Credible takeaways
- Filling out the FAFSA will help determine how much federal financial aid is available to you.
- Applying for student loans has pros and cons, but this aid can cover the cost of your tuition and living expenses.
- Grants and scholarships are available through different associations and organizations, and you generally don’t need to pay them back.
- Your financial aid adviser can provide you with resources to save on college expenses.
College can be an expensive investment. The average cost of college for an in-state student at a public four-year college is $24,030 per year, and the price goes up to $41,920 for an out-of-state school, according to College Board.
With this kind of cost, you might find yourself unable to afford your college expenses. Maybe you can’t get enough financial aid by the beginning of the semester, or you’ve run out of funds mid-semester.
The good news is that there are a few options that might help you get the funds you need to continue your education.
1. Fill out the FAFSA
If you need money to cover your college expenses, filling out the Free Application for Federal Student Aid (FAFSA) is a good place to start. Your school will use your FAFSA results to determine what federal financial aid you qualify for based on your:
- Year in school
- Enrollment status
- Whether you’re an independent or dependent student
- Cost of attendance
- Student Aid Index (which is determined based on the financial information you provide)
Important:
You have until June 30, 2025, to submit the FAFSA for the 2024-25 academic year. However, schools and states also have their own FAFSA deadlines, so make sure you don’t miss any important dates.
Keep in mind that many kinds of aid are given on a first-come, first-served basis, so it’s a good idea to submit the FAFSA as early as possible — especially if you have high financial need.
Even if you don’t think you’re eligible for federal aid, be sure to complete the FAFSA. There’s always a chance that you might qualify for financial aid you didn’t know about.
Learn More: When To Apply for Student Loans
2. Apply for grants and scholarships
College grants and scholarships can be a great way to pay for school since you typically don’t have to pay them back, unlike student loans. This essentially makes them free money for covering college expenses.
There’s no limit to how many grants and scholarships you can get, so be sure to apply for as many as you can. Some might even be available year-round or on a repeat basis. There are scholarships available on both a local and national basis. Since competition for national scholarships can be fierce, it can be a good idea to start your search in your local area.
For example, you might find scholarships through:
- Credit unions
- Businesses
- Nonprofit organizations
- Associations for extracurriculars you’re engaged in (such as sports or arts)
Your school might also offer scholarships based on your FAFSA results. Additionally, you can use sites like Fastweb or Scholarships.com to search for scholarships on a wide scale.
3. Accept federal student loans
If you need to borrow loans for school, federal student loans are typically the best place to start. This is mainly because they offer federal benefits and protections, such as access to income-driven repayment plans and student loan forgiveness programs.
Tip:
To apply for federal loans, you’ll need to fill out the FAFSA. Afterward, you’ll receive a financial aid award letter from your school detailing what loans and other aid you’re eligible for. You can then decide which loans to accept.
Here are the types of federal student loans that might be available to you:
- Direct Subsidized Loans: Undergraduate students with financial need could be eligible for these loans. The government covers the interest on subsidized loans while you’re in school, which lowers your overall cost of repayment.
- Direct Unsubsidized Loans: These loans are available to both undergraduate and graduate students, regardless of financial need. Unlike with subsidized loans, you’re responsible for all of the interest that accrues on unsubsidized loans.
- Direct PLUS Loans: There are two types of Direct PLUS Loans: grad PLUS loans for students attending grad school and parent PLUS loans for parents who want to pay for their child’s education. The interest rates on PLUS loans are typically higher compared to other types of federal student loans — depending on your credit, PLUS loan rates might even be higher than what you’d get on a private student loan. Keep in mind that PLUS loans also require a credit check.
| | | |
|---|
| Undergrad students with financial need | | $3,500 to $5,500 per year, depending on your year in school ($23,000 aggregate limit) |
Direct Unsubsidized Loans | Undergrad, graduate, and professional students |
Undergrad: 5.50%
Graduate and professional: 7.05%
Dependent undergrad: $5,500 to $7,500 per year, depending on your year in school ($31,000 aggregate limit)
| Independent undergrad: $9,500 to $12,500 per year, depending on your year in school ($57,500 aggregate limit)
Graduate and professional: $20,500 in unsubsidized loans per year ($138,500 aggregate limit; no more than $65,500 in subsidized loans) |
| Parents, graduate students, and professional students | | Cost of attendance minus any other financial aid received |
If you can’t borrow enough in federal student loans to fully cover your expenses, you could also consider taking out a private student loan to fill in any financial gaps. Just keep in mind that private loans don’t come with federal benefits and protections.
