Your Step-By-Step Guide To Choose the Best Undergraduate Student Loan
Federal Parent PLUS Loan Update (2026–2027): Under the One Big Beautiful Bill Act, new Parent PLUS borrowers are now subject to an annual limit of $20,000 and a lifetime aggregate limit of $65,000 per student. The current interest rate is 8.94% with a 4.228% origination fee.
If your funding gap exceeds these new federal limits, or if you have strong credit, private loans may be your best path forward. Private rates currently start under 3% with no fees. We always recommend utilizing the Federal Direct Student Loan (FDSL) first—scroll down for our step-by-step guide to choosing your best option.
Federal Parent PLUS Loan Update (2026–2027): Under the One Big Beautiful Bill Act, new Parent PLUS borrowers are now subject to an annual limit of $20,000 and a lifetime aggregate limit of $65,000 per student. The current interest rate is 8.94% with a 4.228% origination fee.
If your funding gap exceeds these new federal limits, or if you have strong credit, private loans may be your best path forward. Private rates currently start under 3% with no fees. We always recommend utilizing the Federal Direct Student Loan (FDSL) first—scroll down for our step-by-step guide to choosing your best option.
Step-By-Step Guide to Choosing the Best Student Loan in 2025:
Step 1: Apply through College Ave to get your rate.
- Apply in 3 Minutes
- Soft Credit Pull
- Reputation for rewarding high FICO scores
Step 2: Apply through Sofi Student Loans to get your rate.
- Apply in minutes
- Soft Credit Pull
- Reputation for rewarding high FICO scores
Step 3: Apply through Sallie Mae to get your rate
- Apply in minutes
- Hard Credit Pull
- Reputation for highly competitive rates.
Step 4: Compare your private rates to Federal PLUS & State Programs (Massachusetts , Rhode Island, Iowa)
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.
Step-By-Step Guide to Choosing the Best Student Loan in 2026:
Step 1 | Apply through College Ave to get your rate.
Step 1: Apply through College Ave to get your rate.
- Apply in 3 Minutes
- Soft Credit Pull
- Reputation for rewarding high FICO scores
Step 2 | Apply through Sofi Student Loans to get your rate.
Step 2: Apply through Sofi Student Loans to get your rate.
- Apply in minutes
- Soft Credit Pull
- Reputation for rewarding high FICO scores
Step 3 | Apply through Sallie Mae to get your rate.
Step 3: Apply through Sallie Mae to get your rate
- Apply in minutes
- Hard Credit Pull
- Reputation for highly competitive rates.
Step 4 | Compare your rates!
Step 4: Compare your private rates to
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and State Programs (Massachusetts , Rhode Island, Iowa)
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.
Featured Lender Spotlight
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Apply in as little as 3 minutes and get an instant credit decision
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Multiple repayment options from deferred to immediate principal and interest
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Choice of how long you take to repay the loan - 5, 8, 10, or 15 years
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0.25% interest rate reduction when you make required payments by automatic debit
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Borrow up to 100% of your cost of attendance (minimum $1,000)
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SoFi covers all school-certified costs—yes, everything is taken care of.
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No origination fees, no late fees, and no insufficient funds fees. Simple, clear, and fee-free.
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Save even more with a 0.25% rate discount for autopay and an additional 0.125% off for multiple loans supporting multiple kids in college.
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After 12 on-time payments, students can apply to release cosigners from the loan.
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No penalty for repayment or origination fee
- Flexible in-school repayment
- Option for co-signer release after 12 months
- 0.25% rate discount for autopay
.png?width=1280&height=720&name=Lender%20Comparison%20Table%20-%20April%202026%20(2).png "Lender Comparison Table - April 2026 (2)")