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Updated: March 18, 2024

Best Private Student Loans for College

Featured Lenders

After exhausting available federal loans awarded through the FAFSA, private student loans are an option to close a funding gap, but must be carefully analyzed. Before committing to a loan, it’s important to shop around for the best interest rate, fees, terms, and conditions to suit your needs. Here are a few of our top private student loan picks for you to consider.

Lender

Fixed APR
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.

Variable APR
i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.

Repayment Terms

Our Rating

Pricing disclosure
×

College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community 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.

(1)The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.

(2)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 3/7/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.

4.07% – 15.48% 1

5.59% – 16.69% 1

5, 8, 10, 15 years 2

Fixed APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.07% – 15.48%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.59% – 16.69%

Terms
5, 8, 10, 15 years

Best for private student loan borrowers who want a quick credit decision

Offers
Autopay discount (0.25%), Graduation reward ($150), and Cosigner release

Undergraduate Student Loan Rating

Pricing disclosure
×

Lowest rates shown include the auto debit discount. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/ separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. 

3 Repayment options: Deferred repayment; $25 Fixed repayment; Interest repayment; Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. 

Only the borrower may apply for cosigner release. To do so, they must first meet the age of majority in their state and provide proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if their status has changed since they applied). In the last 12 months, the borrower can’t have been past due on any loans serviced by Sallie Mae for 30 or more days or enrolled in any hardship forbearances or modified repayment programs. In addition, the borrower must have paid ahed or made 12 on-time principal and interest payments on each loan requested for release. The loan can’t be past due when the cosigner release application is processed. The borrower must also demonstrate the ability to assume full responsibility of the loan(s) individually and pass a credit review when the cosigner release application is processed that demonstrates a satisfactory credit history including but not limited to no: bankruptcy, foreclosure, student loan(s) in default or 90-day delinquencies in the last 24 months. Requirements are subject to change. 

For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website may be subjected to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time.

Information advertised valid as of 8/25/2023.

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.

Saving for College is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.

©2023 Sallie Mae Bank. All rights reserved. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks if Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners. SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America.

 

4.50% – 15.49%

6.37% – 16.70%

10 to 15 years

Fixed APR

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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.50% – 15.49%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
6.37% – 16.70%

Terms
10 to 15 years

Best for private student loan borrowers with a cosigner

Offers
0.25 percentage point interest rate reduction with autopay and borrowers can apply for cosigner release

Undergraduate Student Loan Rating

Pricing disclosure
×

Before applying for a private student loan, Citizens and Monogram recommend comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans.  

The Custom Choice Loan® is made by Citizens (“Lender”).  All loans are subject to individual approval and adherence to Lender’s underwriting guidelines.  Program restrictions and other terms and conditions apply.  LENDER AND MONOGRAM LLC EACH RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. TERMS, CONDITIONS AND RATES ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE.

 

(1) Interest rates and APRs (Annual Percentage Rates) depend upon (1) the student’s and cosigner’s (if applicable) credit histories, (2) the repayment option and repayment term selected, (3) the expected number of years in deferment, (4) the requested loan amount and (5) other information provided on the online loan application. If approved, applicants will be notified of the rate applicable to your loan. Rates and terms are effective as of 10/1/23. The variable interest rate for each calendar month is calculated by adding 30-Day Average Secured Overnight Financing Rate (“SOFR”) index, or a replacement index if the SOFR index is no longer available, plus a fixed margin assigned to each loan. The SOFR index is published on the website of the Federal Reserve Bank of New York. The current SOFR index is 5.3% as of 10/1/23. The variable interest rate will increase or decrease if the SOFR index changes or if a new index is chosen. The applicable index or margin for variable rate loans may change over time and result in a different APR than shown. The fixed rate assigned to a loan will never change except as required by law or if you request and qualify for the auto pay discount.  

APRs displayed as a range in the rate table assume a $10,000 loan with one disbursement. The high APRs assume a 7-year term with the Flat Payment Repayment option, a 2-month deferment period, and a six-month grace period before entering repayment. The low APRs assume a 7-year term, and the Immediate Repayment option with payments beginning 30-60 days after the disbursement via auto pay. See footnote 3 for auto pay details.

(2) Certain repayment terms may not be available depending on the applicant’s enrollment status and/or debt-to-income ratio. The 15-year repayment term is only available for loan amounts of $5,000 or more. Making interest only or flat interest payments during deferment will not reduce the principal balance of the loan. Payment examples (all assume a 14-month deferment period, a six-month grace period before entering repayment, no auto pay discount, and the Interest Only Repayment option): 7-year term: $10,000 loan, one disbursement, with a 7-year repayment term (84 months), and a 8.91% APR would result in a monthly principal and interest payment of $160.43. 10-year term: $10,000 loan, one disbursement, with a 10-year repayment term (120 months) and 8.59% APR would result in a monthly principal and interest payment of $124.47. 15-year term: $10,000 loan, one disbursement, with a 15-year repayment term (180 months) and a 8.54% APR would result in a monthly principal and interest payment of $98.71.

(3) Auto pay discount is a 0.25% interest rate reduction for making automatic payments of principal and interest from a bank account (“auto pay discount”) by completing the direct debit form provided by the Servicer. The auto pay discount is in addition to other discounts. The auto pay discount will be applied after the Servicer validates your bank account information and will continue until (1) three automatic deductions are returned for insufficient funds during the life of the loan (after which the discount cannot be reinstated) or (2) automatic deduction of payments is canceled. The auto pay discount is not available when reduced payments are being made or when the loan is in a deferment or forbearance, even if payments are being made. Lowest APRs shown include a 0.25% interest rate reduction for customers who elect auto pay.

