How I came up with this list

CommonBond offers the usual fixed rate and variable rate loans. But they also offer what they refer to as a hybrid loan . Under this program, your loan is fixed for a portion of the repayment term generally the first five years then becomes a variable rate loan based on the one-month LIBOR index. The loan is designed to reduce the uncertainty of a variable rate loan by maintaining constant payments for the first few years.

To come up with this list of the best student loans of 2020, I used the following criteria in evaluating each lender:

When to get a student loan

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You’ll need to get a student loan when the cost to attend college exceeds the financial resources available for you or your family.

Those resources can include savings, including dedicated college savings plans, such as a 529 plan, but a Roth IRA could be another option. But they can also include scholarships, grants, and any income you expect to earn while you are in school.

Your first source for student loans should typically be federal loans since you will not be required to credit qualify for most programs. However, federal student loans are available in limited amounts, which may require getting additional funding from private sources, such as the providers listed above.

In applying for a private student loan, you’ll need to qualify payday loans Wisconsin based on your income and credit history. If you can’t, you can add a qualified cosigner. The major advantage of private student loans is that they are available for much higher loan amounts that can cover the entire cost of your education.

How to qualify for a student loan

With federal student loans, you don’t need to qualify based on your income and credit. Nor will they typically require a cosigner. They’re government financing programs specifically designed for those who lack the ability to afford higher education.

With private student loans, you’ll need to qualify for both income and credit history. Income will need to be sufficient to cover the new loan payment, plus existing recurrent obligations, and your monthly house payment.

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