Best Dental School Loans Of 2023 – Forbes Advisor

Among graduate student loan options, federal direct unsubsidized loans are the best overall deal: Their fixed interest rate is one of the lowest you’ll find, and this type of loan isn’t credit-based and doesn’t require a co-signer. All eligible graduate borrowers qualify, and they receive the same rate regardless of credit history.

While there’s a chance the most creditworthy borrowers could get a lower interest rate with a private student loan, they’ll miss out on a range of consumer protections that might be useful in the future. Borrowers of federal direct unsubsidized loans have access to income-driven repayment options that can lower the amount due and loan forgiveness for those who work in public service fields.

Direct unsubsidized loans come with an origination fee of 1.057%, while most private graduate loans do not. But in many cases, the low interest rate and loan benefits make the fee worth it.

Loan terms: Terms of 10 to 25 years are available, depending on the repayment plan.

Loan amounts: Loan amounts up to $20,500 per year and $138,500 in aggregate are available, including loans used for undergraduate study.

Eligibility: You must be enrolled at least half-time in a school that participates in the federal direct loan program.

Forbearance options: Forbearance available for up to three years in certain circumstances. Enrolling in an income-driven repayment program can lower monthly payments and result in loan forgiveness after 20 to 25 years.

Co-signer release policy: N/A

The federal graduate PLUS loan also offers wide-ranging benefits to borrowers, but fewer than direct unsubsidized loans offer. Since borrowing limits are higher for PLUS loans than direct unsubsidized loans, they’re an option to cover any funding gaps after you’ve maxed out direct unsubsidized loans for graduate study.

The graduate PLUS interest rate is slightly higher than the unsubsidized loan rate; the origination fee—4.228%, which comes out of the loan amount that’s disbursed to you—is much higher. PLUS loans are also the only federal loan type that require a credit check, but it’s possible to get a PLUS loan even if you’re determined to have an adverse credit history (more on that below).

Loan terms: 10 to 25 years, depending on the repayment plan

Loan amounts available: Up to total cost of attendance, minus other financial aid received

Eligibility: Must be enrolled at least half-time in an eligible school. Must not have an adverse credit history.

Forbearance options: Forbearance available for up to three years in certain circumstances. Enrolling in an income-driven repayment program can lower monthly payments and result in loan forgiveness after 20 to 25 years.

Co-signer release policy: None

Rhode Island Student Loan Authority, known as RISLA, is a nonprofit based in Rhode Island that lends to students across the country. It offers two different loan types for undergraduate students, which each come with their own fixed interest rates. One loan requires immediate repayment, and one lets you defer payments until six months after you leave school. Everyone who qualifies for each of the loan types gets the same rate, which makes it easy to compare RISLA loans with others you’ve qualified for.

For borrowers who struggle to afford their loan after graduating, RISLA is one of the only private lenders to offer an income-based repayment plan, which limits payments to 15% of income for a 25-year period.

RISLA was a winner of Forbes Advisor’s best private student loans of 2020 awards. Learn more here.

Loan terms: 10 or 15 years

Loan amounts available: $1,500 to $45,000 per year ($150,000 aggregate per borrower).

Eligibility: Applicants must show a minimum income of $40,000 per year and a minimum credit score of 680. Most undergraduate students will need a co-signer to qualify.

Forbearance options: Forbearance available for up to 24 months.

Co-signer release policy: Available after 24 months of payments. Periods during which borrowers use income-based repayment do not qualify.

Ascent offers both co-signed and non-co-signed student loans, which gives borrowers without co-signers more college funding options. We scored the company based on its co-signed credit-based student loan for undergraduates.

Ascent stands out for its range of payment reduction and postponement options, rare among private student loan companies. Borrowers can choose a graduated repayment plan, which provides a lower monthly payment to start that increases over time. That can be useful for graduates just starting out, who will likely make more money as they move up in their careers.

Borrowers also can pause payments if they’re experiencing a temporary financial hardship for one to three months at a time, up to a maximum of 24 months total. However, taking this forbearance means you will repay the loan over a longer period. Interest continues to accrue during forbearance, which is true for the vast majority of private student loans.

Ascent also offers benefits for students including 1:1 free success coaching*, a graduation reward of 1% of the loan’s original principal balance and access to monthly no-essay scholarships.

Ascent was a winner of Forbes Advisor’s best private student loans of 2021 awards. Learn more here.

Extra Details

Loan terms: 5, 7, 10, 12 or 15 years. See repayment examples for more details.

