Student Loans That Don't Require In-School Payment

Student loans that require no payments while in school can allow you to focus on your studies without worrying about monthly loan payments.

We’ll explore federal and private options for loans with in-school deferment, their pros and cons, and how to apply for these loans.

Lender	Best for	LendEDU rating
Dept. of Education	Federal student loans	Not rated
College Ave	Best overall	5/5
Sallie Mae	Cosigners	4.8/5
Earnest	No fees	4.7/5
SoFi^®	Member benefits	4.7/5
ELFI	Personalized support	4.5/5

Are you eligible to defer payments while in school?

Whether you’re eligible for deferment—meaning you don’t make payments while in school—might depend on your enrollment status. Here are the most common options:

Full-time enrollment: Often requires 12 or more credit hours per semester. Usually eligible for in-school deferment.
Half-time enrollment: Generally involves six to 11 credit hours. Eligible for in-school deferment with many loan programs.
Part-time enrollment: Fewer than six credit hours. Eligibility for deferment varies by lender.

Enrollment status can affect whether you must make payments during your school years. Student loans with no in-school payments can offer relief for those who need financial aid, allowing them to pursue their education without the immediate financial burden.

Ensure 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.

Erin Kinkade

CFP®

Types of student loans with no payments while in school

The two main categories of student loans are federal and private. In many cases, both allow you to forgo monthly payments while you’re in school.

Federal student loans

The two most common types of federal student loans are subsidized and unsubsidized. Both allow deferred in-school payments for students enrolled at least half-time.

Here are the similarities and differences at a glance:

	Subsidized loans	Unsubsidized loans
Undergrads eligible?	☑️	☑️
Are graduate students eligible for the loan?	✖️	☑️
Req’s financial need?	☑️	✖️
Min. enrollment requirements	Half-time	Half-time
Undergrad annual limits(based on year in school)	$3,500 – $5,500	$9,500 – $12,500
Grad annual limits	N/A	$20,500
Origination fee required?	☑️	☑️
Government pays interest while in school?	☑️*	✖️

*If enrolled at least half-time

Private student loans

Private lenders also offer student loans with no payments while in school, often with options for different needs. Compared to federal student loans, many private loans offer different interest rates (including variable rates) and repayment options.

Federal loans include certain protections private loans don’t, including income-driven repayment plans and loan forgiveness programs. It’s crucial to understand these differences and review the terms and conditions of each loan to make the best decision for your educational needs.

We always recommend exhausting available federal student loans before you apply for private loans. Here’s an overview of five private lenders allowing students to defer payments while enrolled.

College Ave

Best overall

5.0 _/5

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Why it’s one of the best

College Ave is an excellent option if you need to take out private student loans but want to delay payment until after graduation. They offer complete deferment of your loans while you’re attending school and have no minimum enrollment requirements. Another feature that sets College Ave apart is its easy application process; it takes three minutes to complete and receive a credit decision. The company also offers a Multi-Year Peace of Mind feature that allows students who’ve already borrowed from College Ave to secure additional loans without reapplying.

Loan details

Rates (APR)	4.29% – 16.85%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 8, 10, or 15 years
In-school repayment plans	Full, interest-only, $25 flat, or deferred
Enrollment requirements	No minimum enrollment requirements
States available	All 50 states, D.C., and Puerto Rico

Sallie Mae

Best for cosigners

4.8 _/5

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Why it’s one of the best

Sallie Mae offers private student loans that cover up to 100% of the cost of attendance with no minimum enrollment requirement. Payment on your loans can be deferred the entire time you’re in school so you can focus on your education. If you’d like to begin repayment earlier, Sallie Mae offers $25 per month flat payments or interest-only payments.

Sallie Mae‘s cosigner release requirements are more flexible than those of other lenders; borrowers can apply after making 12 on-time principal and interest payments. The company also offers various types of repayment assistance, including graduated repayment, loan forbearance, and temporary rate reduction.

Loan details

Rates (APR)	4.50% – 15.70%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	10 – 15 years
In-school repayment plans	Interest-only, $25 flat, or deferred
Enrollment requirements	No minimum enrollment requirements
States available	All 50 states and D.C.

Earnest

Best for large loans

4.7 _/5

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Why it’s one of the best

Earnest offers some of the most flexible repayment terms available on the market. While you’re in school, you can defer payment altogether; you can also choose to pay $25 per month, interest-only, or full payments. Borrowers can choose from various repayment terms, taking either five, seven, 10, 12, or 15 years to repay their loan.
Like many lenders, Earnest offers a grace period after graduation where no payment is expected. While most grace periods last just six months, Earnest gives borrowers a full nine months before payment begins. Earnest also allows borrowers to skip one payment per year without penalty.

