Student Loan Programs by State

Learn about different student loan programs modeled to assist students in the United States towards debt management and elimination. This would expose you to the programs offered by different state. They are carefully listed in alphabetical order for easy readability and understanding

Updated by Martin Paul on 10th November 2021

With the constant increase in tuition fees and the interest on loans offered by private lenders, it is often difficult to live a happy life after graduating from school. This article tends to address some issues faced by student borrowers and how they can avail some government programs in their state of residence.

The information regarding state student loan programs and how to check whether or not you are eligible for them, and if eligible, how to choose the best and the enrollment procedures are clearly stated below

Table of contents

Student loan and their types

State Loan Programs are mainly for those students residing in the state that offers the program. State students get many benefits such as reduced rates, alternatives and flexible repayment plans, etc

There two types of state student loans

Federal loans

These student loans are offered directly by the Federal Government to student and parents/guardian. It allows them to borrow money for their education from the government.

Mainly there are four types of Federal Loans

  1. Direct Subsidized Loan.

  2. Direct Unsubsidized Loan.

  3. Direct PLUS.

    • Direct Parent PLUS Loans

    • Direct Graduates and Professional PLUS Loan

  4. Direct Consolidation Loan.

Note: For any Federal Loan program students need to fill and submit FAFSA

Private/Alternative loans

Private loans come into the picture once students exhaust their federal loans. Private student loans are credit-based loans awarded by private banks or lending instruments. There are terms and conditions which varies among lenders. U.S. Citizens and permanent residents studying within the USA can apply for this loan. These loans are not available for everyone as you need to get a credit check or have a co-signer to be eligible.

Student Loan in Alaska

All college students encounter some financial problems when they decide to pursue their higher education. For Alaskans, the Alaska Commission on post-secondary education gives full details on federal and state loan programs.

Alaska Commission on Post-Secondary Education

The ACPSE provides a wide range of federal student loan programs. They also offer the primary AlaskAdvantage Loan for local students. Interested College students can visit ACPSE website to fill and submit the free application for federal student aid (FAFSA) in order to receive any state-sponsored or federally guaranteed loans.

Private Education Loans Offered In the State of Alaska Under ACPSE

Federal Education Loans might leave some gap between student and their college funding as higher education is gaining on cost day by day. The state of Alaska has many authorized lenders who offer state students low-cost alternatives under private lender student loans. These loans are substitutes for federal student loan programs.

The Alaska Supplemental Education Loan

This credit-based student loan is offered to the Alaskan student as well as the student enrolled in state colleges and universities. This loan offers the combined loan limits of up to $60,000 which is an affordable alternative to private lender loans.

The Alaska Family Education Loan

This loan allows the family member to contribute towards a student’s college fund. It is an innovative and low-cost loan program.

The Family Education loan is available to parents, grandparents, and spouses of resident students. This loan is applicable only on accredited Alaskan college or university.

The Alaska Alternative Consolidation Loan

Students who have borrowed multiple private loans can use this program.

The program helps borrowers to make their existing loan stronger by converting it into a single loan, which can easily be managed.

The A.W. “Winn” Brindle Memorial loan

This loan is offered in memory of the past president of Wards Cove Packing Company and Columbia wards fisheries. Students who have enrolled in a fisheries-related field can enjoy the benefit of this loan. Loan Forgiveness is 50% for the students who have outstanding student loans.

The Michael Murphy Memorial Student Loan

This program is funded by private donations under the administration of the state. This low-cost loan helps students to pursue a degree and career in Law Enforcement.

The Alaska Teacher Education Loan Program

Many states of the USA face a shortage of qualified professional teachers every year. Alaska is also one of them. On that note, the government of Alaska took on an initiative called “Loan forgiveness program” which offer rewards to students who are pursuing a degree in education. The Alaska Teacher Education Loan Program benefits those students who take positions as teachers in underserved communities.

A sum of $7500 will be annually given to the student under the loan forgiveness program.

