Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Student Loans How to Get Interest-Free Student Loans Updated May 01, 2024 9-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Melody Stampley Written by Melody Stampley Expertise: Writing, editing, budgeting, credit, loans, mortgages, auto insurance, giving, saving Learn more about Melody Stampley Reviewed by Gail Urban, CFP® Reviewed by Gail Urban, CFP® Expertise: Investment management, financial planning, financial analysis, estate planning, life insurance, student loan management, debt management, retirement planning, saving for college Gail Urban, CFP®, AAMS®, has been a licensed financial advisor since 2009, specializing in helping individuals. Before personal financial advising, she worked as a business financial manager in several industries for about 25 years. Learn more about Gail Urban, CFP® Looking for ways to pursue higher education without the added financial stress in your life? There are certain types of student loans that may be able to help you, if you’re eligible. You’ve decided to jump at the opportunity to continue your education and earn a post-secondary degree. But with current student loan interest rates, how much will higher education cost you? In this article, you’ll learn which student loans may help you pursue your goals without inheriting a long-term headache. Table of Contents Skip to Section Can you get interest-free student loans?Where to find no-interest student loansOther interest-free financing to explore Can you get interest-free student loans? Traditionally, your hefty monthly payment is mostly eaten up by interest. Even federal student loans, with lower interest rates than private loans, are costly. Consider this example showing how much you could save by not paying interest on a student loan. Federal student loanInterest-free loanAmount borrowed$20,000$20,000Interest rate5.05%0%Monthly payment (over 10 years)$213$167Total repayment$25,514$25,000 While not widely available, small and large interest-free student loans exist. Regional governments, financial aid offices, and private and philanthropic organizations offer interest-free student loans to make higher education more accessible and affordable. Benefits they receive include enhanced public image and reputation, attracting and retaining talent, and creating more diversity. Do federal student loans without interest exist? In short, there are no interest-free federal student loans. Subsidized federal student loans prevent interest from accruing during certain periods. Once this period ends, interest resumes. Where to find no-interest student loans Check out some interest-free student loans below. With these, you only pay back what you originally borrowed. Interest-free loanApplications acceptedAbe and Annie Seibel FoundationJan. 1 – Feb. 28Bill Raskob FoundationJan. 1 – May 15Central ScholarshipVariesEvalee C. Schwarz Charitable Trust for EducationJan. 1 – Apr. 10Leo S. Rowe Pan American FundYear roundMilitary Officers Association of America (MOAA) Scholarship FundNov. 1 – Mar. 1Massachusetts No-Interest Loan ProgramVariesThe Scholarship Foundation of St. LouisJan. 1 – Apr. 15International Association of Jewish Free LoansVaries Abe and Annie Seibel Foundation Who’s eligible Texas high school graduates who are U.S. citizens or permanent residents enrolled full-time at accredited Texas institutions. How it works To apply, call 409-770-5665 and ask to get on the mailing list. Visit the website for more information. What else to know Funds are limited, so applying as early as possible is recommended. Key informationAmount$4,000ProgramTexas college/university accredited by Southern Association of Colleges and SchoolsAdditional requirementsHigh school: top 10% of graduating class or minimum 1100 SAT or 23 ACTCollege: Maintain 3.0 GPA & full-time enrollmentApplication deadlineFebruary 28RenewableUp to 4 yearsRepayment termsMinimum $35/month while enrolledMinimum $50/month beginning after graduationFull repayment within 6 years Bill Raskob Foundation Who’s eligible U.S. citizens enrolled at accredited U.S. institutions for the upcoming school year. How it works The application package for the Bill Raskob Foundation (BRF) loan includes academic and financial information. BRF provides a checklist of additional information needed. By August, applicants are informed whether they will receive the loan. What else to know Applications from U.S. students graduating from a foreign school, for undergraduate first-year study, medical school, or correspondence courses are not accepted. Key informationAmount$9,000ProgramOne-degree, U.S. programs (combined-degree students, call 410-923-9123 before applying)Application deadlineMay 15Repayment termsDetermined by BRF6-month grace period; 12 months for medical/dental/veterinary students Central Scholarship Who’s eligible U.S. citizens or permanent residents living in Maryland with a 2.8 GPA or greater. You must also enroll in an accredited college or university in the upcoming school year. How it works There’s no application for this loan. Instead, you must apply for one of the scholarships on the organization’s website. The loan is awarded based on the information in your scholarship application and unmet needs determined by your Financial Aid Award Letter. What else to know Key informationAmountDetermined by Central ScholarshipAdditional requirementsCosigner requiredApplication deadlineVariesRepayment terms10 years; deferred 1 year after graduation/program withdrawal Evalee C. Schwarz Charitable Trust for Education Who’s eligible High school seniors, undergraduate, and graduate students with exceptional academics and significant financial need are U.S. citizens and attending an institution in their state. How it works Fill out the application, which includes completing the FAFSA and a signed application checklist. The committee meets in June to review applications and notifies applicants of their decision via email. What else to know Law school students are not eligible to apply. Contact the Charitable Trust for Education at [email protected] for loan repayment terms. Key