For many Americans, student loans are the only way to afford a college education. But juggling loan payments while trying to cram for midterms and write research papers can make things a little too complicated.
The good news? You don’t have to make student loan payments while you’re still in school. Several types of student loans, both federal and private, allow you to wait until you graduate to start making payments. This is called deferred payments. Note, however, that these loans typically still accrue interest while you’re in school, meaning it makes borrowing more costly if you wait to pay.
Given the choice, we recommend always choosing federal student loans; more specifically, select federal Direct Subsidized Loans because they don’t accrue interest while you’re in school.
Below, we’ll look at some of the best student loans with no payments while you’re in school.
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How do student loans with no payments while in school work?
Most federal and many private student loans offer in-school deferment. This means you don’t pay a dime on the principal balance or interest until you graduate. As a bonus, a grace period (often six months) usually applies after graduation before you need to start making payments.
To qualify for deferment:
- Enroll at least half-time: Federal student loan deferment requires at least half-time enrollment. Private lenders typically have the same requirements.
- Choose the right federal loan type: Prioritize federal loans that allow deferment (most do), but also pay attention to how interest accrues. Whenever possible, prioritize Subsidized Loans (no interest accrued during school). Parents taking out PLUS loans will need to take an extra step to request deferred payments, but there’s no guarantee you’ll get approved.
- Prioritize specific private lenders: If federal loans won’t cover the full cost of college, limit your search to the best private student loans that don’t require payments while in school. We’ve rounded up six below.
Federal student loans: The best student loans with no payments during school
For several reasons, you should always use federal student loans before taking out any private loans:
- Lower rates: Interest rates for federal student loans are fixed and can often be lower than what you can get with a private lender. (You or your cosigner are unlikely to qualify for the lowest rate a private lender advertises without excellent credit and a high income.)
- No cosigner required: Federal loans don’t require a parent or guardian cosigner; most private lenders require a cosigner if you don’t have a credit history.
- Loan forgiveness: Your federal loans may be eligible for Public Service Loan Forgiveness.
- More deferment and forbearance options: Federal student loans generally have better options for deferred payments and forbearance. But as you’ll see, not all federal loan deferments work the same.
Note for military families: If one or both of your parents serve or served in the U.S. military, you may qualify for interest-free loans and grants through the Military Officers Association of America (MOAA). These programs are designed to help children of military families pay for college and can reduce or eliminate the need for private student loans altogether.
Federal Subsidized Loans
When you take out a federal Direct Subsidized Loan, the government pays your interest for you while you’re in school at least half-time (yes, really!). That means your loan essentially isn’t accruing interest as long as you remain enrolled in school.
You don’t need to start making payments or worrying about interest until six months after graduation, though you’re certainly welcome to make payments early to lower your balance before interest kicks in.
Federal Unsubsidized Loans
While federal Direct Unsubsidized Loans also allow you to defer payments, they start accruing interest while you’re in school. If you’re able to make small payments to keep the interest in check or even chip away at the principal balance, you can save yourself money in the long run.
Deferment should be automatic if you qualify, but if you don’t receive an automatic deferment, follow Federal Student Aid’s guidelines for requesting deferment.
A note on PLUS loans
Grad PLUS loans also have deferred payments, but one of the major implications of the One Big Beautiful Bill Act (OBBBA) for student loans is the elimination of the Grad PLUS loan program starting on July 1, 2026.
The Parent Plus loan program will remain, but the OBBBA makes it a far less attractive borrowing option for parents. And deferment isn’t guaranteed with those; payment kicks in 60 days after disbursement. Parents can submit a deferment request, but there’s no guarantee it will be granted.
6 private student loans with no payments until after graduation
College Ave
Best Overall
Why it’s one of the best for deferred payments
College Ave is our overall choice for private student loans for a number of reasons, including low rates and an easy application process; the fact that the lender lets you defer payments until after graduation is just icing on the cake.