Student Loan in Arizona

Arizona State developed a government body that aims at advising, supporting and providing guidance to students when planning for their educational financial aid. The Arizona Commission For Postsecondary Education (ACPE) constructs strong post-secondary education in the state of Arizona.


  1. To increase the financial aid for students

  2. To assist students and families to plan, start and succeed in postsecondary education

  3. To provide a platform for solving and addressing all possible issues of mutual interest

The Arizona Teacher Student Loan Program

Just like other States, Arizona also provides a loan program for students who want to join the education profession. It gives financial benefits to the resident student. Under this program, up to $7,000 is forgiven for three years. It also excludes all grants, scholarships and other tuition benefits.

Eligibility for The Arizona Teacher Student Loan Program

  • Candidate should be U.S. Citizen or a permanent resident of the United State

  • Residing in Arizona for at least the previous 12 months at the time of application completion

  • Candidate should be enrolled at least half-time in a baccalaureate program working on teaching degree or any other teacher certification program at the accredited national or regional postsecondary educational institution of Arizona.

  • Must have completed at least 55 college credit hours (junior or higher) in any course of instruction with intention to attend licensure as a teacher of math, science, special education or to provide instruction as a teacher in a public low-income school, public rural school, or a public school located on an Indian reservation.

  • Exploring his or her first baccalaureate degree or any other teaching certificate

  • A person should be in need of financial help

  • Free application for FAFSA is compulsory

  • A person needs to enter an agreement with ACPE to teach in any Arizona Public Schools in a term equal to the number of years of loan received plus one year

  • The promissory note needs to be signed to acknowledge the conditions of the loan

  • New applicants have to write a 250-500 word essay on “Why They Want to Be a Teacher”

Loan application and completed promissory note must be submitted by the student to the commission manually

Student Loan in Colorado  

The state of Colorado offers several loans where qualified students get benefits for their education funding.

Health Profession Loans

These loans are provided by the united states department of health and human services. Health profession loans are for those students who are interested in medical and nursing programs.

There are three types of Health Professions loans:

  1. Health Professions Student Loans
  2. Nursing Student Loans

  3. Primary Care Loans

Eligibility for Health Profession Loan

  • Financial information of parents are needed while applying for these loans

  • FAFSA needs to be completed and filed to understand which loan you are eligible for

  • “Promissory Note” should be prepared as a legal document to repay each loan you accepted

  • You must complete an entrance counseling session for federal loans before you receive any loan funds

Student loan in Georgia

Georgia has Georgia State Finance Commission (GSFC) which is one of the best in the country when it comes to student aid operations. Founded in the year 1965 as the State Scholarship Commission, the agency’s main duty is to provide and service educational loans.

The Student Access Loan

The state of Georgia offers a unique loan program called the access loan. This program is mainly designed for students who cannot afford education.

Students randomly selected and awarded the access loan.

Low-interest rates and repayment incentives are some of the rewards under this program.


  • The student must be a Georgia resident

  • Individual must maintain good academic progress in their chosen course of study

  • Candidate should apply through FAFSA

Student Loan for Hawaii

Although Hawaii is a small state, the state government works hard to create well-structured student loan for students in the state.

State Higher Education Loan (SHEL)

This loan is awarded to the resident of Hawaii enrolled in any undergraduate or graduate program. SHEL loan comes as part of your financial aid package. Funds are limited under SHEL loan program, therefore not all applicants get selected for the loans.

Student loan in Iowa

The state of Iowa has an organization called The Iowa College Student Aid Commission. Their website has detailed resources regarding college financial aids. The state offers two types of loans, Institutional and private loans for its resident students.

Institutional Loans

Students who seek Institutional Loans need to contact their educational institutions. You have to justify your financial need and should also have a good credit score to be awarded this loan.

Private Loans

Private Loans comes from Standard banks like Wells Fargo, SunTrust, and Citi Bank.

Before selecting an option, be on the lookout for key details in all the organization. Be sure to check out the total cost of the program which you’re going to select.

