Save money on college just by opening your email
State-Based 0% Interest Student Loan Programs
Sometimes student loans can’t be avoided. If you have exhausted all other options including scholarships, financial aid, company programs then student loans are still an option for you to help you finish your education. If you choose this path, I want you to do so informed. There are great companies to work with and many companies who do not have your best interest in mind.
In this post, we will focus on some options of student loans that are 0% interest. This is a great place to start.
Massachusetts: No Interest Loan (NIL) Program
-
This program provides state-funded, zero-interest loans to financially needy Massachusetts residents attending post-secondary schools in the state.
-
Students must be legal residents for at least one year and enrolled full-time in an eligible institution.
-
Loans are repaid over up to 10 years, with borrowing limits typically between $1,000–$4,000 per academic year, and a lifetime maximum of around $20,000.
Learn More Here
Pennsylvania (Lancaster County): Lancaster Dollars for Higher Learning
-
A county-specific, interest-free loan program.
-
Requirements: resident of Lancaster County, full-time enrollment at an approved institution, and application during a specified period (e.g., February–April).
-
Co-borrower endorsement is required.
- Learn More Here
Texas: Abe and Annie Seibel Foundation
-
Offers interest-free loans to students who:
-
Are Texas residents and high school graduates.
-
Graduate top 10% of their class, or have minimum SAT/ACT scores.
-
Maintain a minimum GPA in college (e.g., 3.0).
-
-
Application window typically opens January 1–February 28.
Learn More Here
Nonprofit & Community-Based Interest-Free Loan Examples (Not Statewide)
These are not state programs but are worth exploring if you or someone you know qualify:
-
Bill Raskob Foundation – Interest-free college loans, typically ~$9,000/year.
-
Evalee C. Schwarz Charitable Trust – Loans of $5,000–$15,000 annually (up to $60,000 lifetime) for high-achieving students.
-
Hebrew Free Loan Association (Northeast Ohio) – Interest-free loans up to $10,000 for residents with qualifying needs.
Hebrew Free Loan Society (Greater Philadelphia) – Loans up to $7,500 for residents within specific counties, often requiring co-signers.
Summary Table
| State / Organization | Program Name | Eligibility | Loan Details |
|---|---|---|---|
| Massachusetts | No Interest Loan (NIL) Program | MA resident, financial need, enrolled full-time | Up to $4,000/year, $20,000 lifetime max; repay over 10 yrs |
| Pennsylvania (Lancaster County) | Lancaster Dollars for Higher Learning | Lancaster County resident, co-borrower required | Interest-free; specific application window |
| Texas | Abe and Annie Seibel Foundation | TX high school graduate, top academic standing | Interest-free for full-time students; GPA required |
| Various Nonprofits | Bill Raskob Foundation, Evalee C. Schwarz Trust | High-achieving or specific criteria applicants | Interest-free, limited amounts |
| Northeast Ohio Nonprofit | Hebrew Free Loan Association | Residents in Northeast Ohio with qualifying need | Up to $10,000 interest-free |
| Philadelphia Area Nonprofit | Hebrew Free Loan Society (Philly) | Residents of select PA/NJ counties | Up to $7,500 interest-free
|