Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Student Loans Best Private Student Loans for Small Amounts ($1,000+) Updated Jun 12, 2025 10-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Rebecca Safier Written by Rebecca Safier Expertise: Student loans, personal loans, home equity, credit, budgeting Rebecca Safier is a personal finance writer with nearly a decade of experience writing about student loans, personal loans, budgeting, and related topics. She is certified as a student loan counselor through the National Association of Certified Credit Counselors. Learn more about Rebecca Safier Reviewed by Erin Kinkade, CFP® Reviewed by Erin Kinkade, CFP® Expertise: Insurance planning, education planning, retirement planning, investment planning, military benefits, behavioral finance Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families. Learn more about Erin Kinkade, CFP® When it comes to student loans—or any loans, really—the best rule of thumb is to borrow only what you need. Most lenders have a minimum funding amount of $1,000, which could be enough for a part-time enrollment at your local community college, or to fill in gaps after other financial aid. Lender Funding Rating (0-5) 5.0 View Rates $1,000+ 5.0 View Rates 4.8 View Rates $1,000+ 4.8 View Rates 4.7 View Rates $1,000+ 4.7 View Rates 4.5 View Rates $1,000+ 4.5 View Rates Show more Table of Contents What is the minimum student loan amount? How do federal student loans compare for small amounts? 4 best small private student loans How do I control how much I borrow in student loans? How to take out a small student loan How you can use small student loans What happens if you borrow more than you need? FAQ How we chose the best small student loans Recap of the best small student loans 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. ItemAmountTotal tuition & Living Expenses$20,000Savings$10,000Federal Student Loans$7,000Part-Time Earnings$2,000Remaining amount needed$1,000Small private student loan amount$1,000 How do federal student loans compare for small amounts? 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: FeatureDirect Subsidized LoanDirect Unsubsidized LoanLoan amount$1,000$1,000Interest rate6.53%6.53%Interest accrualNone during school & graceStarts immediatelyBalance at repayment start$1,000$1,281.86Additional 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 View Rates 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 terms5, 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 View Rates 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 terms10 – 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 View Rates 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 attendanceRepayment terms5, 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 View Rates 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 terms5 – 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: Read More How to Apply for Student Loans How to 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. 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.