Are There Student Loans Without Interest

Are there any student loans without interest? Unfortunately, (for most*) there are not student loans without interest, however the interest rate on student loans is different depending on which student loan you utilize. Generally, federal student loans (which can be obtained via www.fafsa.gov) are going to have the best interest rates and terms available, so it is smart to begin with these types of student loans.

Subsidized Federal Student Loans:
Subsidized federal student loans are based on financial need. If you qualify for federal subsidized loans, then the government pays the interest while you’re in school.

Unsubsidized Federal Student Loans
:
Unsubsidized federal student loans interest will accrue while you’re in school, and you have the choice to pay interest-only while you’re in school, or defer it until you quit school or graduate.

Federal Perkins Student Loans:

Federal Perkins student loans are available to those with the most financial need (everyone will not qualify for these type of federal student loans). The federal government will pay the interest on this student loan while you are in school and during the student loan grace period.

Private Student Loans:

Private student loans (or alternative student loans) are based on credit, and the interest rate will vary depending on your credit and the lender.

So, even though there are no student loans without interest, it is still highly important to review the interest rates and terms of each student loan, because they do vary. *Some charities offer no interest student loans up to a certain amount. Typically, these charities require extensive essays or personal interviews and may require co-signers or require students to start making small monthly payments immediately. You should certainly look into no interest student loans, if you know of a charity that offers them, however for the majority of students, no interest student loans are not available to fund your entire college education.