Refinancing with Laurel Road
Refinancing APRs starting at 1.89%. Checking your rates won’t affect your score.
Note that the situation for student loans has changed due to the impact of the coronavirus outbreak and relief efforts from the government, student loan lenders and others. Check out our Student Loan Hero Coronavirus Information Center for additional news and details.
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If you live in South Dakota, you may not have been able to pay for college entirely out of pocket. Seventy-two percent of students in the Class of 2018 graduated with South Dakota student loans, with an average of $31,895 in student loan debt, according to The Institute for College Access & Success (TICAS).
If you’re not sure how to pay for higher education, or if you have existing student debt you want to save money on, let’s look at your options for both new and refinanced student loans in South Dakota.
Let’s first take a look at how to get student loans if you’re currently attending a school in South Dakota. Of course, you’ll want to apply first for as many scholarships and grants as possible (since those almost never need to be repaid). But after that, here are some places to turn to pay for college:
- Federal student loans
- Federal parent PLUS loans
- Private South Dakota student loans
- Interest-free South Dakota school loans
The federal government offers student loans that you can use to pay for school at any qualified college, including those in South Dakota. You can borrow between $5,500 and $12,500 per year as an undergraduate, depending on your year and dependency status.
There are two main types of federal student loans: subsidized and unsubsidized. The government covers interest on subsidized loans during periods of deferment, whereas you’re responsible for all the interest that accrues on unsubsidized loans.
Any U.S. citizen or qualifying resident at an eligible school can get federal student loans, regardless of their credit situation or income. Loan interest rates are set by Congress each year, and the current rate is 2.75% on undergraduate loans disbursed until June 30, 2021.
In order to borrow federal student loans, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA). The information is sent to your preferred schools, and the amount you can borrow is presented as part of your financial aid package.
These federal student loans should usually be the first place you turn after exhausting your possibilities for scholarships and grants. This is because federal loans offer special protections and programs that other sources generally don’t.
It’s also possible for a parent to help you by getting a federal parent PLUS loan. Rather than you having to repay this student loan, your parent takes on that responsibility.
To borrow a parent PLUS loan, your parent will have to fill out the FAFSA, as well. Unlike other federal student loans, however, PLUS loans come with credit requirements. They also have a higher interest rate — currently 5.3%.
While you might not have your parent cover the entire cost of your college with a parent PLUS loan, this loan can help if they’re willing and able to borrow it.
The federal government isn’t the only place to turn to for South Dakota student loans. Private lenders can provide extra funding when federal loans won’t get the job done.
However, the lowest listed interest rates on private student loans aren’t available to everyone. Each lender has its own requirements, terms and interest rates, so the requirements aren’t uniform the way they are for federal loans.
Depending on your credit, though, it might be possible to get a lower interest rate with private student loans. If you don’t have the credit or income to qualify for private student loans on your own, you’ll need to bring a cosigner with good credit into the mix.
Finally, as noted above, remember that private student loans don’t offer the same repayment options and protections as federal student loans. With federal loans, you can likely sign up for income-driven repayment to cap your monthly obligation at 10% of your income and possibly lead to loan forgiveness.
While some private lenders, including Earnest, have hardship programs, they aren’t guaranteed — plus, you might have to begin repaying private student loans while you’re still in school.
Since private loan terms and rates vary, it’s a good idea to shop around with a few different lenders to find your best deal.
Some schools in South Dakota offer small, interest-free loans to students who need help with paying for supplies. For example, the University of South Dakota offers a loan of up to $500 to full-time undergraduates at its Vermillion campus. This money can be used to buy textbooks and supplies at the campus bookstore.
Check with the college you plan to attend to find out if it offers similar loans — a small amount can go a long way when you aren’t required to pay interest.
Once you finish school and enter repayment, it’s time to figure out if you can afford each month’s obligation.
In some cases, if your income is low or if you can’t find a job, going on an income-driven repayment plan makes sense. Your payments are capped so they’re feasible, and you can consolidate your federal student loans so you have a longer term and lower, more manageable payments.
