Top Student Loan Options for High School Seniors

But How Much?

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Disclaimer

Choosing the right student loan is one of the most important decisions you'll make when planning for college. As a first-time borrower, you need to understand how different loan options can impact your financial future. Student loans can help make your education goals a reality, but picking the wrong one could lead to unnecessary debt or stress down the road.

There are two main types of student loans you need to know about—federal and private loans. Federal loans are offered by the government and often come with flexible repayment plans. Private loans, on the other hand, are offered by banks or other private lenders and could be a good option for covering costs not covered by federal aid. Knowing the benefits and risks of each will help you make an informed decision.

Whether you're just starting to research or deep in the process, we're here to help you make smart, confident financial decisions for your future.

Federal and Private Student Loans

Federal Student Loans

Federal student loans are the best place to start when funding your education after scholarships, grants and other forms of federal financial aid. They’re backed by the government, which means they offer fixed interest rates and more flexible repayment options as compared to private loans. Federal student loans also don’t require a credit check to qualify for them. Here are the two main types of federal student loans available to high school seniors in:

Direct Subsidized Loans

Direct Subsidized Loans are designed for students who are determined to have financial need. The government pays the interest on these loans while you’re enrolled in school at least half-time, during your grace period, and during authorized deferments. These loans are especially helpful because they don’t accrue interest while you’re in school, lightening your financial burden after graduation.

Direct Unsubsidized Loans

Unlike Subsidized Loans, Direct Unsubsidized Loans don’t require you to demonstrate financial need. They’re available to all eligible students, but you’ll be responsible for the interest as soon as the loan is disbursed—even while you’re in school. For first-year undergraduate students, there are combined loan limits for both Subsidized and Unsubsidized Loans, usually capped at $5,500 to $9,500 depending on your dependency status. These loans are a good option if you don’t qualify for need-based aid but still need additional funds to cover your education costs.

By focusing on federal loans first, you’ll likely find more manageable and affordable options to support your education.

Private Student Loans

When it comes to private student loans, you’ll find several top lenders offering flexible and reliable options to help you cover costs beyond what federal aid provides. Here are some standout private student loan options for high school seniors:

Choosing the right private loan can give you the financial support you need while keeping your future repayment manageable and stress-free. Take time to compare these options and see which one fits your needs best.

Pros and Cons of Student Loan Options for First-Time Borrowers

When you're borrowing for the first time to pay for college, it’s important to understand the differences between federal and private student loans. Each has its own set of advantages and potential drawbacks, and choosing the right one for your situation can make a big difference in how you manage your education expenses.

Federal vs. Private Loans

Federal Loans

Offer fixed interest rates, so your payments are predictable over time.
Provide long-term repayment flexibility, including income-driven repayment plans and forgiveness options.

Private Loans

May require a co-signer, which could help if you don’t have a strong credit history.
Can include tailored repayment options, giving you more control over how and when you make payments.

First-Time Borrower Considerations

Benefits of Federal Loans

Income-driven repayment plans adjust your payments based on your income, making it easier to manage costs straight out of school.
Forgiveness options, such as Public Service Loan Forgiveness, can reduce the total amount you owe under qualifying circumstances.

Risks with Private Loans

Variable interest rates can cause your payments to increase unexpectedly.
Without a co-signer or strong credit score, it might be harder to get approved or you may face higher interest rates.
There are limited options to postpone your student loan payments if needed.

Pros and Cons of Each Loan Type

Federal Loans Pros

Subsidized loans do not accrue interest while you’re in school and enrolled at least half-time, reducing the overall cost.
More accessible for students with limited or no credit history.

Federal Loans Cons

Loan limits may not cover the full cost of attendance, requiring you to explore other funding options.
Limited to U.S. citizens or eligible non-citizens.

Private Loans Pros

Faster disbursement, which can help if you have unexpected costs or miss financial aid deadlines.
Some lenders allow for customized repayment schedules based on your future income goals.

Private Loans Cons

Higher interest rates, especially for borrowers with no co-signer or low credit scores.
Lack of federal protections, such as deferment or forgiveness programs.
These loans are more difficult to qualify for if you don’t meet income and credit requirements.

Taking the time to compare your options and understanding the long-term impact of your choices is critical. Start with federal loans when you can, but if you need additional funding, research private lenders thoroughly to find the one that best fits your needs.

