12 State Student Loans and Nonprofit Lenders
Compare the rates and features of state student loans with other private lenders after exhausting federal aid.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
States are in the student loan business, too. They can help you pay for college or refinance education debt.
While these loans come from nonprofit and state-based agencies, they are still private student loans. Exhaust free money, like scholarships, and federal student loans before turning to any private lender.
If you need a private student loan, a state-based lender can make sense if it offers the lowest interest rate you can get or a repayment feature you want, like potential loan forgiveness, zero capitalized interest or an income-based repayment plan.
Many state student loan programs are limited to residents or schools within their specific state, but some lend nationwide. Here are lenders that might be available to you, as well as more information on state student loan programs.
State Student Loans and Nonprofit Lenders
| Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
4.5/5 Best for Student loans available in multiple states | Does not disclose | 2.84-6.23% | N/A | ||
4.5/5 Best for Student loans available in multiple states | 680 | 4.99-6.86% | N/A | ||
4.5/5 Best for Student loans available in multiple states | 750 | 7.52-10.64% | 6.99-10.32% | ||
5.0/5 Best for Student loans available in multiple states | 670 | 3.85-7.91% | 4.44-8.89% | ||
4.0/5 Best for Student loans available in multiple states | 670 | 4.89-6.99% | N/A | ||
4.5/5 Best for State refinance student loans | 700 | 7.41-11.03% | 7.29-9.04% |
Our pick for
Student loans available in multiple states
Advantage Education Private Student Loan
Does not disclose
2.84-6.23%
N/A
Loans aren’t available if you live and attend college in Alaska, Delaware, Idaho, Illinois, Iowa, Maine, Maryland, Michigan, Minnesota, Montana, Nevada, New Jersey, North Dakota, Oregon, Rhode Island, South Dakota, Vermont, Washington and Washington, D.C.
- Forbearance of 24 months is twice as long as most lenders.
- Loans are available if you’re enrolled less than half time.
- Loans may not be available depending on where you live or go to school.
- Fewer repayment terms than other lenders offer.
- You can't see if you’ll qualify and what rate you’ll get without a hard credit check.
- Typical credit score of approved borrowers: Does not disclose.
- Minimum income: Does not disclose.
- Loan amounts: Minimum $1,000. Maximum depends on creditworthiness and debt-to-income ratio.
RISLA Private Student Loan
680
4.99-6.86%
N/A
Loans are available nationwide.
- 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.
- Fewer repayment terms available than other lenders.
- Typical credit score of approved borrowers: 768.
- Minimum income: $40,000.
- Loan amounts: $1,500 to $45,000.
EDvestinU Private Student Loan
750
7.52-10.64%
6.99-10.32%
Loans are available nationwide.
- In-person support and counseling are available.
- Deferment/forbearance of 24 months is longer than many lenders.
- You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
- Typical credit score of approved borrowers or co-signers: 787.
- Minimum income: $30,000.
- Loan amounts: $1,000 up to your total cost of attendance.
ISL Private Student Loan
670
3.85-7.91%
4.44-8.89%
Loans are available nationwide.
- Forbearance of 24 months is longer than many lenders offer.
- No late fees.
- Only offers 2 loan terms.
- Typical credit score of approved borrowers or co-signers: 670.
- Minimum income: No minimum income.
- Loan amounts: $1,001 or $2,001, based on residency and school location, up to cost of attendance minus other aid received.
Loans are available nationwide.
- No late fees.
- You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
- Only one repayment plan offers co-signer release.
- Typical credit score of approved borrowers: Did not disclose.
- Minimum income: $26,200
- Loan amounts: Minimum: $2,000 for a private college, $1,500 for a public college; maximum: total cost of attendance minus other financial aid.
Our pick for
State refinance student loans
EDvestinU Student Loan Refinance
700
7.41-11.03%
7.29-9.04%
Loans are available nationwide.
- You can refinance without a degree.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- You cannot refinance parent PLUS loans in your name.
- Maximum loan amount is lower than most lenders offer.
- Typical credit score of approved borrowers or co-signers: 756.
- Minimum income: $30,000.
- Loan amounts: $7,500 to $200,000.
Advantage Education Loan Student Loan Refinance
Does not disclose
4.24-7.52%
N/A
Loans aren’t available in Alaska, Delaware, Idaho, Illinois, Iowa, Maine, Maryland, Michigan, Minnesota, Montana, Nevada, New Jersey, North Dakota, Oregon, Rhode Island, South Dakota, Vermont, Washington and Washington, D.C.
- You can refinance without a degree.
- Forbearance of 24 months is twice as long as most lenders.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Loans aren’t available in Alaska, Delaware, Idaho, Illinois, Iowa, Maine, Maryland, Michigan, Minnesota, Montana, Nevada, New Jersey, North Dakota, Oregon, Rhode Island, South Dakota, Vermont, Washington or Washington, D.C.
- You cannot postpone repayment if you re-enroll in school.
- Typical credit score of approved borrowers: Does not disclose.
- Minimum income: Does not disclose.
- Loan amounts: Minimum $7,500. Maximum depends on creditworthiness and debt-to-income ratio.
Loans are available nationwide.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- You can refinance without a degree.
- You can refinance while in school or during a medical residency.
- Interest rates vary by refi product.
- Typical credit score of approved borrowers or co-signers: Approximately 750.
- Loan amounts: $5,000 to $300,000. (Minimum for California residents is $10,000.)
- Must have a degree: No.
RISLA Student Loan Refinance
680
5.29-7.74%
N/A
Loans are available nationwide.
- Income-based repayment plan available, with forgiveness after 25 years.