No matter which type of student loan you decide to take out, it’s important to think about how much that loan will cost you in the future. This way, you can prepare for any added expenses.
4. Speak with your financial aid office
If you can’t afford your college costs, it’s a good idea to visit your school’s financial aid office to see what resources might be available to you. A financial aid counselor can help you understand your options, as well as how to apply for them. For example, they might be able to walk you through applying for work-study or other alternatives to help you pay for on-campus or off-campus housing, textbooks, and more.
If the financial aid package offered by your school isn’t enough to cover your costs, ask your financial aid office if there’s any more aid they can offer to you. Depending on the school, they might be able to allocate more funds to you.
5. Apply for private student loans
If you’ve exhausted your scholarship, grant, and federal student loan options, private student loans could help fill any remaining financial gaps. While private student loans don’t offer the protections of federal student loans, they do offer some benefits of their own, such as:
- Higher loan amounts: Depending on the lender, you might be able to borrow up to your school’s cost of attendance.
- No application deadlines: You can apply for a private student loan at any time, which could be helpful if you run out of funds during the semester or miss the FAFSA deadline.
- Potentially lower rates than federal student loans: Depending on your credit, you might qualify for a lower interest rate on a private student loan compared to a federal loan.
- Could cover nontraditional schooling: You might be able to use private student loans for nontraditional programs, such as trade school or online colleges.
If you’re considering a private student loan, here are several important points to keep in mind:
You’ll typically need good-to-excellent credit to qualify for a private student loan. While some lenders might offer student loans for bad credit, these generally come with higher interest rates than good-credit loans.
If you’re struggling to get approved, consider applying with a cosigner to improve your chances and possibly even get a better interest rate. Most private student loans are cosigned — so if you need a cosigner, you’re not alone!
Advertiser Disclosure$1,000 up to 100% of the school-certified cost of attendance
Overview
College Ave offers student loans for almost every type of degree program, with a range of repayment options, including a unique eight-year repayment term. Additionally, you can get extended grace periods of as long as 36 months on graduate, dental, and medical student loans.
It's also possible to get loan approval for multiple school years at one time. About 90% of undergraduates applying with a cosigner are approved for additional student loans. However, you must complete at least half of your repayment term before you can remove a cosigner for your loan. Some lenders allow cosigners to be released much sooner, after as few as one to two years of payments.
pros
- Rate discount of one-quarter of a percentage point for using autopay
- Does not charge origination or application fees
- May qualify for multiyear approval
- Grace periods between 9 and 36 months for graduate, MBA, law, dental, and medical school loans and 36 months
cons
- Parents borrowers are required to pay at least the interest while the student is in school
- Cosigners not eligible for release until at least half the repayment term of the loan is completed
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
Available after more than half of the scheduled repayment period has elapsed and other requirements are met
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
$1,000 up to 100% of school-certified cost of attendance
Overview
Sallie Mae offers the Smart Option Student Loan for undergraduate students and a suite of loans for graduate students. You can borrow up to your school-certified cost of attendance and apply just once annually to get the funds you need for the entire academic year. Plus, applying for a Smart Option Student Loan with a cosigner may help you get a better rate.
Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for MBA programs, law school, medical school, and health profession programs.
pros
- Can borrow up to school-certified cost of attendance
- No prepayment or origination fees
- Loans available to noncitizens with an eligible cosigner
- Cosigner release after 12 on-time payments
cons
- No parent loan options
- No option to check your rates through prequalification
- Loan terms not disclosed until after you apply
Loan terms
10 to 15 years for the Smart Option Student Loan; 15 years for law school, MBA, and graduate school loans; 20 years for medical school loans
Loan amounts
$1,000 up to school-certified cost of attendance. Student must be listed as the borrower, and a parent may cosign.
