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With the rising price of tuition, fees, and room and board at four-year public colleges and private nonprofit institutions, more students in all income brackets have been taking out loans.

If you’re wondering where to get a student loan for college, you have two options. The first is getting a federal student loan through the government. Federal student loans account for more than 93% of all student loan debt. The second option is a private student loan, which is given by a bank, credit union, or online lender. Private student loans are not based on need, but rather your college’s cost of attendance, your credit profile, and your income (or your cosigner’s income).

Prioritizing a Plan

When creating a plan to fund college education, it can make good sense to first explore any avenues for free money in the form of grants and scholarships.

By taking a look at the remaining balance after any free money has been found, exploring federal loans can be a smart next step. They come with income-based repayment options and the ability to request loan forgiveness under some circumstances. There are also work-study programs that can help students earn money while attending college.

If all needs are not covered, then there are private student loans to consider, along with Direct PLUS Loans that parents can apply for to get funds for their children.

After that, some people may seek out personal loans to cover living expenses while in school and/or emergency loans from the college.

Here are more specifics about these options.

Where to Get a Federal Student Loan

When the funding for college comes from the federal government, then—as the name indicates—that’s considered a federal student loan. To obtain any kind of federal student loan, a student must first fill out the Free Application for Federal Student Aid, commonly called the FAFSA®. Here are tips on how to fill out the FAFSA®.

After filling out this form, a student will have insights into what federal funding is available for them, along with work-study options. More specifically, each school that a student applies to can send a financial aid offer letter, which includes information about how to apply for student loans that they qualify for.

Two broad types of federal loans are:

•   Direct subsidized loans: These are for undergraduates with financial need.

•   Direct unsubsidized loans: These are available for undergraduate students, as well as graduate and professional ones, that do not demonstrate financial need.

A key difference between the two types involves the interest on the loan. With a subsidized loan, the U.S. Department of Education pays the interest when a qualifying student is attending school at least half time, as well as during a six-month grace period when the student graduates, withdraws, or reduces to less than part-time. This can also apply if the loan goes into deferment, meaning when loan payments are postponed. With an unsubsidized loan, the student is responsible for paying the interest.

Where to Get a Private Student Loan

A variety of financial institutions offer private student loans and have their own criteria for qualification. Some allow students to apply online and can give quick responses, while others go a more traditional route with in-person applications.

Private lenders will typically review a student’s income, plus that of any cosigner, along with credit histories and more to make lending decisions. A lender might grant a private student loan to someone whose credit isn’t stellar, but charge a higher interest rate.

When applying for a private student loan, it’s important to understand the loan terms before signing the note. This includes the interest rate and whether the rate is fixed (staying the same over the life of the loan, with the principal and interest payments also staying the same) or variable. If a loan is variable, how much can the rate change? How often? What is the term of the loan?

Recommended: Fixed vs. Variable Rate Loans

Benefits of private student loans can include the following:

•   They can bridge the gap between what is owed after federal student loans are applied to the balance and what is needed to attend college.

•   Students can apply for them any time of the year, without the strict deadlines associated with federal loans.

•   Borrowers may have more choices in interest rates and terms.

•   The loans may not include origination fees or prepayment fees, although that isn’t universally true.

Potential cons can include these:

•   It isn’t unusual for a private lender to require a cosigner because college students often don’t have enough income to qualify or have established a good enough credit profile to get the loan on their own.

•   Students who are considered a higher credit risk may pay more in interest.

•   Private student loans don’t come with many of the benefits associated with federal loans, such as forgiveness programs and income-based repayment plans.

•   Students may borrow more than they can ultimately afford, and these loans are typically not dischargeable in bankruptcy proceedings.

Check out this Guide to Private Student Loans for more information on funding your education through a financial lender.

Parent PLUS Loans and More

Parent PLUS Loans

When asking “Where is the best place to get a student loan?” also consider the Parent PLUS Loan, in which parents can apply for federal funding to help their children attend college.

Eligibility for a Parent PLUS Loan isn’t based on financial need, but credit is checked. If applicants have a credit history that’s considered “adverse,” they “must meet additional requirements to qualify.”

So, what does “adverse” mean? According to the Federal Student Aid office, this can include:

•   Having accounts that, in total, have an outstanding balance of more than $2,085 and are at least 90 days delinquent.

•   A default or a bankruptcy discharge during the previous five years.

•   Involvement in a foreclosure, repossession, or tax lien situation in the previous five years.

•   Write-off of federal student loan debt or wage garnishment during the past five years.

Qualifying parents of a dependent undergraduate student can receive funding through this loan program to cover education-related costs that are not covered by other financial aid.

Personal Loans

It’s also possible to apply for personal loans from financial institutions to cover living expenses during college or to address an emergency. There are downsides to this, though, including:

•   Interest rates will likely be higher than student loans, along with shorter payoff periods (which means principal and interest payments can be higher).

•   There isn’t typically a grace period, which means repayment starts right away.

•   These loans don’t come with deferments or forbearance, as can be available through federal student loans.

Emergency Loans

In an emergency, a student might want to reach out to the college financial aid center to see if the school offers emergency loans for those in need. These loans would not typically be large, perhaps $1,000 to $1,500, but might be enough to address a dire situation.