(4) The principal reduction is based on the total dollar amount of all disbursements made, excluding any amounts that are reduced, canceled, or returned.  To receive this principal reduction, it must be requested from the Servicer, the student borrower must have earned a bachelor’s degree or higher and proof of such graduation must be provided to the Servicer. This reward is available once during the life of the loan, regardless of whether the student receives more than one degree.

(5) Cosigner may be released from the loan upon request to the Servicer, provided that the student borrower has met certain credit and other criteria, and 36 consecutive monthly principal and interest payments have been received by the Servicer within 10 calendar days after their due date. Late payment(s), or the use of a deferment or forbearance will reset the number of consecutive principal and interest payments to zero. Use of an approved alternative repayment plan will disqualify the loan from being eligible for this benefit.

(6) The minimum loan amount is $1,000, except for student applicants who are permanent residents of Iowa in which case the minimum loan amount is $1,001. The maximum annual loan amount to cover in-school expenses for each academic year is determined by the school’s cost of attendance, minus other financial aid, such as federal student loans, scholarships, or grants, up to $99,999 annually.  The loan amount must be certified by the school. The loan amount cannot cause the aggregate maximum student loan debt (which includes federal and private student loans) to exceed $180,000 per applicant (on cosigned applications, separate calculations are performed for the student and cosigner).  

Custom Choice Loan® is a registered trademark of Monogram LLC.

Citizens is a brand name of Citizens Bank, N.A. Member FDIC.

4.39% – 14.66%

5.40% – 15.22%

7, 10, 15 years

Fixed APR

i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.39% – 14.66%

Var. APR

i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.40% – 15.22%

Terms
7, 10, 15 years

Best for private student loan borrowers who want to quickly know their rate without impacting their credit

Offers
Autopay discount (0.25%), Graduation Reward (2.0% principal reduction)

Undergraduate Student Loan Rating

Pricing disclosure
×

Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: AscentFunding.com/Ts&Cs. Rates are effective as of 3/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). 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: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require interest-only payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. 

4.09% – 15.71%

6.16% – 16.09%

5, 7, 10, 12, 15 years

Fixed APR

i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.09% – 15.71%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
6.16% – 16.09%

Terms
5, 7, 10, 12, 15 years

Best for private student loan borrowers needing flexible repayment options

Offers
Autopay discount (0.25%), Reward of $525 per successful referral, and Graduation Reward (1%)

Undergraduate Student Loan Rating

Pricing disclosure
×

Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.67% APR to 16.15% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.87% APR to 16.35% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.

Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107

 

Earnest loans are serviced by Earnest Operations LLC, 535 Mission St., Suite 1663 San Francisco, CA 94105, NMLS #1204917, with support From Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.

 

© 2024 Earnest LLC. All rights reserved.

THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.

4.42% – 15.90%

5.62% – 18.26%

5, 7, 10, 12, 15 years

Fixed APR

i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.42% – 15.90%

Var. APR

i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.62% – 18.26%

Terms
5, 7, 10, 12, 15 years

Best for private student loan borrowers needing flexible repayment options

Offers
Autopay discount (0.25%), Customizable payment due date, and Option to Skip 1 payment every 12 months

Undergraduate Student Loan Rating

Pricing disclosure

4.24% – 13.73%

5.24% – 12.88%

5, 10, 15 years

Fixed APR

i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.24% – 13.73%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.24% – 12.88%

Terms
5, 10, 15 years

Best for private student loan borrowers who want no fees

Offers
Current customer discount (0.125%), Autopay discount (0.25%), and Cosigner release

Undergraduate Student Loan Rating

You can also view the top private student loans by category:

Be sure to consider other options before turning to private student loans to fill any funding gaps. These may include scholarships, grants, and work-study, or other student loan options such as a Parent PLUS Loan. While PLUS loans can also come with high interest rates and origination fees (which most private lenders do not charge), federal loans do have hardship protections that may be valuable. Private student loans are also not eligible for Public Service Loan Forgiveness

Best Student Loans by Category

If your parents are willing to help you pay for college, they may have considered a federal Parent PLUS loan. However, depending on their credit score, your parent may be able to qualify for a lower interest rate and avoid origination fees by cosigning a loan with you.

Some lenders offer a cosigner release option, which is ideal for parents who are willing to help you get a loan but may not want a long-term commitment. Here is a list of the student loan providers with the best cosigner release options.

Lender

Fixed APR
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.

Variable APR
i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.

Repayment Terms

Pricing disclosure
×

Lowest rates shown include the auto debit discount. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/ separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. 

3 Repayment options: Deferred repayment; $25 Fixed repayment; Interest repayment; Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. 

Only the borrower may apply for cosigner release. To do so, they must first meet the age of majority in their state and provide proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if their status has changed since they applied). In the last 12 months, the borrower can’t have been past due on any loans serviced by Sallie Mae for 30 or more days or enrolled in any hardship forbearances or modified repayment programs. In addition, the borrower must have paid ahed or made 12 on-time principal and interest payments on each loan requested for release. The loan can’t be past due when the cosigner release application is processed. The borrower must also demonstrate the ability to assume full responsibility of the loan(s) individually and pass a credit review when the cosigner release application is processed that demonstrates a satisfactory credit history including but not limited to no: bankruptcy, foreclosure, student loan(s) in default or 90-day delinquencies in the last 24 months. Requirements are subject to change. 

For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website may be subjected to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time.

Information advertised valid as of 8/25/2023.

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.

Saving for College is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.

©2023 Sallie Mae Bank. All rights reserved. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks if Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners. SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America.

 

4.50% – 15.49%

6.37% – 16.70%

10 to 15 years

Fixed APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.50% – 15.49%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
6.37% – 16.70%

Terms
10 to 15 years

Best for private student loan borrowers with a cosigner

Offers
0.25 percentage point interest rate reduction with autopay and borrowers can apply for cosigner release

Undergraduate Student Loan Rating

Pricing disclosure
×

College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community 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.

(1)The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.

(2)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 3/7/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.

