Paying the College Bill in 2025: A Guide to Smart Borrowing

Navigating the costs of college is no small feat, especially with rising interest rates and the abundance of loan options on the market. For families gearing up to pay the bill in 2025, making confident and informed borrowing decisions is essential.

Here’s your go-to toolkit for understanding your options, finding the best student loans, and ensuring you make the smartest financial move for your student’s education.

Understanding the Current Loan Landscape

As of 2025, Federal Parent PLUS Loans come with a nearly 9% interest rate and a 4% origination fee—a costly option for many families.

If you or your cosigner have good credit, private student loans may offer a significantly better deal, with interest rates starting under 5% and no fees. But navigating these options can feel overwhelming.

That’s where our step-by-step guide comes in.

Step-By-Step Guide to Choosing the Best Student Loan in 2025

We always recommend starting with the Federal Direct Student Loan (FDSL) for students. After that, it’s time to compare private lenders and PLUS loans to see which makes the most financial sense for your family. Consider starting your comparison with these top private lenders.

Step 1: Check Your Rate with Ascent Student Loans

• Soft Credit Pull (no impact on credit score)
• 9-Month Grace Period
• Co-signer Release after 12 months
• No fees, including origination or late fees
• Auto-Pay Discount: 0.5%
• Dedicated College Aid Pro Support Line
  • 📧 Email: [email protected]
  • ☎️ Phone: 877.685.5780

👉 Get My Rate from Ascent

Step 2: Check Your Rate with SoFi Student Loans

• Soft Credit Pull
• 6-Month Grace Period
• Co-signer Release after 12 months
• No fees: No origination, late, or NSF fees
• Auto-Pay Discount: 0.25%
• Multi-Loan Discount: Additional 0.125% of financing for multiple kids

👉 Get My Rate from SoFi

Step 3: Check Your Rate with Abe Student Loans

• Soft Credit Pull
• 12-Month Grace Period
• Co-signer Release after 12 months
• No application or late fees
• In-School Default Protection: unique to Abe

👉 Get My Rate from Abe

Step 4: Compare with Federal PLUS and State Loan Options

Even with competitive private rates, it’s important to compare your final offers to federal and state-specific loans. State options in Massachusetts, Rhode Island, and Iowa offer additional choices to residents of any state.

Private Lender Quick Comparison

👉 Compare All Private Lenders Side-by-Side

Want Help from an Expert? Try the Paying the Bill Package

For families who want expert guidance, our Paying the Bill Package provides everything you need to make smart borrowing decisions with confidence.

What’s Included For $499:

• Review of financial aid forms, award letters, and final bills
• Guidance on 529 usage, savings strategy, and loan recommendations
• A curated list of 1,500 private scholarships and low-interest loans
• Insight into key legal and insurance topics for college-bound families

📄 You’ll Need:

• FAFSA/CSS Profile Summary
• Award Letters and/or Final Bill

🎓 Sign Up & Schedule Your Meeting

Other Resources for Students and Parents

• ✅ Loan Entrance Counseling Walkthrough
• ✅ Master Promissory Note Walkthrough

Paying for college doesn’t have to be overwhelming. With the right tools, guidance, and expert support, you can cover the costs with clarity and confidence—without overborrowing.

Let us help you take the first step toward smarter student loan decisions in 2025.