More on Cosigners for Private Student Loans

When it comes to private student loans, having a cosigner can make a huge difference. But what exactly is a cosigner? A cosigner is someone, like a parent, guardian, or another trusted adult, who agrees to take responsibility for your student loan if you can’t make the payments. Essentially, they’re sharing the financial risk with you, which helps lenders feel more secure about giving you the loan.

Why Do You Need a Cosigner

Many high school seniors don’t have enough credit history or income to qualify for a private student loan on their own. That’s where a cosigner comes in. By having someone with a solid financial background cosign for you, you’re more likely to get approved for the loan and even snag a lower interest rate. This makes the loan more affordable over time.

How a Cosigner Can Help

A cosigner with good credit and a strong credit history can work wonders for your loan application. Lenders look at your cosigner’s credit score and credit history to decide if they should approve your loan. If your cosigner has excellent credit, you’re more likely to qualify for better loan terms, like lower interest rates. This can save you a lot of money in the long run.

Where to Find a Cosigner

You’ll want to start by reaching out to close family members, like parents or grandparents, as they’re usually the most willing to help. Trusted family friends or mentors may also be options. Keep in mind that asking someone to be a cosigner is a big deal—it’s a financial commitment, so they need to fully understand what they’re agreeing to. For example, as a cosigner, they are just as responsible to ensure the loan is repaid as you are. So, it may be wise to have a plan or agreement about the responsibility of repayment.

Why Your Cosigner Needs Good Credit

Lenders primarily rely on your cosigner’s credit score and credit history to assess their financial reliability. A cosigner with good credit reflects a lower risk for the lender, which can mean better loan conditions for you. That’s why it’s crucial to choose someone who has a strong credit history and has kept up with their financial obligations.

Other Considerations Beyond Creditworthiness

A good cosigner is more than just someone with a strong credit score. They should also have sufficient income to cover their own living expenses and the potential student loan payments. Lenders may examine their debt-to-income (DTI) ratio, which shows how much of their monthly income goes toward debt. A lower DTI ratio means they’re in a better position to cosign for your loan. It’s all about demonstrating to the lender that your cosigner has enough financial capacity to take on this additional responsibility.

What Is a Cosigner Release and Why You Might Want One

A cosigner release allows you to remove your cosigner from the loan agreement after you’ve met certain conditions, like making a set number of on-time payments and/or improving your own credit score. This can be a big relief to your cosigner, as it frees them from financial responsibility for your loan. When comparing private student loans, look for lenders that offer a cosigner release option—it’s a great way to protect your relationship and reward your cosigner for helping you out.
By understanding the role of a cosigner and choosing the right person, you can set yourself up for financial success while keeping your support network strong.

First Step to Getting a Loan: Fill Out the FAFSA in Fall of Senior Year

Filling out the Free Application for Federal Student Aid (FAFSA®) is the first and most important step in securing financial aid for college. It’s your gateway to federal loans, grants, and even some scholarships.

Who Is Eligible to Fill Out the FAFSA?

Almost anyone planning to attend college can fill out the FAFSA. To qualify, you need to meet these basic requirements among others:

Be a U.S. citizen or eligible non-citizen.
Have a valid Social Security number.
Have a high school diploma or equivalent.
Be enrolled or accepted for enrollment in an eligible degree or certificate program.

What You Need to Complete the FAFSA

Before starting, gather these key items to make the process smoother:

An FSA ID, which is your username and password to complete the online application.
Your Social Security number.
Your driver’s license or state ID (if applicable).
Tax documents, W-2 forms, and other records of income (yours and your parents’).
Bank statements and records of investments (if applicable).
The list of schools you're applying to (you can list up to 10).

FAFSA Deadlines

The FAFSA typically opens on October 1st of your senior year in high school, and it’s important to complete it as soon as possible. Each state and college may have their own financial aid deadlines, but federal aid applications are due by June 30th of the academic year you’re applying for. Check with your specific college for priority deadlines.