Cosigner release
After you graduate, make 12 one-time principal and interest payments, and meet certain credit requirements
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens residing and attending school in the U.S. may qualify by applying with a creditworthy cosigner, who must be a U.S. citizen or permanent resident, and providing an unexpired government-issued photo ID.
$1,000 up to cost of attendance
Overview
ELFI a division of Tennessee-based SouthEast Bank, offers private student loans and refinancing for undergraduates, graduates, and parents. Borrowers can take out loans starting at $1,000, with options up to the full cost of attendance at their school.
ELFI student loans are available to students nationwide who are enrolled in a bachelor's degree program or higher. Borrowers can choose from multiple repayment terms and benefit from competitive interest rates and support from a dedicated Student Loan Advisor. However, ELFI doesn't offer cosigner release or rate discounts, which may limit flexibility for some borrowers.
pros
- Receive support from a dedicated Student Loan Advisor
- Transparent credit and income requirements
- Flexible repayment terms
cons
- Must be enrolled in a bachelor’s degree program or higher
- Cosigners can’t be released from the loan
- No autopay rate discounts available
Loan amounts
$1,000 - Cost of attendance
Cosigner release
A cosigner may not be taken off a loan, but the borrower can apply for a new loan without their cosigner.
Eligibility
All 50 states as well as Washington DC and Puerto Rico.
Overview
While Ascent provides traditional student loans for undergraduate, graduate, and medical programs, it also stands out with some options that are uncommon among private student loan lenders. For example, its Outcomes-Based Loan, which doesn't require established credit or a cosigner, is available to juniors and seniors. When assessing your application, Ascent considers factors including your school, major, and GPA to determine if you're eligible.
Ascent also offers its Progressive Repayment plan to qualified borrowers. It allows you to begin with smaller payments at the start of the repayment term and then gradually pay more each month over time. If you borrow with a cosigner, they can be released after you make as few as 12 monthly payments. However, cosigners for loans for international students do not qualify.
pros
- Doesn’t charge application fees or origination fees
- Offers discounts of 0.25 to 1 percentage points when using automatic payment
- Can get a 1% cash-back reward after you graduate
- Grace periods from 9 months to 36 months
cons
- May find lower interest rates with some competitors
- International students don’t have option to release cosigners
Loan terms
5, 7, 10, 12, 15, or 20 years
Loan amounts
$2,001 minimum up to your school’s annual cost of attendance; lifetime limits of $200,000 for undergrads and $400,000 for graduates
Eligibility
Must be a U.S. citizen or DACA student enrolled at least half time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
$1,000 to $350,000 (depending on degree)
Overview
Citizens Bank offers private student loans for undergraduate and graduate students, as well as parents. With its multiyear approval option, you can apply for a loan once, and as long as you qualify, you won't need to reapply each year. This means you can secure loans for future academic years without multiple hard credit checks.
Citizens borrowers can also take advantage of interest rate discounts. If you or your cosigner has an account with Citizens Bank, you can reduce your rate by 0.25 percentage points. Another 0.25 percentage points can be shaved off by enrolling in automatic payments, giving you the chance to lower your rate by up to 0.5 percentage points.
pros
- Multiyear approval lets you secure funding for future school years
- You can reduce your rate by 0.5 percentage points with autopay and loyalty discounts
- International students can apply with a qualified cosigner
cons
- Fewer repayment terms to choose from than some other lenders
- Long wait time for cosigner release
- Parents can’t defer payments while student is in school
Loan terms
5, 10, or 15 years for student loans; 5 or 10 years for parent loans
Loan amounts
$1,000 minimum, up to a maximum of $225,000 for undergraduate and graduate degrees; $300,000 for MBA and law; and $225,000 or $400,000 for health care student loans, depending on the degree type
Eligibility
Must be a U.S. citizen or permanent resident enrolled at least half-time in a degree-granting program at an eligible institution. International students can apply with a cosigner who’s a U.S. citizen or permanent resident.
