Key Points
- Start with federal student loans. They typically offer lower fixed interest rates and flexible repayment options compared with private loans.
- Private loans fill gaps but come with trade-offs. Rates, terms, and borrower protections vary widely by lender and borrower credit.
- Your choice affects repayment for years. The source of your loan determines interest costs, forgiveness eligibility, and flexibility if your income changes.
Students and families asking where to get a student loan are often overwhelmed by options. While there is an order of operations you should follow, the answer depends on how much you need, credit history, and long-term repayment plans.
Federal loans remain the starting point for most borrowers, but private lenders, state agencies, and even some colleges offer alternatives.
Understanding where to get a student loan begins with knowing how each option works.
@thecollegeinvestor Replying to @Melissa Here’s the order of operations you need to know when borrowing student loans to pay for college. #learnontiktok #tiktoklearningcampaign #studentloans #financialaid ♬ original sound - The College Investor
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Federal Student Loans First - Always
For most undergraduates, the primary answer to where to get a student loan is the U.S. Department of Education. Federal student loans are issued through the Direct Loan program and accessed by completing the Free Application for Federal Student Aid, or FAFSA.
There are three main types:
- Direct Subsidized Loans for undergraduates with financial need. The government pays interest while the student is enrolled at least half-time.
- Direct Unsubsidized Loans for undergraduates and graduate students. Interest accrues from the time the loan is disbursed.
- Direct PLUS Loans for parents of undergraduates, which require a basic credit check.
Interest rates on federal student loans are fixed and set annually by Congress. For the 2025-26 academic year, rates range from about 6.39% for undergraduate loans to over 8.94% for Parent PLUS loans. These rates apply for the life of the loan.
Federal loans offer income-driven repayment plans, deferment options, and potential forgiveness programs such as Public Service Loan Forgiveness. Those protections are not typically available with private loans.
For families wondering where to get a student loan with the most borrower safeguardsprotec, federal loans are usually the safest starting point. Plus, private loans don't generally offer much better rates for the same loan term.
Private Student Loans To Supplement
If federal loans do not cover the full cost of attendance, students often turn to private student loans. These include large banks, credit unions, and online financial companies.
When evaluating where to get a student loan from a private source, borrowers should compare:
- Fixed versus variable interest rates
- Fees and repayment terms
- Cosigner requirements
- Hardship and deferment options
Private loan interest rates depend heavily on credit scores and income. Borrowers with strong credit (or those with a creditworthy cosigner) may qualify for lower rates. Others may face significantly higher rates than federal loans.
Variable-rate loans can start lower but may increase over time, adding uncertainty to monthly payments. Unlike federal loans, private loans do not offer income-driven repayment or loan forgiveness programs.
Because private lenders evaluate credit, undergraduate students often need a parent or other adult to cosign. If the borrower misses payments, the cosigner is equally responsible.
What About State Non-Profit Lenders And Colleges Directly?
Some states operate their own student loan programs, either directly or through nonprofit agencies. These loans may offer competitive rates or borrower benefits tied to state residency.
Colleges themselves sometimes provide institutional loans. These are typically limited in amount and may be funded by alumni donations or endowments. Terms vary widely by institution.
Both of these types of loans should be treated as private loans - and compared to private loans.
When exploring where to get a student loan, state and institutional programs can supplement federal loans before turning to national private lenders. But you should always compare rates before committing.
The Bottom Line
For most borrowers, the answer to where to get a student loan begins with federal aid through the Department of Education. Private lenders and state programs can supplement funding, but they come with different terms and risks.
The type of student loan shapes interest costs, repayment flexibility, and long-term financial stability.
So remember: federal loans first, and supplement with private loans after.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.