9 Types of Student Loans You Should Know About

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Student Loans

Updated Apr 28, 2025

4-min read

Written by Geoff Williams

Written by Geoff Williams

Expertise: Credit cards, mortgages, insurance, saving money, managing cash flow, loans, retirement, estate planning

Learn more about Geoff Williams

Reviewed by Crystal Rau, CFP®

Expertise: Equity compensation, oil & gas investments, education planning, investment planning, student loan planning, retirement

Crystal Rau, CFP®, CRPC®, AAMS®, is a certified financial planner based out of Midland, Texas. She is the founder of Beyond Balanced Financial Planning, a fee-only registered investment advisor that helps young professionals and families balance living their ideal lives and being good stewards of their finances.

Learn more about Crystal Rau, CFP®

Paying for college can feel overwhelming, but understanding your student loan options can make it easier. Whether you qualify for federal aid, need private loans, or want to refinance later, this guide covers every major loan type to help you make an informed decision.

Table of Contents

Federal student loans
Private student loans
Refinance student loans

Federal student loans

Federal student loans are funded by the U.S. Department of Education and often offer better borrower protections than private loans. They should typically be your first stop when looking for college funding.

1. Direct Subsidized Loans

Available to undergraduates with financial need, these loans don’t accrue interest while you’re in school or during deferment. Repayment starts six months after you graduate or fall below half-time enrollment.

2. Direct Unsubsidized Loans

Available to both undergraduates and graduate students regardless of financial need. Interest starts accruing immediately, even if you defer payments while in school.

3. Direct PLUS Loans

Graduate students and parents of undergrads can borrow Direct PLUS Loans. These loans require a credit check and have higher interest rates, but they can cover the full cost of attendance.

Private student loans

When federal aid isn’t enough, private student loans can help bridge the gap. These loans are offered by banks, credit unions, and online lenders and often depend on your creditworthiness.

4. Conventional private student loans

Standard loans offered by banks, credit unions, and online lenders, such as College Ave, our team’s highest-rated private student loan. They can cover a wide range of educational expenses and are credit-based.

Note:

Conventional private loans can often be refinanced later for better rates once you graduate and build your credit.

5. International student loans

Designed for students from other countries studying in the U.S. Many require a U.S.-based cosigner to qualify. Once you’ve established U.S. credit, you may be able to refinance an international student loan.

Student Loans for International Students: Top Options for Non-U.S. Citizen Borrowers

6. Bad-credit private student loans

Some lenders offer student loans to borrowers with bad or no credit, usually at higher interest rates. A creditworthy cosigner can make a massive difference.

Tip:

Refinancing later may help lower your rates once your credit improves.

7. State-specific loan programs

Certain states offer special loans through agencies like the Rhode Island Student Loan Authority or the Georgia Student Finance Commission, often at competitive rates for in-state residents.

Some state programs also allow refinancing later to get better repayment terms.

More about state student loans:

Instead of traditional loans, ISAs involve agreeing to pay a percentage of your future income for a set period after graduation. These can be risky and are often seen as a last resort.

Tip:

Some ISAs can later be refinanced into traditional loans.

9. Private parent student loans

Offered by private lenders to parents who want to help fund their child’s education, separate from federal Parent PLUS Loans.

Parents or children may be able to refinance these loans after graduation.

Refinance student loans

Student loan refinancing can help you save money or simplify your payments by combining multiple loans into one with new terms.
When you refinance, you’re replacing your original loan(s) with a new private loan—ideally at a lower interest rate, shorter term, or lower monthly payment.

You can refinance most private student loans, state-specific loans, and even certain income-share agreements after graduation. You can also refinance Parent PLUS Loans and some international student loans, depending on your credit history.

Keep in mind:

You can’t refinance a private loan into a federal loan.
Refinancing federal loans with a private lender means giving up federal protections like income-driven repayment and forgiveness options.

If you’re thinking about refinancing, consider using a marketplace—our favorite is Credible—to shop around for the best rates and terms. It’s essential to choose a lender that matches your financial goals, whether that’s paying less interest overall or lowering your monthly payment.

Best Student Loan Refinance Lenders

You can take out private student loans for undergraduate, graduate, and certificate studies, including: