4 Part-Time Student Loan Options for 2019

Key facts

Federal direct loans offer generous repayment flexibility and among the lowest fixed interest rates you’ll find. They’re also available to borrowers without a co-signer or credit history.

Pros

• More flexible repayment options for struggling borrowers than other lenders.

• Subsidized loans do not collect interest while in school or during deferment.

• Lower interest rates compared with private lenders.

Cons

• You pay an origination fee.

Qualifications

• No credit check or minimum income is needed to borrow.

• Loan amounts for undergraduates: $5,500 year one, $6,500 year two, $7,500 year three and thereafter, up to a total of $31,000

• Independent students and graduate students have higher loan limits.

Available Term Lengths

10 to 25 years once repayment begins, depending on the repayment plan.

Disclaimer

Key facts

Sallie Mae offers flexible repayment options including its interest-only repayment option in school and during the grace period and a rate that is 1% lower than the traditional deferred repayment option. Borrowers can defer payments while enrolled in school, even while attending less than half time.

Pros

• One of the few lenders to provide loans to part-time students.

• Borrowers can access online tutoring and free credit score tracking.

• Non-U.S. citizens, including DACA students, can apply with a co-signer.

Cons

• You can't see if you’ll qualify and what rate you’ll get without a hard credit check.

• Information not available on minimum qualifying credit scores or income.

Qualifications

• Typical credit score of approved borrowers or co-signers: Does not disclose.

• Minimum income: Did not disclose.

• Loan amounts: $1,000 up to 100% of the school-certified expenses.

Available Term Lengths

5 to 15 years

Disclaimer

Lowest rates shown include the auto debit discount: Fixed 4.74% - 11.35% APR and Variable 3.12% - 10.54% APR. Interest rates for Fixed and Deferred Repayment Options are higher than interest rates for the Interest Repayment Option. You're charged interest starting at disbursement, while in school, during your separation/grace period, and until the loan is paid in full. The repayment option that is selected will apply during the in-school and separation/grace periods. When you enter principal and interest repayment, Unpaid Interest will be added to your loan's Current Principal. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs are valid as of 09/25/2019 and assume a $10,000 loan to a freshman with no other Sallie Mae loans. Additional information regarding the auto debit discount: Borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month and may be suspended during periods of forbearance or deferment, if available for the loan. Loan amounts: $1000 up to 100% of the school certified expenses: Loan amount cannot exceed the cost of attendance less financial aid received as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount. Repayment term of 5 to 15 years: This repayment example is based on a typical Smart Option Student Loan made to a freshman borrower who chooses a fixed rate and the Fixed Repayment Option for a $10,000 loan, with two disbursements, and a 8.44% fixed APR. It works out to 51 payments of $25.00, 119 payments of $156.04 and one payment of $118.97, for a Total Loan Cost of $19,962.73.

Key facts

Wells Fargo offers generous forbearance and repayment options like short-term payment relief, grace-period extension and loan modification. Borrowers also get individual attention with an assigned, dedicated student loan advisor. Borrowers can defer payments while in school even while attending less than half time.

Pros

• You are assigned a dedicated student loan advisor.

• One of the few lenders to offer loans to borrowers enrolled less than half-time.

• More payment reduction options for struggling borrowers than other lenders.

Cons

• You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.

• Forbearance of 6 months is less than most lenders.

Qualifications

• Typical credit score of approved borrowers: Did not disclose.

• Minimum income: No minimum.

• Loan amounts: $1,000 to $120,000

Available Term Lengths

15 years

Disclaimer

Key facts

RISLA is one of the only private lenders that offers income-based repayment, allowing borrowers to pay a maximum of 15% of income per month and earn forgiveness after 25 years. Undergraduate borrowers must be enrolled for at least one credit per semester to qualify for deferment, while graduate borrowers must be enrolled at least half time.

Pros

• Income-based repayment plan available, with forgiveness after 25 years.

• You can see if you’ll qualify and what rate you’ll get without a hard credit check.

• Partial loan forgiveness for eligible internships; interest forgiveness for qualifying nurses.

Cons

• Loans available only to Rhode Island residents or those who attend school there.

Qualifications

• Typical credit score of approved borrowers: 768.

• Minimum income: $40,000.

• Loan amounts: $1,500 to $45,000.

Available Term Lengths

10 or 15 years

Disclaimer