$1,000 to $99,999 annually $180,000 aggregate limit)
Overview
Citizens Bank offers private student loans for undergraduate and graduate students, as well as parents. With its multiyear approval option, you can apply for a loan once, and as long as you qualify, you won't need to reapply each year. This means you can secure loans for future academic years without multiple hard credit checks.
Citizens borrowers can also take advantage of interest rate discounts. If you or your cosigner has an account with Citizens Bank, you can reduce your rate by 0.25 percentage points. Another 0.25 percentage points can be shaved off by enrolling in automatic payments, giving you the chance to lower your rate by up to 0.5 percentage points.
pros
- Multiyear approval lets you secure funding for future school years
- You can reduce your rate by 0.5 percentage points with autopay and loyalty discounts
- International students can apply with a qualified cosigner
- Offers parent student loans
cons
- Fewer repayment terms to choose from than some other lenders
- Long wait time for cosigner release
- Parents can’t defer payments while student is in school
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $180,000)
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. You must also meet Custom Choice’s underwriting criteria for income and credit, or apply with a cosigner who does. Eligible noncitizens such as DACA residents can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
$1,001 up to 100% of school certified cost of attendance
Overview
INvested is an Indiana company that offers affordable student loans exclusively to state residents. Loans are available to Indiana students and parents who can meet income and credit requirements, or who have an eligible cosigner. Borrowers can borrow as little as $1,001 or as much as the school-certified cost of attendance minus other aid.
INvested provides detailed information on eligibility so borrowers can quickly determine whether to apply for a loan — however, there’s no option to prequalify with a soft credit check. Cosigner release is also available after just 12 on-time payments, considerably shorter than many other lenders.
pros
- Low minimum borrowing limits
- Autopay discount of 0.25 percentage points
- Short cosigner release requirements
- Transparent qualification requirements
cons
- Loans are available only to Indiana residents
- No prequalification option to view your rates
- No loan options for international students
Loan amounts
$1,001 minimum, up to the school certified cost of attendance
Eligibility
Loans are available to Indiana residents only. Borrowers must have a FICO score of 670 or higher, a 30% maximum debt-to-income ratio or minimum monthly income of $3,333, continuous employment over two years, and no major collections or defaults in recent years. Borrowers who do not meet income or credit requirements can apply with a cosigner.
$1,500 up to school’s certified cost of attendance less aid
Overview
Massachusetts Educational Financing Authority (MEFA) offers student loans to borrowers with good credit. However, you won't be able to see your potential rate before applying.
The lender doesn't charge any fees and its rates are competitive, though MEFA only offers two repayment terms. You can add a cosigner to your loan if you're unable to qualify, but only one repayment plan allows you to release your cosigner.
pros
- Doesn’t charge any fees
- Low maximum rate compared with some lenders
- Can borrow up to the school-certified cost of attendance
cons
- No discounts for borrowers
- Limited repayment terms
- No prequalification available
Loan amounts
$1,500 minimum up to school-certified cost of attendance
Eligibility
Must be a U.S. citizen or permanent resident, enrolled at least half time at a degree-granting, nonprofit institution, and must maintain satisfactory academic progress. Must have no history of default on an education loan and no history of bankruptcy or foreclosure in the past 60 months. Applicants who can’t meet the minimum credit and income requirements may apply with a cosigner.
Loan Amounts
$1,000 up to 100% of the school-certified cost of attendance
Overview
College Ave offers student loans for almost every type of degree program, with a range of repayment options, including a unique eight-year repayment term. Additionally, you can get extended grace periods of as long as 36 months on graduate, dental, and medical student loans.
