7 Student Loans That Require No Payments While in School

If you want to focus on school without juggling loan payments, student loans with in-school deferment can help.

These loans let you defer payments until after graduation—but most will still accrue interest while you’re enrolled, adding to your total cost.

If you qualify, subsidized federal loans should be your first choice, since they don’t accrue interest during school. But if you need additional funding, private lenders like College Ave stand out for offering flexible in-school deferment options with no minimum enrollment requirement and multiple repayment choices.

In this guide, we’ll walk through federal and private options, the pros and cons of deferment, and what to know before you borrow.

Loan/lender	In-school payment options	No interest until after graduation
Federal Subsidized Loans	Deferred or full	✅
Federal Unsubsidized Loans	Deferred interest-only, full or partial	✖️
College Ave	Full, interest-only, $25 flat, or deferred	✖️
Sallie Mae	Interest-only, $25 flat, or deferred	✖️
Earnest	Full, interest-only, $25 flat, or deferred	✖️
SoFi®	Full, interest-only, $25 flat, or deferred	✖️
ELFI	Full, interest-only, $25 flat, or deferred	✖️

Table of Contents

1. Can you get a student loan with no payment until after graduation?
2. Federal student loans that don’t require payments while in school
   1. Subsidized federal student loans
   2. Unsubsidized federal student loans
3. Deferred private student loans
   1. College Ave
   2. Sallie Mae
   3. Earnest
   4. SoFi
4. Repayment on private student loans with deferred payments
5. Pros and cons of in-school deferment
6. How to choose the right student loan with no in-school payments
7. FAQ

Can you get a student loan with no payment until after graduation?

Yes, many student loans—both federal and private—offer in-school deferment, which means you don’t have to make monthly payments while enrolled in school. This can help you focus on your studies without the added financial stress of loan repayment.

What is in-school deferment?

In-school deferment is a feature that allows student borrowers to postpone loan payments while they’re enrolled in a qualified degree program. During deferment, you’re not obligated to make payments on your student loan. However, whether interest accrues during this period depends on the type of loan.

• With subsidized federal loans, the government covers the interest while you’re in school, making these student loans that don’t accrue interest while in school.
• With unsubsidized federal loans and most private loans, interest does accrue, and it may be added to your loan balance if unpaid.

This ability to delay payments is why many borrowers look specifically for student loans with no payments until after graduation, especially if they expect to have limited income while in school.

Who qualifies for in-school deferment?

Your eligibility for in-school deferment typically depends on:

• Enrollment status: You must usually be enrolled at least half-time, which generally means taking six or more credit hours per term.
• Loan type: Most federal student loans are eligible for in-school deferment if you meet enrollment requirements. Many private lenders also offer this option, but the availability and terms can vary.
• Lender policies: For private loans, the deferment feature must be selected during the application process and may come with additional requirements, like attending an eligible school or having a cosigner.

If you want to avoid making payments while you’re still in school, it’s important to confirm that your loan offers deferment and to understand whether interest will accrue. In the following sections, we’ll explore how this works for both federal and private student loans.

Make sure you understand the impact of not making any payments during school: It will most likely increase your future monthly payments and what you repay, but that may be the best option.

Federal student loans that don’t require payments while in school

If you’re enrolled at least half-time in a degree-granting program, federal student loans do not require students to pay them back until after graduation. These loans are designed to give you breathing room while you focus on your education, but how interest is handled during that time depends on whether your loan is subsidized or unsubsidized.

Subsidized federal student loans

Subsidized loans are available only to undergraduate students who demonstrate financial need, as determined by the FAFSA.

You’re not required to make any payments while enrolled at least half-time, and these are student loans that don’t accrue interest while in school.

In fact, the government pays the interest on your behalf not just during school, but also during your six-month grace period after graduation and any periods of approved deferment. Because they’re essentially student loans with no interest while in school, subsidized loans are the most affordable federal borrowing option for eligible students.

Unsubsidized federal student loans

Unsubsidized loans are available to both undergraduate and graduate students, and you don’t need to demonstrate financial need to qualify.

While payments are not required while you’re enrolled at least half-time, interest does accrue during school. If you don’t pay the interest as it accrues, it will be added to your principal balance through a process called capitalization, increasing the total cost of the loan over time. Still, unsubsidized loans they still give you the flexibility to delay full repayment until after graduation.

Deferred private student loans

If you’ve already used up your federal aid or need extra funds to cover school costs, private student loans can help—and many let you postpone payments while you’re in school. That means you won’t have to worry about monthly bills until after you graduate.

Unlike federal loans, private loans don’t come with perks like income-driven repayment or forgiveness programs. But they often give you more flexibility in other ways, like choosing between fixed or variable interest rates and picking a repayment term that fits your budget.

One important thing to know: With most private student loans, interest starts building up right away—even if you’re not making payments yet. If you don’t pay that interest as it accrues, it gets added to your loan balance, which means you’ll owe more when repayment begins.

Still, if you need to borrow beyond what federal loans offer, private loans with in-school deferment can be a solid option. Below are five lenders that let you hold off on payments while you focus on your education.