- Competitive interest rates
- Easy application
- Flexible repayment, including deferred payments
- Cosigner often needed to qualify
- Long cosigner release period
| Fixed rates (APR) | 4.13% – 17.99% |
| Variable rates (APR) | 4.13% – 17.99% |
| Loan amounts | Up to 100% of certified cost to attend |
| Repayment options | Full, interest only, flat ($25/month), deferred |
| Repayment terms | 5,8, 10, or 15 years |
Sallie Mae
Best for Cosigners
Why it’s one of the best for deferred payments
Sallie Mae has flexible repayment options, including deferred payments, but it’s also noteworthy for its quick cosigner release (in as little as 12 months).
- Fast cosigner release
- Loans for several educational opportunities
- Flexible repayment, including deferred payments
- No student loan refinancing
- No prequalification options
| Fixed rates (APR) | 4.13% – 17.99% |
| Variable rates (APR) | 4.13% – 17.99% |
| Loan amounts | Up to 100% of certified cost to attend |
| Repayment options | Interest only, flat rate ($25), deferred |
| Repayment terms | 10 – 15 years |
Earnest
Best for Large Loans
Why it’s one of the best for deferred payments
Earnest offers deferred payments and even extends that deferment with a nine-month grace period (instead of six). Plus, you can skip one payment a year without penalty (but interest still accrues).
- Longer grace period (9 months)
- Skip 1 payment a year without penalty
- Flexible repayment, including deferred payments
- No cosigner release
- Not available in Nevada
| Fixed rates (APR) | 4.13% – 17.99% |
| Variable rates (APR) | 4.13% – 17.99% |
| Loan amounts | Up to 100% of certified cost to attend |
| Repayment options | Full, interest only, flat ($25/month), deferred |
| Repayment terms | 5, 7, 10, 12, or 15 years |
SoFi
Best for Member Benefits
Why it’s one of the best for deferred payments
SoFi allows deferred payments until after graduation, but it also offers great rewards while you’re in school to earn you cash and lower your loan balance.
- Cash rewards for good grades
- Rewards available to pay down your loans
- Flexible repayment, including deferred payments
- Lowest rate requires multiple discounts
- Higher starting rates than competitors
| Fixed rates (APR) | 4.13% – 17.99%* |
| Variable rates (APR) | 4.13% – 17.99%* |
| Loan amounts | Up to 100% of certified cost to attend |
| Repayment options | Full, interest only, flat ($25/month), deferred |
| Repayment terms | 5, 7, 10, or 15 years |
ELFI
Best Student Loan Advisors
Why it’s one of the best for deferred payments
ELFI allows you to wait to pay until after graduation, but it also earns top marks for its customer service, including the dedicated student loan advisor to help you navigate the whole process.
- Dedicated student loan advisor
- Industry-leading customer service
- Flexible repayment, including deferred payments
- High starting variable rate
- No public info on cosigner release
| Fixed rates (APR) | 3.69% – 14.22% |
| Variable rates (APR) | 5.00% – 14.22% |
| Loan amounts | Up to 100% of certified cost to attend |
| Repayment options | Full, interest only, flat ($25/month), deferred |
| Repayment terms | 5 – 15 years |
Ascent
Best Non-Cosigned Loan
Why it’s one of the best for deferred payments
Ascent offers flexible repayment options, including deferment, a nine-month grace period, and repayment terms up to 20 years.
- Longer grace period (9 months)
- Up to 20-year repayment
- Flexible repayment, including deferred payments
- Higher minimum loan amount
- Tough cosigner and cosigner release requirements
| Fixed rates (APR) | 2.89% – 14.41% |
| Variable rates (APR) | 4.34% – 14.75% |
| Loan amounts | Up to 100% of certified cost to attend |
| Repayment options | Interest only, flat rate ($25), deferred |
| Repayment terms | 5, 7, 10, 12, 15, or 20 years |
Pros and cons of skipping in-school payments
Waiting to make student loan payments until after graduation can be a game-changer, but there are drawbacks to consider.
Pros
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No stress about finances during school
Because you aren’t required to make payments during school, you don’t need to worry about getting a job to cover the loan costs. This lets you focus on getting good grades and making the most of the college experience.
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No interest on Subsidized Loans
If you qualify for federal Direct Subsidized Loans, no interest accrues during the deferral period. This means that once payments start, you’ll only owe what you borrowed; interest will start only then.
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No threats to credit score
If your loan is not deferred, you’d be required to make monthly payments, which can be challenging as a full-time student. Any missed payments could lower your credit score. Deferring payments protects your score while you’re in school.
