4.97 - 14.52%

Loan Amount

$1,000 to $99,999 annually $180,000 aggregate limit)

Term

7, 10, 15

Pros and cons

More details

INvestEd

Minimum loan amount: $1,001

INvestEd offers student loans to borrowers living or attending school in Indiana. You can borrow $1,001 up to 100% of your school’s cost of attendance (minus any other aid you’ve received) with terms from five to 15 years.

Best for Indiana Students

INvested

INvested

4.6

Credible Rating

Check Rates

on Credible’s website

Min. Credit Score

670

Fixed APR

4.80 - 8.54%

Variable APR

7.77 - 11.81%

Loan Amount

$1,001 up to 100% of school certified cost of attendance

Term

5, 10, 15

Pros and cons

More details

MEFA

Minimum loan amount: $1,500

The Massachusetts Educational Financing Authority (MEFA) works only with borrowers attending public or nonprofit universities — for-profit schools aren’t eligible. With MEFA, you can borrow $1,500 up to your school-certified cost of attendance.

Undergraduate students can choose between a 10- or 15-year term while graduate students are limited to only 15-year terms.

Best for borrowers with good credit

MEFA

MEFA

3.1

Credible Rating

Check Rates

on Credible’s website

Min. Credit Score

670

Fixed APR

5.75 - 8.95%

Variable APR

-

Loan Amount

$1,500 up to school’s certified cost of attendance less aid

Term

10, 15

Pros and cons

More details

Sallie Mae

Minimum loan amount: $1,000

Sallie Mae offers private student loans from $1,000 up to 100% of school-certified cost of attendance with repayment terms from 10 to 15 years (depending on your degree).

If you have a cosigner, you can apply to release them from the loan after making just 12 consecutive, on-time payments — much less time compared to several other lenders.

Best Specialized Loans

Sallie Mae

Sallie Mae

4.3

Credible Rating

Check Rates

on Credible’s website

Min. Credit Score

Does not disclose

Fixed APR

3.49 - 15.49%

Variable APR

5.04 - 15.21%

Loan Amount

$1,000 up to 100% of school-certified cost of attendance

Term

10 - 20

Pros and cons

More details

Student loan limits for the 2023-24 school year

Both federal and private student loans come with student loan limits that determine the maximum amount you can borrow. But if you only want a small student loan and are approved for a higher loan amount, you’re free to accept just the amount you want — you don’t have to take the full amount you’re offered.

Keep in mind: There are also other factors that can impact what you’re allowed to borrow. For example, federal student loan amounts are affected by whether you’re an independent or dependent student, your year in school, and what other aid you’ve received.

And private student loans can be limited based on your credit (or your cosigner’s credit) and income.

Here are the limits you can expect:

Loan type
Loan amounts
Direct Subsidized Loans
$3,500 to $5,500 per year
Direct Unsubsidized Loans
Dependent undergrad: $5,500 to $7,500 per year ($31,000 total limit); Independent undergrad: $9,500 to $12,500 per school year ($57,500 total limit); Graduate and professional: $20,500 per year ($138,500 total limit)
Direct PLUS Loans
Up to your school’s cost of attendance minus any other financial aid received
Private student loans
Up to your school’s cost of attendance minus any other financial aid received (depending on the lender)

How to take out a small student loan

If you’re ready to take out a small student loan, follow these four steps:

  1. Fill out the FAFSA. If you need to pay for college, your first step should be completing the Free Application for Federal Student Aid (FAFSA). Your school will use your FAFSA results to determine what federal student loans and other federal financial aid you’re eligible for.
  2. 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 cover education costs. There’s no limit to how many you can get, so it’s a good idea to apply for as many scholarships and grants as you can.
  3. Take out federal student loans. If you need to borrow for school, it’s usually best to start with federal student loans as they come with federal benefits and protections — such as access to a variety of repayment options and forgiveness programs. After you’ve filled out the FAFSA, your school will send you a financial aid award letter detailing what federal student loans and other federal financial aid you qualify for. You can then decide what aid — and how much — you’d like to accept.
  4. Use private student loans to fill in the gaps. Once you’ve exhausted your scholarship, grant, and federal student loan options, private student loans can help you fill any financial gaps left over. These loans can range from as little as $1,000 up to your school’s cost of attendance (depending on the lender).

Taking out a student loan with bad credit

You’ll generally need good to excellent credit to qualify for a private student loan. While there are several lenders that offer student loans for bad credit, these loans tend to come with higher interest rates compared to good credit loans.

If you don’t meet private student loan requirements on your own, applying with a cosigner might help you get approved more easily. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get alone.

Tip: Most federal student loans don’t require a credit check to qualify — which makes them a good option if you have less-than-perfect credit.

No matter which type of student loan you get, it’s important to consider how much that loan will cost you in the future. This way, you can be prepared for any added expenses.

Other ways to pay for college

Student loans aren’t the only way to pay for college. Here are a few other options to consider that could help you keep your student loan debt low:

  • Check if a 529 plan was opened for you. A 529 plan is a type of college savings account that helps parents save on taxes while putting away money for their child’s education. If your parents (or even your grandparents) have a 529 plan for you, you can use the money for your qualified education expenses. Keep in mind that a 529 plan held by your parent could affect your Estimated Family Contribution (EFC) that’s calculated by the FAFSA — meaning you might not be offered as much financial aid.
  • Start at a community college. Attending a community college can be much less expensive compared to a traditional four-year school. To help keep your costs low, it could be a good idea to start at a community college, then transfer to a four-year school to finish your degree.
  • Enroll in a work-study program. After filling out the FAFSA, you might have the option to sign up for a work-study program. Jobs offered through these programs generally don’t pay very much, but they can help you cover small costs while also adding to your resume.
  • Get a job. Another alternative is to get a job that can help you pay for expenses while you’re taking classes. Just be sure to find something that won’t interfere with your coursework.

Small private student loans can help fill in funding gaps

A small private student loan can fill in funding gaps after you’ve exhausted your scholarship, grant, and federal student loan options. For instance, a small student loan could help you pay for college textbooks, fees, or living expenses.

Just be sure to borrow only what you need so you can keep your future costs as low as possible.

Tip: Borrowing a small amount isn’t the only way to avoid racking up a high amount of student loan debt. For example, you could live on campus or make payments on your student loans while you’re in school to reduce some of your costs.

A small private student loan could also be a good choice for covering your costs if you run out of money during the semester or find yourself facing unexpected expenses. Unlike federal student loans, you can apply for a private loan at any time while you’re enrolled in school.

If you decide to take out a private student loan, remember to consider as many lenders as you can to find the right loan for your needs.

Meet the expert:
Dori Zinn

Dori Zinn is a personal finance journalist with over 10 years of experience. Her work has been featured by Huffington Post, USA Today, Wirecutter, Bankrate, and CBS News.