Your Education,
Your Terms

Ever get frustrated seeing a huge range of possible interest rates and not knowing where you actually land? That’s where the Skyla's marketplace comes in. Think of it like Expedia or Google Flights — but for student loans.

With one simple form, you can compare real, pre-qualified rates from multiple lenders, side by side. That way, you’ll know exactly what your monthly payment, APR, and total repayment amount would be before you commit to anything.

Eligibility for federal student loans is determined by completing the FAFSA Free Application for Federal Student Aid). Most don’t require a credit check (except PLUS loans), which assesses your credit history.

On the other hand, private student loans rely heavily on your creditworthiness for approval. If you don’t have a strong credit history, you may need a cosigner.

Yes, you can use both federal and private student loans to cover your education costs, but it’s important to understand how they work together and how repayment will differ.

Federal loans are typically the first choice for students because of their lower interest rates, flexible repayment options, and borrower protections like income-driven repayment plans and loan forgiveness programs. On the other hand, private student loans can help fill the gap if federal loans, scholarships, and grants don’t fully cover your cost of attendance.

There are a few different types of student loans, and knowing the difference can help you pick the right one:

• Federal Student Loans – Offered by the U.S. Department of Education. They have fixed interest rates set by Congress and come with benefits like income-driven repayment plans and loan forgiveness options.
• Undergraduate Student Loans – These can be federal or private and are used for your bachelor’s degree.
• Parent PLUS Loans – Federal loans for parents helping their child pay for school. They require a credit check, and not everyone qualifies. Some private lenders offer similar loans, but they don’t come with federal protections.
• Graduate Student Loans – Loans designed for grad school students. Federal options include Direct Unsubsidized Loans and Grad PLUS Loans, but private lenders offer these as well.
• MBA Student Loans – If you’re striving for a business degree, some private lenders offer specialized MBA loans instead of using a general graduate student loan.
• Law School Student Loans – These help pay for law school. You can use general grad school loans or get a law school-specific loan from a private lender.
• Medical School Student Loans – These cover med school expenses. Some even let you delay payments until after residency.

Private student loans are loans you can get from banks, credit unions, or online lenders to help pay for school and living expenses. Unlike federal student loans, which are funded by the government, private loans come with different terms and interest rates depending on your credit history, financial situation, and lender.

Private student loans can help cover the costs that federal loans might not. You can use them for things like:

• Tuition and fees
• Room and board
• Housing and utilities
• Meals and groceries
• Books and school supplies
• A personal computer for school
• Childcare, if you have dependents

If it’s an expense related to your education, private student loans might help cover it.

There’s no strict deadline, so you can apply anytime.

That said, it can take 3 to 5 weeks for the loan to process and the funds to be disbursed. If you know you’ll need a loan, applying sooner rather than later can help avoid delays.

Every lender has different requirements, but, in general, you’ll need to:

• Have a good credit score (or a cosigner who does)
• Meet income and debt-to-income ratio (DTI) requirements (or have a cosigner who does)
• Be enrolled in an eligible education program
• Be a U.S. citizen or legal resident
• Be at least 18 years old and have a high school diploma or equivalent (or have a cosigner)
• Use the loan for education expenses only

If your credit score or income isn’t strong enough, adding a cosigner can help you qualify.

You might be able to, but probably not on your own. Unlike federal loans, which don’t require a credit check, private loans do—and many students don’t qualify because they don’t have much credit history yet.

If your credit score is low or nonexistent, the best way to qualify is by adding a creditworthy cosigner, which could also help you get a lower interest rate.

You can usually borrow up to 100% of your school’s cost of attendance (which includes tuition, fees, housing, and other expenses) minus any other financial aid you receive.

However, the actual amount you qualify for depends on the lender and factors like your credit score, your cosigner’s credit, your school’s costs, and your degree program.

It depends, but most students do need one.

If you’re an undergraduate student without a strong credit history, most lenders will require a cosigner. In fact, over 90% of private student loans for undergraduates are cosigned.

Even if you’re a grad student and don’t need one, adding a cosigner with good credit could help you get a lower interest rate. With our marketplace, you can even compare different cosigners to see who helps you get the best deal.

Federal STUDENT loans:

Federal loans have fixed interest rates, meaning the rate is set when you take out the loan and doesn’t change for the life of the loan. Rates are determined annually by Congress and are the same for all borrowers in a specific category (e.g., undergraduates, graduate students).

This is great because fixed rates provide stability, so you’ll know exactly how much interest you’re accruing and what your payments will be.

private student loans

Private loans can have either fixed or variable interest rates.

• Fixed rates: Like federal loans, these stay the same throughout the life of the loan, providing predictable monthly payments.
• Variable rates: These start lower than fixed rates but fluctuate based on market conditions, meaning your rate — and monthly payment — can increase or decrease over time.

This can be risky because, although variable rates might save you money at first, they are unpredictable. If rates increase significantly, your total repayment cost could end up being much higher than with a fixed-rate loan.

When borrowing a private student loan, you’ll need to choose between a fixed or variable interest rate:

• Fixed Rate – Stays the same for your entire loan term, so your monthly payments never change.
• Variable Rate – Can go up or down over time, which means your monthly payment could increase or decrease.

Fixed rates offer predictability, while variable rates sometimes start lower but could rise later.

Borrow responsibly. We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.

This student loan marketplace is powered by Sparrow. These loans are made by Sparrow’s lending partners. Skyla is not the creditor for these loans and is compensated by Sparrow for the referral of loan customers. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.

SPARROW RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. © 2025 Sparrow Labs Inc. All rights reserved. Sparrow, the Sparrow logo, and other Sparrow names and logos are service marks or registered service marks of Sparrow Labs Inc. All other names and logos used are the trademarks or service marks of their respective owners. Sparrow is not sponsored by or an agency of the United States of America.