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 on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.
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.
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Why trust NerdWallet
- 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
- Key facts
Loans are available nationwide.
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- Fewer repayment terms available than other lenders.
Qualifications- Typical credit score of approved borrowers: 768.
- Minimum income: $40,000.
- Loan amounts: $1,500 to $45,000.
Available Term Lengths10 or 15 years
Advantage Education Private Student Loan
Does not disclose
5.29-8.04%
N/A
- Key facts
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.
Pros- Forbearance of 24 months is twice as long as most lenders.
- Loans are available if you’re enrolled less than half time.
Cons- Fewer repayment terms than other lenders offer.
- Borrowers are not able to defer loans if they return to school after their grace period ends.
Qualifications- 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.
Available Term Lengths10 years
EDvestinU Private Student Loan
750
6.00-9.94%
8.13-11.03%
- Key facts
Loans are available nationwide.
Pros- In-person support and counseling are available.
- Deferment/forbearance of 24 months is longer than many lenders.
Cons- Doesn’t offer academic forbearance for borrowers who return to school.
Qualifications- 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.
Available Term Lengths7, 10 or 15 years.DisclaimerAPR or "annual percentage rate," projected monthly payments, and total cost of loan examples are based on a $10,000 loan disbursed in two equal disbursements with a 7, 10, or 15 year repayment. Lowest rates require immediate repayment. The examples assume a 0.50% interest rate reduction for authorizing our servicer to automatically deduct monthly payments from a savings or checking account. Loans that are in a deferment (including borrowers who elect deferred repayment), grace period, or forbearance are not eligible to enroll and receive the automatic payment benefit until they enter into repayment. Once the repayment period commences, the borrower may enroll in automatic payment. Borrowers enrolled in immediate or interest-only repayment are eligible to enroll in automatic payment once all disbursements on the loan have been made and the loan is considered fully disbursed. The interest rate reduction for authorizing our servicer to automatically deduct monthly payments from a savings or checking account will not reduce the monthly payment, but will reduce the monthly finance charge, resulting in a lower total cost of loan. Variable APR rates may increase or decrease depending on fluctuations in the London Interbank Offered Rate (LIBOR) index. Monthly interest rate accrual is based on the published One-Month London Interbank Offered Rate (“LIBOR”) as of the last business day of the previous month plus your applicable margin. As of October 30, 2020 the One–Month LIBOR rate is 0.14%.
ISL Private Student Loan
660
3.95-8.01%
6.54-11.08%
- Key facts
Loans are not available if you live in and attend college in Maine.
Pros- Forbearance of 24 months is longer than many lenders offer.
- No late fees.
Cons- Only offers 2 loan terms.
Qualifications- 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.
Available Term Lengths10 or 15
- Key facts
Loans are available nationwide.
Pros- No late fees.
Cons- 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.
Qualifications- 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.
Available Term Lengths10 or 15 years
Our pick for
State refinance student loans
Advantage Education Loan Student Loan Refinance
670
5.95-9.99%
N/A
- Key facts
Loans aren’t available in Alaska, Delaware, Iowa, Maine, Maryland, Nevada, New Jersey, Rhode Island, Washington and Washington, D.C.
Pros- 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.
Cons- 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.
Qualifications- 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.
Available Term Lengths10, 15 or 20 years
RISLA Student Loan Refinance
680
6.34-8.29%
N/A
- Key facts
Loans are available nationwide.
Pros- Income-based repayment plan available, with forgiveness after 25 years.
- Co-signer release available after 24 months.
Cons- Students cannot refinance a parent PLUS loan in their name.
Qualifications- 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.
Available Term Lengths5, 10 or 15 years
EDvestinU Student Loan Refinance
700
7.41-11.03%
7.52-9.27%
- Key facts
Loans are available nationwide.
Pros- You can refinance without a degree.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
Cons- You cannot refinance parent PLUS loans in your name.
Qualifications- Typical credit score of approved borrowers or co-signers: 756.
- Minimum income: $30,000.
- Loan amounts: $7,500 to $200,000.
Available Term Lengths5, 10, 15 or 20 yearsDisclaimerAPR, projected monthly payments, and total cost of loan examples are based on a $10,000 loan disbursed in one disbursement with either 5–year, 10–year, 15–year or 20–year repayment. APR’s provided include a 0.25 percent interest rate reduction for authorizing our loan servicer to automatically deduct your payments each month from your bank account. The interest rate reduction for authorizing our servicer to automatically deduct monthly payments from a savings or checking account will not reduce the monthly payment, but will reduce the monthly finance charge, resulting in a lower total cost of loan. Variable APR rates may increase or decrease depending on fluctuations in the London Interbank Offered Rate (LIBOR) index. Monthly interest rate accrual is based on the published One–Month London Interbank Offered Rate ("LIBOR") as of the last business day of the previous month plus your applicable margin.