Iowa-Specific Private Loans Programs

This loan is only offered those students who are resident of Iowa state. Creditworthy and co-signer are required to get this loan.

One of the benefits of this loan is that it is quite affordable when compared to other loans.

The Iowa Alliance Private Loan Program

This is an exceptional loan program which does not require a cosigner or stringent credit check. A student who is denied a traditional supplemental private student loan can apply for this. However, there are eligibility criteria for this loan program.

  • You must have been rejected a private loan

  • Applicant shouldn’t have charge-offs, repossessions, collection accounts, or garnishments by any credit providers

  • You must not have a history of default in any previous student loan

  • Have no previous bankruptcies

Student loan in Kansas

Resident students of Kansas have many students loan on their plate. FAFSA determines the eligibility for the Federal Health Professions student loan (HPSL), Federal Loan for Disadvantaged student (LDS), Federal Direct Loans (Subsidized/Unsubsidized) and other federal loans such as the  Federal Parent Loan for Undergraduate Student (PLUS) and the Federal Graduate Plus Loan.

Federal Health Professions Student Loan (HPSL) and Federal Loan for Disadvantaged Student (LDS)

  • These Loan Programs are only offered by KU Lawrence

  • It gives students some benefits like fixed rate, low interest, and need-based federal Loan

The University of Kansas Endowment Association Loan Program

For the University of Kansas, KU Endowment serves as the official fundraising and fund-management organization. This organization is an independent non-profit corporation.

For many years, KU alumni have provided gifts to KU Endowment to serve the purpose of providing low-interest loans to deserving students. This low-interest loan is available to undergraduate and graduate/professional/law students.

Private/Alternative Loan Programs

  • The KU Endowment Association Loan Program supports a few private loans

  • It is mandatory for New Grad students and transferred students to have at least a cumulative 2.5 GPA to be eligible

  • The only requirement is for you to complete FAFSA to be eligible for this loan. If you have a co-signer then he/she has to apply through FAFSA

Student loan in Kentucky

For years now, the Kentucky Higher Education Assistance Authority (KHEAA) has been aiding state students in different ways. One of their best options is KAEL, "Kentucky Advantage Education Loan", which is one of the best and excellent means for students of the state to feel less burdened about their loans.

Immediate Repayment

  • 7.25% fixed interest rate

  • 2% guarantee fee

  • 0.5% Interest rate reduction for auto debit

Postponed Repayment

  • 7.75% fixed interest rate

  • 3% guarantee fee

  • 0.5% Interest rate reduction for auto debit

  • You will receive a minimum loan amount of $1000. The maximum you can get is $75000

Eligibility for Kentucky Advantage Education Loan

  • You need to be a Kentucky Resident enrolled at least half-time at an eligible school

  • If you’re non-Kentucky resident then you need to be enrolled in an eligible Kentucky School at least at half-time

  • Your age should be 18 or above

  • You need to be U.S. Citizen or eligible Non-citizen with proof of residency card

  • Your credit history should be accepted or approved by a co-signer

  • Academic progress should be maintained

Student loan in Maine

There are many types of loans which are offered by Maine state but you always have to remember that federal loans must have a higher priority.

There three types of loans which are offered by the state are:

  1.    Maine Loan

  2.    Maine Medical Loan

  3.    Maine Consolidation Loan

Maine Loan

This loan is better than other types of loans as it provides many features such as a 6 months grace period, lowest cost interest rates and a wide and flexible choice of repayments plans.

Undergraduate and graduate students can apply for this loan. They can borrow funds for full education cost.

