Top Arizona Student Loan and Refinance Options

Arizona is known for the iconic Grand Canyon and the red rocks of Sedona. It’s also rich with Native American heritage and a diverse arts and culture scene, making it a unique college experience with many opportunities for personal growth.

But according to the Institute for College Access & Success, almost half of Arizona students who graduated from a four-year institution had to borrow money to pay for college.

The average debt for 2020 Arizona graduates was $24,298. Only 7% of those grads had debt from private loans, while 47% of those grads had debt in general, which means that many students had to turn to other sources to fill financial gaps.

If you’re planning to attend an Arizona college and need additional funding, here are some private student loan lenders to explore. And for borrowers who have already graduated, check out these refinancing options that could lower your interest rate and save you money.

State-specific Arizona aid programs

If you’re an Arizona resident, you might be eligible for student aid programs provided by the state of Arizona. These programs are currently limited to the Arizona Leveraging Educational Assistance Partnership (AzLEAP) and the Arizona Teacher Student Loan Program.

Residents of Arizona who attend a participating institution in the state might be eligible for the AzLEAP grant program. It provides low-income undergraduates a maximum of $2,500 per academic year. But the average award is $1,000.

There are currently 36 participating institutions, including Arizona State University, the University of Arizona and many community colleges.

Arizona Teacher Student Loan Program

The Arizona Teacher Student Loan Program is a need-based forgivable loan designed to encourage Arizona residents to pursue a teaching career within the state’s public school system.

Eligible students agree to teach in an Arizona public school for a term equal to the number of years they receive the loan, plus an additional year. Students can receive up to $7,000 per academic year for a maximum of three years. And loan funds must be used for tuition, instructional materials or mandatory fees.

So, if you qualify for the loan for all three years, you’ll have to teach for four years in order to complete your service agreement.

Note that you must sign a promissory note agreeing to the service conditions of the loan. If you fail to meet your teaching obligation, you must repay the loan plus 7% interest.

Arizona student loans from national lenders

We recommend exhausting your options for federal student loans before turning to private lenders. Federal loans typically have lower interest rates, more flexible terms and better borrower protections.

But if you still need private Arizona student loans, there are several national lenders that work with borrowers across the country.

Here are some of the top private student loan companies that have good reputations with our readers.

• Sallie Mae. Best for one-stop shopping and offers bonus perks for undergrads. See our in-depth Sallie Mae review.
• Earnest. Best for fast application and approval. Read our full Earnest review.
• Ascent. Offers generous autopay discounts and cash-back incentives. Check out our detailed overview of Ascent’s private student loans.

You can also check with your local bank or credit union to determine if they offer private student loan options.

Arizona student loan refinance options

Refinancing offers borrowers the chance to get a better interest rate or loan terms. It’s also a great strategy to help pay off your loans faster since you’ll save money in interest charges.

Keep in mind that refinancing can come with some downsides depending on your situation.

If you’re refinancing federal student loans, you’ll lose all federal borrower benefits and protections. For example, you won’t have access to loan forgiveness programs or income-driven repayment plans.

But if you have private Arizona student loans, there’s no reason not to refinance. And you can refinance as many times as you want to continue getting the best deal. We recommend shopping around with at least three refinancing lenders at least once per year.

National refinancing lenders

Here are some of our favorite refinancing lenders that our readers regularly work with.

• Earnest. This is one of the top refinancing lenders due to its flexible repayment terms, consistently low interest rates and custom loan payments.
• Laurel Road. This lender is a great option for medical professionals and other high-debt, high-income borrowers.
• ELFI. ELFI has excellent customer service and competitive fixed interest rates.

We regularly update our best refinancing lenders based on reader feedback and the most current refinancing bonuses.

If you’d prefer a local refinancing lender, LendKey works with over 13,000 community financial institutions that might meet your needs. And it has a generous welcome bonus when you refinance through our LendKey partner link.

Arizona student loan borrowers can reduce their debt

To limit student loan debt to begin with, Arizona students should take advantage of any available grants and scholarships — both of which don’t require repayment.

Once you’ve graduated, you might be eligible for various loan forgiveness programs to help ease your student debt burden.

For example, if you’re pursuing a medical profession, you might qualify for Arizona loan assistance programs such as:

• Arizona State Loan Repayment Program (SLRP). The Arizona Department of Health Services provides two loan assistance programs for healthcare providers: Primary Care Provider Loan Repayment Program and the Rural Private Primary Care Provider Loan Repayment Program. Each offers different award amounts, and eligibility and service requirements. But both programs offer full-time and half-time service opportunities.
• NURSE Corps Loan Repayment Program. Eligible registered nurses (RNs) and advanced practice RNs (e.g. nurse practitioners) can have a portion of their student loans forgiveness in exchange for a minimum two-year service commitment at a critical shortage facility in Arizona.

Additionally, you might qualify for Public Service Loan Forgiveness if you work for a qualifying employer in the public or nonprofit sector.

If you’re not eligible for any of these loan forgiveness programs and have federal student loans, you can take advantage of income-driven repayment (IDR) forgiveness. Under an IDR plan, your monthly payment will be capped at 10% to 15% of your discretionary income. And your remaining balance will be wiped away after 20 to 25 years of qualifying payments.

If you need help figuring out which repayment strategy (e.g. loan forgiveness versus refinancing) is best for your situation, schedule a consultation today. Our team of student debt experts can provide a custom repayment plan that factors in your career and financial goals.