Tennessee Student Loans
Financing a college education is necessary for the majority of students and their families. Fortunately, there are several outlets that can help cover the expense of earning a college degree, including federal and private student loans. However, before considering student loans, make sure you take advantage of all scholarships and grants available to you. These […]
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Financing a college education is necessary for the majority of students and their families.
Fortunately, there are several outlets that can help cover the expense of earning a college degree, including federal and private student loans. However, before considering student loans, make sure you take advantage of all scholarships and grants available to you. These awards are free money and do not need to be repaid.
After weighing all of your scholarship and grant options, use this guide to compare both federal and private student loans in Tennessee.
On this page:
- Getting Student Loans for College in Tennessee
- Federal Student Loans in Tennessee
- Private Student Loans in Tennessee
- Recap of Tennessee Student Loans
Getting Student Loans for College in Tennessee
Securing the best available financial aid as a college student takes some work and due diligence from the start. The first step is completing the Free Application for Federal Student Aid, or the FAFSA.
Students enter details about their residency status, individual and family financial details, and the school they are planning to attend. This information is used to determine government and school-based aid that is available to students.
The amount of financial aid varies but can reach up to the total cost of attendance at specific colleges and universities. However, the mix of financial aid differs from student to student.
Federal Student Loans in Tennessee
When taking out Tennessee student loans, the first place to start is with the federal government. Federal student loans are offered through the Department of Education and come with benefits that are not available through private lenders. Some of these benefits include:
- Low rates. Federal interest rates are fixed and are the same for all borrowers taking out the same loan within a set period.
- Repayment flexibility. Borrowers that face hardship can pause payments through deferment or forbearance. In addition to these two options, there are a number of income-driven repayment plans that can be utilized.
- Loan forgiveness. Those who work for an eligible employer and participate in an income-driven repayment plan for long enough may be able to qualify for student loan forgiveness.
Types of Federal Loans
Here are some federal student loans for those in Tennessee:
- Direct Subsidized Loans: These loans are available to undergraduate students with financial need. The interest on this loan is paid by the U.S. Department of Education while you’re in school at least half-time, for the first six months after you leave school, and during a period of deferment.
- Direct Unsubsidized Loans: These loans are available to undergraduate and graduate students with or without financial need. Interest on this loan is always paid by the borrower.
- PLUS Loans: There are two types of PLUS loans, the Parent PLUS and Grad PLUS loans. The Parent PLUS loan is for parents of dependent undergraduate students. The Grad PLUS loan is for graduate or professional students. To be eligible for either loan, you must not have an adverse credit history.
Private Student Loans in Tennessee
Unfortunately, federal student loans have borrowing limits. If you’ve met your federal borrowing limit, private lenders can help bridge the gap between your current funding and the total cost of attendance.
Private lenders typically rely on your credit to determine eligibility. If you don’t have an established credit history, consider adding a cosigner to your loan to improve your chances of approval.
Here are some highly-rated private lenders offering student loans in Tennessee.
College Ave
Rates (APR)
1.49% – 12.99%
Loan Amounts
$1,000 – 100% of school-certified cost of attendance
Repayment Terms
5, 8, 10, or 15 years
College Ave is our top-rated private student loan lender for undergraduates, graduates, and parents. Borrowers can prequalify for a loan without any impact on their credit score. If approved, you can choose the loan term that best fits your repayment goals.
- Variables rates: 1.49% – 11.98%
- Fixed rates: 4.39% – 12.99%
- Rate reduction: 0.25% automatic payment discount
- Fees: Late payment fee of 5% of the unpaid amount or $25, whichever is less
- Cosigner release: After 24 on-time payments
- In-school repayment: Full principal & interest, interest-only, flat $25, or deferred payment
- Grace period: 6 months, but can apply for up to 6 more months
Earnest
Rates (APR)
2.74% – 12.78%
Loan Amounts
$1,000 – 100% of school-certified cost of attendance
Repayment Terms
5, 7, 10, 12, or 15 years
Earnest offers student loans to undergraduates and graduates. Borrowers can check their eligibility in 2 minutes, with no commitment or effect on their credit. If you run into trouble during repayment, you have the option to skip a payment once per year.
- Variables rates: 2.74% – 11.44%
- Fixed rates: 4.39% – 12.78%
- Rate reduction: 0.25% automatic payment discount
- Fees: None
- Cosigner release: Not available unless you refinance with the company
- In-school repayment: Principal & interest, interest-only, fixed $25, or deferred payment
- Grace period: 9 months
Citizens Bank
Rates (APR)
1.54% – 12.04%
Loan Amounts
$1,000 – $150,000
Repayment Terms
5, 10, or 15 years
Citizens Bank offers student loans to undergraduates, graduates, and parents. The bank offers multi-year approval which allows borrowers to secure money for school, from orientation to graduation, with one application. You can apply for a loan from your computer or phone.
- Variables rates: 1.54% – 9.65%
- Fixed rates: 4.72% – 12.04%
- Rate reduction: 0.25% automatic payment discount and 0.25% loyalty discount
- Fees: Late payment fee of 5% of the unpaid amount
- Cosigner release: After 36 on-time payments
- In-school repayment: Principal & interest, interest-only, or deferred payment
- Grace period: 6 months
Ascent
Rates (APR)
2.72% – 14.50%
Loan Amounts
$1,000 – $200,000
Repayment Terms
5, 10, or 15 years
The information above is for the Ascent Non-Cosigned Credit-Based and Future Income-Based Loans.
Ascent offers cosigned and non-cosigned student loans for undergraduates and graduates. For those unable to add a cosigner to their loan, Ascent can be a good option. Borrowers can check their prequalified rates without any effect on their credit score. Once you graduate, you can earn a 1% cash back reward.
- Variable rates: 2.72% – 13.92%
- Fixed rates: 3.98% – 14.92%
- Rate reduction: 0.25% automatic payment discount
- Fees: None
- Cosigner release: After 24 on-time payments
- In-school repayment: Interest-only, $25 flat, or deferred payment
- Grace period: 9 months
Recap of Tennessee Student Loans
| Lender/Loan | Loan Type | Rates (APR) |
| Subsidized Loan | Federal | 2.75% |
| Unsubsidized Loan | Federal | 2.75% or 4.30% |
| Parent PLUS | Federal | 5.30% |
| Grad PLUS | Federal | 5.30% |
| College Ave | Private | 1.24% – 12.99% |
| Earnest | Private | 1.24% – 12.78% |
| Citizens Bank | Private | 1.24% – 11.04% |
| Ascent | Private | 2.72% – 14.50% |
If you’d like to compare other options, you can check out our guides to the best private student loans and student loans without a cosigner.
The post Tennessee Student Loans appeared first on LendEDU.