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Grace period extension
Student loans typically have a post-graduation grace period that extends the deferment period. This gives you (generally) six months to find a job and save a little money before you start making payments.
Cons
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Higher loan payment upon graduation
Because you’ve paid nothing toward the loan balance while in school, it can be quite sizable upon graduation. According to the Education Data Initiative, the average student borrows more than $30,000 for a bachelor’s degree. That’s a huge debt to carry into the next stage of your life. Having such a large loan amount means either high monthly payments or payments spread out over a longer repayment term.
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Interest accrual during school for most loans
Unless you have Subsidized Loans, you can expect to owe much more than you borrowed once payments kick in. That’s because interest accrues for nearly every type of student loan while you’re in school.
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Interest capitalization
Not only does interest accrue while you’re in school, but in many scenarios, that interest capitalizes at the end of deferment. Interest capitalization means any interest accrued while in school gets added to the principal balance, and when payments start, you’ll accrue interest on that new total amount. This makes student loans even more expensive.
I advise students and parents to choose a repayment plan that aligns with both their current and estimated future cash flow, without putting unnecessary strain on the budget.
I also caution them not to make two common assumptions:
1, that a cosigner can be easily removed. (This should be planned for in advance.)
2, that the loan balance will remain unchanged if payments are deferred until after graduation.In most cases, interest will continue to accrue and increase the balance unless the loan is a federal Subsidized Loan.
Alternative student loan repayment options
In-school deferment is a popular option for student loan repayment because it allows you to focus on school, but it’s not your only option. Here are the other typical student loan repayment options, though these may vary by lender:
- Full: Full payments mean you make a monthly payment that goes toward the principal and interest while in school.
- Interest-only: Interest-only payments mean you make a monthly payment that goes only toward interest while in school; this is a lower, more manageable payment that aims to keep interest in check.
- Flat: Many lenders allow you to make a flat, or fixed, monthly payment while in school. A common flat payment is $25 a month.
Here’s what payments on a $20,000 balance at 6% APR might look like on each of these plans:
| Repayment option | Monthly payment in school | What happens during school | Balance after graduation |
|---|---|---|---|
| Full payment | ~$222 | Covers interest and principal, so your balance steadily decreases | ~$13,400 |
| Interest-only | ~$100 | Covers interest only; balance stays about the same | ~$20,000 |
| Flat payment | $25 | Partially offsets interest; balance grows | ~$24,100 |
| Deferred payments | $0 | No payments; interest fully accrues | ~$25,500 |
Even a $25 monthly payment during school can reduce your balance at graduation by more than $1,400 compared to full deferment, and, as you’ll see below, shave roughly $15 to $20 per month off your payment for the next decade.
What’s the difference in payments after graduation?
If you selected a 10-year repayment plan, here’s what your monthly payments might look like after:
| Repayment option | Monthly payment after graduation | Big takeaway |
|---|---|---|
| Full payment | ~$149 | Lowest payment overall due to smaller balance |
| Interest-only | ~$222 | Standard 10-year payment on original balance |
| Flat $25 payment | ~$267 | Higher payment from interest buildup |
| Deferred payment | ~$283 | Highest payment due to full interest accrual |
These examples show why “paying something” during school can still lead to quite different outcomes. Even small in-school payments can help, but whether they truly reduce long-term costs depends on whether they cover interest.
When do student loan payments start if you don’t pay while in school?
Generally, you’ll start paying your student loans six months after graduation if you aren’t making payments while in school. That six-month timeline is called the grace period, and it’s designed to give you time to find a job and get your finances in order when payments kick in.
While six months is standard for federal loans and many private loans, you may find lenders offering a different grace period. Earnest and Ascent, for instance, offer a nine-month grace period.
Recap of student loans that don’t require in-school payment
Article sources
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About our contributors
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Written by Timothy Moore, CFEI®Timothy Moore is a Certified Financial Education Instructor (CFEI®) specializing in bank accounts, student loans, taxes, and insurance. His passion is helping readers navigate life on a tight budget.
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Edited by Kristen Barrett, MATKristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their three senior rescue dogs. She has edited and written personal finance content since 2015.
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Reviewed by Erin Kinkade, CFP®Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families.