College Ave

Sallie Mae

SoFi

ELFI

Repayment on private student loans with deferred payments

Deferring payments while you’re in school can provide welcome financial relief—but it’s important to understand what that means for your future loan balance. Most private student loans continue to accrue interest during school, even if you’re not making payments.

As interest builds, it doesn’t just sit there—it capitalizes when repayment begins. That means the unpaid interest is added to your principal balance, and going forward, you’ll pay interest on that higher amount. Over time, this can significantly increase the total cost of your loan.

A common mistake student borrowers make when deferring payments while in school is not understanding the impact of interest accruing. Take the time to evaluate your current financial condition and options to fund education—and research each option—to understand how the student loan works. Don’t forget to speak with a trusted and knowledgeable advisor.

To see how this plays out, here’s a simple example of interest accrual on a $10,000 private student loan with a 6% fixed APR, assuming no payments are made while in school:

Year in school	Interest accrued	Total loan balance
1	$600	$10,600
2	$636	$11,236
3	$674	$11,910
4	$715	$12,625

By the time you graduate, your original $10,000 loan has grown by over $2,600 in interest alone. That higher balance will then start accruing interest again once repayment begins—making the long-term cost of the loan even greater.

If you can afford it, consider making small payments—like $25 per month or just covering the interest—while you’re in school. It might not seem like much now, but it can prevent thousands of dollars from being added to your balance later.

Pros and cons of in-school deferment

In-school deferment is necessary for many students, but before you defer your loans, consider the following pros and cons.

Pros

• No financial stress while studying

  By deferring payments, you can focus on your education without the burden of immediate repayment

• Focus on academics rather than part-time jobs

  With no payments due, you may be able to dedicate more time to your studies instead of working part-time to make loan payments.

• Potential no-interest options

  The U.S. government pays the accrued interest on Subsidized federal student loans during in-school deferment.

Cons

• Accruing interest during school (if applicable)

  Unsubsidized federal and most private student loans may accumulate interest while you’re in school, leading to a larger balance.

• Potential for larger debt at graduation

  The deferred payments and accrued interest might lead to a larger debt once you graduate, affecting your financial future. (See example below.)

• Different terms and conditions based on the type of loan

  The details of deferment can vary, so it’s essential to understand the specific terms of your loan to avoid unexpected issues.

How to choose the right student loan with no in-school payments

Choosing the right student loan can be a critical decision that affects your financial future. It involves comparing options, including federal and private loans. Here’s what to consider:

• Interest rates: Lower rates can save you money over the life of the loan. Federal loans offer fixed interest, and private loans may offer fixed and variable rates.
• Loan terms: Understanding the repayment timeline and options for deferment can help align the loan with your financial plans.
• In-school payment options: If you’re looking to defer payments while in school, ensure this option is available, and understand how interest might accrue.
• Lender reputation: Especially for private loans, research the lender’s reputation, customer service, and reviews to ensure a positive experience.
• Eligibility and application process: Consider the requirements and ease of application to make an informed choice.

Prioritize federal student loans. Consider private student loans if you max out federal loans and still need funds for your education.

Selecting a student loan requires careful consideration of your federal and private options’ terms, interest rates, and unique features. Investing time in research and understanding your needs will lead to a decision that supports your educational and financial goals.

FAQ

What are the eligibility criteria for federal student loans with no payments while in school?

You must meet certain qualifications for federal student loans with no in-school payments, including:

• Be enrolled at least half-time in an eligible degree or certificate program.
• Demonstrate financial need (for Subsidized loans).
• Maintain satisfactory academic progress.
• Have a valid Social Security number (exceptions apply for some students).
• Be a U.S. citizen or eligible non-citizen.

If you’re seeking student loans for less than half-time enrollment, consider Sallie Mae private student loans.

Can I make voluntary payments on these loans while still in school?

Yes, you can make voluntary payments on federal and private student loans even if they aren’t required while in school. This can reduce your overall interest and decrease the total loan cost. Most lenders and loan servicers don’t assess a penalty for early payments.

What happens if my financial situation changes while I’m in school?

Changes in financial situations can affect your eligibility for Subsidized Loans. Notify your school’s financial aid office to reevaluate your financial need. Changes may result in adjustments to your loan amount or type.

If you have private student loans, we recommend contacting your lender as soon as you experience any changes in your financial situation. Many lenders will work with you to ensure your account stays current.

Can I switch payment plans while I’m still in school?

Most federal student loans allow you to change repayment plans. Contact your loan servicer for assistance and to understand available options. Private lenders may also have flexibility, but terms can vary.

How we picked the best student loans that don’t require in-school repayment

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.

Loan/lender	In-school payment options	No interest until after graduation
Federal Subsidized Loans	Deferred or full	✅
Federal Unsubsidized Loans	Deferred interest-only, full or partial	✖️
College Ave	Full, interest-only, $25 flat, or deferred	✖️
Sallie Mae	Interest-only, $25 flat, or deferred	✖️
Earnest	Full, interest-only, $25 flat, or deferred	✖️
SoFi®	Full, interest-only, $25 flat, or deferred	✖️
ELFI	Full, interest-only, $25 flat, or deferred	✖️