5 Top Student Loans for Part-Time Students

Student loans for part-time students are available, even if dropping below full-time enrollment limits some of your options. If you’re taking enough classes to qualify as a part-time student you’ll likely still qualify for some student loans to help you afford your education.

How do part-time student loans work and where can you find them? Here’s what you need to know.

5 places to find student loans for part-time students

When starting your search for student loans as a part-time student, remember that federal loans will likely have lower interest rates, compared to private student loans for less than half-time enrollment.

If you exhaust all of your federal options, however, turning to private lenders for half-time status student loans is an option.

1. Federal loans for part-time students

Yes, even if you’re not enrolled in school full-time, you can get federal loans for part-time students. Once your school verifies your enrollment status, it determines your cost of attendance based on whether you’re a full-time or part-time student.

This is how the government determines how much federal student aid you qualify for. Students should fill out the Free Application for Federal Student Aid (FAFSA) to see what loans they qualify for. You can obtain a Direct Subsidized Loan or Direct Unsubsidized Loan for half-time study.

There’s a limit to how long you can receive loans. Your period of eligibility is reduced in accordance with your school status. If you’re enrolled half-time for a full year, your period of eligibility is reduced by half a year.

For Direct Subsidized Loans, you’re responsible for paying interest while you’re in school if you’re enrolled half-time and exceed 150% of the published length of your program.

2. College Ave

College Ave offers undergraduate, graduate and parent student loans. You don’t need to be a full-time student to obtain a loan from College Ave, although you do have to attend an eligible school. The lender has a list of qualifying schools on its loan application form. Please note that there isn’t a specific “half-time” student loan through this lender, but it offers its standard student loans to part-time students.

College Ave doesn’t charge fees to apply for half-time status student loans, and offers a choice between variable or fixed interest rates. Borrowers can choose between five-, eight-, 10- or 15-year terms. Also, it offers four repayment options including the ability to defer payments while you’re in school. Its repayment options are:

• Full principal and interest payment. You pay high interest while in school, but repaying the loan faster means you’ll pay less in interest overall.
• Interest-only payment. You’re only responsible for the interest charges while you’re in school.
• Flat payment. You can pay a flat fee of $25 each month while you’re in school to minimize the amount of interest you accrue.
• Deferred payment. You don’t pay anything while you’re in school even though the interest accrues.

If you’re working while attending school half-time, it could be smart to opt for the full principal and interest payment so you can keep the costs of your student loan at a minimum.

3. Ascent

Ascent is a student loan lender financed by Bank of Lake Mills. This lender offers private student loans to half-time undergraduate and graduate students at eligible schools. It also offers “bootcamp loans” to professionals who want to attend professional development programs.

Its cosigned or credit-based, non-cosigned loans both accept applications from half-time students. You can also be eligible for a future-income based loan as a half-time student if you’re graduating within nine months.

Ascent allows you to choose between fixed or variable rates, and provides a range of terms starting at five years and up to 15 years. If you decide to pay off your entire loan balance earlier than your contracted term, you won’t get charged a prepayment penalty. Also, it gives you the option of requesting a cosigner release after 24 qualifying payments.

Ascent offers three repayment options:

• Interest-only payment. You make 57 interest-only payments while in school before making payments that include the interest and principal after graduation.
• $25 minimum payment. You pay $25 each month in school that covers the interest and some of the principal.
• Deferred payment. You don’t make any payments while in school.

For half-time students, it could be smart to pay the highest amount while in school if you are working at the same time.

4. Sallie Mae

Sallie Mae offers student loans across the nation. With this lender, you can apply for a loan as a half-time student or even if you’re attending school for less than half-time and for special programs such as study abroad or summer school.

It offers fixed and variable rates, and the chance to qualify for an interest rate discount by signing up for automatic payments. Like other lenders, there’s no prepayment penalty, and the Sallie Mae offers an in-school deferment option.

Here are your options for repaying your half-time student loan with Sallie Mae:

• Deferred payment. Don’t make any payments while you’re in school.
• Fixed payment. Pay a predetermined amount in school and during your grace period.
• Interest-only payment. Pay only the interest while you’re in school. You can remain on the repayment plan for up to a year after you leave school.

You can choose to defer payment as long as you’re attending school at least half-time. If you drop below half-time, you’ll have to start making fixed payments.

Depending on your interest rate, you’ll either want to start repaying as much of the student loan now, or wait until your credit improves, at which point you can refinance for a lower rate. If you expect your credit to improve after getting a better job following graduation, it could be worth sticking to the smaller payments for now.

Read our Sallie Mae private student loan review to learn more.

5. Massachusetts Educational Financing Authority (MEFA)

Even though it has “Massachusetts” in its name, you don’t have to be from the state to obtain a loan from MEFA, a state-based, nonprofit that offers educational loans. MEFA offers a student loan option for students who aren’t enrolled full-time in school.

Loan applicants must be enrolled in school at least half-time at an eligible program, in pursuit of an accredited degree. The lender offers fixed-rate loans, and either a 10- or 15-year repayment term.

A cosigner release is also available after 48 consecutive on-time payments. MEFA doesn’t offer in-school payment deferment, so you’ll have to keep up with payments while you’re a student.

Here are your repayment options with a MEFA loan:

• Immediate repayment. You begin repaying in the month following your final disbursement.
• Interest-only repayment. You can pay interest only while you’re enrolled in school, but the loan must be repaid within 15 years following the final disbursement.
• Deferred repayment. All payments are deferred until six months following graduation. You can choose this option with a co-borrower release.

Differences between full-time vs. half-time student loans

There are three key differences when comparing student loans for part-time students vs. full-time enrollment. Here’s what to remember.

Your school needs to certify your enrollment status. Not every school or program allows part-time enrollment, so your first step is to check whether your school allows a half-time enrollment status. Not only will lenders ask for your enrollment status, but private lenders, like College Ave and Ascent, require your lender to be on their list of eligible institutions.

Your enrollment status means a lower cost of attendance. It makes sense that attending school costs less if you’re also taking fewer course credits. However, the cost of attendance impacts the amount of financial aid, specifically federal loans, you qualify for.

As a part-time student, you aren’t eligible for as much loan aid because your educational costs are lower. To help you reduce your student loan debt, you can consider getting a part-time job to cover some of your school expenses.

Repayment obligations. Some loans (whether private or federal) require you to begin making payments if you drop below half-time enrollment. For example, to be eligible for the in-school deferment from Sallie Mae you need to take classes at least half-time.

If you don’t want to kickstart your payment obligations while you’re studying in school, take particular note about how many classes you’re taking each semester or quarter. If you’re not sure about your lender’s policies, contact them before you finalize your course load.

What determines part-time student status?

There isn’t a standard number of credit hours that determine full-time students from part-time students. Every school has its own criteria. If your school is on the semester model, it’s likely that they will consider 12 credits per semester as full-time, putting part-time status at around 6 credits per semester. However, it’s important to verify this information with your school directly.

The bottom line

There are definitely ways to pay for school, even if you’re attending half-time. If you don’t qualify for enough funding in federal loans, consider private loans for part-time students. Learn more about how to apply for private student loans so you can map your journey before getting started.