11 Best Part-Time Student Loans in 2023

If you’re one of the 7.5 million students planning to take just a few credits each semester while going to college or career-training school, you might find it difficult to get a part-time student loan. This is because many lenders require borrowers to attend school at least half-time to be eligible for the loan. 

As a part-time student, you may be wondering how to get financial aid; qualified part-time students are eligible for financial support from the federal government and private lenders. Here’s what you need to know.

What Is a Part-Time Student Loan?

Part-time student loans are a form of financial aid designed to assist students who are enrolled in college on a part-time basis, typically defined as less than 12 credit hours per semester.

These types of student loans can cover a variety of educational expenses including tuition, fees, room and board, books, and other related costs.

Unlike full-time students, part-time students usually take fewer credit hours and may balance their academic life with work or other responsibilities.

Below we’ve provided a detailed evaluation of each of the loan options that made our list. For each, we’ve included details on the lender, loan terms and rates, a summary of the pros and cons, requirements, and repayment options.

Best Part-Time Student Loans

Here are the best part-time student loans that we’ve examined and selected to cover in this guide:

1. Upstart – Best overall for part-time students
2. CollegeAve – Best for low interest rates
3. Sallie Mae – Best for flexible repayment options
4. Earnest – Best for its transparent eligibility requirements
5. Citizens Bank – Best for cosigner policies
6. Ascent – Best for loans without a cosigner
7. SoFi – Best for interest rate discounts
8. MEFA – Best for low-cost financing options
9. Discover – Best for rewards
10. EdvestinU – Best for students attending school in New Hampshire
11. Custom Choice – Best for low-interest student loans

1. Upstart

Why we chose it: Best overall for part-time students

Upstart is an online lending platform that provides personal loans, car refinance, and consolidation loans to borrowers, including students. It provides loans to individuals with fair or no credit history, making it a viable option for those who might struggle to obtain financing from traditional lenders​

The platform uses artificial intelligence to assess borrowers using over 1,500 non-conventional variables including education and employment history, not just traditional credit score requirements.

Upstart offers loan amounts from $1,000 to $50,000 with APRs between 5% and 35.99%.

Pros of Upstart:

1. Loans to individuals with fair or no credit history.
2. Part-time students can apply.
3. Fast loan approval in under five minutes.
4. Loan amounts from $1,000 to $50,000.
5. Loans are funded within one business day.

Cons of Upstart:

1. May charge some fees.
2. Doesn’t offer joint, co-signed, or secured loans​.

Eligibility Requirements

While the exact eligibility requirements weren’t listed in the sources, it’s clear that Upstart has a more flexible and holistic approach to determining eligibility. It considers factors such as employment, education, and credit history in its evaluation process​.

Repayment Terms

• Repayment terms between 36 and 60 months.
• No pre-payment penalty if you decide to pay off your loan earlier​​.

We feel that Upstart’s holistic evaluation of loan applicants is a refreshing approach and this provides opportunities for individuals who might be unfairly disadvantaged by traditional credit scoring models. However, the lack of transparency on fees and the absence of joint or secured loan options may limit its appeal to a broader audience.

You can check your rate online with Upstart.

2. College Ave

Why we chose it: Best for low interest rates

College Ave, established in 2014 and headquartered in Washington, is known for its direct and individualized approach, which makes it an appealing choice for borrowers. This lender specializes in providing custom private student loans and refinancing options for undergraduate and graduate eligible students as well as parents.

College Ave offers competitive interest rates, starting as low as 4.44% AOR, and they can cover up to the full cost of attendance certified by your school. The repayment terms are flexible, with options spanning up to 15 years. Borrowers have the choice of full deferment, $25 monthly payments, or interest-only payments.

After making 24 full and consecutive payments, borrowers can request a cosigner release, providing them with increased financial independence and autonomy.