MEFA Student Loan Refinance
670
6.20-8.99%
N/A
- Key facts
Loans are available nationwide.
Pros- No late fees.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
Cons- No formal deferment/forbearance options.
- No co-signer release.
Qualifications- Typical credit score of approved borrowers or co-signers: Did not disclose.
- Loan amounts: $10,000 minimum.
- Must have a degree: No.
Available Term Lengths7, 10 or 15 years.
Our pick for
Borrowers from Illinois
A.M. Money Private Student Loan
None
7.95-8.87%
N/A
- Key facts
Best for those with a strong GPA who attend an eligible school in Illinois.
Pros- 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.
Cons- Works with a limited list of schools.
- Charges an origination fee.
Qualifications- 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
Available Term Lengths10 years
Our pick for
Borrowers from Texas
Brazos Private Student Loan
680
2.71-7.38%
4.36-5.60%
- Key factsBrazos private student loans are best for borrowers from Texas and students attending school in Texas who are from qualifying states.Pros
- 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.
Cons- Not available to borrowers enrolled in two year programs at community colleges.
- Biweekly payments via autopay is not available.
Available Term Lengths5, 7, 10, 15 or 20 years
Brazos Student Loan Refinance
690
3.85-6.79%
4.35-5.50%
- Key factsBrazos is best for student loan borrowers who need a refinancing loan and live in Texas.Pros
- Offers more repayment terms than many lenders.
- Offers greater-than-minimum payments via autopay.
Cons- Only available to borrowers in Texas.
- Does not offer co-signer release.
Qualifications- 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.
Available Term Lengths 5, 7, 10, 15, or 20 yearsDisclaimerBrazos Refinance Loan fixed rates from 3.85% APR to 6.79% APR (with Auto-Pay Discount). Variable rates from 4.35% APR to 5.50% APR (with Auto-Pay Discount). Interest rates on Brazos loans are capped at 9.90%. Lowest variable rate of 4.34% APR assumes a current Thirty-day Average Secured Overnight Financing Rate (SOFR) of % plus a 2.03% margin minus the 0.25% Auto-Pay Discount. Not all borrowers receive the lowest rate. If approved for a Brazos loan, the fixed or variable interest rate offered will depend on your creditworthiness, the term of the loan and other factors, and will be within the ranges of rates listed above. For the Brazos variable rate loan, the Thirty-day Average SOFR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the SOFR index increases. Auto-Pay Discount. The interest rate in effect will be reduced by 0.25% if either the borrower or the cosigner authorizes automated (ACH) payments from any bank account. This ACH interest rate reduction, referred to as the Auto-Pay Discount, applies only when full principal and interest payments are automatically drafted from a bank account. This interest rate reduction will not continue to apply during periods of approved forbearance or deferment. The Auto-Pay Discount will terminate if the automatic bank account payments discontinue or there are any three instances of insufficient funds at any time during the term of the loan. A borrower may requalify upon reauthorization of automatic payments from a valid bank account. 2. Refinancing Federal Loans. While refinancing government loans as well as private loans may help many borrowers, federal loans have certain benefits that can help borrowers who experience financial distress. Private loans typically don’t have the same benefits. Everyone’s situation is different, so think carefully about refinancing your government loans and talk about it with a trusted advisor. 3. Credit Review and Approval. If you choose to apply for a Brazos Student Loan, Brazos Parent Loan, or Brazos Refinance Loan and continue your application past the pre-credit eligibility stage, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for Brazos to be able to issue you a Brazos loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score. The initial credit review is based on review of all the information you and your cosigner (if applicable) provide during the application process and the information obtained from your credit report(s). If you pass the initial credit review, you will need to provide acceptable documentation such as your income verification before the final loan approval. 4. Brazos Education Lending Corporation (Brazos) is a part of a group of several non-affiliated nonprofit companies that are all managed by The Brazos Higher Education Service Corporation, Inc. and are commonly referred to as the Brazos Managed Companies. The first of the Brazos Managed Companies was organized in 1975 in Waco, Texas, as a secondary market for student loans. Since that time, the Brazos Managed Companies have, on a combined basis, served an estimated 2 million student borrowers and have helped fund an estimated $30 billion in student loans.
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
