Many students take advantage of summertime to take a break from school and recharge themselves for the next semester. Some use this time for extra classes and catching up on studies. Summer classes can also be a benefit as it reduces costs for room and board, especially if you’re graduating early.
Summer classes can be paid for with student loans just like regular school. Here are our top recommendations for student loans to cover your summer classes in 2023.
Best Student Loans for Summer Classes
1. 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
2. College Ave
Why we chose it: Best overall
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 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 Details:
- 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: Earnest is best for its 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. Discover
Why we chose it: Discover is best overall 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
- Student 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
6. Funding U
Why we chose it: Best for high-achieving students without a cosigner
Founded in 2016, Funding U provides private student loans to borrowers without a cosigner. They do not base eligibility on the borrower’s credit history, but rather on other factors like the student’s GPA and academic history.
While they may have higher interest rates, Funding U is a good option for students with good grades who don’t have a creditworthy cosigner. They only offer two repayment options while in school and only operate in 38 U.S. states.
Funding U offers loan repayment terms of up to 10 years with a six-month grace period. Loan amounts range from $3,000 to $20,000 annually and fixed APRs start at 6.99% with AutoPay.
Pros of Funding U
- No co-signer or credit history required
- Fast pre-approvals within minutes
- Every student is assigned a loan officer for help and advice
- No origination or application fees
Cons of Funding U
- Not available in all states
- Only fixed-rate loans available
Eligibility Requirements:
- Must be a U.S. citizen, permanent resident, or DACA recipient
- Must be 18 years or older
- Must be enrolled as a full-time student at a partner college or university
- Must be a resident of a qualifying state
- Must have never filed for bankruptcy
Repayment Terms:
- Fixed monthly $20 repayments while in school, and during the grace period
- Interest-only payment while in school, and during the grace period
7. MPOWER
Why we chose it: Best for international students
Founded in 2014, Washington, D.C.-based MPOWER Financing is a private lender that provides student loans to local and international students. MPOWER loans are popular with students as they don’t require borrowers to have a cosigner or a good credit history.
Another benefit of MPOWER is that borrowers can get a 1.5% interest rate reduction with six automatic on-time payments, proof of graduation, and proof of employment.
MPOWER loans come with fixed APRs starting at 14.75% and loan terms go up to 10 years. The maximum loan amount is $100,000 and there is a 5% origination fee.
Pros of MPOWER
- 0.25% interest rate discounts for enrolling in autopay
- Funds up to 100% of a borrower’s education expenses
- Available to international students
- Doesn’t require a cosigner
- Doesn’t require good credit history
- No prepayment penalty
Cons of MPOWER
- Charges a 5% origination fee
- Only fixed-rate loans are available
Eligibility Requirements:
- Must be a U.S. citizen or permanent resident, DACA recipient, refugee, or asylum-seeker
- Must be enrolled at an eligible school
- Should be an undergraduate or graduate student
- Be within two years of your graduation date
Repayment Terms:
- Interest-only payments while in school with full payments after a six-month grace period
8. Ascent
Why we chose it: Best for student support
Ascent is a reputable private student lender founded in 2015. They offer private student loans to undergraduate and graduate students, including those who typically don’t meet the eligibility requirements of most lenders. They have a number of credit-based, co-signed loan options available, such as undergraduate-, MBA- and general graduate school cosigned loans
Ascent’s student loans for international student loans require a qualified cosigner with a minimum income of $24,000. They offer loan repayment periods of up to 20 years with a 1% cash-back graduation reward when borrowers meet certain criteria.
Fixed loan rates start from 4.62% and applicants can get a 0.25% discount for AutoPay. Payment options include interest-only payments, $25 minimum payments, and full deferment.
Pros:
- Flexible payment options on loans
- Two years of financial hardship forbearance
- International students are eligible
- 1% cash back graduation reward
- No application, origination, or disbursement fees
Cons:
- Higher interest rates
- Students who are not enrolled at least half-time are not eligible
Eligibility Requirements:
- Must be at least 18 years old
- Must be at least a part-time student
- International students require a cosigner with at least two years of employment history
- Student or cosigner must earn at least $24,000 per year
Repayment Details:
Ascent offers three loan repayment options:
- 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 payments while in school and during the nine-month grace period
7. PenFed
Why we chose it: Best for PenFed members
Established in 1935, PenFed (Pentagon Federal Credit Union) offers student loan refinancing to their members. It’s the second-largest credit union in the country and has 2.9 million members. Although you have to be a member of PenFed to qualify, anyone is eligible for membership. They have a quick application process and their rates start at 7.74% fixed APR.
PenFed offers repayment periods of up to 15 years with loan amounts up to $300,000. Married couples can refinance together, and borrowers can refinance their parents’ PLUS loans. There are no prepayment penalties and an online application takes less than 15 minutes.
