Arizona Student Loans

From state scholarships to federal grants and loans, students in Arizona have various funding options for attending college. If those forms of aid don’t cover the full cost of attendance, private student loans can help close the gap.

Keep reading to better understand the differences between your loan options and find the best lenders for private student loans in Arizona.

Lender	Best for	LendEDU rating
Dept. of Education	Federal student loans	Not rated
College Ave	Private student loans	5/5
Sallie Mae	Cosigners	4.8/5
SoFi	Member benefits	4.7/5
Earnest	No fees	4.6/5
ELFI	Deferred payments	4.5/5

How to get student loans for college in Arizona

When you’re preparing to apply for financial aid in Arizona, the first step is to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA determines your Student Aid Index (SAI), which in turn helps schools determine your financial need. 

Tip

You can submit the FAFSA at any time between October 1 preceding and June 30 of the academic year you’re seeking funds for. (So for the 2024 – 2025 school year, the dates are October 1, 2023, through June 30, 2025.) Plan to complete the FAFSA the semester before you need financial aid for priority financial aid consideration in Arizona.

After processing your FAFSA, the schools you’re accepted to will send you a financial aid award letter. This letter tells you how much you can expect to receive in scholarships, grants, and federal loans.

You won’t see private loans listed on your award letter, but if you apply for and accept private loans, your lender will send your funds to your school on your behalf.

Federal student loans in Arizona

The federal government offers student loans in Arizona through the Department of Education. These loans come with benefits that may not be available with private lenders, such as:

• Fixed rates: Interest rates are fixed and the same for every borrower who takes out the same loan, disbursed within the same set period.
• Several repayment options: Borrowers facing hardship can enter into deferment or forbearance to pause payments. Income-driven repayment plans are also available to make repayment more affordable.
• Loan forgiveness: If you work for an eligible employer and participate in an income-driven repayment plan for long enough, you may be eligible for student loan forgiveness.

Types of federal loans

Here are three federal student loans available at colleges across the U.S., including those in Arizona:

• Direct Subsidized Loans: These loans are available to undergraduate students with financial need. The government pays the interest on the loan while you’re in school at least half-time, for the first six months after you leave school, and during a deferment period.
• Direct Unsubsidized Loans: These loans are available to undergraduate and graduate students regardless of financial need. Borrowers are responsible for paying the interest on this loan at all times.
• PLUS loans: The two types of PLUS loans are the Parent PLUS Loan and the Graduate PLUS Loan. The Parent PLUS Loan is for parents of dependent undergraduate students. The Grad PLUS Loan is for graduate or professional students.

Direct Loans don’t require a credit check, but PLUS Loan eligibility is based on creditworthiness.

Private student loans in Arizona 

If federal student loans don’t cover all your college expenses due to the borrowing limits, private lenders can help fill the gap.

Most private lenders rely on your credit to determine eligibility. If you don’t have an established credit history, a creditworthy cosigner can help improve your application. Here are the four top-rated private lenders offering student loans in Arizona.

College Ave

Sallie Mae 

SoFi

Best for member benefits

4.7 _/5

LendEDU Rating

View Rates

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Why it’s one of the best

SoFi is an excellent choice for Arizona students seeking student loans due to its competitive rates and straightforward loan terms. SoFi does not charge origination, application, or late fees, which can help borrowers save substantial money throughout the repayment period.

With a strong commitment to transparency and no hidden fees, SoFi provides a reliable and affordable option for Arizona students looking to finance their education.

Loan details

Rates (APR)	3.99% – 15.86%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 7, 10, or 15 years
Repayment plans	In-school (full, interest-only, or $25 flat) or deferred
Grace period	6 months
States	All 50 states and D.C.
Cosigner release	Yes, after 24 consecutive on-time payments

Earnest 

ELFI

Best for student loan advisors

4.5 _/5

LendEDU Rating

View Rates

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Why we picked it

ELFI (Education Loan Finance) is a top choice for Arizona students looking for student loans with personalized customer service and competitive rates. ELFI stands out for not charging any application or origination fees, which can help reduce the overall cost of borrowing.

ELFI provides flexible repayment terms and options, including fixed- and variable-rate loans, ensuring students can find a payment plan that fits their budget. With a strong emphasis on customer service, ELFI assigns a dedicated loan advisor to each borrower, guiding them through the entire loan process. 

This personalized approach, combined with low rates and no fees, makes ELFI an excellent option for Arizona students seeking financial assistance.