Pros of College Ave:

• Soft credit check
• Fixed rates from 4.44%
• Flexible repayment terms
• Cosigner release policies

Cons of College Ave:

• No information regarding credit requirements on the website

Eligibility Requirements:

• Should be a U.S. citizen or permanent resident
• Must be at least 16 years old (18 years for refinancing loans)
• Must be attending at least part-time an accredited college or university

Repayment Terms:

• Deferred payments – no payments for up to six months after graduation
• Flat $25 monthly payments during school and up to six months after graduation
• Interest-only payments while in school and up to six months after graduation
• Repay the full amount during school

3. Sallie Mae

Why we chose it: Best for flexible repayment options

Since its start in 1972, Sallie Mae has become one of the most recognized private student loan lenders in the US. It has a wide range of loan options for undergraduates, graduates, parents, and those pursuing career training.

Sallie Mae provides up to 100% of your school-certified cost of attendance. For borrowers seeking cosigners, Sallie Mae stands out by offering the fastest route to cosigner release. 

Their multiyear advantage ensures favorable approval chances for current borrowers who have cosigners. Starting at an interest rate of 4.50%, Sallie Mae’s loan options come with flexible repayment terms, which can extend up to 20 years. 

Borrowers can also enjoy a 0.25% interest rate reduction for enrolling in automatic payments. Sallie Mae provides several deferment options, including full deferment, $25 monthly payments, or interest-only payments.

Students are granted a six-month grace period before repayment begins, and for those with cosigners, cosigner release is made available after making 12 payments.

Pros of Sallie Mae

• Multiple deferment options
• Fixed rates start at 4.50%
• Can cover 100% of your school attendance cost
• Part-time students are eligible

Cons of Sallie Mae

• Does not offer student loan refinance

Eligibility Requirements:

• A strong credit score in the mid-600s
• Employment history
• Must be a U.S citizen or permanent resident
• Have a permanent U.S. address
• Have a Social Security Number
• Must have no open bankruptcies

Repayment Terms:

• Deferred repayment – no payments while in school, and during the grace period
• Fixed repayment – $25 payments while in school, and during the grace period
• Interest-only payment while in school, and during the grace period

4. Earnest

Why we chose it: Best for transparent eligibility requirements

Earnest is a fintech lender founded in 2013 and a leader in student loan refinancing. They added private student loans to their list of products in 2019 and are known for their transparency when it comes to loan requirements – making it easy for students to see what they qualify for.

Earnest offers repayment periods of up to 15 years with the option of full deferment, fixed repayments, and interest-only payments. Loan rates start at 4.45% and you can borrow up to 100% of your school-certified cost of attendance.

There is also a nine-month grace period, but there is no cosigner release. 

Pros of Earnest:

• Flexible repayment options
• Quick online eligibility check
• No late payment penalties
• Nine-month grace period
• AutoPay discounts

Cons of Earnest:

• No cosigner release policies

Eligibility Requirements:

• A minimum credit score of 650
• Student or cosigner must earn at least $35,000 per year
• Three years’ worth of credit history
• Full-time enrollment at an accredited college or university

Repayment Details:

• Deferred payment while in school with a nine-month grace period after graduation
• Interest-only payments while in school with full payments after graduation
• Fixed $25 monthly payments while in school with full payments after graduation
• Full payments while in school

5. Citizens Bank

Why we chose it: Best for cosigner policies

Citizens Bank is one of the largest banks in the U.S. and was founded in 1828. The bank offers private student loans and refinancing, as well as personal and business financing products. Citizens Bank offers multi-year approvals, enabling students to fund their four-year stay in college with only one application.

Undergraduate loans start at 4.43% APR with repayment periods of up to 15 years. Getting a quote takes a few minutes and doesn’t require a hard credit check.

Private student loans from Citizens Bank are available from $1,000 up to the total cost of education. Cosigners are optional and there are no origination fees, no application fees, and no penalty fees for early repayment.

Pros of Citizens Bank:

• Interest rate and AutoPay discounts
• Multiple repayment options
• Flexible co-signer release terms
• Multiyear approvals

Cons of Citizens Bank:

• A 5% late payment fee applies

Eligibility Requirements:

• Must have a minimum annual income of $12,000 ($24,000 for refinancing loans)
• Must have a reasonably strong credit score (typical approvals are done for borrowers with a score of at least 740)
• Must be at least 18 years old
• Must be a U.S. citizen, permanent resident, or international student

Repayment Details:

• Immediate option, repayment starts as soon as the funds are disbursed
• Interest-only payments while in school and during the six months after graduation
• Deferred payments while in school and during the six months after graduation

6. Ascent

Why we chose it: Best for loans without a cosigner

Ascent is an online lender founded in 2015, and they offer undergraduate and graduate student loans to borrowers who don’t meet the eligibility requirements of most lenders. They don’t require students to be U.S. citizens or permanent residents, making them a very popular lender among international students. 

