How to Get or Refinance Arkansas Student Loans

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The average student loan debt among Arkansas graduates of the Class of 2018 was $26,579, according to The Institute for College Access & Success. While this figure came in below the national average of $29,200, it’s still a significant amount of money to pay back. If you’re considering Arkansas student loans, it’s crucial to find an affordable loan with low costs of borrowing.

This guide will help you to get the Arkansas student loans you need, or if you’ve already borrowed, there are tips about refinancing your debt to save money:

Arkansas student loan debt: At a glance
Average debt at graduation$26,579
Percent of students who graduate with debt53%
National ranking for amount of debt37
National average debt at graduation (Class of 2019)$29,900
Source: The Institute for College Access & Success

How to get Arkansas student loans

When you apply for student loans to attend school in Arkansas, it’s best to exhaust options for loans from the government before obtaining private student loans.

Federal loans often have lower interest rates than their private equivalents, as well as access to federal loan forgiveness options and income-driven repayment (IDR) plans that cap your monthly payments at a percentage of your disposable income.

Federal student loans

Most Arkansas students borrow from the Department of Education through its direct loan program.

Direct loans, also known as Stafford loans, include both subsidized and unsubsidized loans from the federal government. Subsidized loans will cover your interest during undergraduate study, but you must demonstrate financial need to qualify.

Unsubsidized loans don’t cover in-school interest costs, but they’re available to graduate and professional students — as well as undergrads — and they’re awarded regardless of financial need.

For both subsidized and unsubsidized direct loans, the government charges a low fixed interest rate and set origination fee, so there’s no need to shop around. There’s also no credit check required for these government loans, and students are automatically eligible once they submit the Free Application for Federal Student Aid, also known as FAFSA.

The state of Arkansas also provides resources to help students, although the state doesn’t offer loans itself. Students can visit the Arkansas Student Loan Authority website to find out about their federal loan options and get free help with college planning.

Graduate students and parents of undergrads may be eligible for PLUS loans, which are also federal student loans. But PLUS loans are not available if you have adverse credit. Unlike direct loans, PLUS loans aren’t always a better deal than private student loans, so it’s important to compare all your options.

Private student loans

There are limits on the amount that students are eligible to take out in direct loans, both on an annual basis and throughout their time in school. Since direct loans alone are often insufficient to fully fund college, many students also take out private student loans.

Private student loans don’t offer the same kind of borrower protections that federal loans do. There’s no IDR option and no loan forgiveness for public service work. There’s also more variation in rates and terms among private lenders, which is why it’s so important to compare options to find your best deals.

To qualify for private student loans, you’ll need to have good credit and proof of income. Many students will likely have to have a cosigner to get approved. A cosigner shares legal responsibility for loan repayment, so it is a big responsibility for someone.

Students looking for private student loans in Arkansas have many options, including:

  • Centennial Bank
    • Carries the Smart Option Student Loan from Sallie Mae
    • APRs run from 25%-12.35%, as of July 20, 2020
  • College Ave Student Loans
    • Variable APRs: 1.04% – 11.98%
    • Fixed APRs: 3.34% – 12.99%
    • Also offers parent loans
  • Ascent Student Loans
    • Has a 1% cashback graduation reward
    • Variable APRs: 2.46% – 12.98%
    • Fixed APRs: 3.39% – 14.50%
  • LendKey
    • Variable APRs: 1.49% – 7.69%
    • Fixed APRs: 3.99% – 8.49%
    • Offers cosigner release with certain lenders

How to refinance Arkansas student loans

After graduation, Arkansas student loan borrowers also have ways to make their monthly payments more affordable. One of these options is to refinance the student loans.

Refinancing is generally done with private lenders, including local and national banks, credit unions or online lenders. The federal government doesn’t offer loan refinancing, although it is possible to consolidate certain federal loans through the Department of Education if you’d prefer to have one big loan to pay instead of many, or want to change your length of repayment.

Unlike consolidation, refinancing can significantly lower your interest rate, depending on how high your rates are now and how strong a credit profile you (or your cosigner) has. As a result, student loan refinancing can reduce both your monthly payments and the total cost of your loan.

But the downside to refinancing is that you lose access to federal borrower protections, including Public Service Loan Forgiveness and IDR programs, since your loan will now be private.

You should carefully weigh whether it makes sense for you to give up these federal loan benefits to achieve the savings that refinancing Arkansas student loans could provide. If you want to refinance, some financial institutions offering this option include:

  • SoFi
    • Has fixed refinancing APRs of 2.99% – 6.88% and variable APRs at 2.25% – 6.43%
    • Unemployment protection program will pause your payments and help you find work
  • Earnest
    • Fixed refinancing APRs at 2.98% – 5.79% and variable APRs at 1.99% – 5.64%
    • Protections also available if you’re having trouble making payments
  • Education Loan Finance
    • Has a wide variety of repayment terms, from five to 20 years
    • Offers fixed refinancing APRs at 3.21% – 5.79% and variable APRs at 2.39% – 6.01%

As with private student loans, you’ll want to do some student loan refinance comparison shopping since terms can vary widely from one lender to another with these loan types.