informationAmount$5,000 – $15,000 per year; $60,000 maximum totalAdditional requirementsDemonstrated outstanding academic achievement (high standardized test scores & class ranking)Application deadlineApril 10Repayment termsDetermined by committee Leo S. Rowe Pan American Fund Who’s eligible Through the Organization of American States (OAS), this fund was designed for Latin American and Caribbean students with student academic or exchange visitor visas who are in their last two years of undergraduate or graduate studies at a U.S. university. Students must attend full-time, have a 3.0 GPA, and have other sources of funding, such as employment or savings. Applicants also need a non-spousal guarantor who is a U.S. citizen/permanent resident or a person/entity accepted by the committee. How it works The online application includes submitting proof of other sources of funds and recent transcripts. Applications are reviewed by the committee upon submission. Within five weeks, the secretariat will notify applicants of the decision. What else to know Loans are offered only to Latin American and Caribbean OAS-member countries. Key informationAmountUp to $15,000Additional requirementsReturn to native country within time limit allowed by U.S. for optional practical training, if granted, and within 1 year of program completionApplication deadline5th day each monthRenewableYesRepayment termsDetermined by OAS Military Officers Association of America (MOAA) Scholarship Fund Who’s eligible First-time undergraduate degree students with an MOAA-eligible parent or who serves/served in the military. Parents must maintain paid membership through program duration (unless active/retired military) You must have at least a 3.0 GPA and be under 24 (if you served in the military, you’re allowed up to five years for each year served). How it works The online application takes 15 to 20 minutes once you create your account. It includes your academic and extracurricular information, and your parent’s military background. Loan decisions are based on academics, extracurricular activities, and financial need. If approved, you will receive half the funds in August and half in December of each year. What else to know Contact the MOAA Scholarship Fund team at [email protected] for repayment term details. Key informationAmountDetermined by MOAAApplication deadlineMarch 1Additional requirementsMaintain 2.0 GPA & good academic standing to remain eligible for loan renewalRenewableUp to 5 years of full-time undergraduate study; required annually by March 1Repayment termsDetermined by MOAA Massachusetts No-Interest Loan Program Who’s eligible The Massachusetts No Interest Loan (NIL) program is offered to state residents who seek their first undergraduate degree, enroll full-time, and demonstrate financial need. Your institution signs a participation agreement with the Department of Higher Education Office of Student Financial Assistance to enact this loan. You must be a Massachusetts resident for more than a year as of the start of enrollment and maintain satisfactory academic progress. How it works Complete the FAFSA and then contact your financial aid office for additional requirements and deadlines. If approved, you must sign a promissory note agreeing to the loan terms and conditions before funds can be disbursed. What else to know Contact the Department of Higher Education’s (DHE) Office of Student Financial Assistance at 617-391-6070 for more information about the application process. Key informationAmountUp to $4,000 per year; $20,000 maximumProgramMassachusetts certificate, associate, or bachelor’s programAdditional requirementsNo federal/state student loan defaults; cannot owe refund for previous financial aid receivedApplication deadlineVariesRenewableYesRepayment termsUp to 10 years The Scholarship Foundation of St. Louis Who’s eligible High school graduates with at least a 2.0 GPA or GED living in the St. Louis metro region seeking their first post-secondary degree. How it works You must visit the MyScholarshipCentral online application system, sign up for an account, and create a general application. After the general application is completed, additional questions and documentation will be required. Loans are determined based on your academic potential, character, and financial need. If approved, your loan will be disbursed to you in the summer. What else to know Some funds are available for graduate degrees if the foundation for an undergraduate degree funded you. Key informationAmountUp to $11,000ProgramAccredited, nonprofit institution; technical, associate’s, bachelor’s degrees; any field of study, except ministryAdditional requirements≥ 2 years permanent residency in eligible program service area or graduate from eligible high schoolApplication deadlineApril 15RenewableYesRepayment termsBegins 1 year after graduation; immediate repayment if enrolled in ≤ 6 credit hours or failure to complete program International Association of Jewish Free Loans Who’s eligible The International Association of Jewish Free Loans (IAJFL) offers various types of interest-free loans funded by agencies across many states and regions, such as the Hebrew Free Loan Association of Boston, Miami, Greater Washington, etc. Generally speaking, you must be Jewish, work for a Jewish organization, or marry someone Jewish and have a guarantor. How it works Find your local agency at the IAJFL website to find an interest-free student loan. Other interest-free financing to explore Although we’ve detailed some well-known interest-free student loans, this list is not all-inclusive. You may discover others through: High school counselorsCollege financial aid officesLocal chambers of commerceRotary clubsLocal nonprofitsState education departmentsFraternities/sororitiesReligious organizations If you’re employed, check with the human resources department. Some employers offer tuition assistance or reimbursement programs to help employees pursue further education. Interest-free student loans are few and far between but worth the search. Carefully read through the loan terms for any loan before you accept funds.