4.07% – 15.48% 1

5.59% – 16.69% 1

5, 8, 10, 15 years 2

Fixed APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.07% – 15.48%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.59% – 16.69%

Terms
5, 8, 10, 15 years

Best for private student loan borrowers who want a quick credit decision

Offers
Autopay discount (0.25%), Graduation reward ($150), and Cosigner release

Undergraduate Student Loan Rating

Your repayment term will vary depending on the loan and lender you choose. Flexibility is critical for all borrowers since anyone can be faced with an unexpected setback such as a job loss or medical emergency.

The following lenders offer the most flexibility when it comes to repayment plans, repayment terms, monthly payments, loan terms, grace periods, forbearances, and discharge options.

Lender

Fixed APR
i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.

Variable APR
i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.

Repayment Terms

Pricing disclosure
×

Lowest rates shown include the auto debit discount. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/ separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. 

3 Repayment options: Deferred repayment; $25 Fixed repayment; Interest repayment; Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. 

Only the borrower may apply for cosigner release. To do so, they must first meet the age of majority in their state and provide proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if their status has changed since they applied). In the last 12 months, the borrower can’t have been past due on any loans serviced by Sallie Mae for 30 or more days or enrolled in any hardship forbearances or modified repayment programs. In addition, the borrower must have paid ahed or made 12 on-time principal and interest payments on each loan requested for release. The loan can’t be past due when the cosigner release application is processed. The borrower must also demonstrate the ability to assume full responsibility of the loan(s) individually and pass a credit review when the cosigner release application is processed that demonstrates a satisfactory credit history including but not limited to no: bankruptcy, foreclosure, student loan(s) in default or 90-day delinquencies in the last 24 months. Requirements are subject to change. 

For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website may be subjected to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time.

Information advertised valid as of 8/25/2023.

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.

Saving for College is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.

©2023 Sallie Mae Bank. All rights reserved. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks if Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners. SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America.

 

4.50% – 15.49%

6.37% – 16.70%

10 to 15 years

Fixed APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.50% – 15.49%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
6.37% – 16.70%

Terms
10 to 15 years

Best for private student loan borrowers with a cosigner

Offers
0.25 percentage point interest rate reduction with autopay and borrowers can apply for cosigner release

Undergraduate Student Loan Rating

Pricing disclosure
×

Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.67% APR to 16.15% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.87% APR to 16.35% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.

Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107

 

Earnest loans are serviced by Earnest Operations LLC, 535 Mission St., Suite 1663 San Francisco, CA 94105, NMLS #1204917, with support From Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.

 

© 2024 Earnest LLC. All rights reserved.

THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.

4.42% – 15.90%

5.62% – 18.26%

5, 7, 10, 12, 15 years

Fixed APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.42% – 15.90%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.62% – 18.26%

Terms
5, 7, 10, 12, 15 years

Best for private student loan borrowers needing flexible repayment options

Offers
Autopay discount (0.25%), Customizable payment due date, and Option to Skip 1 payment every 12 months

Undergraduate Student Loan Rating

Pricing disclosure

4.24% – 13.73%

5.24% – 12.88%

5, 10, 15 years

Fixed APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.24% – 13.73%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.24% – 12.88%

Terms
5, 10, 15 years

Best for private student loan borrowers who want no fees

Offers
Current customer discount (0.125%), Autopay discount (0.25%), and Cosigner release

Undergraduate Student Loan Rating

Deferment allows you to temporarily pause or reduce your student loan payments. This option is commonly used when a borrower goes back to college or starts graduate school, an internship, fellowship, or residency.

Overall, a federal student loan offers more deferment options than a private loan. But, there are some private lenders that allow borrowers to pause payments in certain situations. The following private lenders offer the best deferment options.

Lender

Fixed APR
i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.

Variable APR
i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.

Repayment Terms

Pricing disclosure
×

Lowest rates shown include the auto debit discount. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/ separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. 

3 Repayment options: Deferred repayment; $25 Fixed repayment; Interest repayment; Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. 

Only the borrower may apply for cosigner release. To do so, they must first meet the age of majority in their state and provide proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if their status has changed since they applied). In the last 12 months, the borrower can’t have been past due on any loans serviced by Sallie Mae for 30 or more days or enrolled in any hardship forbearances or modified repayment programs. In addition, the borrower must have paid ahed or made 12 on-time principal and interest payments on each loan requested for release. The loan can’t be past due when the cosigner release application is processed. The borrower must also demonstrate the ability to assume full responsibility of the loan(s) individually and pass a credit review when the cosigner release application is processed that demonstrates a satisfactory credit history including but not limited to no: bankruptcy, foreclosure, student loan(s) in default or 90-day delinquencies in the last 24 months. Requirements are subject to change. 

For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website may be subjected to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time.

Information advertised valid as of 8/25/2023.

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.

Saving for College is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.

©2023 Sallie Mae Bank. All rights reserved. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks if Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners. SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America.

 

4.50% – 15.49%

6.37% – 16.70%

10 to 15 years

Fixed APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.50% – 15.49%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
6.37% – 16.70%

Terms
10 to 15 years

Best for private student loan borrowers with a cosigner

Offers
0.25 percentage point interest rate reduction with autopay and borrowers can apply for cosigner release

Undergraduate Student Loan Rating

Pricing disclosure

4.89% – 10.39%

5.21% – 10.37%

5, 10, 15 years

Fixed APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.89% – 10.39%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.21% – 10.37%

Terms
5, 10, 15 years

Best for private student loan borrowers needing an extended deferment

Offers
Autopay discount (0.25%), Cosigner release, and One-time payment due date change

Undergraduate Student Loan Rating

When shopping for a private education loan, don’t forget about customer service. Many borrowers have had issues with student loan companies, but fortunately, complaints are often documented.
The list below includes the private student loan lenders with the best customer service, based on self-service options, call center characteristics, popularity, and complaint rates.