How to Fill Out the FAFSA Form

Create an FSA ID – You and your parent will each need an FSA ID to log in, sign, and submit the FAFSA.
Visit the FAFSA Website – Go to studentaid.gov to get started.
Provide Your Information – Enter personal details and financial information (yours and your parents’) exactly as it is on your tax forms.
List Colleges – Add the schools you’re considering applying to—they’ll use your FAFSA information to create your financial aid package.
Sign and Submit – Use your FSA ID to sign. Double-check everything before hitting “Submit” to avoid delays.

What to Do After Submitting the FAFSA

Review Your Student Aid Report (SAR): This will summarize the information you submitted and include your Student Aid Index (SAI).
Correct Any Errors: If you spot a mistake, log back in and fix it.
Follow Up with Schools: Make sure the colleges you listed have received your FAFSA.
Wait for Your Financial Aid Offers: Schools will send you your aid packages, outlining loans, scholarships, and grants.

Why Submitting the FAFSA Early Is Important

Submitting early can increase your chances of receiving aid since some programs have limited funds and are awarded on a first-come, first-served basis. Start early and be thorough—it’s worth the effort to maximize your financial aid opportunities.

Accepting Federal Student Loans

When it comes to paying for college, federal student loans are often the best option for loans because they offer fixed interest rates and more flexible repayment terms than private loans. To get started with federal student loans, you’ll first need to understand your financial aid award letter and the steps to accept the loans.

What Is a Financial Aid Award Letter

Your financial aid award letter is a document you’ll receive after being accepted to a college and submitting your FAFSA. This letter explains the financial aid you’re eligible for, including grants, scholarships, work-study opportunities, and federal loans. It’s an important tool that helps you figure out how much the school will cost and how you can pay for it.

How to Read the Financial Aid Award Letter

Reading your financial aid award letter can feel overwhelming at first, but breaking it down step by step makes it easier:

Focus on the Total Cost - Look for the school’s total cost of attendance, which includes tuition, fees, room and board, books, and other expenses.
Review the Free Money - Grants and scholarships don’t have to be paid back, so note these amounts first.
Check for Work-Study - Work-study programs provide part-time jobs to help you earn money for school.
Understand Loans - Federal student loans will be listed, including the types (subsidized or unsubsidized, or PLUS) and maximum amounts you can borrow.
Compare Costs - Subtract the free money (grants and scholarships) from the total cost to see what’s left. This is the amount you might need to cover with loans, savings, or other aid.

How to Accept Federal Student Loans

Once you’ve reviewed your award letter and decided to accept federal loans, you’ll need to follow a series of steps to complete the process. It’s simple and straightforward:

Log Into Your Student Aid Account - Visit the Federal Student Aid website (studentaid.gov) and log in using your FSA ID and password.
Review Your Loan Offer - Check the loan amounts offered in your financial aid award letter and ensure you only borrow what you need.
Accept or Decline Each Loan - Go to your school’s financial aid portal, where you can accept, decline, or adjust the loan amounts. Most schools will give you the option to accept partial amounts if you don’t need the full loan.
Complete Entrance Counseling - Before borrowing a federal student loan type for the first time, you’ll need to complete online entrance counseling to ensure you understand your responsibility as a borrower.
Sign a Master Promissory Note (MPN) - This is a legal document where you agree to repay the loan and any associated interest or fees. You’ll sign the MPN electronically and it will be valid for up to 10 years
Wait for Disbursement - Your loan funds will be sent directly to your school to pay for tuition and fees. Any leftover money will be refunded to you for other education-related expenses.

By following these steps, you’ll set yourself up for success in managing federal student loans. Remember, only borrow what you truly need and keep track of your loan details to avoid surprises later on.

When to Consider Private Student Loans

Private student loans can be a good choice, but only after you’ve used up all other forms of financial aid. This includes scholarships, grants, work-study programs, and even appeals for more financial aid from your school. Federal student loans should also be your first option, however, if there’s still a gap between your total cost of attendance and the aid you’ve received, private student loans might help fill that gap.

It’s important to know the implications of private loans before applying. Unlike subsidized federal loans, interest on private loans begins accruing immediately, which increases the total amount you’ll owe over time. Private loans will also have fewer repayment options and often lack the forgiveness programs or payment flexibility you might find with federal loans. Make sure to fully understand the terms and weigh all your options before deciding.