Each college has its own guidelines, so check them out carefully. Some charge interest; others may not. Some may charge a service fee; others may not. As with personal loans, repayment may start immediately, so factor that into budget planning.

Private Student Loans at SoFi

To help students who decide that private student loans should play a role in their funding mix for college, SoFi offers private student loans.

Students should take advantage of federal student aid opportunities first. Then, when private loans make sense, SoFi offers them with no fees and flexible repayment options to fit a range of budgets.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


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When a payment is past due, it becomes a delinquent payment. For instance, if your student loan payment is due by the 15th of each month, and the 16th arrives and you haven’t paid the amount you owe, you’re generally considered to be delinquent on that loan.

Once you’re late making a payment, a late fee may be assessed, and late payments may impact your credit report.

Read on to learn more about delinquent debt and the potential consequences, as well as ways to help prevent student loans from becoming delinquent.

Credit Score Calculations and Purposes

When you apply for a loan, like a personal loan, a car loan, or a credit card, the lending institution reviews your application to make sure you’re able to repay the loan. They look at things like your income to make sure you have the financial resources to make payments, as well your outstanding debts.

If you’re applying for a secured loan (which is a loan secured by collateral like a home, car, boat and so forth), they’ll make sure the asset being used as security for the loan has enough value.

And the lender will also check your credit score. Unlike when your income is checked, your credit score doesn’t summarize whether or not you can repay a loan. Instead, it provides a snapshot to a lending institution about how well you’ve upheld your financial commitments in the past. (it’s worth noting that most federal student loans do not require a credit check.)

If the lender sees that, to date, you’ve met your financial obligations, that can make you look like a responsible borrower. But if your credit history isn’t as clean as it could be, say you have delinquent credit, this shoots up a red flag; things like late payments can impact your credit for months or even years.

As a result, the lender may deny the loan, approve less than what you need, or offer you a higher interest rate than what’s being awarded to people with excellent credit scores.

Although there are multiple calculations that can be used to determine creditworthiness, FICO® scores are the most commonly used. This base score can range from 300 to 850; the higher the base score, the better your credit is considered to be.

Here is the general formula used to determine your base FICO score:

•  As much as 35%: payment history

•  About 30%: what you currently owe

•  Up to 15%: length of your credit history

•  Up to 10%: types of credit you have

•  Up to 10%: new credit applications you’ve made

There are three major credit reporting agencies. Besides Experian, there is TransUnion and Equifax. According to the federal Fair Credit Reporting Act (FCRA), you are allowed to obtain a free copy of your credit report each year.

As you read your credit report, if you find errors, it’s important to report and correct them with the credit bureaus.

More about Delinquent Payments

What is delinquent debt? If someone is late on a payment, there can be fees assessed. If payments continue to be late, additional fees may be added. Delinquent payments may also cause your loan to switch to a penalty APR, which can significantly increase the interest you owe and make it harder to pay down the balance.

Late payments of 30 days or more may end up on your credit report, which can be damaging, and may negatively impact your credit score. If the amount you owe is sent to collections, that fact could appear on your credit report for seven years. If you’ve missed a loan payment and are delinquent, you can contact the lender to discuss how you can get back on track.

Late Student Loan Payment

Just as you don’t want to make a delinquent payment on a loan for your house or car, you don’t want to be late on your student loan payments. Specific consequences vary by lender; you can check with your loan servicer for exact details.The consequences may be different for private student loans vs. federal student loans.

In addition to typically involving a late fee, a late student loan payment may appear on your credit report. If your federal student loan payment is 90 days late, it will then be reported to all three credit bureaus. However, private student loan late payments are often reported to a credit bureau when they are 30 to 45 days past due.

If your late federal student loan payment snowballs into multiple ones, and you missed making payments for 270 days (about nine months), your federal student loans go from delinquent to being in default. This means that your loans are now due in full, along with accrued interest, fees charged by collection agencies, and any other fees, fines, and penalties.

To collect this amount, the government can garnish up to 15% of your pay, and/or take your tax refund to put towards the debt. They can do the same to your loan co-signer, if you have one. And, your loan servicer can even sue you.

If you know you’re going to miss a payment, you can contact your student loan servicer. If you’re undergoing financial hardship, perhaps because of a job loss or medical emergency, you can apply for federal student loan deferment, which can postpone payments or reduce them.

If the situation is less serious, and you’ve missed a payment because of your hectic schedule, you might find it helpful to set up automatic loan payments to avoid delinquent debt.

Here’s a third scenario: Let’s say that you’re meeting your student loan payments, but the amount you’re paying every month is higher than you’d like. In that case, you could apply for student loan refinancing. If you qualify, you could have the option to select a more manageable monthly payment or get a lower interest rate.

A student loan refinance calculator can help you determine how much you might save.

Should you refinance your student loans? You may want to think twice if you have federal student loans. That’s because if you refinance your federal loans with a private lender, you will forfeit all of your federal benefits, including programs like income-driven repayment plans.

Recommended: Student Loan Refinancing Guide

Refinancing Student Loans with SoFi

When you refinance your student loans, you can consolidate multiple loans into one loan with one convenient payment. And you may be able to qualify for a lower interest rate, which could help you save money. SoFi offers loans with low fixed and variable rates, flexible loan terms, and no fees. And as a SoFi member, you also get free perks like career coaching and financial advice.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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