Ascent is a good loan option for trade schools as they offer cosigned and non-cosigned private student loans that cover up to 100% of the attendance cost of the trade school. 

They offer flexible repayment terms of up to 20 years, with fixed APRs starting at 4.62% and a 1% cash-back graduation reward when borrowers meet certain criteria.

Pros of Ascent:

• Loans don’t require a cosigner
• Two years of financial hardship forbearance
• International students are eligible
• 1% cash back graduation reward
• No application, origination, or disbursement fees

Cons of Ascent:

• Higher interest rates 
• Must attend a qualifying school

Eligibility Requirements:

• Be a U.S. citizen, permanent resident, Deferred Action for Childhood Arrivals (DACA), or international student
• Must be at least 18 years old
• Must be at least a part-time student
• Student or cosigner must have at least two years of employment history
• Student or cosigner must earn at least $24,000 per year

Repayment Details:

• Deferred payment while in school with a nine-month grace period after graduation
• Fixed $25 monthly payments while in school and during the nine-month grace period
• Interest-only student loan payments while in school and during the nine-month grace period

7. SoFi

Why we chose it: Best for interest rate discounts

SoFi is a personal finance company and bank founded in 2011. As a leader in student financing, the company offers private student loans and refinancing, as well as other financial products like personal loans and credit cards.  

SoFi was the first lender to refinance private and federal student loan options together. They also offer free career coaching and getting a rate estimate won’t affect your credit. 

Student loans from SoFi come with rates starting at 4.99% and repayment terms of up to 20 years. Repayment options include interest-only, flat-fee, and deferred. There are no late fees, prepayment penalties, or application fees. 

Cosigner releases are available after 24 on-time, full monthly payments.

Pros of SoFi :

• Career coaching through the member benefits program
• Qualify without hurting your credit
• A 0.125% interest rate reduction if a cosigner is a SoFi customer
• No origination or late payment fees

Cons of SoFi:

• Requires a high credit score for loan refinancing
• No cosigner release option

Eligibility Requirements:

• Must have U.S citizenship, be a permanent resident, or visa holder
• Must be enrolled in a degree program
• A minimum credit score of 650

Repayment Details:

• Deferred payments while in school and for six months after graduation
• Monthly minimum payment of $25 while in school
• Interest-only payment option while in school
• Full payment while in school
  

8. MEFA

Why we chose it: Best for low-cost financing options

Founded more than 40 years ago, the Massachusetts Educational Financing Authority (MEFA) provides private student loans as low as $1,500, which is ideal for students who only have a small funding gap to complete their studies. 

With MEFA you can get an instant decision on applications. Their fixed interest rates start at 5.35% with repayment periods of up to 15 years. There are no prepayment penalties, no origination fees, and no application fees for their student loans.

MEFA offers a range of repayment options including interest-only payments while in school, and a deferment option with a six-month grace period after graduation.

Cosigner release is available after 48 consecutive, on-time payments.

Pros of MEFA:

• No origination or application fees
• No prepayment penalties
• Instant application decision
• Cosigner release is possible 
• Low minimum loan amount

Cons of MEFA:

• No interest rate or automatic payment discounts

Eligibility Requirements:

• Must be a U.S. citizen or permanent resident
• Must maintain a good academic process
• Must be enrolled at a not-for-profit college or university

Repayment Details:

• Interest-only payments while in school, starting 28 days after loan disbursement 
• Immediate payment starting 28 days after loan disbursement
• Deferred option with a six-month grace period after graduation

9. Discover

Why we chose it: Best for rewards

Founded in 2000, Discover Bank is an online bank owned by Discover Financial Services. With a history of almost 40 years, they offer a range of financial products, including private student loans to international students.

With Discover, international and DACA students can qualify with a U.S. citizen or permanent resident as cosigner. You can borrow up to 100% of the school-certified cost of attendance, which can include books, tuition, housing, and more. 