How to Apply for Private Student Loans

If you decide to go ahead with a private student loan, follow these steps to apply:

Determine How Much You Need: Start by calculating the exact amount of money needed to cover your remaining college expenses. Only borrow what you truly need, as you’ll be paying it back with interest.
Research Lenders: Compare different private lenders to find favorable interest rates, repayment terms, and borrower benefits. Look at reviews and use online comparison tools for detailed breakdowns.
Check Your Credit Score: Private lenders will require a credit check. Strong credit, or a creditworthy cosigner, can help you secure better rates.
Gather Financial Information: Be prepared with personal and financial documents, such as your social security number and proof of income. If using a cosigner, you’ll need their details too.
Fill Out the Application: Complete the lender's application form carefully, entering your information and the amount you want to borrow. Many applications can be done online within minutes.
Provide Supporting Documents: Submit any additional documentation the lender requests, such as school enrollment information or cost breakdowns.
Review the Loan Terms: Carefully read the loan agreement, paying attention to the interest rate, repayment start date, and any fees.
Sign the Loan Agreement: Once you’re satisfied with the terms, sign the agreement and submit it to the lender.
Wait for Approval: The lender will review your application and notify you of their decision. Approval times can vary, but most lenders aim for a quick turnaround.
Receive & Use the Funds: Once approved, the funds are typically sent directly to your school to cover tuition and fees. If there’s any leftover money, it will be refunded to you for other education-related expenses.

By following this process and staying informed, private loans can effectively bridge the gap in college funding—but always remember to borrow responsibly.

Compare Private Student Loan Lenders

Fixed APR 3.47% - 16.49%¹

Variable APR 4.99% - 16.85%¹

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Check your eligibility in just 2 minutes
No fees for origination, disbursement, prepayment, or late payment³
Skip a payment once per year (once repayment period restarted)⁴

This information is for graduate and undergraduate students attending participating degree-granting schools. Borrowers must be U.S. citizens or U.S. permanent residents if the school is located outside of the United States. Non-U.S. citizen borrowers who reside in the U.S. are eligible with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident) and are required to provide an unexpired government-issued photo ID to verify identity. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.

Actual rate and available repayment terms will vary based on your income. Fixed rates range from 3.72% APR to 16.74% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.24% APR to 17.10% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.

¹You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.

²Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.

³Earnest does not charge fees for origination, late payments, or prepayments. Florida Stamp Tax: For Florida
residents, Florida documentary stamp tax is required by law, calculated as $0.35 for each $100 (or portion thereof) of the principal loan amount, the amount of which is provided in the Final Disclosure. Lender will add the stamp tax to the principal loan amount. The full amount will be paid directly to the Florida Department of Revenue. Certificate of Registration No. 78-8016373916-1.

⁴Earnest clients may skip one payment every 12 months. Your first request to skip a payment can be made once you’ve made at least 6 months of consecutive on-time payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Please be aware that a skipped payment does count toward the forbearance limits. Please note that skipping a payment is not guaranteed and is at Earnest’s discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.

The information provided on this page is updated as of 02/19/2025. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice.

Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107.

Earnest loans are serviced by Earnest Operations LLC, 300 Frank H. Ogawa Plaza, Suite 340, Oakland 94612. NMLS #1204917, with support from Higher Education Loan Authority of the State of Missouri (MOHELA) (NMLS# 1442770) One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.

THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.

Fixed APR 3.49% - 15.49%¹

Variable APR 4.99% - 15.51%¹

Cosigner Recommended

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Get your rate in about 2 minutes⁴
4x more likely to be approved by applying with a qualified cosigner⁵
No Application or Origination Fees

¹Student Loan Rate Disclosure: Variable interest rates range from 4.99% - 15.60% (4.99% - 15.61% APR). Fixed interest rates range from 3.99% - 15.60% (3.99% - 15.61% APR).

²Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.

³Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: personal checking, personal savings, personal credit card or previous student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DC, DE, FL, MA, MD, MI, NH, NJ, NY, OH, PA, RI, VA, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.

⁴Get My Rate: Selecting “Get My Rate” only requires a "soft credit pull" which does not affect your credit score. Submitting a full application will result in an inquiry on your credit report.

⁵Citizens Undergraduate Booked Loans from 10/1/2023 through 9/30/2024 were 4 times more likely to be approved with a qualified cosigner.