Loan details

Rates (APR)	4.29% – 16.85%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 7, 10, 12, or 15 years
In-school repayment plans	Full, interest-only, $25 flat, or deferred
Enrollment requirements	At least half-time
States available	All but Nevada

SoFi

Best member benefits

4.7 _/5

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Why it’s one of the best

SoFi private student loans allow you to borrow up to 100% of the certified cost of attendance at competitive interest rates. Full loan deferment is available while you’re in school, which means you don’t need to make any payments. However, interest does accumulate on the loan even though it’s been deferred.

If you pay on your loan while taking classes, you can choose from full, interest-only, or a flat payment of $25 per month. Once you’ve finished school, you can take five, seven, 10, or 15 years to repay your loan. Discounts are available for automated payments and returning borrowers.

Loan details

Fixed APR	4.19% – 15.86% w/ autopay
Variable APR	5.74% – 15.86% w/ autopay
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 7, 10, or 15 years
In-school repayment plans	Full, interest-only, $25 flat, or deferred
Enrollment requirements	At least half-time
States available	All 50 states and D.C.

ELFI

Best student advisors

4.5 _/5

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Why it’s one of the best

With ELFI student loans, you can defer payment until six months after graduation. While interest does accumulate during this time, delaying payment can help you focus on your education with less strain on your finances. Loan limits are generous, covering 100% of certified attendance costs.

When applying for a private student loan through ELFI, you can check loan rates and terms with a soft credit check that doesn’t impact your credit score. All applicants are assigned a dedicated advisor to help them navigate the student loan process. Repayment terms vary from five to 15 years with no penalties for early repayment.

Loan details

Rates (APR)	3.98% – 14.22%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5 – 15 years
In-school repayment plans	Full, interest-only, $25 flat, or deferred
Enrollment requirements	At least half-time
States available	All 50 states, D.C., and Puerto Rico

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.

Our expert recommends: Avoid this mistake

Erin Kinkade

CFP®

A common mistake student borrowers make when deferring payments while in school is not understanding the impact of interest accruing. To remedy the pitfalls, 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.

The table below shows an example of interest accrual on a $10,000 student loan with a 6% fixed APR.

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

The above table illustrates how interest can accrue during your time in school, leading to a larger loan balance at graduation. Consider this when evaluating the pros and cons of in-school deferment.

How to apply for student loans

Applying for student loans can be confusing and time-consuming, but it’s necessary if you want to secure funding for your education. To help you navigate through the process, we’ve outlined the steps you need to take to apply for federal student loans and private student loans.

How to apply for federal student loans

Please review the eligibility criteria. Eligibility is often based on financial need, academic standing, and enrollment in an eligible institution.
Gather the required documentation.

Social Security number
Tax records
Information about family income and assets

Complete the Free Application for Federal Student Aid (FAFSA) by the deadline.
Review your FAFSA Submission Summary. This can be viewed online through your StudentAid.gov account. The results will automatically be sent to the schools you listed in your FAFSA.
Accept the aid package from your school.

How to apply for private student loans

Understand the eligibility requirements. Typically requires creditworthiness, often through a cosigner, and enrollment in a recognized school.
Research several private lenders to find the best fit. Be sure to confirm they allow deferred in-school repayment.
Collect the necessary information:

Credit report
Proof of income
Cosigner details, if applicable

Complete the lender’s application. This can often be done online. (Prequalify whenever possible to get an idea of rates and terms without a hard credit check.)
Accept the loan from your selected lender and choose the deferred repayment option.

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.

I recommend students prioritize federal student loans. They might consider private student loans if they max out federal loans and still need funds for their education.

Erin Kinkade

CFP®

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.

How we selected the best student loans that don’t require repayment while in school

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.

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.

How does the interest work on these loans if I’m not paying while in school?

Interest accrual varies between Subsidized and Unsubsidized federal loans as well as private loans:

Subsidized loans: The government covers interest while you’re enrolled at least half-time, during grace periods, and deferment periods.
Unsubsidized federal and private loans: Interest accrues during all periods, including while you’re in school. If not paid, it’s added to the total loan balance, leading to a larger overall debt.

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

Recap of student loans that don’t require in-school repayment

Lender	Best for	LendEDU rating
Dept. of Education	Federal student loans	Not rated
College Ave	Best overall	5/5
Sallie Mae	Cosigners	4.8/5
Earnest	No fees	4.7/5
SoFi	Member benefits	4.7/5
ELFI	Personalized support	4.5/5