Best Small Student Loans

Student loans are necessary for many college students, and the amount you need depends on your circumstances.

Small student loans can be helpful for your wallet and future because they mean you have less to pay back after graduation. Keep reading because we found the top lenders for small student loans.

Lender	Loan amounts	LendEDU rating
Dept. of Education	$200 – cost of attendance	Not rated
College Ave	$1,000 – 100% of costs	5/5
Sallie Mae	$1,000 – 100% of costs	4.8/5
Earnest	$1,000 – 100% of costs	4.7/5
ELFI	$1,000 – 100% of costs	4.5/5

What is the minimum student loan amount? 

The minimum student loan amount for federal loans is typically $200, while the minimum for private loans often falls at $1,000. 

Some private lenders have higher minimum amounts, but if you only need $1,000, you have plenty of lenders to choose from. Consider your federal loans, part-time income, and savings before deciding how much you need to borrow from a private lender. 

For example, imagine tuition and living expenses cost $20,000 per year. You have $10,000 in savings and $7,000 from federal student loans. You plan to work part-time and earn an additional $2,000 throughout the school year. You need $1,000 extra, so a small private student loan might be a solution. 

Item	Amount
Total tuition & Living Expenses	$20,000
Savings	$10,000
Federal Student Loans	$7,000
Part-Time Earnings	$2,000
Remaining amount needed	$1,000
Small private student loan amount	$1,000

Small federal student loans

If you choose to borrow federal student loans, you typically must take out at least $200 for your request to be processed. This minimum loan amount is set to justify the administrative cost of issuing the loan.

However, there’s an important nuance to be aware of: Schools can decide not to originate a Direct Subsidized Loan if you only qualify for $200 or less. Instead, the school may roll that amount into a Direct Unsubsidized Loan, which does not offer the same interest benefits as subsidized loans.

• With Direct Subsidized Loans, the government covers the interest while you’re in school at least half-time, during your grace period, and during any deferment periods. 
• With Direct Unsubsidized Loans, interest starts accruing when the loan is disbursed. If you don’t pay the interest while you’re in school, it will capitalize, meaning it’s added to your principal balance, and you’ll end up paying interest on top of interest.

Therefore, if you’re considering a small federal student loan, weighing the potential long-term costs is important, especially if your loan amount is so small that it might be rolled into an unsubsidized loan. Even a small difference in interest rates and how interest accrues can significantly impact over time.

Here is an example of how much more a small unsubsidized loan could cost compared to a subsidized one:

Feature	Direct Subsidized Loan	Direct Unsubsidized Loan
Loan amount	$1,000	$1,000
Interest rate	6.53%	6.53%
Interest accrual	None during school & grace	Starts immediately
Balance at repayment start	$1,000	$1,281.86
Additional cost	$0	$281.86

4 best small private student loans

Consider maxing out your federal student loans—especially Direct Subsidized Loans—before applying for loans from one of the private lenders listed below. Federal student loans offer superior features, including income-driven repayment plans, and eligibility for loan forgiveness programs.

The lenders below offer small private student loans as low as $1,000, but eligibility requirements and minimum loan amounts may differ. Make sure you meet these requirements before applying.

College Ave

Best Overall

5.0 _/5

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Why it’s one of the best

With a low minimum loan amount, College Ave is a solid pick for small student loans. But if you decide you need a higher amount, you can borrow up to 100% of the cost of attendance. 

The lender offers competitive interest rates and repayment terms—five, eight, 10, and 15 years. Repayment might seem like a long time away, but having options, especially a shorter term, like five years, is helpful. Borrowers can start making payments during school or defer the loan until after graduation. 

