Top 8 Loans for Engineering Students

Getting an engineering degree can be a lucrative pursuit, offering professional stability and a solid salary across varying specialties — whether chemical, electrical or other branches. 

According to Bureau of Labor Statistics (BLS) data, the median engineering salary is at $93,000. Though the career outlook can look bright, in the meantime, you need to cover your higher education costs and some students look to student loans as one option. 

Engineering students are typically attractive to lenders because of their potential future engineering salary. If your program is short, you might earn far more than your debt and might get lower rates from private lenders. In this guide, learn about the top student loans for engineering students. 

8 best student loans for engineering students

When it comes to financing your engineering degree, you may need to utilize various resources. Family support, and a mix of grants and scholarships, are a good place to start. 

If you need to explore student loan options, start with federal student loans, which offer a number of benefits for borrowers, including student loan forgiveness.

Federal loan options, however, might not cover all of your engineering program costs or might have steep interest rates, depending on the federal loan type. In this case, it might make sense to shop around for private student loans as a financial aid supplement. 

Below are some private student loans for engineering students to consider. 

1. Sallie Mae

One of the major private lenders on the market is Sallie Mae. It offers the Smart Option Student Loan to undergraduates, and borrowers may choose a fixed rate or variable rate. 

Additionally, there’s the Sallie Mae Graduate School Loan, which also offers fixed rates and variable rates and doesn’t have origination fees — unlike federal PLUS Loans for graduate students. Depending on your credit score, you might also be eligible for a lower APR than with a Grad PLUS Loan. 

Both loan types have minimums of $1,000 and maximums up to the cost of attendance, making it a flexible option to cover your needs. You might also get an interest rate reduction of 0.25% when signing up for auto-pay, which automatically takes out loan payments from your checking account. 

Here’s a look at interest rates from Sallie Mae:

Sallie Mae

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• Fixed interest rates: 2.89% APR – 17.64% APR¹
• Variable interest rates: 3.75% APR – 16.62% APR¹
• Terms: 10 to 15 years
• Loan amounts: Borrow from $1,000 up to the full cost of attendance
• Autopay discount: Yes

Visit Sallie Mae More Information

Interest rates:

• Fixed or variable
• Starting rates also based on enrollment level

Repayment terms: 

• 10 to 20 years (15 years for graduate loans) 

Loan limits:

• $1,000 to cost of attendance for undergraduate loans and graduate loans 

2. Ascent

If you’re going for a short engineering program and expect to earn a high salary, you’ll want to find a lender that offers flexibility and can cater to you. Ascent is a private lender that offers some of the most interesting student loans for engineering students. 

Not only does the company offer loans without a cosigner, but the company also offers loans that aren’t just based on your credit. For example, there are no-cosigned outcome-based loans available for undergraduate students who are juniors or seniors and have a GPA of 2.9 and above. These loans also have an attractive 1% interest rate reduction with auto-pay, while the others have 0.50%. 

Credit-based loans offer more flexibility with repayment terms, including some as short as five years and as long as 15 years. Both undergraduate and graduate loans from Ascent have no fees and offer a robust grace period of nine months. 

Here are Ascent’s current interest rates:

Ascent

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• Fixed interest rates: Starting at 2.69% APR
• Variable interest rates: Starting at 3.65% APR
• Terms: 5, 7, 10, 12, 15 or 20 years
• Loan amounts: Up to the full cost of attendance
• Autopay discount: Yes

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Interest rates:

• Fixed or variable
• Starting rates also based on enrollment level, whether a cosigner is required, and if it’s a credit- or outcomes-based loan

Repayment terms:

• Five, seven, 10, 12 or 15 years for credit-based loans 
• 10 or 15 years for outcome-based loans 

Loan limits: 

• $2,001-$200,000 for undergraduate loans
• $2,001-$400,000 for graduate loans 
• Borrowers in Massachusetts have a minimum loan of $6,001 

3. Citizens

Citizens is a well-known lender that offers various types of financing, including private student loans. These are available to undergraduate and graduate students and have loan terms of five, 10, and 15 years. If you’re a Citizens customer and sign up for autopay, you may qualify for a 0.50% interest rate reduction. 

Whether you’re getting a Bachelor’s degree or Master’s degree, you can borrow between $1,000 to $150,000 through Citizens for your engineering education. 

Citizens has fixed and variable interest rates:

Citizens

• Fixed interest rates starting at 3.24% APR¹
• Variable interest rates starting at 4.99% APR¹
• Terms: 5, 10 or 15 years
• Loan amounts: Up to $150,000 for undergrad students
• Autopay discount: Yes

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Interest rates:

• Fixed or variable 
• Starting rates also based on enrollment level

Repayment terms:

• Five, 10, or 15 years for both undergraduate loans and graduate loans 

Loan limits:

• $1,000 to $150,000 for undergraduate and graduate loans 

4. College Ave

College Ave can provide a private loan for engineering students whether you’re looking to fund your undergraduate or graduate education. You can choose a private loan with a fixed rate or a variable rate and select a loan repayment term of five, eight, 10, or 15 years (3). Similar to other lenders, you can also get an automatic payment discount of 0.25%. 

There’s also the College Ave Multi-Year Peace of Mind®, which is available to undergraduate borrowers with a cosigner. According to their site, 95% of undergrad borrowers who apply with a cosigner secure funding for multiple years. 