⁶Multi-Year Approval: Funds available for future use are subject to a soft credit inquiry at time of your next request to verify continued eligibility. After we make the initial Loan to you, you must continue to meet eligibility criteria to obtain additional funds under the Multi-Year Approval feature. Terms and conditions are outlined in the promissory note. Multi-Year Approval borrowers have a 99% approval rate on future requests for additional funds. The additional funds approval rate is based on the percentage of approved Multi-Year borrowers from Citizens between October 1, 2023 and October 1, 2024. The approval rate represents only borrowers who had previously accepted the Multi-Year Approval offer. Please Note: International students are not eligible for Multi-Year Approval.

Information advertised valid as of 05/01/25. Rates and offer subject to change. All accounts, loans and services subject to individual approval.

Fixed APR 3.49% - 15.99%¹

Variable APR 4.54% - 14.71%¹

Cosigner Recommended

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Choose the #1 Private Student Loan Lender in the Nation. Sallie Mae is trusted by more families than any other private student loan lender.
Applying online is easy - you could receive a credit result in about 10 minutes.²

Borrow Responsibly

We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.

Explore federal loans and compare to make sure you understand the terms and features. Private student loans that have variable rates can go up over the life of the loan. Federal student loans are required by law to provide a range of flexible repayment options, including, but not limited to, income -based repayment and income-contingent repayment plans, and loan forgiveness and deferment benefits, which other student loans are not required to provide. Federal loans generally have origination fees, but are available to students regardless of income.

Loans for Undergraduate & Career Training Students are not intended for graduate students and are subject to credit approval, identity verification, signed loan documents, and school certification. Student must attend a participating school. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident), and provide an unexpired government-issued photo ID. Requested loan amount must be at least $1,000.

¹Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount 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. It may be suspended during forbearance or deferment.

²Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note-first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.

³Based on a comparison of the percentage of students who were approved for any Sallie Mae loan with a cosigner to the percentage of students who were approved without a cosigner from October 1, 2023 to September 30, 2024.

⁴For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time.

Information advertised valid as of 05/16/2025.

Edvisors is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.

© 2025 Sallie Mae Bank. Sallie Mae loans are made by Sallie Mae Bank. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.

SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America. W646400 0325

Fixed APR 3.47% - 17.99%¹

Variable APR 4.44% - 17.99%¹

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Fixed APR 3.44% - 15.00%*

Variable APR 4.95% - 14.85%*

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Expert Tips for Responsible Borrowing

When it comes to taking out student loans, it’s important to borrow responsibly to avoid unnecessary financial stress down the road. Here are some expert tips to help you make the best choices:

Borrow Only What You Need

It might be tempting to take out the full loan amount offered to you, but it’s important to think long-term. Every dollar you borrow now increases the total amount you’ll have to repay later, including the interest that accrues over time. To avoid unnecessary debt, take the time to thoroughly calculate your essential expenses. This includes tuition, fees, books, housing, transportation, and other living costs. Once you tally those numbers, only borrow what’s absolutely necessary to cover these essentials. If you need some guidance, your school’s financial aid office can help you estimate costs and determine how much of the loan you actually need.

Understand the Impact of Interest Rates

Interest rates may seem like just a number, but over time, they critically impact the amount you’ll owe. Federal student loans generally come with fixed interest rates that are lower than the variable rates of many private loan options, giving them a significant advantage. However, keep in mind that interest begins accruing as soon as your loan is disbursed, even if you’re still in school. This means that the less you borrow now, the less interest you’ll owe later. Consider paying attention to interest rate details and think about how much more your initial loan amount could grow if left unchecked during your repayment years.

Create a Repayment Plan Now

Your future self will thank you if you start planning your repayment strategy while you’re still in school. You don’t need to wait until graduation to think about repaying loans—getting organized early can make a big difference. Begin by calculating how much you’ll need to earn after graduation to comfortably cover your estimated monthly payments. Resources like loan repayment calculators can provide a helpful glimpse into what to expect. If possible, consider working part-time during school to make small payments toward your loan’s interest. Even these minor contributions can reduce what you owe in the long run and ease your financial burden post-graduation.

Being mindful about how much you borrow and staying informed will help you take control of your financial future.

Top Student Loan Options for High School Seniors in 2025

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