One benefit that stands out is that borrowers with a 3.0 GPA or higher can receive 1% of their loan amount as a cash reward. 

There are no late fees and fixed rates start at 4.49% APR. Loan repayment periods are available up to 20 years and there are multiple repayment periods available. 

Pros:

• International students can apply with a cosigner
• Borrowers with a GPA of 3.0 or higher get 1% of their loan as a cash reward
• Quick online eligibility check
• No late payment penalties
• Available to borrowers in all U.S. states

Cons:

• Loan qualification triggers a hard credit check

Eligibility Requirements:

• International students need an eligible cosigner to apply
• Students must be enrolled at least half-time at an eligible school

Repayment Details:

There are multiple in-school payment options available:

• Deferred payment while in school and during the grace period
• Interest-only payments while in school and during the grace period
• Fixed $25 monthly payments while in school and during the grace period
• Immediate payments as soon as the loan is disbursed

The post-school payment options are as follows:

• Forbearance for up to 12 months due to unemployment, financial hardship, or medical disability
• Academic deferment if you return to school at least half-time

10. EdvestinU

Why we chose it: Best for students attending school in New Hampshire

Founded in 1962, EDvestinU is a nonprofit student loan lender and part of the New Hampshire Higher Education Loan Corp. They offer undergraduate and graduate student loans to residents in 20 U.S. states and Puerto Rico. EDventinU is a good option for international students with a cosigner who wants to attend a trade school in the U.S.

They offer fixed loan rates starting at 6.25% and you can borrow up to 100% of your school-certified cost of attendance. There are no application or origination fees, but there is a 5% penalty on late payments. EDventinU offers loan payments of up to 15 years. 

Co-signer release is available after 36 months of consecutive, on-time payments.

Pros of Custom Choice:

• Benefits for New Hampshire residents who attend in-state schools
• Loans offered to international students
• Borrowers get a 0.5% discount with AutoPay

Cons of Custom Choice:

• Not available in all states

Eligibility Requirements:

• Minimum credit score of 675
• Part-time college student or cosigner must have a minimum income of $30,000 per year
• Must be a U.S. citizen or permanent resident
• Must be enrolled in an approved college or university
• International students must have a cosigner

Repayment Details:

• Immediate payments as soon as the loan is disbursed
• Interest-only payments while in school and during the grace period
• Forbearance is available for 12 months post-school

11. Custom Choice

Why we chose it: Best for low-interest student loans

As a subsidiary of Cognition Financial Corporation in Boston, Custom Choice is a trusted lender that offers private student loans to graduate and undergraduate students. They have unique repayment options along with additional protections that make them an attractive option for students looking to fund their trade school or career training. 

Custom Choice offers fixed loan rates starting at 3.65% and a reduction of 2% on your principal loan amount with proof of graduation. They offer a range of repayment options, including $25 while in school, and up to 12 months forbearance. They cover up to 100% of your school-certified cost of attendance, including trade schools and colleges.

Repayment periods are available for up to 15 years and the maximum loan amount is $100,000. Cosigner releases are available after 36 on-time payments.

Pros of Custom Choice:

• No hard credit pull to check eligibility
• No late fees or origination fees
• Available in all 50 states 
• Covers up to 100% of your school-certified tuition
• 2% reduction on your principal amount if you graduate

Cons of Custom Choice:

• Additional payments are not applied to the main balance
• Its forbearance program is less generous than that of others

Eligibility Requirements:

• Must be a U.S. citizen, permanent resident, or DACA recipient
• A minimum credit score of 600 (660 without a cosigner)
• Student or cosigner must have an income
• No bankruptcies in the last 10 years
• Must attend a Title IV-certified school

Repayment Details:

• Deferred payments while in school for up to 48 months
• Up to 12 months of forbearance in two-month increments
• Interest-only payments while in school
• $25 monthly payments while in school

Part-Time Student Loan Options

Federal Student Loans, such as the Direct Subsidized and Unsubsidized Loans, are available to part-time students if they meet certain criteria. Typically, a student must be enrolled at least half-time to qualify. The loan amount may be less compared to full-time students, reflecting the fewer credit hours taken.

Private student loans like the ones we’ve listed below, are another option. These are offered by private institutions like banks and credit unions. Eligibility criteria and terms can vary widely, and interest rates are usually higher than federal loans.

