State Student Loans

State student loans are educational loans offered by not-for-profit organizations and state-based agencies.

Because they aren’t administered through the Department of Education, they’re considered private student loans and don’t qualify for federal benefits, but they can provide better terms and more relief options than other private lenders.

If you’ve already considered other aid forms, the lenders below can be a solid starting point in your search for affordable financing. 

State student loan lenders

You may be eligible for state student loans depending on where you live or attend school. While some lenders will lend nationally, others only work with residents of the state or students attending a school within the state.

Here’s a list of all state-based lenders that offer in-school loans and student loan refinancing options.

State	Loan	Rates (APR)	Important information
Alaska	Alaska Supplemental Education Loan	5.71% – 8.59%	Must be an Alaska resident or attend an eligible Alaska school; also offers parent and refinance loans
Arizona	Arizona Teacher Student Loan	N/A	Must be an Arizona resident who plans to teach at an Arizona public school; loan is forgivable, but must be repaid if you don’t meet the work obligation
Arkansas	ASLA Student Loan	2.95% – 6.42%	Must be an Arkansas resident or attend an eligible Arkansas school; also offers parent and refinance loans
Connecticut	MyCHESLA Student Loan	6.35%	Must be a Connecticut resident or attend an eligible Connecticut state or non-profit school; also offers refinance loans
Georgia	GSFA Student Access Loan	1%	Must attend an eligible University System of Georgia, Technical College System of Georgia or private postsecondary institution in Georgia
Indiana	INvestEd Student Loan	As low as 4.60% fixed As low as 7.64% variable	Must be an Indiana resident; also offers parent and refinance loans
Iowa	Partnership Advance Education Loan	3.95% – 8.01% fixed 6.40% – 10.94% variable	Available nationwide; also offers no-cosigner graduate, parent and and refinance loans
Kentucky	Advantage Education Loan	4.49% – 8.04%	Available nationwide; also offers parent and refinance loans
Maine	Maine Loan	5.99% – 7.99%	Must be a Maine resident or attend an eligible Maine school; parents can apply
Massachusetts	MEFA Student Loan	5.35% – 7.95%	Available nationwide; students at for-profit schools are not eligible; also offers refinance loans
	Massachusetts No Interest Loan	N/A	Must be a permanent legal resident of Massachusetts and demonstrate financial need
Minnesota	SELF Loan	6.35% fixed 7.90% variable	Must be a Minnesota resident or attend an eligible Minnesota school; Colorado and Maine residents are ineligible
Mississippi	ECSI Services Mississippi Forgivable Loan	Not disclosed	Must be in a high-demand degree program in the state of Mississippi, such as teaching, nursing and other health professions; loan is forgivable but must be repaid if you don’t meet the service obligation
New Hampshire	EDvestinU Student Loan	6.25% – 9.935% fixed 8.13% – 11.029% variable	Available in 19 states; international students are eligible; also offers refinance loans
	Granite Edvance Student Loan	5.00% – 9.197% fixed 7.38% – 10.39% variable	Must be a New Hampshire resident or a resident from one of 19 states attending a New Hampshire school; New Hampshire residents qualify for an interest rate discount
New Mexico	NMEAF New Student Loan	4.39% – 5.89%	Must attend a New Mexico school
New Jersey	NJCLASS Loan	5.69% – 7.49%	Must be a New Jersey resident or attend an approved New Jersey school; also offers refinance loans
North Carolina	NC Student Assist Loan	6.70%	Must be a North Carolina resident or attend an eligible North Carolina school; also offers parent loans
North Dakota	DEAL Student Loan	6.40% fixed 6.48% variable	Must be a resident of North Dakota, South Dakota, Minnesota, Montana, Wyoming or Wisconsin or attend an eligible school in one of those states
Pennsylvania	PA Forward Student Loan	4.84% – 10.18%	Must be a resident of Pennsylvania or a resident of Delaware, Maryland, New Jersey, New York, Ohio, Virginia or West Virginia attending a Pennsylvania school; also offers parent and refinance loans
Rhode Island	RISLA Student Loan	4.40% – 8.99%	Available nationwide; also offers parent and refinance loans; offers an income-based repayment plan
South Carolina	South Carolina Student Loan	7.5% – 10.5%	Must be a South Carolina resident or attend a South Carolina school; also offers parent and refinance loans
Texas	Brazos Higher Education Student Loan	2.71% – 7.38% fixed 5.33% – 9.9% variable	Must be a Texas resident or attend a Texas school; also offers parent and refinance loans
	College Access Loan	5.85%	Must be a Texas resident and attend an eligible Texas school
Vermont	VSAC Student Loan	4.46% – 8.16%	Must be a Vermont resident or attend a Vermont school; also offers parent loans
Washington	Aerospace Loan	Equal to the rate for federal undergraduate loans, up to 8.25% variable	Must be accepted into the Washington Aerospace Training and Research Center

Rates are accurate as of December 20, 2023

How do state student loans work?