Lender

Fixed APR
i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.

Variable APR
i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.

Repayment Terms

Pricing disclosure
×

Lowest rates shown include the auto debit discount. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/ separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. 

3 Repayment options: Deferred repayment; $25 Fixed repayment; Interest repayment; Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. 

Only the borrower may apply for cosigner release. To do so, they must first meet the age of majority in their state and provide proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if their status has changed since they applied). In the last 12 months, the borrower can’t have been past due on any loans serviced by Sallie Mae for 30 or more days or enrolled in any hardship forbearances or modified repayment programs. In addition, the borrower must have paid ahed or made 12 on-time principal and interest payments on each loan requested for release. The loan can’t be past due when the cosigner release application is processed. The borrower must also demonstrate the ability to assume full responsibility of the loan(s) individually and pass a credit review when the cosigner release application is processed that demonstrates a satisfactory credit history including but not limited to no: bankruptcy, foreclosure, student loan(s) in default or 90-day delinquencies in the last 24 months. Requirements are subject to change. 

For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website may be subjected to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time.

Information advertised valid as of 8/25/2023.

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.

Saving for College is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.

©2023 Sallie Mae Bank. All rights reserved. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks if Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners. SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America.

 

4.50% – 15.49%

6.37% – 16.70%

10 to 15 years

Fixed APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.50% – 15.49%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
6.37% – 16.70%

Terms
10 to 15 years

Best for private student loan borrowers with a cosigner

Offers
0.25 percentage point interest rate reduction with autopay and borrowers can apply for cosigner release

Undergraduate Student Loan Rating

Pricing disclosure
×

  1. Terms and conditions apply. Loan products, terms, and benefits displayed on this website may be modified or discontinued at any time without notice. Your rate will be determined after a review of your application and credit profile. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school (enrolled on at least a half-time basis), and meet Navy Federal Credit Union’s credit and income requirements to qualify for a loan. Additionally, in order to receive a loan from Navy Federal Credit Union, you must be a member of Navy Federal Credit Union. If you are not a member of Navy Federal Credit Union, you must apply and become a member during the loan application process. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. All private student loans from Navy Federal Credit Union must be certified by the applicant’s school, and Navy Federal Credit Union reserves the right to reduce the loan amount or withhold funding based on the school certification or in the event the school does not certify the loan, respectively.
  2. If you choose and receive a variable rate loan, your rate may change once a quarter. The variable rate is based on the average of a publicly available index, the 3-month LIBOR, as published in the Wall Street Journal on the first of each month for the last three months immediately preceding the quarterly adjustment date. If the first day of the month is not a business day, the preceding business day will be used. Your rate will be calculated each quarter by adding the 3-month LIBOR to a margin that is assigned to your loan upon loan approval. All loans are subject to an interest rate floor based on term: 10 year: 2.99% and an interest rate cap of 18.00%.
  3. If you enroll in automatic monthly payments from a personal checking or savings account to pay principal and interest amounts that are due, the rate will be reduced by 0.25%, subject to the floor rate. This rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is cancelled, any increase will take the form of higher payments.
  4. The full Repayment Period will begin on the date that is the earliest of (i) six months after the borrower graduates or six months after the borrower ceases to be enrolled at least half time at an eligible school; or (ii) 60 months after the loan’s disbursement for an undergraduate program or 48 months after the loan’s disbursement for a graduate program.
  5. If you have multiple loans with us and choose to make fixed $25 monthly payments during the in-school and grace periods for such loans, only one $25 payment will be required each month.
  6. The minimum monthly payment during the In-School Period is $25.00. The minimum monthly payment during the full Repayment Period is $50.00 or the unpaid balance of your loan, whichever is less.
  7. If you have multiple loans with us and choose to make interest only monthly payments during the in-school and grace periods for such loans, you are responsible for paying the interest on the outstanding balance for each loan, subject to a monthly minimum of $25.

4.60% – 11.69%

6.62% – 8.89%

10 years

Fixed APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.60% – 11.69%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
6.62% – 8.89%

Terms
10 years

Best for private student loan borrowers in the military

Offers
Autopay discount (0.25%) and Cosigner release

Undergraduate Student Loan Rating

Pricing disclosure

Not Available

Not Available

Not specified

Fixed APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
Not Available

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
Not Available

Terms
Not specified

Best for private student loan borrowers looking for a credit union

Offers
Autopay discount (0.25%) and Multi-year option

Undergraduate Student Loan Rating

Unlike federal student aid, which comes from the government, you can get a private student loan from a bank, credit union, or online lender. In some cases, you may be able to qualify for a lower interest rate if you borrow a student loan from the bank you already use.
Here is a list of the best bank lenders that offer student loans, based on costs, eligibility criteria, flexibility, and customer service.

Lender

Fixed APR
i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.

Variable APR
i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.

Repayment Terms

4.43% – 12.57%

5.81% – 13.96%

5, 10, 15 years

Fixed APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.43% – 12.57%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.81% – 13.96%

Terms
5, 10, 15 years

Best for private student loan borrowers with a small loan size

Offers
Current customer discount (0.25%), Autopay discount (0.25%), and Cosigner release

Undergraduate Student Loan Rating

4.39% – 11.29%

5.89% – 15.39%

5, 10, 15 years

Fixed APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.39% – 11.29%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.89% – 15.39%

Terms
5, 10, 15 years

Best for private student loan borrowers looking for a bank lender

Offers
Autopay discount (0.50%) and Cosigner release

Undergraduate Student Loan Rating

It can be difficult to compare multiple student loan programs due in large part to the variety of options offered. Some loans may offer better terms during repayment in the event you fall on hard times but you might pay more interest over the life of the loan fo that benefit, for example.

