Student loan options to borrow $10,000

But for a relatively low student loan amount, federal perks like income-driven repayment plans and forgiveness might not be so beneficial — you might want to see if you can qualify for a better deal with a private lender.

Can I get federal student loans to borrow $10,000?

You might. It depends on several factors such as your year in school, whether the Department of Education (DoE) considers you a dependent, what type of loan you’re applying for and how much you already have in student debt.

• Am I a dependent or independent student?

  The DoE considers you an independent student if you’re one of the following:

  • Over 23 years old
  • Married
  • Attending a graduate program during the following academic year
  • Serving on active duty in the armed forces (aside from training)
  • A veteran
  • Have children that get at least half of their financial support from you
  • Have dependents
  • An emancipated minor
  • A homeless youth or considered at risk of being homeless while you were a minor

Direct Subsidized and Unsubsidized Loans come with lifetime aggregate limits, depending on your degree. You can only borrow up to $57,500 as an undergraduate and $138,500 as a graduate student — including your undergraduate student debt.

With interest rates fixed at 2.75% for undergraduates and 4.3% for graduate students, Direct Subsidized and Unsubsidized Loans are often the best deal you can qualify for.

What about PLUS loans?

One option if you’re unable to borrow $10,000 is to apply for a PLUS Loan — these come with no limits other than your school-certified cost of attendance. Undergraduate students will have to have their parents apply for a PLUS Loan while graduate students must apply on their own.

To qualify, you need to pass a credit check or bring on a creditworthy endorser. And with interest rates fixed at 5.3% , you might find a better deal with a private lender.

Private student loan providers that offer $10,000

Almost all private providers offer $10,000 student loans. While these come with fewer perks than federal loans, for loan amounts as low as $10,000, you might not be able to benefit much from income-driven repayments or federal forgiveness programs anyway.

But they can be more expensive and might require a cosigner. Private loans also typically have lifetime limits, though they’re generally higher than federal student loans.

How to pay off $10,000 in student debt

Sure, you can pay off your student loans by signing up for autopay and not thinking twice about it. But there are several ways you can save on interest and get out of debt quicker.

• Refinance for a shorter term. A shorter term means less time for interest to add up. Refinancing your student loans for a shorter term makes it easy to pay off your loan quicker without taking the effort to make extra repayments.
• Apply for a loan repayment assistance program (LRAP). Both federal and local agencies offer partial forgiveness through LRAPs designed for specific professions — including healthcare and law. Often, you can have more than $10,000 forgiven.
• Make extra repayments. Whenever you can afford to, make an additional repayment toward your loan. Reach out to your servicer to make sure those funds are going toward your loan principal first to get out of debt even faster.

How your loan term affects monthly repayments

How long you take to pay back your loan affects both how much you pay each month and how much you pay in total interest. The longer your loan term, the lower your monthly repayments — but the more you’ll pay overall.

Say you had a $10,000 loan with a 5.8% APR — the national average. Here’s how much you’d pay per month and in interest with different loan terms.

As you can see, lengthening your term can cut your monthly repayments down by nearly a third. But it also increases the total cost of your loan nearly 4.5 times. To save the most on interest, go for the shortest loan term with monthly repayments you can comfortably afford.

Bottom line

You might be able to cover a $10,000 student loan with federal loans only, depending on your year in school and how much you’ve already borrowed. But there’s a chance you’ll have to take out a private loan to cover the additional costs.

Learn more about how borrowing for school works in our guide to student loans.

Frequently asked questions

• How fast can I pay off $10,000 in student debt?

  It depends on your loan term and how much you can afford to pay on top of your monthly repayments.

  Federal student loans come with terms starting at 10 years, while private student loans start at five. Both typically don’t charge prepayment penalties, meaning you could theoretically pay off your student loans as soon as the funds are disbursed without paying any fees.

• How long does it take to pay off a $10,000 student loan at $200 per month?

  It depends on your interest rate. If you have a student loan with the national average interest rate of 5.8%, it would take you about four years and nine months to pay it off.

• Can I get a $10,000 student loan without a cosigner?

  You can. Federal student loans typically don’t require a cosigner unless you’re applying for a loan through the PLUS program. While most private lenders do, alternative student loan providers like Sixup and Mpower consider factors like your academic record and standardized test scores instead of your credit.