Student Loans in 2025: 4 Steps to Find the Best Option & Lowest Rate
Your Step-By-Step Guide to Choosing the Best Student Loan
When it comes to financing college, student loans can be an essential tool for many families. But with so many options available, how do you know which loan is right for you? With Parent PLUS loans typically carrying 9% interest rates and an origination fee of up to 4%, the uncertainty surrounding the future of this loan program has made private loans a more appealing option for many borrowers with good credit. In this guide, we’ll walk you through a step-by-step approach to securing the best student loan for your needs.
Step 1: Maximize Federal Direct Student Loans
Before diving into private loans, start with Federal Direct Student Loans. These loans often have lower interest rates and more flexible repayment options compared to private loans, making them an ideal first option for many families.
For the Freshman year, Federal Direct Student Loans can cover up to $5,500 of your gap in funding. These loans are typically subsidized (meaning the government covers the interest while you’re in school) or unsubsidized, depending on the student’s financial need. If you haven’t already explored federal loan options, be sure to fill out the FAFSA to determine your eligibility.
Step 2: Get Approved with Our Top 3 Private Lenders
Apply through College Ave to get your rate.
- Apply in 3 Minutes
- Soft Credit Pull
- Reputation for rewarding high FICO scores
Apply through Sofi Student Loans to get your rate.
- Apply in minutes
- Soft Credit Pull
- Reputation for rewarding high FICO scores
Check Your Rate with Ascent Student Loans
- Soft Credit Pull
- Apply in Minutes
- Updated Lowering Pricing/Rates as of July 1, 2025.
- Co-signer Release after 12 months
- Dedicated College Aid Pro Support Line
- 📧 Email: [email protected]
- ☎️ Phone: 877.685.5780
Step 3: Explore Other Lenders – State & Private
While we spotlight Ascent Students Loans because of their preferential treatment of our CAP families, it’s always a good idea to compare offers from other private lenders. Here are some additional options:
Be sure to compare offers from these lenders to find the best loan terms and rates for your unique situation.
Click Here: Compare All Private Lenders
You can also explore state-specific lenders in regions like Massachusetts, Rhode Island, and Iowa, which may offer lower rates or specific terms for residents of those states. Some of the state lenders will allow for out-of-state borrowers to participate.
Step 4: Compare Private Loan Rates to the Federal PLUS Loan
The next step is to compare the private loan rates you receive with the Federal Parent PLUS Loan rates. The Federal PLUS Loan typically has an interest rate of just under 9% for the 2025-2026 school year, plus an origination fee. If the rates you receive from private lenders, such as Ascent or College Ave, are lower, it could be a more financially sound decision to go with a private loan.
Be sure to compare loan terms, interest rates, and repayment options to find the best deal for you and your family. In many cases, private loans can offer significant savings over the long term.
Featured Lender Spotlight: Ascent Student Loans
Ascent offers fixed APRs ranging from 3.44% to 13.96%, depending on your credit profile. Plus, they provide these great perks:
- Zero fees: No application, origination, disbursement, early repayment, or late fees.
- 1% cash back at graduation: Celebrate your achievement with a reward.
- 0.25% – 0.5% autopay discount: Reduce your interest rate by enrolling in autopay.
- 12-month co-signer release: After making on-time payments, your co-signer can be removed from the loan.
These benefits make Ascent Student Loans a standout option for many College Aid Pro families.
Final Thoughts
Choosing the right student loan is a crucial part of your college planning strategy. By following this step-by-step guide, you can make informed decisions about how much to borrow, which lenders to choose, and how to minimize the total cost of your loans.
Remember, it’s important to max out the Federal Direct Student loan option first, then explore private loans with favorable terms like those offered through Ascent. Take the time to compare all your options, and don’t hesitate to reach out to our experts for guidance.