This is why it’s important to come up with a specific set of criteria that these loans can be ranked. Savingforcollege.com has developed a methodology for ranking private student loans based on a set of objective criteria.

Our top options ranked highly in these categories:

  • Costs
  • Eligibility criteria
  • Repayment terms
  • Benefits (such as rewards)
  • Customer service

Our analysis assigns each student loan a score in each of these categories. Our top options had a favorable score across the board or a strong cumulative score.

With that methodology in mind, here are the top 10 best private loans for students:

Lender

Fixed APR
i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.

Variable APR
i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.

Repayment Terms

Pricing disclosure
×

Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: AscentFunding.com/Ts&Cs. Rates are effective as of 3/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). 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: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require interest-only payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. 

4.09% – 15.71%

6.16% – 16.09%

5, 7, 10, 12, 15 years

Fixed APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.09% – 15.71%

Var. APR

i
x
While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
6.16% – 16.09%

Terms
5, 7, 10, 12, 15 years

Best for private student loan borrowers needing flexible repayment options

Offers
Autopay discount (0.25%), Reward of $525 per successful referral, and Graduation Reward (1%)

Undergraduate Student Loan Rating

Pricing disclosure
×

Lowest rates shown include the auto debit discount. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/ separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. 

3 Repayment options: Deferred repayment; $25 Fixed repayment; Interest repayment; Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. 

Only the borrower may apply for cosigner release. To do so, they must first meet the age of majority in their state and provide proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if their status has changed since they applied). In the last 12 months, the borrower can’t have been past due on any loans serviced by Sallie Mae for 30 or more days or enrolled in any hardship forbearances or modified repayment programs. In addition, the borrower must have paid ahed or made 12 on-time principal and interest payments on each loan requested for release. The loan can’t be past due when the cosigner release application is processed. The borrower must also demonstrate the ability to assume full responsibility of the loan(s) individually and pass a credit review when the cosigner release application is processed that demonstrates a satisfactory credit history including but not limited to no: bankruptcy, foreclosure, student loan(s) in default or 90-day delinquencies in the last 24 months. Requirements are subject to change. 

For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website may be subjected to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time.

Information advertised valid as of 8/25/2023.

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.

Saving for College is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.

©2023 Sallie Mae Bank. All rights reserved. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks if Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners. SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America.

 

4.50% – 15.49%

6.37% – 16.70%

10 to 15 years

Fixed APR

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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.50% – 15.49%

Var. APR

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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
6.37% – 16.70%

Terms
10 to 15 years

Best for private student loan borrowers with a cosigner

Offers
0.25 percentage point interest rate reduction with autopay and borrowers can apply for cosigner release

Undergraduate Student Loan Rating

Pricing disclosure
×

Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.67% APR to 16.15% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.87% APR to 16.35% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.

Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107

 

Earnest loans are serviced by Earnest Operations LLC, 535 Mission St., Suite 1663 San Francisco, CA 94105, NMLS #1204917, with support From Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.

 

© 2024 Earnest LLC. All rights reserved.

THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.

4.42% – 15.90%

5.62% – 18.26%

5, 7, 10, 12, 15 years

Fixed APR

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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.42% – 15.90%

Var. APR

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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.62% – 18.26%

Terms
5, 7, 10, 12, 15 years

Best for private student loan borrowers needing flexible repayment options

Offers
Autopay discount (0.25%), Customizable payment due date, and Option to Skip 1 payment every 12 months

Undergraduate Student Loan Rating

Pricing disclosure
×

College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community 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.

(1)The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.

(2)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 3/7/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.

4.07% – 15.48% 1

5.59% – 16.69% 1

5, 8, 10, 15 years 2

Fixed APR

i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.07% – 15.48%

Var. APR

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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.59% – 16.69%

Terms
5, 8, 10, 15 years

Best for private student loan borrowers who want a quick credit decision

Offers
Autopay discount (0.25%), Graduation reward ($150), and Cosigner release

Undergraduate Student Loan Rating

Pricing disclosure

4.24% – 13.73%

5.24% – 12.88%

5, 10, 15 years

Fixed APR

i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.24% – 13.73%

Var. APR

i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.24% – 12.88%

Terms
5, 10, 15 years

Best for private student loan borrowers who want no fees

Offers
Current customer discount (0.125%), Autopay discount (0.25%), and Cosigner release

Undergraduate Student Loan Rating

Pricing disclosure
×

Before applying for a private student loan, Citizens and Monogram recommend comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans.  

The Custom Choice Loan® is made by Citizens (“Lender”).  All loans are subject to individual approval and adherence to Lender’s underwriting guidelines.  Program restrictions and other terms and conditions apply.  LENDER AND MONOGRAM LLC EACH RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. TERMS, CONDITIONS AND RATES ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE.

 

(1) Interest rates and APRs (Annual Percentage Rates) depend upon (1) the student’s and cosigner’s (if applicable) credit histories, (2) the repayment option and repayment term selected, (3) the expected number of years in deferment, (4) the requested loan amount and (5) other information provided on the online loan application. If approved, applicants will be notified of the rate applicable to your loan. Rates and terms are effective as of 10/1/23. The variable interest rate for each calendar month is calculated by adding 30-Day Average Secured Overnight Financing Rate (“SOFR”) index, or a replacement index if the SOFR index is no longer available, plus a fixed margin assigned to each loan. The SOFR index is published on the website of the Federal Reserve Bank of New York. The current SOFR index is 5.3% as of 10/1/23. The variable interest rate will increase or decrease if the SOFR index changes or if a new index is chosen. The applicable index or margin for variable rate loans may change over time and result in a different APR than shown. The fixed rate assigned to a loan will never change except as required by law or if you request and qualify for the auto pay discount.  

