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 Ascent Student Loans
If federal loans don’t cover all your college expenses, the next step is exploring private student loans. Ascent Student Loans offer competitive rates with some excellent benefits for borrowers, especially those in the College Aid Pro community.
Why consider Ascent?
- Fixed APRs starting at 3.44% – A highly competitive rate compared to Parent PLUS loans.
- No origination fees – Unlike federal loans or many private lenders, Ascent doesn’t charge fees to apply or disburse the loan.
- Soft credit pull – Get your rate without impacting your credit score.
- Co-signer release program – After a set number of on-time payments, you can release your co-signer from the loan.
- Exclusive CAP community terms – Thanks to College Aid Pro’s partnership with Ascent, CAP families get access to exclusive, favorable loan terms you won’t find elsewhere.
With a fixed APR starting as low as 3.44%, Ascent could be a smart, cost-effective option for students and families looking to avoid high interest rates.
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:
College Ave – click to get your rate
Sallie Mae – click to get your rate
Citizens – click to get your rate
Earnest – click to get your rate
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 9.08% for the 2024-2025 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 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.