State-based agencies and nonprofits offer private student loans to help make college more accessible. Students or parents might be able to use these loans to finance the cost of higher education or refinance their loans. 

While each lender has its eligibility criteria and terms, here are some guidelines to keep in mind:

• Student eligibility: In most cases, you either need to be a resident of the state where the lender is based or attend a school in the state—maintaining at least half-time enrollment is the standard. However, some lenders offer loans across multiple states. In some cases, you may need to exhibit financial need to qualify.
• Loan options: In most cases, loans are available to undergraduate and graduate students. However, some lenders also offer loans for parents and refinance loans for college graduates.
• Loan amounts: Each lender limits how much you can borrow yearly and overall. Depending on where you live or attend school, you may not get enough to cover all of your expenses.
• Credit score requirements: You may need to undergo a credit check when you apply and meet certain credit score criteria. If you can’t get approved on your own, though, you can typically add a cosigner.
• Interest rates: In many cases, state-based lenders can lower interest rates than other private lenders, but you may not get better terms compared to federal loans. 
• Repayment terms: Depending on the lender, you may be able to choose to start repaying your loans immediately, make interest-only payments while you’re in school, or defer payments until you graduate. Repayment terms and options can vary by lender.

Some state student loan programs require credit checks, while federal programs do not. This allows the states to make better actuarial forecasts based on loan repayment ability, thereby affording higher credit-quality students better rates.

Catherine Valega

CFP®

Student loans by state

State student loans are available in 23 states. Here’s a quick recap of which states offer educational loan programs and where you can go to get more information.

State	Available nationwide?	State resource
Alaska	❌	Alaska Commission on Postsecondary Education
Arizona	❌	Arizona Board of Regents
Arkansas	❌	Arkansas Student Loan Authority
Connecticut	❌	Connecticut Higher Education Supplemental Loan Authority
Georgia	❌	Georgia Student Finance Commission
Indiana	❌	INvestEd
Iowa	✅	Iowa Student Loan Education Lending
Kentucky	✅	Advantage Education Loan
Maine	❌	Finance Authority of Maine
Massachusetts	✅	Massachusetts Educational Financing Authority; State of Massachusetts
Minnesota	❌	Minnesota Office of Higher Education
Mississippi	❌	Mississippi Office of Student Financial Aid
New Hampshire	❌	EDvestinU; Granite Edvance
New Jersey	❌	New Jersey Higher Education Student Assistance Authority
New Mexico	❌	New Mexico Educational Assistance Foundation
North Carolina	❌	College Foundation of North Carolina
North Dakota	❌	Bank of North Dakota
Pennsylvania	❌	Pennsylvania Higher Education Assistance Agency
Rhode Island	✅	Rhode Island Student Loan Authority
South Carolina	❌	South Carolina Student Loan Corporation
Texas	❌	Brazos Higher Education; Texas Higher Education Coordinating Board
Vermont	❌	Vermont Student Assistance Corporation
Washington	❌	Washington Student Achievement Council

If your state isn’t listed above, other local loan programs may be available. Here are some of the options we’ve researched for California and New York.

Ask the expert

Catherine Valega

CFP®

Before choosing loan programs, students should run the numbers on what their education will cost them and what the loan repayments will mean to their post-student lives. Don’t forget the rule of thumb—only borrow what your first-year income would be (meaning, if you’re a social worker who may make $40,000/year after college, you should have a maximum of $40,000 in student loans. Engineers who may make $80,000 will have more room for debt payments and can take out more in school loans). I would first look at federal loan options, which offer repayment plans. But if that does not fully cover your expenses, then look at state and other private loan options.

Are state student loans the right choice for you?

Here are some questions you can ask yourself to determine if state student loans are right for you.

Have you applied for free financial aid?

Scholarships and grants are generally the best form of financial aid because you don’t have to repay them. Check with your school’s financial aid office to see whether you qualify for school-based scholarships.

You can also use scholarship databases like Scholarships.com and Fastweb to search for private scholarships and grants.

Have you completed the Free Application for Federal Student Aid (FAFSA)?

The FAFSA is your gateway to federal financial aid and may also be required for state student loans. 

Submitting the FAFSA may give you access to federal student aid, including Pell Grants, work-study programs, and different types of federal student loans. You may even qualify for subsidized federal loans, where the government covers your interest charges while you’re in school and during future deferment periods.

Can you meet the eligibility requirements? 

As with other private student loans, state student loans typically have credit and other requirements. If you don’t have good credit, you may need a cosigner. 

Also, remember that many state student loans require you to be a resident of or attend an eligible school in the state that administers the program. Review all the eligibility criteria to gauge your approval odds.

Consider other private loan options

While you’ll likely get better terms from a state-based student lender, it’s still a good idea to shop around and compare other private loan options to ensure you’re getting the best deal possible. 

Check out our picks of the best private student loans and consider getting prequalified to compare interest rates, repayment terms, and other features.