- No co-signer release available.
- Students cannot refinance a parent PLUS loan in their name.
- Typical credit score of approved borrowers: 748.
- Loan amounts: $7,500 to $250,000, depending on the highest degree earned.
- Must have a degree: No.
MEFA Student Loan Refinance
670
5.50-8.45%
N/A
Loans are available nationwide.
- No late fees.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- No formal deferment/forbearance options.
- No co-signer release.
- Typical credit score of approved borrowers or co-signers: Did not disclose.
- Loan amounts: $10,000 minimum.
- Must have a degree: No.
Our pick for
Borrowers from Texas
- Borrowers can finance undergraduate and graduate degree programs.
- Students do not have to attend college in Texas to qualify.
- Available only to parent borrowers in Texas.
- Typical credit score of approved borrowers: N/A
- Minimum income: $60,000 for co-signer or primary borrower, or $30,000 for primary borrower if applying with a co-signer.
- Loan amounts: $10,000 up to $400,000.
Brazos Student Loan Refinance
690
4.40-6.00%
4.67-8.47%
- Offers more repayment terms than many lenders.
- Offers greater-than-minimum payments via autopay.
- Only available to borrowers in Texas.
- Does not offer co-signer release.
- Typical credit score of approved borrowers: 781 for primary borrower or 794 for co-signer (and 690 for primary borrower).
- Minimum income: $60,000 for co-signer or primary borrower, or $30,000 for primary borrower if applying with a co-signer.
- Loan amounts: $10,000 up to $150,000 for bachelors degree holders; $250,000 for graduate or professional degree holders.
What are state student loans?
State student loans are a type of private education loan. They’re issued by nonprofit and state-based agencies whose mission is to promote college access. These agencies may invest in many higher education-related initiatives within their state or local communities, including:
Scholarship and grant programs.
Financial literacy campaigns.
Events to complete the Free Application for Federal Student Aid, or FAFSA.
Loans for students and parents, as well as for refinancing existing student debt.
Which states offer student loans?
Twenty-three states offer student loans, according to the Education Finance Council, a nonprofit trade organization that represents these agencies. You can find a list at ForYouNotForProfit.org.
If your state doesn’t have a program, you may still be able to borrow a state student loan. Many fund in-state residents, as well as students who attend school within that state.
For example, say you’re from Nevada — a state without a loan program — but will attend college in Indiana. You would be eligible for a loan from Indiana’s program, INvestED.
A handful of state-based lenders also lend nationally:
Iowa Student Loan.
EDvestinU (part of the New Hampshire Higher Education Loan Corp.).
Complete Student Loans (part of the Utah Higher Education Assistance Authority).
But these lenders may have benefits specifically for in-state residents. For example, RISLA has a student loan forgiveness program for nurses who live in Rhode Island.
Should you take out a state student loan for college?
Loans from state-based lenders are private student loans. That means they lack all the benefits and protections of federal student loans. Don’t borrow any private student loan before maxing out federal subsidized and unsubsidized loans.
If you’ve exhausted those options, consider a state student loan in the following instances:
The loan has the lowest interest rate. State lenders aim to offer low-cost loans, but that won’t automatically make them the best choice. Get quotes from multiple private lenders so you pay the least possible. If your credit is good enough for a private loan — but not a single-digit interest rate — look for a state student loan lender. State programs tend to have low maximum rates, and some offer everyone the same rate.
You can get a feature unavailable elsewhere. Because state student loans don’t come from for-profit businesses, they may have consumer-friendly features traditional lenders lack. For example, Louisiana’s LelaCHOICE loan never capitalizes unpaid interest and the Missouri Family Education Loan Program doesn’t charge interest at all. When you compare private loan options, look at all the terms in addition to the cost of the loan.
You want to “shop local.” Like many local businesses, state-based lenders give back to their community and aim for personal customer service. These mission-driven organizations also adhere to published principles, which include helping borrowers who run into financial trouble. Such intangibles may matter to you, especially if a state student loan’s interest rate is comparable to other private options.
Keep in mind that while state loans come from nonprofits, their credit and income requirements are often similar to traditional lenders. Students will likely need a co-signer.
Should you refinance student loans with a state-based lender?
Refinancing student loans can save you money on loan payments or how much you repay overall. If a state lender offers you a lower interest rate than your current loan, consider refinancing with it.
Be sure to compare multiple lenders before refinancing to get the best deal possible.
If you have state student loans or other private student loans, refinance as soon as you can qualify for a better rate. Iowa Student Loan actually lets you refinance while in school — a unique feature that could reduce your interest costs over multiple years.
Refinancing federal student loans will cost you access to federal relief programs and benefits like loan forgiveness. State loans may come from government agencies, but they aren’t the same as federal loans.
Last updated on December 19, 2022
NerdWallet's State Student Loans and Nonprofit Lenders
- Advantage Education Private Student Loan: Best for Student loans available in multiple states
- RISLA Private Student Loan: Best for Student loans available in multiple states
- EDvestinU Private Student Loan: Best for Student loans available in multiple states
- ISL Private Student Loan: Best for Student loans available in multiple states
- MEFA Private Student Loan: Best for Student loans available in multiple states
- EDvestinU Student Loan Refinance: Best for State refinance student loans
- Advantage Education Loan Student Loan Refinance: Best for State refinance student loans
- ISL Refinance Loan: Best for State refinance student loans
- RISLA Student Loan Refinance: Best for State refinance student loans
- MEFA Student Loan Refinance: Best for State refinance student loans
- Brazos Parent Loan: Best for Borrowers from Texas
- Brazos Student Loan Refinance: Best for Borrowers from Texas
