As online education continues to grow in popularity and legitimacy, more students are turning to virtual learning to earn degrees, certifications, and professional credentials. However, while online programs are often more affordable than traditional, in-person degrees, they can still come with significant costs—tuition, technology, textbooks, and living expenses. For many students, especially those studying part-time or working professionals, student loans become a necessary option to finance their education.
In 2025, the landscape of student loans has evolved to accommodate the growing number of online learners. Whether you are studying at a university with remote options or enrolled in a fully online institution, several loan providers offer flexible and accessible funding designed specifically for the needs of distance learners.
In this article, we explore the best student loans for online students in 2025, compare public and private lenders, and provide expert tips on choosing the right loan for your situation.
Why Online Students Need Specialized Loan Options
Online education offers flexibility, but online students often face unique challenges when it comes to financing:
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Ineligibility for some federal aid programs
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Limited access to campus-based scholarships
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Unpredictable or part-time study schedules
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Technology costs (laptops, internet, software)
Fortunately, loan providers—both federal and private—have adapted their policies to support online learners. In many cases, online students are treated the same as on-campus students for federal aid eligibility, provided their institution is accredited.
1. Federal Direct Loans (U.S. Department of Education)
Best for: U.S. citizens or eligible non-citizens enrolled at accredited institutions (online or in-person) at least half-time.
Types:
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Direct Subsidized Loans (for undergraduates with financial need)
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Direct Unsubsidized Loans (available to most students)
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Direct PLUS Loans (for graduate students or parents of dependents)
Key Features:
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Fixed interest rates (usually lower than private loans)
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Income-driven repayment options
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Loan forgiveness programs (e.g., PSLF)
Online Eligibility: Students must be enrolled in an accredited degree-granting program. Most online universities like Western Governors University (WGU), Southern New Hampshire University (SNHU), and University of Phoenix qualify.
2025 Rates (estimated):
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Undergraduate: ~5.3%
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Graduate: ~6.8%
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PLUS Loans: ~7.3%
2. Sallie Mae Smart Option Student Loan
Best for: Online undergraduates, graduate students, or certificate seekers attending eligible institutions.
Key Features:
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Competitive variable and fixed interest rates
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No origination fees or prepayment penalties
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Multi-year approval for future loans
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Flexible repayment: immediate, interest-only, or deferred
Online Compatibility: Sallie Mae loans cover most accredited online programs. Students can use funds for tuition, tech, books, and living expenses.
2025 Interest Rates:
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Fixed: ~4.50%–12.00%
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Variable: ~5.00%–13.00% (depending on credit)
Note: A co-signer may be required for students without strong credit history.
3. Ascent Student Loans
Best for: Independent learners, career switchers, and online students without a co-signer.
Key Features:
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Offers both co-signed and non-co-signed options
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Cash rewards for academic success
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Grace period up to 9 months after graduation
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Career-based loans for bootcamps and online certificates
Unique Perk: Ascent provides loans for students attending non-traditional programs, including coding bootcamps and short-term professional courses.
2025 Interest Rates:
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Fixed: ~4.75%–13.25%
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Variable: ~5.20%–12.80%
Eligibility: Must attend an Ascent-approved institution, which includes many online programs.
4. Earnest Private Student Loans
Best for: Graduate students and working professionals in online master’s programs.
Key Features:
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Customizable repayment plans
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No late fees or origination fees
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Interest-only payments allowed while in school
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Biweekly payment options to save on interest
Ideal For: Online MBAs, nursing degrees, or master's programs in computer science or education.
2025 Interest Rates:
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Fixed: ~4.44%–11.00%
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Variable: ~5.15%–11.50%
Earnest considers more than just credit score—like employment history and financial behavior—which is helpful for online students balancing work and study.
5. SoFi Private Student Loans
Best for: High-credit borrowers or students with co-signers pursuing accredited online degrees.
Key Features:
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No fees (application, late, or prepayment)
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Unemployment protection and forbearance
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Access to career coaching and networking
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Loyalty discounts for existing SoFi members
Eligibility: SoFi supports most fully online universities and degree programs, especially in business, tech, and law.
2025 Rates:
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Fixed: ~4.75%–11.90%
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Variable: ~5.00%–12.25%
SoFi is ideal for professionals returning to school online to upskill or earn a higher degree.
6. College Ave Student Loans
Best for: Flexible repayment and online associate or bachelor’s degree programs.
Key Features:
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Multiple repayment options (including full deferral)
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Terms range from 5–15 years
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Co-signer release available after 24 months of payments
Online Compatibility: Approved for online programs at many U.S. colleges and universities.
2025 Interest Rates:
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Fixed: ~4.69%–12.35%
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Variable: ~5.15%–13.25%
College Ave is user-friendly, with fast online application and clear repayment simulations.
International Students & Online Programs
Many international students now attend U.S. and European universities remotely. However, federal student aid is usually not available to non-citizens studying online from abroad. For these students, the best options include:
7. MPower Financing
Best for: International or DACA students in online U.S. or Canadian degree programs.
Key Features:
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No co-signer or credit history required
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Available to students from 190+ countries
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Interest rate discounts for on-time payments
2025 Interest Rates:
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Fixed: ~12.99% (with potential discounts)
MPower funds students enrolled in select online or hybrid graduate programs in STEM, business, and policy.
8. Prodigy Finance
Best for: International students enrolled in top-tier online master’s programs.
Key Features:
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No collateral or co-signer needed
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Based on future earning potential
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Supports select universities (INSEAD, Oxford, NYU, etc.)
2025 Rates:
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Interest varies by university and program; ~7.5%–11%
Note: Prodigy generally requires a hybrid or on-campus component but has expanded to include some online programs post-2024.
Key Considerations Before Applying for a Loan
1. Confirm Accreditation:
Ensure your online program is accredited and eligible for federal or private loans.
2. Borrow Only What You Need:
Remember, loans must be repaid with interest. Estimate tuition, fees, tech tools, and living expenses carefully.
3. Compare Interest Rates and Terms:
A lower interest rate or a more flexible repayment schedule can save you thousands over time.
4. Check for Repayment Flexibility:
Opt for lenders that offer grace periods, deferment, or income-based repayment plans.
5. Consider Scholarship and Grant Options First:
Many online institutions offer internal scholarships, need-based aid, or employer-sponsored tuition reimbursement.