Eligibility Criteria

The eligibility criteria for part-time student loans can vary based on whether the loan is federal or private. However, some common criteria include:

1. Enrollment Status: Students must be enrolled in an eligible program on a part-time basis. The specific definition of part-time can vary by institution and loan provider.
2. Citizenship Status: For federal loans, students typically need to be U.S. citizens or eligible non-citizens. Private loan eligibility may vary.
3. Financial Need: Federal loans often require demonstrating financial need, while private loans may not.
4. Credit History: Private lenders often require a good credit history or a cosigner with good credit.
5. Academic Progress: Students may need to maintain satisfactory academic progress to continue to qualify for loans.
6. Income: Some private lenders may require proof of income or a cosigner with sufficient income.
7. Other Criteria: Other criteria may include a high school diploma or GED, and for federal loans, males need to be registered with the Selective Service if they are between the ages of 18 and 25.

Pros and Cons of Part-Time Student Loans

Pros

• Flexibility: Part-time student loans allow you to continue your education even if you can’t commit to a full-time course load. This makes it easier to balance school with work or family responsibilities.

• Lower borrowing: Generally, part-time students take fewer courses per semester, which can mean less tuition costs and, consequently, less borrowing. This could result in a smaller debt burden upon graduation.

• Federal protections: If you opt for federal loans, you can take advantage of Income-Driven Repayment Plans and potential Loan Forgiveness Programs, which can make managing your debt easier in the long run.

Cons

• Smaller loan amounts: Because you are enrolled part-time, the amount you’re eligible to borrow may be limited. This could make it challenging to cover all your educational expenses.

• Longer repayment period: If you’re attending school part-time, it will likely take you longer to complete your degree. This means you might start repaying the loan later, potentially accumulating more interest.

Limited eligibility for subsidies: Federal Direct Subsidized Loans are often reserved for full-time students. Part-time students may have to resort to Unsubsidized Loans, which accrue interest while you’re in school.

What Happens If I Drop Below Half-time?

If you decide to switch to less-than-half-time enrollment or withdraw from school entirely, you will be obligated to begin repaying any federal student loans you borrowed following the applicable grace period. 

Depending on the grace period guidelines for your private loans, you may be required to start repaying them immediately. Please keep this in mind when making decisions about your education.

Federal vs Private Part-Time Student Loans

Federal part-time student loans are often preferred due to their lower interest rates and more favorable repayment terms. They include loan types such as Direct Subsidized and Unsubsidized Loans.

Federal student loans typically come with lower interest rates and additional benefits like the availability of income-driven repayment plans or loan forgiveness that private lenders don’t offer.

Private part-time student loans are provided by private lenders and may have higher interest rates and less favorable repayment terms compared to federal loans. However, they can be a good option if federal aid does not cover all the educational costs.

You should exhaust all federal loan options before turning to private lenders as they tend to be the most affordable option for students. However, if you’re unable to secure enough funds through federal programs or need additional funds beyond what is available, then private student loans may be the only option.

How To Find Part-Time Student Loans

Federal Student Loans:

• FAFSA: The first step in obtaining a part-time student loan is to fill out the Free Application for Federal Student Aid (FAFSA). This form assesses your financial need and eligibility for federal aid.

• School’s Financial Aid Office: After completing the FAFSA, consult your school’s financial aid office. They will provide a Financial Aid Package, which may include federal loan options tailored to your part-time status.

• Eligibility: Make sure you meet the minimum criteria for federal loans. Usually, you must be enrolled at least half-time to qualify for Direct Subsidized and Unsubsidized Loans.

Private Student Loans:

• Research: Unlike federal loans, private loans are offered by banks, credit unions, and other financial institutions. Start by researching which organizations offer student loans for part-time students.

• Compare rates and terms: Different lenders offer varying interest rates, repayment terms, and eligibility criteria. Use comparison tools to find a loan that suits your needs.

• Application: Once you’ve selected a lender, you’ll need to apply, which generally involves a credit check. Some lenders might require a co-signer if you don’t have an established credit history.

Scholarship and Grants:

In addition to loans, look for scholarships and grants tailored for part-time students. These do not require repayment and can help reduce the amount you need to borrow.

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