Features of The Loan

  • Three fixed interest rates are offered in this alternative student loans on the repayment option which you select. These interest rates and the 0% upfront/guarantee fee are quite lower than the 2018-2019 federal direct plus loan

  • Approved borrowers receive the same fixed interest rate for the repayment option selected, regardless of credit history

  • There is no (0%) guarantee fee

  • 0.25% interest rate reduction with automatic debit payments

  • A low minimum loan amount of $1,000

  • No annual or aggregate borrowing limits

  • Six (6) month grace period

  • No application fee

  • No prepayment penalty

  • Three (3) disbursements per academic year

  • A range of repayment terms up to fifteen (15) years, depending on the repayment option selected

  • High quality, personalized customer service based in Maine

Maine Medical Loan

  • This loan is offered to students who are in medical school

  • It provides low-interest rates and choice on repayment terms

Maine Consolidation Loan

  • This Loan help when other lenders have folded. it provides debt management choices for Maine students

  • It bundles up the alternative loans into one and makes one low monthly payment for students

  • With this type of consolidation loan, your monthly financial outlay will be drastically reduced

Student loan in Massachusetts

The state of Massachusetts has formed an organization called the Massachusetts educational financing authority. This organization helps resident students to find necessary loans to fulfill their education goals. Low Cost fixed interest rate loans are offered by MEFA to those students who are residents of the state. Their dedication has helped many students to find affordable student loans and to get access to higher education.

MEFA Undergraduate Loan

MEFA has been around for over 35 years, providing low-cost fixed interest rate loans.

Many families have benefited from this.

  • They have Multiple repayment options

  • It makes life easier for a student as it offers a fixed interest rate so their monthly payments become predictable

How the MEFA graduate loan works

  • Application for this loan will be for one academic year. You have to reapply if you want a loan for next year

  • The minimum loan amount disbursed is $2,000 for private schools and $1,500  for public schools

  • 4% origination fee is charged with a co-signer

  • The maximum deferral period is 60 months.

Eligibility for MEFA

  • You need to be enrolled for at least half time in an accredited degree-granting undergraduate program at an eligible non-profit college or university

  • Must be a student residing in the state of Massachusetts

  • Reasonable academic progress should be maintained and it must be defined by the college or university

  • All borrowers must be citizens of the United States or permanent resident

Graduate Loans

  • The repayment period for this loan is 15 years

  • Graduate students from the state of Massachusetts have a lower interest rate on their graduate loans

Eligibility for graduate loans

  • You need to be enrolled in an accredited degree-granting graduate program for at least half time period at any eligible non-profit college or university

  • Applicant should be residents of Massachusetts and enrolled in any college in the country

  • The student should maintain a good standard of academic progress

  • Only citizens of the U.S. or permanent residents of the united states are eligible for this loan

Student loan in Minnesota

Minnesota is one of the states to survive the recession period.

The state has formed an agency called Minnesota Office Higher Education. MOHE was basically established to look after resident students who want to pursue their higher education and who need financial aid for the same to do this.

SELF loans have been introduced by MOHE to help students to pay for their college.

SELF Loans

Over $2 Billion has been provided to students under this program since 1984.

The SELF loan is basically a long term, low-interest educational loan primarily for Minnesota students who need financial aid for their higher education.


  • Students pursuing their education in post-secondary institutions in the state or out of the state and non-resident student attending colleges within the state are eligible

  • Students should attend at least half time in a SELF eligible and approved school

  • The enrolled student must make satisfactory progress

Student loan in Nebraska

The Nebraska Student Loan Program is one of its kind.

It was formed in 1979 to help students who wish to pursue a career in medicine, or as a physician assistant, dental and graduate level health workers.

This loan is exclusively for students living in Nebraska.

NSHL is awarded to students who agree to practice for one year in any state-designated shortage area.

Student loan in New Jersey

Students are provided the opportunity to apply for The New Jersey College Loan.

The NJCLASS is a state-based low cost and fixed interest rate student loan program.

It is available to all New Jersey college-bound residents and can be used as a supplement for the federal student loan program

Key Features for NJCLASS

  • Low fixed interest rates

  • Flexible repayment options

  • Instant credit decision

  • No penalties for early repayment

There are three types of NJCLASS loans:

The NJCLASS Classic Loan

This loan program is available for students pursuing their undergraduate degree. It awards a low fixed interest rate, flexible repayment plans, and up to 20 years repayment option to borrowers.

