Your Step-By-Step Guide To Choose the Best Student Loan (Undergrad)

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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. 

• 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)