It's also possible to get loan approval for multiple school years at one time. About 90% of undergraduates applying with a cosigner are approved for additional student loans. However, you must complete at least half of your repayment term before you can remove a cosigner for your loan. Some lenders allow cosigners to be released much sooner, after as few as one to two years of payments.
pros
- Rate discount of one-quarter of a percentage point for using autopay
- Does not charge origination or application fees
- May qualify for multiyear approval
- Grace periods between 9 and 36 months for graduate, MBA, law, dental, and medical school loans and 36 months
cons
- Parents borrowers are required to pay at least the interest while the student is in school
- Cosigners not eligible for release until at least half the repayment term of the loan is completed
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
Available after more than half of the scheduled repayment period has elapsed and other requirements are met
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Loan Amounts
$1,000 up to 100% of school-certified cost of attendance
Overview
Sallie Mae offers the Smart Option Student Loan for undergraduate students and a suite of loans for graduate students. You can borrow up to your school-certified cost of attendance and apply just once annually to get the funds you need for the entire academic year. Plus, applying for a Smart Option Student Loan with a cosigner may help you get a better rate.
Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for MBA programs, law school, medical school, and health profession programs.
pros
- Can borrow up to school-certified cost of attendance
- No prepayment or origination fees
- Loans available to noncitizens with an eligible cosigner
- Cosigner release after 12 on-time payments
cons
- No parent loan options
- No option to check your rates through prequalification
- Loan terms not disclosed until after you apply
Loan terms
10 to 15 years for the Smart Option Student Loan; 15 years for law school, MBA, and graduate school loans; 20 years for medical school loans
Loan amounts
$1,000 up to school-certified cost of attendance. Student must be listed as the borrower, and a parent may cosign.
Cosigner release
After you graduate, make 12 one-time principal and interest payments, and meet certain credit requirements
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens residing and attending school in the U.S. may qualify by applying with a creditworthy cosigner, who must be a U.S. citizen or permanent resident, and providing an unexpired government-issued photo ID.
Loan Amounts
$1,000 up to cost of attendance
Overview
ELFI a division of Tennessee-based SouthEast Bank, offers private student loans and refinancing for undergraduates, graduates, and parents. Borrowers can take out loans starting at $1,000, with options up to the full cost of attendance at their school.
ELFI student loans are available to students nationwide who are enrolled in a bachelor's degree program or higher. Borrowers can choose from multiple repayment terms and benefit from competitive interest rates and support from a dedicated Student Loan Advisor. However, ELFI doesn't offer cosigner release or rate discounts, which may limit flexibility for some borrowers.
pros
- Receive support from a dedicated Student Loan Advisor
- Transparent credit and income requirements
- Flexible repayment terms
cons
- Must be enrolled in a bachelor’s degree program or higher
- Cosigners can’t be released from the loan
- No autopay rate discounts available
Loan amounts
$1,000 - Cost of attendance
Cosigner release
A cosigner may not be taken off a loan, but the borrower can apply for a new loan without their cosigner.
Eligibility
All 50 states as well as Washington DC and Puerto Rico.
Overview
While Ascent provides traditional student loans for undergraduate, graduate, and medical programs, it also stands out with some options that are uncommon among private student loan lenders. For example, its Outcomes-Based Loan, which doesn't require established credit or a cosigner, is available to juniors and seniors. When assessing your application, Ascent considers factors including your school, major, and GPA to determine if you're eligible.
Ascent also offers its Progressive Repayment plan to qualified borrowers. It allows you to begin with smaller payments at the start of the repayment term and then gradually pay more each month over time. If you borrow with a cosigner, they can be released after you make as few as 12 monthly payments. However, cosigners for loans for international students do not qualify.
pros
- Doesn’t charge application fees or origination fees
- Offers discounts of 0.25 to 1 percentage points when using automatic payment
- Can get a 1% cash-back reward after you graduate
- Grace periods from 9 months to 36 months
cons
- May find lower interest rates with some competitors
- International students don’t have option to release cosigners
Loan terms
5, 7, 10, 12, 15, or 20 years
Loan amounts
$2,001 minimum up to your school’s annual cost of attendance; lifetime limits of $200,000 for undergrads and $400,000 for graduates
Eligibility
Must be a U.S. citizen or DACA student enrolled at least half time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Loan Amounts
$1,000 to $350,000 (depending on degree)
Overview
Citizens Bank offers private student loans for undergraduate and graduate students, as well as parents. With its multiyear approval option, you can apply for a loan once, and as long as you qualify, you won't need to reapply each year. This means you can secure loans for future academic years without multiple hard credit checks.