APRs displayed as a range in the rate table assume a $10,000 loan with one disbursement. The high APRs assume a 7-year term with the Flat Payment Repayment option, a 2-month deferment period, and a six-month grace period before entering repayment. The low APRs assume a 7-year term, and the Immediate Repayment option with payments beginning 30-60 days after the disbursement via auto pay. See footnote 3 for auto pay details.

(2) Certain repayment terms may not be available depending on the applicant’s enrollment status and/or debt-to-income ratio. The 15-year repayment term is only available for loan amounts of $5,000 or more. Making interest only or flat interest payments during deferment will not reduce the principal balance of the loan. Payment examples (all assume a 14-month deferment period, a six-month grace period before entering repayment, no auto pay discount, and the Interest Only Repayment option): 7-year term: $10,000 loan, one disbursement, with a 7-year repayment term (84 months), and a 8.91% APR would result in a monthly principal and interest payment of $160.43. 10-year term: $10,000 loan, one disbursement, with a 10-year repayment term (120 months) and 8.59% APR would result in a monthly principal and interest payment of $124.47. 15-year term: $10,000 loan, one disbursement, with a 15-year repayment term (180 months) and a 8.54% APR would result in a monthly principal and interest payment of $98.71.

(3) Auto pay discount is a 0.25% interest rate reduction for making automatic payments of principal and interest from a bank account (“auto pay discount”) by completing the direct debit form provided by the Servicer. The auto pay discount is in addition to other discounts. The auto pay discount will be applied after the Servicer validates your bank account information and will continue until (1) three automatic deductions are returned for insufficient funds during the life of the loan (after which the discount cannot be reinstated) or (2) automatic deduction of payments is canceled. The auto pay discount is not available when reduced payments are being made or when the loan is in a deferment or forbearance, even if payments are being made. Lowest APRs shown include a 0.25% interest rate reduction for customers who elect auto pay.

(4) The principal reduction is based on the total dollar amount of all disbursements made, excluding any amounts that are reduced, canceled, or returned.  To receive this principal reduction, it must be requested from the Servicer, the student borrower must have earned a bachelor’s degree or higher and proof of such graduation must be provided to the Servicer. This reward is available once during the life of the loan, regardless of whether the student receives more than one degree.

(5) Cosigner may be released from the loan upon request to the Servicer, provided that the student borrower has met certain credit and other criteria, and 36 consecutive monthly principal and interest payments have been received by the Servicer within 10 calendar days after their due date. Late payment(s), or the use of a deferment or forbearance will reset the number of consecutive principal and interest payments to zero. Use of an approved alternative repayment plan will disqualify the loan from being eligible for this benefit.

(6) The minimum loan amount is $1,000, except for student applicants who are permanent residents of Iowa in which case the minimum loan amount is $1,001. The maximum annual loan amount to cover in-school expenses for each academic year is determined by the school’s cost of attendance, minus other financial aid, such as federal student loans, scholarships, or grants, up to $99,999 annually.  The loan amount must be certified by the school. The loan amount cannot cause the aggregate maximum student loan debt (which includes federal and private student loans) to exceed $180,000 per applicant (on cosigned applications, separate calculations are performed for the student and cosigner).  

Custom Choice Loan® is a registered trademark of Monogram LLC.

Citizens is a brand name of Citizens Bank, N.A. Member FDIC.

4.39% – 14.66%

5.40% – 15.22%

7, 10, 15 years

Fixed APR

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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.39% – 14.66%

Var. APR

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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.40% – 15.22%

Terms
7, 10, 15 years

Best for private student loan borrowers who want to quickly know their rate without impacting their credit

Offers
Autopay discount (0.25%), Graduation Reward (2.0% principal reduction)

Undergraduate Student Loan Rating

4.43% – 12.57%

5.81% – 13.96%

5, 10, 15 years

Fixed APR

i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.43% – 12.57%

Var. APR

i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.81% – 13.96%

Terms
5, 10, 15 years

Best for private student loan borrowers with a small loan size

Offers
Current customer discount (0.25%), Autopay discount (0.25%), and Cosigner release

Undergraduate Student Loan Rating

Pricing disclosure
×

  1. Terms and conditions apply. Loan products, terms, and benefits displayed on this website may be modified or discontinued at any time without notice. Your rate will be determined after a review of your application and credit profile. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school (enrolled on at least a half-time basis), and meet Navy Federal Credit Union’s credit and income requirements to qualify for a loan. Additionally, in order to receive a loan from Navy Federal Credit Union, you must be a member of Navy Federal Credit Union. If you are not a member of Navy Federal Credit Union, you must apply and become a member during the loan application process. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. All private student loans from Navy Federal Credit Union must be certified by the applicant’s school, and Navy Federal Credit Union reserves the right to reduce the loan amount or withhold funding based on the school certification or in the event the school does not certify the loan, respectively.
  2. If you choose and receive a variable rate loan, your rate may change once a quarter. The variable rate is based on the average of a publicly available index, the 3-month LIBOR, as published in the Wall Street Journal on the first of each month for the last three months immediately preceding the quarterly adjustment date. If the first day of the month is not a business day, the preceding business day will be used. Your rate will be calculated each quarter by adding the 3-month LIBOR to a margin that is assigned to your loan upon loan approval. All loans are subject to an interest rate floor based on term: 10 year: 2.99% and an interest rate cap of 18.00%.
  3. If you enroll in automatic monthly payments from a personal checking or savings account to pay principal and interest amounts that are due, the rate will be reduced by 0.25%, subject to the floor rate. This rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is cancelled, any increase will take the form of higher payments.
  4. The full Repayment Period will begin on the date that is the earliest of (i) six months after the borrower graduates or six months after the borrower ceases to be enrolled at least half time at an eligible school; or (ii) 60 months after the loan’s disbursement for an undergraduate program or 48 months after the loan’s disbursement for a graduate program.
  5. If you have multiple loans with us and choose to make fixed $25 monthly payments during the in-school and grace periods for such loans, only one $25 payment will be required each month.
  6. The minimum monthly payment during the In-School Period is $25.00. The minimum monthly payment during the full Repayment Period is $50.00 or the unpaid balance of your loan, whichever is less.
  7. If you have multiple loans with us and choose to make interest only monthly payments during the in-school and grace periods for such loans, you are responsible for paying the interest on the outstanding balance for each loan, subject to a monthly minimum of $25.