Final tips on student loans in Arkansas

Whether you’re going to school in Arkansas now or have graduated and want to take control over your Arkansas student loans, understanding different financing options is key to making school affordable. Remember to max out scholarships and grants first, then take federal loans, and finally turn to private loans to make up the difference.

Likewise, if you’re looking into refinancing previous loans, also check out some of the forgiveness options available.

By borrowing as little as you can and choosing the right loan products, your path to freedom from debt should be shorter, quicker and smoother. You might even pay off your student loans ahead of schedule.

Rebecca Safier contributed to this report.

Need a student loan?

Here are our top student loan lenders of 2021!
LenderVariable APREligibility 
1.04% – 11.98%1Undergraduate, Graduate, and Parents

Visit College Ave

1.25% – 11.35%*,2Undergraduate, Graduate, and Parents

Visit SallieMae

1.05% – 11.44%3Undergraduate and Graduate

Visit Earnest

3.84% – 9.40%4Undergraduate and Graduate

Visit CommonBond

1.78% – 11.89%5Undergraduate and Graduate

Visit SoFi

1.24% – 11.99%6Undergraduate and Graduate

Visit Discover

1.21% – 11.53%7Undergraduate and Graduate

VISIT CITIZENS

2.46% – 12.98%8Undergraduate and Graduate

Visit Ascent

* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.

1 Important Disclosures for College Ave.

CollegeAve Disclosures

College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
 
This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. This informational repayment example uses typical loan terms for a first year graduate student borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.10% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $141.66 while in the repayment period, for a total amount of payments of $16,699.21. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.

Information advertised valid as of 1/27/2021. Variable interest rates may increase after consummation. Lowest advertised rates require selection of full principal and interest payments with the shortest available loan term.


2 Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.

3 Important Disclosures for Earnest.

Earnest Disclosures

  1. Rates include 0.25% Auto Pay Discount
     
  2. Explanation of Rates “With Autopay” (APD)
    Rates shown include 0.25% APR discount when client agrees to make monthly principal and interest payments by automatic electronic payment. Use of autopay is not required to receive an Earnest loan.

    Available Terms
    For Cosigned loans – 5, 7, 10, 12, 15 years. 
    Primary Only – 10, 12, 15 years

    In school deferred payment is not available in AL, AZ, CA, FL, MA, MD, MI, ND, NY, PA, and WA).


4 Important Disclosures for CommonBond.

CommonBond Disclosures

Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.  If you choose to complete an application, we will conduct a hard credit pull, which may affect your credit score. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Jan 1, 2021 and may increase after consummation.


5 Important Disclosures for SoFi.

sofiDisclosures

UNDERGRADUATE LOANS: Fixed rates from 4.23% to 11.26% annual percentage rate (“APR”) (with autopay), variable rates from 1.88% to 11.66% APR (with autopay). GRADUATE LOANS: Fixed rates from 4.13% to 11.37% APR (with autopay), variable rates from 1.78% to 11.73% APR (with autopay). MBA AND LAW SCHOOL LOANS: Fixed rates from 4.30% to 11.52% APR (with autopay), variable rates from 1.95% to 11.89% APR (with autopay). PARENT LOANS: Fixed rates from 4.60% to 10.76% APR (with autopay), variable rates from 1.88% to 11.16% APR (with autopay). For variable rate loans, the variable interest rate is derived from the one-month LIBOR rate plus a margin and your APR may increase after origination if the LIBOR increases. Changes in the one-month LIBOR rate may cause your monthly payment to increase or decrease. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Lowest rates are reserved for the most creditworthy borrowers. If approved for a loan, the interest rate offered will depend on your creditworthiness, the repayment option you select, the term and amount of the loan and other factors, and will be within the ranges of rates listed above. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Information current as of 11/04/2020. Enrolling in autopay is not required to receive a loan from SoFi. SoFi Lending Corp., licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. NMLS #1121636 (www.nmlsconsumeraccess.org).