The NJCLASS Graduate and Professional Student Loan.

Students pursuing graduate and professional education journey can apply for this loan. Flexible repayment and low-interest rates are the key benefits for this loan. Under this program, students don’t need to submit any income proof to qualify.

There is no requirement of co-signer to receive this loan.

The NJCLASS consolidation Loan

It is available to borrowers with more than $30,000 in outstanding loans.

The consolidation loan reduces their monthly payments, helping them to manage their outstanding debts.

Student loan in New Mexico

The New Mexico Higher Education was formed to build resources for state students. It provides a clear overview of the colleges in New Mexico and helps students by advising them on how to plan for college with the available attractive loan repayment programs.

The list below gives an overview of different loan programs.

Medical Loan for Service

If you want to pursue your medical profession, the New Mexico state offers a loan program called Medical Loan for Service. Due to a shortage in the state for health professionals, this program was launched.

However, students need to prove their desire to practice in the designated shortage area of the state. If they do so, part of their loan will be forgiven.


  • A resident of New Mexico state for 12 months

  • Official consideration from medical school within New Mexico

  • Enrolled at least half time

  • Justify your financial need

  • A student should declare his/her intent to practice as a health professional in the state

Allied Health Loan for Service Program

Allied health loan for service program is awarded to students who wish to pursue a career in the medical field. Since there is a shortage of health practitioners, the state government offers education loans to students who seek certification/licensure in an eligible health field which include the following

  • Physical therapy

  • Occupational therapy

  • Speech-language pathology

  • Audiology

  • Pharmacy

  • Respiratory Care

  • Laboratory Technology

  • Mental Health-Social Services

  • Emergency Medical Services

  • Nutrition

  • Dental Hygiene


  • Residing in the state of New Mexico for the past 12 months

  • Attended any public post-secondary institution in New Mexico

  • A student should be undergraduate or graduate

  • Enrolled for at least half-time semester

  • Justify their financial need

  • Intention to practice as a health professional in a designated shortage area within the state

Nursing Loan For Service Program

Due to a shortage in the number of nurses in the state, students in this stream are provided with this loan forgiveness program.

Interested parties must declare their intention to work in the designated shortage area in order to avail up to 100% on loan forgiveness.


  • Residing in New Mexico for consecutively 12 months

  • Enrolled for a nursing program at the New Mexico public college or university

  • Enrolled for at least half-time

  • Justify financial need

  • Intention to practice health professional in a designated shortage area within the state of New Mexico

Teacher Loan For Service Program

Students who wish to venture into the education field to become teachers will receive benefits from this program. It is mandatory for students to complete or enhance their post-secondary teacher preparation education to receive this loan.


  • A resident of New Mexico for 12 months at least
  • Enrolled in teaching or an alternative licensure teacher preparation program

  • Enrolled at least half-time

  • Undergraduate or Graduate

  • Demonstrate financial need

  • A student must declare his/her intent to practice as a teacher in a designated shortage area within the state

WICHE Loan For Service Program

This program is only offered to those students who enroll at a selected out-of-state graduate/professional program.


  • U.S. Citizen or permanent resident alien

  • Graduated from a New Mexico public accredited high school or resided in New Mexico for three consecutive years

  • Attended an eligible public or private school listed for Veterinary Medicine or Dentistry

Link Loan

Link Loan is a private loan.

NMSL provides this loan to students in order to build a bridge between federal loans and the actual fees.

After federal loans are exhausted, students can apply for this loan to pay their tuition in full amount.

This program is offered to the resident students of New Mexico.

Student loan in Rhode Island

The Rhode Island Student Loan Authority (RISLA) is a state agency which provides financial aid to Rhode island resident students.

The loan process offered to the student is simple and the packages are designed in such a way that it makes life better for both parents and students before, during and after college.

RISLA helps students to guide through the process of selecting federal loans. This agency is a direct provider for the federal family education loan program (FFELP). This also includes filling and submitting FAFSA, which mandatory for eligibility to many other financial aid programs. These are the main Federal Loan programs.

