12 State Student Loans and Nonprofit Lenders
Compare the rates and features of state student loans with other private lenders after exhausting federal aid.
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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.
- 35+ student loans lenders reviewed and rated by our team of experts.
- 10+ years of combined experience covering higher education and student loans.
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- Governed by NerdWallet's strict guidelines for editorial integrity.
- 35+ student loans lenders reviewed and rated by our team of experts.
- 10+ years of combined experience covering higher education and student loans.
- Objective, comprehensive star-rating system assessing 43 categories and 40+ data points across student loan origination and student loan refinance.
- Governed by NerdWallet's strict guidelines for editorial integrity.
State Student Loans and Nonprofit Lenders
Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
5.0 /5 | 680 | 4.05-8.64% | N/A | ||
4.5 /5 | Does not disclose | 5.29-8.04% | N/A | ||
4.0 /5 | 750 | 6.00-9.94% | 8.13-11.03% | ||
5.0 /5 | 660 | 3.95-8.01% | 6.54-11.08% | ||
4.0 /5 | 670 | 5.75-8.95% | N/A | COMPARE RATES on Credible’s website | |
5.0 /5 | 670 | 5.95-9.99% | N/A |
Our pick for
Student loans available in multiple states
RISLA Private Student Loan
680
4.05-8.64%
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.
Advantage Education Private Student Loan
Does not disclose
5.29-8.04%
N/A
Loans aren’t available if you live and attend college in Alaska, Delaware, Illinois, Iowa, Maine, Maryland, Nevada, New Jersey, Rhode Island, 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.
- Fewer repayment terms than other lenders offer.
- Borrowers are not able to defer loans if they return to school after their grace period ends.
- 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.
EDvestinU Private Student Loan
750
6.00-9.94%
8.13-11.03%
Loans are available nationwide.
- In-person support and counseling are available.
- Deferment/forbearance of 24 months is longer than many lenders.
- Doesn’t offer academic forbearance for borrowers who return to school.
- 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
660
3.95-8.01%
6.54-11.08%
Loans are not available if you live in and attend college in Maine.
- 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
Advantage Education Loan Student Loan Refinance
670
5.95-9.99%
N/A
Loans aren’t available in Alaska, Delaware, Iowa, Maine, Maryland, Nevada, New Jersey, Rhode Island, 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, Illinois, Iowa, Nevada, New Jersey, Maine, Maryland, Rhode Island, Washington, 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.
RISLA Student Loan Refinance
680
6.34-8.29%
N/A
Loans are available nationwide.
- Income-based repayment plan available, with forgiveness after 25 years.
- Co-signer release available after 24 months.
- 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.
EDvestinU Student Loan Refinance
700
7.41-11.03%
7.52-9.27%
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.
- Typical credit score of approved borrowers or co-signers: 756.
- Minimum income: $30,000.
- Loan amounts: $7,500 to $200,000.
MEFA Student Loan Refinance
670
6.20-8.99%
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 Illinois
A.M. Money Private Student Loan
None
7.95-8.87%
N/A
Best for those with a strong GPA who attend an eligible school in Illinois.
- GPA is used to determine eligibility instead of credit or a co-signer.
- Offers a hard-to-find, temporary income-based repayment option for up to 36 months.
- All borrowers get the same fixed rate.
- Works with a limited list of schools.
- Charges an origination fee.
- Typical credit score of approved borrowers: Credit and a co-signer are not required. Approval is based on GPA.
- Minimum income: No minimum. Approval is based on GPA.
- Loan amounts: $2,001 up to the full cost of attendance, maximum $50,000
Our pick for
Borrowers from Texas
Brazos Private Student Loan
680
2.71-7.38%
4.71-5.95%
- May offer lower rates for graduate students than what are available through the federal government.
- Applies extra payments to the loan principal by default.
- Offers five loan terms, which is more than most lenders.
- Not available to borrowers enrolled in two year programs at community colleges.
- Biweekly payments via autopay is not available.
Brazos Student Loan Refinance
690
3.85-6.50%
4.70-5.60%
- 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-four states offer student loans, according to the Education Finance Council, a nonprofit trade organization that represents these agencies. You can view their list of state student loan programs on their website.
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:
EDvestinU (part of the New Hampshire Higher Education Loan Corp.).
But these lenders may have benefits specifically for in-state residents. For example, RISLA has a student loan rewards program for nurses who live in Rhode Island. Eligible nurses who work in the state can pay zero interest on loans for up to four years.
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.
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.
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 April 2, 2024
NerdWallet's State Student Loans and Nonprofit Lenders
- RISLA Private Student Loan: Best for Student loans available in multiple states
- Advantage Education 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
- Advantage Education Loan Student Loan Refinance: Best for State refinance student loans
- RISLA Student Loan Refinance: Best for State refinance student loans
- EDvestinU Student Loan Refinance: Best for State refinance student loans
- MEFA Student Loan Refinance: Best for State refinance student loans
- A.M. Money Private Student Loan: Best for Borrowers from Illinois
- Brazos Private Student Loan: Best for Borrowers from Texas
- Brazos Student Loan Refinance: Best for Borrowers from Texas
