Best Student Loans of January 2026

Federal student loans are offered by the government with fixed interest rates, income-driven repayment options, and forgiveness programs. Private student loans are from banks or lenders with variable or fixed rates and fewer borrower protections.

Federal loan limits depend on your year in school and dependency status, ranging from $5,500 to $12,500 annually for undergraduates. Private loans can cover up to the full cost of attendance minus other financial aid.

Federal loans typically have a 6-month grace period after graduation. Private loans may require immediate repayment or offer a grace period. Check your loan terms for specific details.

Yes, you can refinance both federal and private student loans through private lenders. However, refinancing federal loans means losing access to income-driven repayment and forgiveness programs.

Student loan forgiveness programs cancel remaining loan debt after meeting specific requirements, such as working in public service for 10 years (PSLF) or making payments for 20-25 years on income-driven plans.

Most private lenders require a credit score of at least 650, though some may accept lower scores with a cosigner. Higher scores qualify for better interest rates.

Federal loans don't require a cosigner. Private loans may require a cosigner if you have limited credit history or income. Some lenders offer loans without cosigners for graduate students or borrowers with strong credit.

Federal loans offer deferment, forbearance, and income-driven repayment options. Private loans may offer temporary payment relief, but options vary by lender. Contact your loan servicer immediately if you're struggling.