• Minimum loan amount of $1,000
• Flexible repayment options while in school, including deferment
• Use funds for any school-related expense

Loan details

Rates (APR)	3.89% – 17.99%
Loan amounts	$1,000 – cost of attendance
Repayment terms	5, 8, 10, or 15 years

Eligibility requirements

• Be at least 16 years old 
• Have a Social Security number 
• Be enrolled in an eligible school 
• Make satisfactory academic progress while at school 
• Meet credit and income requirements (on your own or with a cosigner)

Sallie Mae

Best for cosigners

4.8 _/5

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Why it’s one of the best

Sallie Mae is a reputable lender offering one of the lowest loan amounts of $1,000. If you need additional funds, you can borrow up to the total cost of attendance minus other financial aid. However, repayment terms are longer than other lenders, and the shortest option is 10 years. 

As an extra benefit, borrowers can secure a lower interest rate by selecting an in-school repayment plan and making small payments during school. You can also choose to defer payments until after graduation. 

• Minimum loan amount of $1,000
• Quick cosigner release after 12 consecutive on-time payments
• No origination fees or prepayment penalties

Loan details

Rates (APR)	3.99% – 15.70%
Loan amounts	$1,000– cost of attendance
Repayment terms	10 – 15 years

Eligibility requirements

• Attend school full-time, half-time, or less than half-time 
• Meet income and credit requirements (or apply with a cosigner)

Earnest

Best for no fees

4.7 _/5

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Why it’s one of the best

Like other lenders on this list, Earnest offers a minimum loan amount of $1,000 and a maximum of 100% of the cost of attendance. The lender also has similar repayment options while you’re in school—interest-only, flat payment of $25, or deferment. 

Earnest stands out from other lenders with an extended grace period after graduation. While most lenders—including the federal government—offer a six-month grace period, Earnest offers nine months. Borrowers can also skip one payment each year without penalty. Those small perks can make a big difference as a recent graduate. 

• Minimum loan amount of $1,000
• Skip one payment each year
• No cosigner release

Loan details

Rates (APR)	Starting at 3.99%
Loan amounts	$1,000 – cost of attendance
Repayment terms	5, 7, 10, 12, or 15 years

Eligibility requirements

• Live in a participating state (anywhere but Nevada) 
• Be the age of majority in your state
• Be enrolled at least half-time in a Title IV school
• Have a credit score of at least 650 and minimum annual income of $35,000 (or apply with a cosigner who meets these requirements)

ELFI

Best for personalized support

4.5 _/5

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Why it’s one of the best

ELFI is the best option for personalized support for small student loans. Its loans require borrowers to take out at least $1,000 to be approved. The lender is committed to personalized customer support and assigns each borrower a student loan advisor to assist with the application process and the disbursement of funds.

ELFI offers a variety of flexible repayment options tailored to different financial situations. These include three payment plans while in school or the option to defer payments until you leave school. ELFI performs a soft credit check for prequalification, which means students can see their personalized rates without affecting their credit scores.

• No application or origination fees
• Borrowers are assigned a loan advisor
• Check your rate without affecting your credit

Loan details

Rates (APR)	Starting at 4.5%
Loan amounts	$1,000 – cost of attendance
Repayment terms	5 – 15 years

Eligibility requirements

• Be a U.S. citizen or permanent resident alien 
• Be the age of majority in your state
• Have a minimum credit score of 680 and minimum annual income of $35,000 (or a cosigner who meets these requirements) 
• Be enrolled at least half-time in a bachelor’s, master’s, or doctoral degree program

How do I control how much I borrow in student loans?

When deciding how much to borrow in student loans, estimate your expenses for the whole school year. Schools publish an estimated cost of attendance on their websites and may break down the total costs into these categories: 

• Tuition and fees
• Housing and meals
• Books and supplies
• Other living expenses 

Although these estimates are a good guidepost, you should adjust them based on your specific circumstances. A commuter student, for instance, wouldn’t have to worry about paying for a dorm or off-campus housing. A student with multiple roommates could also pay less rent than one who opts for their own apartment.

You’re not allowed to borrow more than your school-certified cost of attendance, but it’s worth borrowing less if you can get by. One general guideline is to take out no more in student loans than you expect to earn your first year out of school. 