Citizens borrowers can also take advantage of interest rate discounts. If you or your cosigner has an account with Citizens Bank, you can reduce your rate by 0.25 percentage points. Another 0.25 percentage points can be shaved off by enrolling in automatic payments, giving you the chance to lower your rate by up to 0.5 percentage points.
pros
- Multiyear approval lets you secure funding for future school years
- You can reduce your rate by 0.5 percentage points with autopay and loyalty discounts
- International students can apply with a qualified cosigner
cons
- Fewer repayment terms to choose from than some other lenders
- Long wait time for cosigner release
- Parents can’t defer payments while student is in school
Loan terms
5, 10, or 15 years for student loans; 5 or 10 years for parent loans
Loan amounts
$1,000 minimum, up to a maximum of $225,000 for undergraduate and graduate degrees; $300,000 for MBA and law; and $225,000 or $400,000 for health care student loans, depending on the degree type
Eligibility
Must be a U.S. citizen or permanent resident enrolled at least half-time in a degree-granting program at an eligible institution. International students can apply with a cosigner who’s a U.S. citizen or permanent resident.
Loan Amounts
$1,000 to $99,999 annually $180,000 aggregate limit)
Overview
Citizens Bank offers private student loans for undergraduate and graduate students, as well as parents. With its multiyear approval option, you can apply for a loan once, and as long as you qualify, you won't need to reapply each year. This means you can secure loans for future academic years without multiple hard credit checks.
Citizens borrowers can also take advantage of interest rate discounts. If you or your cosigner has an account with Citizens Bank, you can reduce your rate by 0.25 percentage points. Another 0.25 percentage points can be shaved off by enrolling in automatic payments, giving you the chance to lower your rate by up to 0.5 percentage points.
pros
- Multiyear approval lets you secure funding for future school years
- You can reduce your rate by 0.5 percentage points with autopay and loyalty discounts
- International students can apply with a qualified cosigner
- Offers parent student loans
cons
- Fewer repayment terms to choose from than some other lenders
- Long wait time for cosigner release
- Parents can’t defer payments while student is in school
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $180,000)
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. You must also meet Custom Choice’s underwriting criteria for income and credit, or apply with a cosigner who does. Eligible noncitizens such as DACA residents can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Loan Amounts
$1,001 up to 100% of school certified cost of attendance
Overview
INvested is an Indiana company that offers affordable student loans exclusively to state residents. Loans are available to Indiana students and parents who can meet income and credit requirements, or who have an eligible cosigner. Borrowers can borrow as little as $1,001 or as much as the school-certified cost of attendance minus other aid.
INvested provides detailed information on eligibility so borrowers can quickly determine whether to apply for a loan — however, there’s no option to prequalify with a soft credit check. Cosigner release is also available after just 12 on-time payments, considerably shorter than many other lenders.
pros
- Low minimum borrowing limits
- Autopay discount of 0.25 percentage points
- Short cosigner release requirements
- Transparent qualification requirements
cons
- Loans are available only to Indiana residents
- No prequalification option to view your rates
- No loan options for international students
Loan amounts
$1,001 minimum, up to the school certified cost of attendance
Eligibility
Loans are available to Indiana residents only. Borrowers must have a FICO score of 670 or higher, a 30% maximum debt-to-income ratio or minimum monthly income of $3,333, continuous employment over two years, and no major collections or defaults in recent years. Borrowers who do not meet income or credit requirements can apply with a cosigner.
Loan Amounts
$1,500 up to school’s certified cost of attendance less aid
Overview
Massachusetts Educational Financing Authority (MEFA) offers student loans to borrowers with good credit. However, you won't be able to see your potential rate before applying.