Pros
- Married couples can refinance their loans into one single loan
- Students can refinance parent PLUS loans in their name
- Prequalify without a hard credit check
- Fast co-signer release period
- Anyone is eligible for membership
Cons
- Must join a credit union
- No variable rate loans available
- Must maintain a savings account
Eligibility Requirements
- Minimum credit score of 670 or higher
- Must be a PenFed member
- Must be a U.S. citizen or permanent resident
- Must be a member of PenFed
Repayment Details
No specific forbearance details are disclosed
How Do Student Loans Work for Summer Classes?
Summer classes can get you a student loan, but availability and application requirements vary.
There are two main types of student loans: federal and private.
Federal Student Loans
As long as you are enrolled at least half-time in a degree or certificate program, you can apply for federal student loans for summer classes. Federal loans are often the best option as they typically come with lower interest rates and more flexible repayment plans.
However, you need to fill out the Free Application for Federal Student Aid (FAFSA) to determine eligibility, and not all schools may offer federal aid for summer sessions.
There are various types of federal student loans:
Direct Subsidized Loans
- These are available to undergraduate students who demonstrate financial need.
- The U.S. Department of Education pays the interest while the student is in school at least half-time, during the grace period, and during deferment.
Direct Unsubsidized Loans
- Unlike subsidized loans, these are not based on financial need and are available to both undergraduate and graduate students.
- Interest accumulates while in school, during the grace period, and in deferment.
- While not as advantageous as subsidized loans, they offer flexibility in eligibility and still provide federal protections.
Direct PLUS Loans
- Available to graduate students and parents of dependent undergraduate students.
- Unlike other federal loans, they require a credit check.
- These may have slightly higher interest rates, and should be considered after exhausting other federal loan options.
Direct Consolidation Loans
- This allows you to combine all your eligible federal student loans into a single loan with one loan servicer.
- While it simplifies repayment, it might not be suitable for everyone, as it could lead to a loss of certain benefits tied to individual loans.
Private Student Loans
If federal loans are not an option, private loans from banks or other financial institutions can be considered. Private loans might offer less favorable terms, such as higher interest rates, and their qualification criteria may vary. Private loans should generally be seen as a last resort.
Alternatives To Student Loans for Summer Classes
Scholarships and Grants
Scholarships are awarded based on various factors like academic achievement, community involvement, or special talents. They are typically need-based and don’t have to be repaid. Scholarships and grants are highly favorable since they provide free money for education, and we strongly recommend researching and applying for as many as possible.
Work-Study Programs
Federal Work-Study provides part-time jobs for students with financial need and the earnings from these jobs can help pay for education expenses. Engaging in work-study not only helps financially but also provides valuable work experience.
Employer Tuition Assistance
Some employers offer tuition reimbursement or assistance programs.
This is an excellent option for those who work full-time or part-time and can align their studies with their career goals.
Does FAFSA Cover Summer Classes?
Yes, the FAFSA can indeed cover summer classes, as long as certain conditions are met:
- Enrollment status: You must be enrolled at least half-time in a degree or certificate program during the summer term. The specific number of credits required for half-time status may vary between institutions.
- School participation: Your college or university must offer federal financial aid for the summer session. Not all schools do, so it’s essential to check with the financial aid office of your specific institution.
- FAFSA application: If you wish to receive financial aid for summer classes, you must have a current and completed FAFSA on file. You typically use the FAFSA from the prior academic year for summer aid.
- Aid eligibility: Your eligibility for federal aid during the summer will depend on your financial need and the amount of federal aid you’ve already received during the academic year. If you’ve exhausted your aid for the academic year, you might not have funds available for the summer.
- Type of aid: The aid you receive for summer classes may include grants, work-study, and loans, depending on your eligibility.
- Impact on future aid: It’s worth noting that taking federal aid for summer classes might affect your future aid eligibility. Therefore, careful consideration and consultation with a financial aid advisor are essential.
FAQs
Can I get a student loan during the summer?
Yes, students can obtain student loans for summer classes. Both federal and private student loans may be available, depending on your eligibility and the institution’s participation in federal aid programs.
Can parent PLUS loans be used for summer classes?
Yes, Parent PLUS loans can be used for summer classes. These loans are available to parents of dependent undergraduate students to help pay for education expenses. You must be enrolled at least half-time, and the school must participate in the federal student aid program for summer sessions.
When should you apply for loans for summer school?
The timing to apply for loans for summer school can vary depending on the type of loan and the specific institution. For federal loans, it’s generally advisable to complete the FAFSA as early as possible in the academic year preceding the summer term. For private loans, application timelines may differ, so it’s best to consult with the lender.