Loan details

Rates (APR)	5.28% – 8.99%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5 – 15 years
Repayment plans	5, 7, 10, or 15 years
Grace period	6 months
States	All 50 states and Puerto Rico
Cosigner release	None

To compare more options, check out our picks for the best private student loans or learn more about state student loans.

State resources for Arizona students

In addition to federal and private loans, you can explore state student loans and scholarships. Here are a few resources just for Arizona students:

• Arizona Promise Program: If you have at least a 2.5 GPA and qualify for a federal Pell Grant, you could get free in-state tuition and fees. You don’t need to complete a separate application—you’re automatically considered when you complete the FAFSA.
• Arizona Teachers Academy: Education and non-education majors can use this scholarship. In exchange, you agree to teach at a K-12 school for every year you earn the scholarship.
• AzLEAP: Pell Grant-eligible Arizona undergrads may also qualify for up to $2,500 through AzLEAP. Reach out to your financial aid office to find out whether your school participates and learn how to apply. 
• Veteran Spouses: This scholarship is awarded to spouses of honorably discharged veterans on a first-come, first-served basis. You must also be enrolled at Arizona State University, Northern Arizona University, or a participating community college.

Depending on the scholarship you qualify for, you may still be responsible for housing and meal costs. Still, these scholarships can reduce your debt in pursuit of higher education.

What to know about Arizona student loans and financial aid

Arizona students can use federal and private student loans to pay for school. Among state residents, 12.8% have student loan debt and collectively owe $31.7 billion. The average student debt in Arizona is $34,683. 

In 2023, Arizona lawmakers proposed House Bill 2132, which would have created the state’s student borrower bill of rights. One of the main aims of the bill is to establish an ombudsman responsible for:

• Receiving and reviewing complaints from student loan borrowers
• Resolving or attempting to resolve complaints in collaboration with student loan servicers and institutes of higher education
• Compiling and analyzing complaint data
• Helping student loan borrowers understand their rights and responsibilities
• Establishing educational programs to help borrowers understand loan options and how they work

The bill also requires student loan servicers to be properly licensed and refrain from engaging in unfair or deceptive practices intended to deceive or defraud borrowers. Loan servicers would also be required to ask borrowers who make extra payments how they want their loans applied. 

As of the time of publication, the bill was in committee. It’s unclear whether Arizona lawmakers will take additional steps to formalize it. 

State law doesn’t set a maximum interest rate on loans, excepting certain loans made by small companies or title lenders. If no interest rate is specified in writing in a loan agreement, including student loan agreements, the maximum annual rate a lender can charge is 10%. 

How does repayment work on Arizona student loans?

Borrowers who opt for federal student loans to pay for college in Arizona will repay them according to the terms of their repayment plan. Federal borrowers can choose from:

• Standard repayment
• Graduated repayment
• Extended repayment
• Income-driven repayment

Students who plan to seek Public Service Loan Forgiveness (PSLF) must enroll in an income-driven repayment plan. 

If you have federal student loans, you typically have a six-month grace period during which no payment is due. You could, however, choose to pay your loans while you’re still in school. Your promissory note should tell you when you’re expected to begin making payments and in what amount. 

Private student lenders may also offer a grace period; the lenders included in our best Arizona student loans list do. Making payments during the grace period, even if they’re interest only, can reduce the total amount you have to repay and lower your overall cost of borrowing. 

Here are examples of what your student loan repayment might look like with a federal and a private loan. We’ll assume a $30,000 loan balance, a 10-year repayment plan, and rates of 5.50% (federal) and 5.99% (private). 

	Federal loan	Private loan
Monthly payment	$325.58	$332.91
Interest paid	$9,069.46	$9,949.30

The difference in the monthly payment is just a few dollars, but a higher rate can have a larger impact on the total amount of interest you pay. It is important to shop for the right private loan for your needs with the lowest rates possible. 

How to choose the right student loan for college in Arizona

We recommend starting your search for student loans with federal loans and prioritizing Direct Subsidized and Direct Unsubsidized Loans. Federal student loans offer fixed interest rates and flexible repayment terms. You also benefit from built-in protections, such as grace periods, deferment options, and forbearance if you need to take a temporary payment break. 

If you need private student loans to make up the difference or can’t qualify for federal student loans for any reason, it’s important to compare your options. Here’s what to consider as you research private Arizona student loans.