College Ave’s current interest rates are:

College Ave

• Fixed interest rates starting at 2.84% APR (1)
• Variable interest rates starting at 3.89% APR (1)
• Terms: 5, 8, 10 or 15 years
• Loan amounts: Up to the full cost of attendance
• Autopay discount: Yes

Visit College Ave Flexible Repayment More Information

Interest rates:

• Fixed or variable rate 
• Starting rates also based on enrollment level

Repayment terms:

• Five, eight, 10, or 15 years for undergraduate and graduate loans 

Loan limits:

• $1,000 up to the cost of attendance for undergraduate and graduate loans 

5. Earnest

Earnest is a unique private lender that offers borrowers low rates. They’re so confident about this fact, they have a 100% Rate Match Guarantee where they’ll match any rate you find from a competitor and offer a $100 Amazon Gift Card. Earnest private loans also have an autopay discount of 0.25% and a 9-month grace period on student loans. 

There are flexible repayment terms of 5, 10, 15, or 20 years. And what’s interesting is that you can even skip a payment once a year. 

You can score lower rates with a cosigner. Cosigners can access a mobile loan application to make the process easy. It should be noted that there is a lifetime maximum of $400,000 for Earnest private student loans. 

At Earnest, you’ll find competitive interest rates. Here’s a look at current rates:

Earnest

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• Fixed interest rates starting at 2.79% APR¹ for qualified cosigner borrowers (4.49% APR¹ for qualified primary borrowers)
• Variable interest rates starting at 4.99% APR¹
• Terms: 5, 7, 10, 12 or 15 years
• Loan amounts: Up to the full cost of attendance
• Autopay² discount: Yes

Visit Earnest Up to $200 Bonus More Information

Interest rates:

• Fixed or variable
• Starting rates also based on enrollment level and whether a cosigner is required

Repayment terms:

• Five, 10, 15, or 20 years

Loan limits:

• $1,000 up to the cost of attendance, with a lifetime maximum of $250,000

6. Funding U

Funding U is a non-traditional private loan lender in that it offers loans only to undergraduate students and never asks for a cosigner. For-profit schools aren’t eligible for these loans nor are graduate students. The company looks at different factors like your academics, future salary, graduation timeline and likelihood, and classes. 

This unique model could benefit some engineering students looking for funding. It should be noted that the limits are relatively small, from $3,001 to $20,000 per year for the academic year of 2023-2024. All loans have fixed rates and a repayment term of 10 years. 

Let’s look at current interest rates from Funding U:

Funding U

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• Fixed interest rates starting at 7.99% APR with autopay¹
• Variable interest rates: Not offered
• Terms: 5 or 10 years
• Loan amounts: Borrow from $3,001 up to to $20,000 per academic year
• Autopay discount: Yes

Visit Funding U No Cosigner Undergrad Loans More Information

Interest rates:

• Fixed rate

Repayment terms:

• 10 years 

Loan limits:

• $3,001 up to $20,000 per year for school year 2023-2024

Engineering loans for international students

International students looking for loans for engineering may have limited options as federal financial aid isn’t available. However, there are private loans that can help. 

7. Prodigy Finance 

Prodigy Finance offers private student loans to international students pursuing their master’s. So if you want to pursue a master’s in engineering and are an international student, you can try Prodigy Finance. 

Prodigy loans have no cosigners or fees and don’t require any collateral. According to the company website, they’ve funded 1.5 billion in loans for students from 150 countries. 

Interest rates:

• Starting at 11.06% APR. Rates subject to change.
• Fixed or variable variable
• 5% administration fee

Repayment terms:

• 7 to 20 years 

Loan limits: 

• Based on cost of program and earning potential 

8. MPOWER Financing 

MPOWER Financing is another international student loan lender that can help you get financing. The main benefit is that you don’t need a cosigner and can borrow up to $100,000. So if you’re looking for loans for engineering students that are international, this is a good place to start. There’s also free visa support and a 0.25% autopay discount available, like other lenders. All loans are fixed and have a 10-year repayment term. 

Interest rates:

• Starting at 13.98% APR. Rates subject to change.
• Fixed rates
• Starting rates also based on enrollment level 

Repayment terms:

• 10 years

Loan limits:

• $2,001 to $100,000 

Federal student loans vs. private student loans

Taking on student loan debt can be a big decision, especially deciding on whether to use federal students or private student loans. You can choose one or the other, or use both loan vehicles to pay for your education. 

To get federal loans, students need to fill out the Free Application for Federal Student Aid (FAFSA). The primary benefits of going this route include numerous repayment options and loan forgiveness programs. Being eligible for income-driven repayment plans (IDR) can be immensely helpful if you hit hard times financially. 

Private loans don’t come with the same benefits and generally require a good credit history or a cosigner. However, there are some private loans without a cosigner available. The primary benefits of private loans are that it can cover your costs and may help you get a lower interest rate. 

Before making a decision and applying, review total costs, interest rates, repayment terms, origination fees, and borrower benefits. If going the private route, look at reviews, potential drawbacks, and if there’s deferment or forbearance as a possibility. 

Next steps to getting a loan for engineering students 

If you’re looking at a loan for engineering students and wondering which one to go with, it can feel overwhelming. Each option has something to consider, and it can be tough to make sense of it all. 

Understand your loan amount, monthly payment, eligibility, and repayment period on your new loan. Before making any moves and applying for a loan, talk to a Student Loan Planner consultant for a pre-debt consultation to get the expertise and support you need.