Using a student loan calculator to estimate your future monthly payments before you borrow is also helpful. By crunching the numbers, you can see your post-graduation costs and evaluate whether they seem affordable. 

Remember that you’re not obligated to borrow the full amount of student loans offered to you. You can accept a smaller amount to reduce your post-graduation debt burden. 

How to take out a small student loan

Before turning to student loans, apply for grants and scholarships to help you pay for college. Many colleges offer their scholarships to students, and you can apply with external organizations, too. 

Consider your income and savings, including any part-time jobs you plan to work during college. Savings and part-time income can help reduce the amount you must borrow in student loans. 

If you still need a small student loan to cover costs, here are the steps you can take: 

1. Complete the FAFSA

Complete the FAFSA to qualify for federal financial aid, including student loans, grants, and work-study. Students with financial need may be eligible for the Pell Grant, work-study, and Direct Subsidized Loans. Even if you don’t have financial need, submitting the FAFSA can open the door to Direct Unsubsidized Loans. 

2. Review your financial aid offer

After receiving your financial aid offer from your school, review it to determine which federal student loans you want to accept. If you’re eligible, Direct Subsidized Loans will be your most affordable option since they come with an interest subsidy. 

Direct Unsubsidized Loans also tend to be superior to private student loans since they have relatively low, fixed interest rates and are eligible for a variety of repayment plans and other protections.  

3. Compare Direct PLUS and private student loan options

If you still have a gap in funding, consider whether a federal Direct PLUS or private student loan would be a more affordable option. Direct PLUS loans are available to graduate students and parents of undergraduates and require a separate application process in addition to submitting the FAFSA. 

You must apply with an individual lender for a private student loan and may need a cosigner to qualify. Private student loans don’t have as many benefits as federal student loans, but they may offer better rates and no fees if you or your cosigner have strong financial credentials. 

If you’re relatively confident about your post-graduation employment prospects, a private student loan could be a more affordable option than a federal PLUS loan. 

How you can use small student loans

You can use small student loans to cover the costs of studying on-campus or abroad, purchasing a laptop or textbooks, and more. But here’s the deal—attending college can be expensive, so make sure you only use student loans for necessary expenses.

Remember, the more money you borrow, the more you’ll have to pay back—with interest—after graduation. Take this into account when calculating how much to borrow.

What happens if you borrow more than you need?

If you take out a larger federal student loan balance than necessary, you can return that money to the financial aid department or loan servicer within 120 days of disbursal. Contact the financial aid department at your school to determine your next steps.

If you borrow more private loans than you need, there might not be an easy way to return the money. Start by contacting the lender and asking whether you can refund the money.

If you can’t return it, immediately apply the money to your student loan balance. The sooner you apply the extra funds, the less interest will accrue. Go online and make a lump-sum payment. If you have multiple private student loans, use the extra money for the loan with the highest interest rate.

Another option is to keep the funds in a savings account for next semester’s expenses, which will allow you to take out fewer loans in the future.

FAQ 

Where can I get a $1,000 student loan?

You can get a $1,000 student loan from private lenders, including Sallie Mae, College Ave, and Earnest. Many lenders offer $1,000 as the minimum loan amount, so you have options. 

Consider whether you need a cosigner, and then apply with the lender that offers the best rates and repayment terms. 

Where can I get a $2,000 student loan?

You can get a $2,000 student loan from any private lender with a minimum loan that’s less than that amount, including Sallie Mae, College Ave, and Earnest. Some lenders, including Ascent, have a minimum loan amount of $2,001 and might still be worth considering if you need a $2,000 loan. 

How we chose the best small student loans

LendEDU evaluates student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best small student loans

Lender	Loan amounts	LendEDU rating
Dept. of Education	$200 – cost of attendance	Not rated
College Ave	$1,000 – 100% of costs	5/5
Sallie Mae	$1,000 – 100% of costs	4.8/5
Earnest	$1,000 – 100% of costs	4.7/5
ELFI	$1,000 – 100% of costs	4.5/5