6 Important Disclosures for Discover.

Discover Disclosures

  1. Aggregate loan limits apply.
  2. Students who get at least a 3.0 GPA (or equivalent) qualify for a one-time cash reward on each new Discover undergraduate and graduate student loan. Reward redemption period is limited. Please visit DiscoverStudentLoans.com/Reward for any applicable reward terms and conditions.
  3. Lowest APRs shown for Discover Student Loans are available for the most creditworthy applicants for undergraduate loans, and include an interest-only repayment discount and Auto Debit Reward. The interest rate ranges represent the lowest and highest interest rates offered on Discover student loans, including undergraduate and graduate loans. The fixed interest rate is set at the time of application and does not change during the life of the loan. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. For variable interest rate loans, the 3-Month LIBOR is 0.250% as of January 1, 2021. Discover Student Loans may adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the “interest rate change date”), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Our lowest APR is only available to customers with the best credit and other factors. Your APR will be determined after you apply. It will be based on your credit history, which repayment option you choose and other factors, including your cosigner’s credit history (if applicable). Learn more about Discover Student Loans interest rates.
  4. Lowest APRs shown for the Discover Private Consolidation Loan are available for the most creditworthy applicants and include a 0.25% interest rate reduction while enrolled in automatic payments.The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. For variable interest rate loans, the 3-Month LIBOR is 0.250% as of January 1, 2021. Discover Student Loans may adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the “interest rate change date”), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Our lowest APR is only available to customers with the best credit and other factors. Your APR will be determined after you apply. It will be based on your credit history, which repayment option you choose and other factors, including your cosigner’s credit history (if applicable). Visit Discover.com/student-loans/consolidation.html for more information, including up-to-date interest rates and APRs.
Lowest APRs shown for Discover Student Loans are available for the most creditworthy applicants for undergraduate loans, and include an interest-only repayment discount and a 0.25% interest rate reduction while enrolled in automatic payments.

7 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

Undergraduate Rate Disclosure: Variable interest rates range from 1.21% – 11.53% (1.21% – 11.53% APR). Fixed interest rates range from 3.99% – 11.80% (3.99% – 10.92% APR).

Graduate Rate Disclosure: Variable interest rates range from 1.39% – 11.43% (1.39% – 11.14% APR). Fixed interest rates range from 4.39% – 11.70% (4.39%-11.39% APR).

Business/Law Rate Disclosure: Variable interest rates range from 1.39% – 8.37% (1.39% – 8.07% APR). Fixed interest rates range from 4.13% – 9.84% (4.13% – 9.12% APR).

Medical/Dental Rate Disclosure: Variable interest rates range from 1.39% – 8.37% (1.39% – 8.07% APR). Fixed interest rates range from 4.03% – 8.64% (4.03% – 8.34% APR).

Parent Loan Rate Disclosure: Variable interest rates range from 2.13% – 7.44% (2.13%-7.44% APR). Fixed interest rates range from 4.69% – 7.83% (4.69% – 7.83% APR).

Bar Study Rate Disclosure: Variable interest rates range from 4.49% – 9.63% (4.49% – 9.56% APR). Fixed interest rates range from 7.39% – 12.94% (7.39% – 12.82% APR).

Medical Residency Rate Disclosure: Variable interest rates range from 3.58% – 7.08% (3.58% – 6.80% APR). Fixed interest rates range from 6.99% – 10.49% (6.97% – 10.08% APR).

Variable Rate Disclosure: Variable Rates are based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the
preceding calendar month. As of December 1, 2020, the one-month LIBOR rate is 0.14%. Variable interest rates will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree and presence of a co-signer. The maximum variable rate is the greater of 21.00% or Prime Rate plus 9.00%. 

Fixed Rate Disclosure: Fixed rate ranges are based on applicable terms, level of degree, and presence of a co-signer.

Lowest Rate Disclosure: Lowest rates require a 5-year repayment term, immediate repayment, a graduate degree (where applicable), and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Rates are subject to additional terms and conditions, and are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.

Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer.  Borrowers should carefully review federal benefits, especially if they work in public service, are in the military, are considering possible loan forgiveness options, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision on our website including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review.

Eligibility Criteria: Applicants must be a U.S. citizen, permanent resident, or eligible non-citizen with a creditworthy U.S. citizen or permanent resident co-signer. For applicants who have not attained the age of majority in their state of residence, a co-signer is required. Citizens Bank reserves the right to modify eligibility criteria at any time. Citizens Bank private student loans are subject to credit qualification, completion of a loan application/Promissory Note, verification of application information, and if applicable, self-certification form, school certification of the loan amount, and student’s enrollment at a Citizens Bank participating school.

Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.

Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.


7 Important Disclosures for Ascent.

Ascent Disclosures

Ascent Student Loans are funded by Richland State Bank (RSB), Member FDIC. Loan products December not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions December apply.  For Ascent Terms and Conditions please visit: www.AscentStudentLoans.com/Ts&Cs

Rates are effective as of 12/01/2020 and reflect an automatic payment discount of 0.25% on the lowest offered rate and a 2.00% discount on the highest offered rate.  Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month.  For Ascent rates and repayment examples please visit: www.AscentStudentLoans.com/Rates

1% Cash Back Graduation Reward subject to terms and conditions. Click here for details.