RISLA Alternative Loans

Why Alternative loans? Usually, college students find federal loans are not enough. Stafford’s always runs out after a few thousand dollars, which not enough for any college tuitions. Below are the two alternative loans offered by RISLA.

The Rhode Island Family Education Loan

In this loan, students need a co-signer with good credits to apply. The student also need to have good credits as well.

The interest rate on this loan is determined based on how good your credit is. Each year, up to $35,000 extra can be received under the family education loan.

The College Bound Loan

This loan is a competitive alternative loan that is offered to “preferred borrowers.”

If you have good credits, you will receive this better loan.

The Bar Review Loan

The Bar Review Loan is offered to the students in the final year of their law school.

The expenses incurred during the final year while studying and taking the bar exams are covered from this loan. This loan comes with low cost and low interest.

Student loan in South Carolina

Other than the available federal loans in the state of South Carolina, students have options of taking alternative loans.

South Carolina’s Alternative Student Loans

The Palmetto Assistance Loan (PAL)

  • In this loan program, the student does not need the help of his/her parent to take the loan on their behalf.

  • Students under the age of 24 will need a cosigner with good credit in order to borrow the loan.

  • PAL is not only available for SC students but it always awards loans to state students studying outside.

PAL education Loan for college

  • Best option under palmetto assistance loan as it offers rates as low as 4.33%

  • One of the best options in South Carolina for students who are attending college within the state

  • It will fit in your monthly budget as it offers low rates and flexible repayment plans. It will cover your tuition and other education costs in undergraduate or graduate school

College loans for parents

  • PAL also offers programs for parents as it provides flexible low rates at 3.88%*.

  • Palmetto assistance is for South Carolina parents and student

Student Loan in Texas

Texas has its own education board which is called the Texas Higher Education Coordinating Board. This state-sanctioned board is designed to provide student loan resource for the benefit of Texas students.

It eases the worry of the student to get enrolled in any state’s higher education facilities by providing assistance in planning and paying for college.

THECB Loan Programs for Texas Higher Education

The THECB offers constant, low-interest college financing opportunities for state student. This program is shaped to the help state student who qualifies to pay in-state tuition rates.

Instead of selling student loans to other creditors, the THECB holds it for them.

This basically means that the student loans are serviced by the state over their entire lifetime.

Student Loan in Vermont

Since 1965, Vermont has formed a financial aid body for the benefits of its students.

The Vermont Student Assistance Corporation (VSAC) helps students to plan for their college by

  • guiding them towards saving money on education before entering the college

  • advising them on how to choose multiple financing options to pay for college

Other than Federal Loans, there is a VSAC private Loan called Vermont Advantage.

This loan can be applied after you exhaust your federal student loans and it comes with a fixed lower rate than others.


  • The student should be a resident of Vermont or enrolled in a Vermont University

  • You should be a U.S. Citizen or be an eligible non-citizen

  • Have a cosigner whose credit has been approved

  • You must have complete under graduation or should be enrolled in a graduate or professional training

  • Should attend till the half time at least

  • You need to meet eligibility criteria for federal financial aid

  • You should not be a defaulter of any VSAC loan

Frequently Asked Questions

  • 1.Do you have to fill out a Master Promissory Note every year?

    In most cases, for Subsidized and Unsubsidized Loans, once you've submitted the MPN and it's been accepted, you won't have to fill out a new MPN for future loans you receive.

  • 2.What information is included in an award letter?

    Financial aid award letters usually contain this information: Cost of attendance (COA), an estimate of what you can expect to pay for one year of school. This includes tuition and fees, room and board, books and supplies, transportation, and even personal expenses.

  • 3.What is an award letter for proof of income?

    This letter is sometimes called a 'budget letter', a 'benefits letter', a 'proof of income letter', or a 'proof of award letter'.  You can also request proof that you have never received Social Security benefits or Supplemental Security Income or proof that you have applied for benefits.