Loan amounts available: $2,001** up to total cost of attendance, to a maximum of $200,000 per academic year ($200,000 aggregate)

Eligibility: Student borrowers with no credit history can qualify with a creditworthy co-signer. Co-signers must show income of at least $24,000 for the current and previous year. Co-signers must have a minimum credit score which can vary.***

Forbearance options: When experiencing financial hardship, borrowers can suspend payments for up to three months at a time, for a total of up to 24 months throughout the loan term. Only four rounds of forbearance (up to 12 months’ worth) may be taken consecutively.

Co-signer release policy: Available after 12 months of consecutive automatic debit payments, if the primary borrower meets certain credit score requirements.***

*Other eligibility requirements apply. Learn more at AscentFunding.com/BorrowerBenefits. 

**The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.

***Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 11/1/2023 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.

SoFi is perhaps best known as a student loan refinance lender, but it also makes loans to undergraduates, graduate students, law and business students and parents. Its undergraduate student loan product offers mostly industry-standard features, plus a few perks: no late fees, an interest rate discount of 0.125% if your co-signer already uses another SoFi product and job search help through its career team.

Loan terms: 5, 7, 10 and 15 years

Loan amounts available: $1,000 up to the total cost of attendance

Eligibility: Does not disclose credit score or income requirements

Forbearance options: SoFi offers a specific Unemployment Protection Program that allows borrowers to pause payments in three-month increments, for up to 12 months, if laid off from work. A separate forbearance program is also available for borrowers experiencing other types of economic hardship, such as medical expenses. Borrowers can take up to 12 months total forbearance, no matter which program they use.

Co-signer release policy: Available after 24 payments

College Ave offers a solid all-around private loan product with a few unique features. Borrowers can choose an eight-year term, which is in addition to the typical five-, 10- and 15-year terms many lenders provide. Borrowers can also access an extended six-month grace period beyond the initial payment-free six months allowed after separating from school.

Loan terms: 5, 8, 10, 15 and 20 years

Loan amounts available: $1,000 up to 100% of the school-certified cost of attendance

Eligibility: Applicants must have a minimum credit score in the mid-600s.

Forbearance options: Up to 12 months of forbearance is available, in three- to six-month increments

Co-signer release policy: Available after 24 payments

*Borrowers with a co-signer who choose the shortest repayment term available and who make full monthly payments while in school qualify for the lowest rates.

Discover charges no late fees on its private student loans, and it provides an interest rate discount if borrowers choose to pay the interest on the loan as it accrues while they’re in school. It also offers several unique deferment, forbearance and hardship payment options.

Co-signer release is not available, though, and there is only one loan term: 15 years. Know that you can prepay the loan without penalty, and if you have the means to do so, paying off a student loan in less than 15 years could save you a substantial amount in interest.

Loan term: 15 years

Loan amounts available: $1,000

Eligibility: Discover does not disclose its minimum credit score or income requirements, but in 2019 the company reported that 94% of all private loan borrowers had a FICO score of 660 or higher.

Forbearance options: Borrowers can take up to 12 months of forbearance, which is standard across the industry. But Discover also offers several additional hardship options, including a three-month suspension of payments for borrowers early in the repayment cycle and a six-month reduced payment option.

Co-signer release policy: None.

PNC Bank offers an extra-generous 0.50% interest rate discount for making automatic payments, and it provides a 12-month loan modification program for borrowers in financial distress (in addition to 12 months of forbearance). Loan modification lowers the interest rate and monthly payment charged.

It also offers co-signer release, though after an even longer period than Citizens Bank’s policy: 48 months.

Loan terms: 5, 10 and 15 years

Loan amounts available: Up to $50,000 annually, with an overall maximum limit of $225,000

Eligibility: Does not disclose credit score or income requirements.

Forbearance options: Up to 12 months of forbearance available.

Co-signer release policy: Co-signers can be released from the loan after 48 payments.

Citizens Bank’s parent loan offers comparatively low interest rates, and borrowers can qualify for an interest rate discount of up to 0.50% if they have an existing account with the bank. (Student loans are available in all states, but checking and savings accounts are only available in Connecticut, Delaware, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Vermont.)

Citizens Bank also offers a relatively rare loan modification program, introduced in spring 2020, that allows for reduced monthly payments for a period of 12 months. That’s in addition to the industry-standard 12 months of forbearance.

Loan terms: 5 or 10 years

Origination fee: None

Loan amounts available: $1,000 to $350,000

Eligibility: Parent applicant and student must be U.S. citizens. Student must attend school at least half-time.

Forbearance options: Up to 12 months throughout the life of the loan, provided in two-month increments.