4.60% – 11.69%

6.62% – 8.89%

10 years

Fixed APR

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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.60% – 11.69%

Var. APR

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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
6.62% – 8.89%

Terms
10 years

Best for private student loan borrowers in the military

Offers
Autopay discount (0.25%) and Cosigner release

Undergraduate Student Loan Rating

4.48% – 12.29%

4.98% – 12.79%

5, 7, 10, 15 years

Fixed APR

i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.48% – 12.29%

Var. APR

i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.98% – 12.79%

Terms
5, 7, 10, 15 years

Best for private student loan borrowers with a high loan size

Offers
No Rewards or Cosigner release

Undergraduate Student Loan Rating

4.39% – 11.29%

5.89% – 15.39%

5, 10, 15 years

Fixed APR

i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
4.39% – 11.29%

Var. APR

i
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While Savingforcollege.com strives to keep the information up to date, the lender rates, terms and other information are subject to change at any time. Interest rates listed include an autopay discount if available.
5.89% – 15.39%

Terms
5, 10, 15 years

Best for private student loan borrowers looking for a bank lender

Offers
Autopay discount (0.50%) and Cosigner release

Undergraduate Student Loan Rating

When Private Student Loans Can be a Good Option

A private student loan is going to originate with a financial institution like a bank or credit union instead of the federal government, like other college loans. That means that you may be paying higher interest rates and the repayment terms may not be as lenient.

In order to benefit the most from private student loans you’ll want to be a strong borrower and know that you will be able to repay the loans once you graduate. Here are some qualifications you’ll want to hit before applying:

  • Strong credit (690+ score) or have a cosigner.
  • You’ve already maximized your federal student loans and don’t have a way to pay for the rest of your school expenses.
  • You have already completed your FAFSA application to see what financial aid you might qualify for.
  • You have at least a part-time job (not a requirement, but a good idea to go this route first).
  • Borrowing for a degree with a high probability of immediate job placement after graduation.

You don’t want to take a private student loan if you aren’t confident in your ability to repay that loan once you graduate. That’s why these can be the best fit for graduate programs like the study of law or medicine, or for those who have exhausted all options.

How Interest Rates Compare in Private Student Loans to Federal Loans

Federal student loans have flat interest rates that are set by the government. It doesn’t mean that these loans are always the most affordable, but you will know what you’re paying when you submit your application. Private student loans can vary in interest rate quite broadly based on your credit or whether you have a cosigner or not.

It’s important to point out that federal loans also have more protections for borrowers and repayment options if you struggle to repay the loans. Private loans do not have these protections as they will be treated like any other loan in repayment. However, that also means it could be easier to get private loans forgiven than federal loans.

How Do You Qualify for a Private Student Loan?

Every lender is going to have their own criteria for loan qualification. Some will require a co-borrower no matter what since you are in school while others will just base their decision on credit history and income. This makes it more advantageous to have a job while you’re in school if you’re looking to maximize the amount you could qualify for.

Some institutions are also more likely to approve your loan if you have a work history and are taking out loans to go back to school. It’s important to evaluate the specific requirements of the institution you want to apply with before you apply. Your credit could be checked every time you apply for a private student loan so you want to be selective in the application process.

Can You Get a Private Student Loan With Bad Credit?

It will be much more difficult to get a private student loan if you have a bad credit history than it would be to get a federal student loan. Most institutions will require a cosigner to guarantee any private loan you take out and that cosigner needs to have a strong credit profile. However, those with a bad credit history should look at other financial aid options before thinking about private student loans.

How Do You Apply for a Private Student Loan?

Every lender will have their own application process so once you find the right loan for you you’ll want to check that lender’s website for details. However, just about every lender allows for online applications today, which is almost always the first step.

Once your application is received there will be an underwriting process that checks your credit, and the credit of any cosigners, and then submits additional information requirements to you. There may be some back and forth in order for the lender to get your loan approved, depending on your personal situation and you will be required to submit some documentation. The process could take anywhere from a few days to a few weeks.

Before applying for a private student loan you should do your research to find the right loan option with the lowest potential costs to you. This means a loan with low-interest rates and favorable repayment terms. Don’t be shy about having any cosigners that are borrowing with you check out each loan option you like best before applying.

FAQs

What should I consider before borrowing student loans?

All student loans need to be repaid once you leave school. On top of paying back the amount you borrow, you will also be charged interest which you will have to pay. Ultimately, you’ll end up paying back much more than you borrow. The higher the interest rate and the larger the initial balance of your loan, the more you’ll have to pay back.


You may also want to apply to colleges that offer better financial aid packages, and choose a more affordable (or even debt-free) college to attend. It’s important that you keep your student debt manageable. The more debt you have, the greater the impact it’ll have on your credit, which can make it hard to borrow money in the future. This can make it difficult to do things like buy a car or a home.


You may also want to apply to colleges that offer better financial aid packages, and choose a more affordable (or even debt-free) college to attend. It’s important that you keep your student debt manageable. The more debt you have, the greater the impact it’ll have on your credit, which can make it hard to borrow money in the future. This can make it difficult to do things like buy a car or a home.


Borrowing large amounts can also make it difficult to handle repayment. Missing payments or making late payments will also damage your credit score, making it harder to get loans in the future.

How much should I borrow to pay for my college education?

The goal should be to borrow as little as possible. Try to limit your total student loan debt at graduation, including federal and private student loans, to no more than your annual starting salary. If your total student loan debt is less than your annual income, you should be able to afford to repay your student loans in ten years or less. Keeping your student loan debt in sync with your income after graduation will help you afford your monthly payment.

