Your Step-By-Step Guide To Choose the Best Student Loan

Parent PLUS Loan rates have are just under 9% for all borrowers, plus a 4% origination fee.  For some, private loans will be a better option.  If you have good credit, you can get rates starting under 5% with no fees. Below is our guide to help you take the right steps in choosing your best loan option.  We always recommend starting by taking utilizing the Federal Direct Student Loan (FDSL).  Be sure to scroll for step-by-step instructions.

Step-By-Step Guide to Choosing the Best Student Loan in 2025:

Step 1: Maximize Federal Direct Student Loans (FDSL)

Step 2: visit CAP's preferred lending partners Ascent Student Loans &  College Ave to get pre-approved for two competitive private loan rates (each application is under 3 minutes each). 

Step 3: Still want more data? Check out some other lenders:

• Universal state loan programs: Massachusetts , Rhode Island, Iowa
• Full Private Lender Table

Step 4: Lastly, compare your pre-approved rates to the Federal PLUS loan* 

Follow these steps above and you'll get a view of the loan rates and terms available to your family so you make an informed, thoughtful borrowing decision. 

• Apply in as little as 3 minutes and get an instant credit decision
• Multiple repayment options from deferred to immediate principal and interest
• Choice of how long you take to repay the loan - 5, 8, 10, or 15 years
• 0.25% interest rate reduction when you make required payments by automatic debit
• Borrow up to 100% of your cost of attendance (minimum $1,000)