BEST OF
10 State Student Loans and Nonprofit Lenders
Compare the rates and features of state student loans with other private lenders after exhausting federal aid.
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.
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.
Summary of State Student Loans and Nonprofit Lenders
Lender | NerdWallet Rating | Fixed APR | Variable APR | Min. Credit Score | Learn More |
---|---|---|---|---|---|
Best for Student loans available in multiple states | 3.75 - 6.99% | N/A | Does not disclose | Read review | |
Best for Student loans available in multiple states | 3.64 - 5.46% | N/A | 680 | Read review | |
Best for Student loans available in multiple states | 3.91 - 6.28% | 1.86 - 4.23% | 675 | Read review | |
Best for Student loans available in multiple states | 3.75 - 5.75% | N/A | 670 | Read review | |
Best for State refinance student loans | 3.91 - 6.28% | 1.86 - 4.23% | 700 | See my rates on NerdWallet's secure website | |
Best for State refinance student loans | 3.99 - 7.78% | N/A | Does not disclose | See my rates on NerdWallet's secure website | |
Best for State refinance student loans | 3.49 - 8.14% | N/A | 680 | See my rates on NerdWallet's secure website | |
Best for State refinance student loans | 3.65 - 5.50% | 3.05 - 5.55% | 670 | See my rates on NerdWallet's secure website | |
Best for Borrowers from Texas | 2.99 - 4.95% | 2.85 - 4.81% | 720 | Check Rate on Brazos's website | |
Best for Borrowers from Texas | 2.95 - 4.35% | 1.89 - 4.81% | 720 | Check Rate on Brazos's website |
Our picks for
Student loans available in multiple states
Advantage Education Private Student Loan

Fixed APR
Variable APR
Min. Credit Score
RISLA Private Student Loan

Fixed APR
Variable APR
Min. Credit Score
EDvestinU Private Student Loan

Fixed APR
Variable APR
Min. Credit Score
MEFA Private Student Loan

Fixed APR
Variable APR
Min. Credit Score
Our picks for
State refinance student loans

on NerdWallet's secure website
EDvestinU Student Loan Refinance

Fixed APR
Variable APR
Min. Credit Score
on NerdWallet's secure website

on NerdWallet's secure website
Advantage Education Loan Student Loan Refinance

Fixed APR
Variable APR
Min. Credit Score
on NerdWallet's secure website

on NerdWallet's secure website
RISLA Student Loan Refinance

Fixed APR
Variable APR
Min. Credit Score
on NerdWallet's secure website

on NerdWallet's secure website
MEFA Student Loan Refinance

Fixed APR
Variable APR
Min. Credit Score
on NerdWallet's secure website
Our picks for
Borrowers from Texas

on Brazos's website
Brazos Parent Loan

Fixed APR
Variable APR
Min. Credit Score
on Brazos's website

on Brazos's website
Brazos Student Loan Refinance

Fixed APR
Variable APR
Min. Credit Score
on Brazos's website
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 February 5, 2021
To recap our selections...
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
- 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
- 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