New York Student Loans

Paying for college is a significant investment, often with parents and students sharing the expense. We recommend exploring grants and scholarships first, then turning to student loans to cover the difference.

To make funding your or your child’s education easier, we’ve researched top student loan lenders in New York. Keep reading for our lender recommendations and an overview of New York’s student loan forgiveness programs.

Lender	Best for	Our rating
Dept. of Education	Federal student loans	Not rated
College Ave	Private student loans	5/5
Sallie Mae	Cosigners	4.8/5
Earnest	No fees	4.7/5
Ascent	Deferred payment	4.4/5

Federal student loans in New York

Many students seek New York student loans to bridge the gap between available funds and total college costs. Unlike scholarships and grants, you must repay federal and private student loans. These loans have several notable differences.

First, federal loans come with benefits not available through private lenders. These benefits include:

• Low rates: Interest rates are fixed and are the same for every borrower whose loans are disbursed within a set period.
• Several repayment options: Borrowers can pause payments during financial hardship through deferment or forbearance. You can also take advantage of a number of income-driven repayment plans.
• Loan forgiveness: If you work for an eligible employer and participate in an income-driven repayment plan for long enough, you may qualify for student loan forgiveness.

Application processes differ between these loans, too. You’ll apply for private student loans with the lender. You must complete the Free Application for Federal Student Aid (FAFSA) to be considered for most federal student loans.

After you submit the FAFSA, you’ll get your Student Aid Index (SAI). Your SAI helps schools gauge your financial need and eligibility for scholarships, grants, and non-credit-based federal loans.

Types of federal loans

All federal student loan options are available nationwide, including in New York State:

• Direct Subsidized 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 periods of deferment.
• Direct Unsubsidized Loans are available to undergraduate and graduate students with or without financial need. Borrowers are responsible for paying the interest on this loan at all times.
• PLUS Loans include the Parent PLUS loan and the Grad PLUS loan. The Parent PLUS Loan is for parents of dependent undergraduate students. The Grad PLUS Loan is for graduate or professional students.

Direct Loan eligibility isn’t based on your credit score, but you’ll need to demonstrate creditworthiness to qualify for PLUS Loans.

Private student loans in New York

You should always consider federal student loans before applying for private loans, but you may hit your federal borrowing limit before you’ve covered your tuition costs in full. If that happens, private lenders can make up the difference.

Most private lenders rely on your credit to determine eligibility. If you don’t have an established credit history, you should consider adding a cosigner to your loan to help improve your application.

Here are four well-rated lenders offering private student loans in New York for students with cosigners and those who want to apply on their own.

Lender	Rates (APR)
College Ave	4.39% – 16.85%
Sallie Mae	4.50% – 15.70%
Earnest	4.39% – 16.85%
Ascent	4.29% – 16.09%

College Ave

Sallie Mae 

Earnest 

Ascent 

State-specific New York student loans

National lenders aren’t your only option when it comes to private student loans. You have plenty of local lenders to choose from. 

Based on our research, these are four of the best New York credit unions for private student loans.

Lender	Rates (APR)*
CFCU Community Credit Union	5.99% – 12.24%
Island Federal Credit Union	9.99% – 13.50%
Northern Credit Union	10.50% – 11.50%
Oswego County Federal Credit Union	11.50% – 12.00%

How to get student loans for college in New York

According to a College Board study, New York’s public four-year schools have some of the country’s lowest average college tuition rates. New York also boasts some of the most robust borrower safeguards and state loan forgiveness programs.

Under New York’s Student Borrower Bill of Rights, you have the following protections:

• Your financial aid award letter must include your estimated cost of attendance for future years of study, not just the current academic year.
• Your award letter must detail your college’s graduation rate, loan default rate, and average amount of debt per student.
• Your lender or loan servicer must apply irregular payments—any more or less than your typical payment—to benefit you financially.

That could mean using overpayments or additional payments to reduce late fees or applying those payments to your highest-interest loans. 

We recommend working with your lender to ensure it uses any extra money you pay toward your student loans to whittle down your principal. That way, you’ll minimize the amount of interest you accrue over time and pay off your loans faster.

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Where to find state student loans

Remember: Federal forgiveness programs can help you settle your loan balance. In addition to federal student loan forgiveness, you may be eligible for these New York loan forgiveness options:

• District Attorney and Indigent Legal Services Attorney Loan Forgiveness Program (DALF)
• NYS Licensed Social Work Loan Forgiveness (LSWLF) Program
• Young Farmers Loan Forgiveness Incentive Program
• Get on Your Feet Loan Forgiveness Program
• NYS Nursing Faculty Loan Forgiveness (NFLF) Incentive Program
• NYS Child Welfare Worker Loan Forgiveness Incentive Program
• NYS Teacher Loan Forgiveness Program

If you see a New York student loan forgiveness program that aligns with your career path, be sure to apply by the program deadline to increase your chances of securing loan forgiveness as part of your student loan repayment strategy.

Recap of New York student loans

Lender	LendEDU rating
Dept. of Education	Not rated
College Ave	5/5
Sallie Mae	4.8/5
Earnest	4.7/5
Ascent	4.4/5