APR 5.99% – 35.99%·$100 – $50,000

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Head to head

Personal loan vs student loan.

Federal student loans are almost always the better choice for college costs, but personal loans can fill gaps that student loans cannot - continuing education, non-accredited programs, professional certifications, and living expenses at schools without federal aid approval.

Side by side

Personal Loan vs Student Loan (Federal or Private)

AttributePersonal LoanStudent Loan (Federal or Private)
APR range6.99%-35.99% (unsecured, credit-based)Federal: 6.53%-9.08% (2024-25 fixed); Private: 3.99%-16.99%
Collateral requiredNoneNone for most student loans
Repayment starts30 days after fundingFederal: 6 months after graduation; Private: varies (some allow deferment during school)
Income-based repaymentNot available - fixed payment requiredFederal only: SAVE, IBR, PAYE, ICR plans available
Loan forgivenessNot availableFederal only: PSLF, IDR forgiveness after 10-25 years
Interest tax deductionNot deductibleStudent loan interest up to $2,500/year deductible (income limits apply)
Eligible programsAny purpose including non-accredited programs, bootcamps, certificationsFederal: must attend Title IV-eligible school; Private: similar restrictions
Minimum credit required580+ (poor credit options exist)Federal: no credit check for subsidized/unsubsidized; Private: 650+ typically
Discharge in bankruptcyDischargeable like other unsecured debtExtremely difficult (requires 'undue hardship' showing); rarely discharged
Maximum amountUp to $100,000 at some lendersFederal: $5,500-$20,500/year for undergrad; Private: up to full cost of attendance
Verdicts by scenario

Which wins, when.

  1. 01

    Attending an accredited college or university for a degree program

    Winner: Student Loan (Federal or Private)

    Max out federal student loans first. Income-based repayment, potential forgiveness, 6-month grace period, subsidized interest while in school, and tax deductibility all give federal loans major advantages. Only supplement with a personal loan after exhausting federal aid.

  2. 02

    Paying for a coding bootcamp, trade school, certificate program, or non-accredited course

    Winner: Personal Loan

    Federal student loans are restricted to Title IV-eligible schools. Most bootcamps, professional certifications, and online courses do not qualify. A personal loan is often the only structured financing option outside of the specific lender programs some bootcamps offer.

  3. 03

    You have already graduated and need to cover living expenses during a job search

    Winner: Personal Loan

    Student loans cannot be taken out retroactively for a completed program. If you graduated without a job and need bridge funding, a personal loan is the relevant tool.

  4. 04

    Graduate student with federal borrowing limits already maxed

    Winner: Student Loan (Federal or Private)

    Private student loans from Sallie Mae, College Ave, or Earnest may still offer better rates than personal loans for graduate education, even without the federal benefits, because they are calibrated for education financing and often allow in-school deferment.

Common questions

Frequently asked.

Can I use a personal loan to pay for college if I already have student loans?+

Yes. There is no rule against using a personal loan alongside student loans. However, compare costs first. If you have remaining federal borrowing capacity, use it - federal loan rates and terms are almost always better than personal loans for most borrowers. Personal loans become relevant when federal limits are exhausted and private student loans are not an option or are priced similarly.

Is the interest on a personal loan for education expenses tax-deductible?+

No. The student loan interest deduction (up to $2,500/year) applies specifically to qualified student loans as defined by the IRS. A personal loan used for education does not qualify, even if the funds were used entirely for tuition and books. Only federal and qualifying private student loans are eligible for the deduction.

Can I refinance a student loan with a personal loan?+

Technically yes - you can use personal loan proceeds to pay off a student loan. However, this is almost always a bad idea for federal student loans because you permanently lose the federal protections: income-based repayment, forgiveness eligibility, deferment, and forbearance options. You should only use a personal loan to pay off a student loan if you are certain you will never need those federal protections and the personal loan rate is materially lower - which is rare.

Other comparisons

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