• What is the minimum and maximum amount you can borrow?
• Are interest rates fixed or variable?
• Does the lender offer a low introductory rate?
• What is the range of rates available?
• What fees does the lender charge?
• Does the lender have a minimum credit score or income requirement?
• Will you qualify without a cosigner? 
• Do you have someone who can cosign if necessary?
• If you use a cosigner, does the lender offer cosigner release?
• What repayment terms does the lender offer?
• Does the loan have a grace period?
• Does the lender offer deferment or forbearance periods?
• Can you get a rate discount for automatic payments?
• What options do you have for getting in touch with customer support?
• What is the lender’s overall reputation like?

Rate quotes can give you a better idea of what you might pay for private student loans at different lenders. You may also find reading online reviews of the lenders you’re considering helpful to better understand what others like and dislike. 

How to apply for student loans in Arizona

Applying for student loans in Arizona is a straightforward process for most borrowers. You may want to start with federal loans first and move on to applying for private loans. 

1. Complete the FAFSA. You must complete the FAFSA to be considered for federal financial aid, including student loans. The annual FAFSA deadline for the upcoming academic year is June 30 of the following year. You have time to get your FAFSA in, but many schools recommend not waiting because some aid is first come, first served. 
2. Assess your private student loan needs. After submitting the FAFSA, your school will send you a financial aid award letter telling you how much you qualify for. You can use this letter as a guide to determine how much you might need to borrow through a private lender. 
3. Compare private lenders. If you have a number in mind to borrow, you can begin researching private student loans. Interest rates are a key consideration, but it’s important to look at all the details to find the right lender. 
4. Apply for a loan. Once you’ve chosen a lender, you can apply for a private student loan. You’ll need to give the lender information about yourself, your school, and how much you need to borrow. If you have one, your cosigner will share their personal information. 
5. Wait for approval. The lender will review your application and decide how much to approve you for and at what terms. If you’re satisfied with the terms, you can sign the loan agreement paperwork. 

Your lender will likely disburse your loan to your school on your behalf; it’s uncommon for private lenders to disburse funds to students. The school may first need to verify or certify the loan and your enrollment details before applying the funds to your tuition, fees, and other costs of attendance. 

FAQ

How much does college cost in Arizona?

The cost of college in Arizona varies depending on the type of institution and whether the student is an in-state or out-of-state resident. For the 2023 – 2024 academic year, the average tuition and fees are as follows:

• Public 4-year colleges: $11,708 for Arizona residents and $25,135 for out-of-state students. 
• Private 4-year colleges: Approximately $18,821 per year.
• Community colleges: $2,445 per year for in-state students and $8,201 for out-of-state students.

The average cost of living for public school students in Arizona is around $15,823 per year for those living on campus and $19,142 for those living off campus. This includes room, board, and other living expenses.

What is the average student loan debt in Arizona?

As of 2024, the average student loan debt for graduates in Arizona is around $34,683. This amount reflects the typical debt burden of students who have borrowed to finance their education in the state.

What credit score do you need for a student loan in Arizona?

Credit scores are generally not a factor in eligibility for federal student loans. However, most lenders require a good credit score for private student loans, often around 670 or higher. If your credit score is lower, you might need a cosigner with a strong credit history to qualify for a private loan.

Can Arizona student loan borrowers refinance their student loans?

Yes, Arizona student loan borrowers can refinance their student loans. Refinancing involves taking out a new loan to pay off one or more student loans, potentially at a lower interest rate or with better repayment terms. To qualify, borrowers generally need a good credit score, stable income, and a low debt-to-income ratio. A cosigner may be required for those who don’t meet these criteria.

Refinancing can lower your interest rate, reduce monthly payments, and simplify repayment by consolidating multiple loans. However, refinancing federal loans with a private lender will forfeit federal benefits such as income-driven repayment plans and loan forgiveness programs. Compare offers from various banks, credit unions, and online lenders to find the best refinancing options.

How we selected the best Arizona student loans

LendEDU evaluates student loan lenders to help readers find the best student loans. Accessibility is important to this evaluation, so our editorial ratings system primarily focuses on companies available in most U.S. states. That’s why the lenders we selected in the online section have editorial ratings. 

They underwent an extensive review process and were determined to offer superior products compared to other lenders. We’ve also independently verified that these companies are available in Arizona.

Recap of the best Arizona student loans

Lender	Best for	LendEDU rating
Dept. of Education	Federal student loans	Not rated
College Ave	Private student loans	5/5
Sallie Mae	Cosigners	4.8/5
SoFi	Member benefits	4.7/5
Earnest	No fees	4.6/5
ELFI	Deferred payments	4.5/5