However, this strategy for handling your student debt can mean more money will be paid in interest charges over the life of the loan. Refinancing to a lower interest rate, on the other hand, can mean thousands of dollars in interest savings over the life of your loan.
As stated earlier, according to TICAS, South Dakota graduates have an average debt of $31,895 at the end of a four-year program. Let’s say you owed that amount at a 5.05% rate. If you were able to refinance to a 3.05% rate, you could save $3,643 over 10 years of repayment.
Our student loan refinancing calculator reveals exactly how much you could save by lowering your interest rate. But note that although refinancing can lead to savings, it’s unfortunately not available to everyone.
You’ll need to meet a lender’s underwriting requirements for credit and income, or apply with the help of a cosigner. Another potential downside is that when you refinance to a private loan, you lose federal protections, such as income-driven repayment plans or Public Service Loan Forgiveness.
Before refinancing, make sure you’re comfortable sacrificing federal benefits and have the income to make consistent, on-time payments on your student loan.
Reduce your need for South Dakota student loans
Even though there’s a good chance you’ll need some student loans to finish school, there’s no reason to immediately turn to debt. Here are some of the steps you can take to reduce your need for South Dakota student loans and still pay for college:
- Fill out the FAFSA to see if you qualify for federal and school grants, as well as work-study programs.
- Apply for scholarships while in high school and keep applying for scholarships during college.
- Find a part-time job or get a side hustle during school to help pay for costs.
- Consider a less-expensive school with a lower bill, including starting at a community college.
- If possible, live at home for part of your college years to save money on living costs.
College can be expensive, but you don’t have to come out drowning in debt. Do what you can to reduce the initial cost, and then borrow only what you have to for higher education.
Rebecca Safier contributed to this report.
Need a student loan?Here are our top student loan lenders of 2021!
|1.04% – 11.98%1||Undergraduate, Graduate, and Parents|
|1.25% – 11.35%*,2||Undergraduate, Graduate, and Parents|
|1.24% – 11.99%3||Undergraduate and Graduate|
|1.78% – 11.89%4||Undergraduate and Graduate|
|1.05% – 11.44%5||Undergraduate and Graduate|
|1.19% – 11.51%6||Undergraduate and Graduate|
|2.46% – 12.98%7||Undergraduate and Graduate|
|* 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.
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.
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 Discover.
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.
4 Important Disclosures for SoFi.
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).
5 Important Disclosures for Earnest.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
Undergraduate Rate Disclosure: Variable interest rates range from 1.19% – 11.51% (1.19% – 10.67% APR). Fixed interest rates range from 3.99% – 11.80% (3.99% – 10.92% APR).
Graduate Rate Disclosure: Variable interest rates range from 1.37% – 11.41% (1.37% – 11.12% APR). Fixed interest rates range from 4.39% – 11.70% (4.39%-11.39% APR).
Business/Law Rate Disclosure: Variable interest rates range from 1.37% – 9.55% (1.37% – 8.83% APR). Fixed interest rates range from 4.13% – 9.84% (4.13% – 9.12% APR).
Medical/Dental Rate Disclosure: Variable interest rates range from 1.37% – 8.35% (1.37% – 8.05% APR). Fixed interest rates range from 4.03% – 8.64% (4.03% – 8.34% APR).
Parent Loan Rate Disclosure: Variable interest rates range from 2.11% – 7.42% (2.11%-7.42% APR). Fixed interest rates range from 4.69% – 7.83% (4.69% – 7.83% APR).
Bar Study Rate Disclosure: Variable interest rates range from 4.47% – 9.61% (4.47% – 9.54% APR). Fixed interest rates range from 7.39% – 12.94% (7.38% – 12.81% APR).
Medical Residency Rate Disclosure: Variable interest rates range from 3.56% – 7.06% (3.56% – 6.78% 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
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 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.