The lender doesn't charge any fees and its rates are competitive, though MEFA only offers two repayment terms. You can add a cosigner to your loan if you're unable to qualify, but only one repayment plan allows you to release your cosigner.
pros
- Doesn’t charge any fees
- Low maximum rate compared with some lenders
- Can borrow up to the school-certified cost of attendance
cons
- No discounts for borrowers
- Limited repayment terms
- No prequalification available
Loan amounts
$1,500 minimum up to school-certified cost of attendance
Eligibility
Must be a U.S. citizen or permanent resident, enrolled at least half time at a degree-granting, nonprofit institution, and must maintain satisfactory academic progress. Must have no history of default on an education loan and no history of bankruptcy or foreclosure in the past 60 months. Applicants who can’t meet the minimum credit and income requirements may apply with a cosigner.
What happens if I can’t pay my college tuition?
If you can’t pay your college tuition, your school account could be placed on hold. This means you might not be able to attend classes, receive financial aid, or have your diploma issued until your account is brought up to date.
It’s always a good idea to talk to your school’s financial aid office to see what your options are. For example, you might be able to set up a payment plan or apply for more financial aid to cover tuition, college housing, or other costs.
If you’ve exhausted your federal financial aid options, a private student loan could help you cover your tuition costs. You could even use a private student loan for past-due tuition.
Just remember to consider as many lenders as you can before taking out a private loan. This way, you can find a loan that works for you.
Can I pay for college if I have no income or savings?
Yes, there are several options available that could help low-income students pay for a degree, even if they have no money saved for college. After you fill out the FAFSA, your school will calculate your Student Aid Index. They’ll then use this number to determine what federal and school-based aid you’re eligible for, such as scholarships and grants.
Students with financial need can typically qualify for more assistance compared to high-income students. For example, certain federal student loans and federal grants, such as Pell Grants, are provided based on need.
How to earn money while enrolled in school
If you’re unsure how to pay for college, don’t worry — there are several options available that might help you cover your costs. Be sure to speak with your school’s financial aid office to see what resources you might qualify for. If money’s tight or you find yourself needing more cash to cover college or lifestyle expenses while enrolled, consider the following options:
- Start making small payments on your loans while still in school.
- Establish a budget that works for you and your lifestyle.
- Build up your savings account.
- Find a part-time job or side hustle.
- Start thinking about a career in your desired field.
- Explore work-study opportunities.
You might also be able to take out a private student loan at any time during the semester. This could help you cover expenses if you run out of funds during the semester or have used up your federal aid.
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Paying for college FAQ
How do I pay for college without loans?
If you don’t want to be in debt, there are still options to help cover the cost of your education. Filling out the FAFSA is the best place to start. Just make sure you complete it by your school and state deadlines. Additionally, you can apply for scholarships and grants based on academic performance, extracurriculars, and identity-based criteria.
How can I pay for college without parents?
Paying for college without the help of a parent can certainly feel daunting, but borrowers have many options at their disposal. Filling out the FAFSA will determine how much financial aid you’re able to receive. Grants, scholarships, federal student loans, and tuition assistance programs can help cover some or all of the cost.
Students can also apply for various private student loans without a cosigner, but doing so should be a last resort, as interest rates will likely be higher for borrowers who pursue this option.
Should I go to college if I can't afford it?
Those who obtain a bachelor’s degree earn 84% more than those who carry a high school diploma only, according to the U.S. Bureau of Labor Statistics.
Indisputably, going to college will improve your chances of getting a higher-paying job. However, student loans are expensive and can take a while to pay back. It is important to consider your priorities and career goals to determine what path is best for you.
What percent of people cannot afford college?
It depends on many factors. An analysis conducted by the National College Attainment Network (NCAN) found that only 31% of public four-year colleges were affordable, while 63% of public two-year community colleges were affordable.
Meet the expert:
Lindsay VanSomeren
Lindsay VanSomeren has over nine years of experience in personal finance. Her work has been featured by Yahoo News, Forbes Advisor, LendingTree, and MSN.