Predicting your income after you graduate can be difficult, and it depends on many factors, including where you live, what you major in and the general state of the economy. A good way to estimate your post-graduation income is to check with the National Association of Colleges and Employers (NACE). This group produces regular reports that estimate grad’s incomes based on their majors.

Other sources of salary information include PayScale.com, Salary.com and Bureau of Labor Statistics (BLS).

With federal student loans, you may be able to use an income-driven repayment plan, but most private loans don’t offer this option. You have to use the same repayment plan regardless of your income, which can be a problem if you make less than you expect to after graduating.

The safest bet is to borrow as little as possible while still getting a good college education. Taking steps to reduce the cost of your education or to find ways to earn money to pay for school while you’re studying can help reduce the amount that you have to borrow.

How can I reduce the cost of my education?

There are a lot of ways to reduce the cost of your education.


If you’re still in high school, enrolling in Advanced Placement classes and passing the exams at the end of the year can also earn you some college credits, which can lower the cost of college and allow you to possibly graduate early.

Apply for as many scholarships as you can. Continue to apply for scholarships every year you are enrolled in college.


One of the most common strategies is to choose a less expensive college. For example, in-state public colleges are cheaper that out-of-state private colleges.

Another big expense for college students is housing. If you go to a local school, living at home can save you a lot of money. While not living in a dorm may feel like you’re missing out on student life, you can still attend school events and join clubs, giving you the opportunity to experience the school’s community and make new friends.

Another option is to start your education at a less expensive college or university, such as a community college. Once you’ve earned credits, you can transfer to another school to finish your degree.


Although it doesn’t directly reduce the cost of college, working through college can help you cover some of your educational expenses or help you make some payments on your student loans. Studies have shown that working 12 hours or less a week can have positive impacts on a student’s academic performance. You can increase the number of hours you work over breaks and during the summer. Federal Work-Study is a federal program where a student can apply for on-campus (or nearby) part-time jobs. If you get a job related to your major, you’ll also earn valuable experience that will give you a leg up when job hunting after graduation.

What is the difference between federal and private student loans?

While both are student loans, federal and private student loans have many differences. The main difference between federal and private student loans is that federal student loans are from the government and private student loans are through a private institution.


Experts recommend using federal loans before applying for a private loan. Most federal loans come with many benefits that even the best private student loans don’t have. For example, some federal loans are subsidized. With a subsidized loan, the government pays the interest while you’re enrolled in school, during the grace period after graduation and during a deferment.


Federal loans may also offer loan forgiveness, the ability to make payments based on your income, and the option to pause payments if you lose your job or have an economic hardship. Federal loans also offer an option to be discharged if the borrower becomes disabled or dies.


Another benefit of federal student loans is that they tend to have lower interest rates than even the best private student loans, meaning that they’re cheaper in the long run. In the vast majority of cases, you should exhaust federal student loan options before moving on to private student loans.


Federal student loans also do not require a cosigner and are not based on your credit, unlike private student loans.

How does federal loan forgiveness work?

One of the biggest advantages of federal student loans over private loans is that borrowers can qualify for loan forgiveness. Loan forgiveness erases the remaining balance of a loan, leaving the borrower free of the debt.


There are a few ways to qualify for student loan forgiveness.


Public Service Loan Forgiveness (PSLF) is one path to loan forgiveness. Under PSLF, if you work for a non-profit organization or a government (local, state, or federal) you can qualify for loan forgiveness. Once you make 120 payments on your loan balance (at least ten years of payments) the government forgives your remaining balance.


Teacher Loan Forgiveness lets teachers who work for five consecutive years in a low-income school or educational service agency get up to $17,500 of their debt forgiven.

When should I borrow private student loans?

Before turning to private student loans, exhaust all of the other options for funding your education. Things like scholarships, school-based financial aid, grants, and employer-paid tuition assistance can help you pay for school without incurring debt.


You can also take steps to lower your college costs by choosing a less expensive school or less expensive housing.

You should make sure you’ve reached the borrowing limit for federal student loans before borrowing private student loans. Federal loans have many benefits and tend to be cheaper than private loans, so you shouldn’t get a private loan if you’re still eligible for a federal one.


If you still need money to pay for school and decide a private loan is right for you, be sure to borrow responsibly. Needing to get private or parent loans may be a sign that you’re borrowing more than you can afford to repay. Also, make sure that you take the time to shop around for the best deal as there are many private student lenders out there.

What are other ways to fund college before borrowing money?

One of the best ways to reduce your college costs is to apply for scholarships, grants, and other financial aid. Many organizations offer small scholarships and grants to students. Some of these programs are very specific, meaning you have a very good chance of getting a scholarship or grant if you’re eligible.

For example, the Mycological Society of America offers multiple scholarships worth hundreds or thousands of dollars to students involved in fungi research. There are also groups that offer scholarships to left-handed people, tall people, or people who wear glasses. Look for unusual scholarships you might be eligible for. These programs often get few applications, which gives you a better chance of winning the scholarship.

Many local businesses and groups also offer small scholarships to students from their area. A $500 scholarship might not seem like much compared to the cost of a college education, but if it only takes five minutes to apply, it’s well worth the effort. If you get a few of these scholarships each year, you could knock thousands of dollars off your potential student debt.

How do I choose a lender?

Once you’ve exhausted other options for funding a college education, it’s time to look at lenders.

There are many things to consider when choosing a private lender. You’ll want to think about what interest rates and fees are offered, what the terms of the loan are, whether you meet the requirements for approval (I.e., do you need a cosigner), what repayment options do they offer and what reviews say about them.

If you need a cosigner, you might also want a lender that offers a cosigner release (an opportunity to remove the cosigner). You may want to know if they offer any deferment options, whether there are options to pause your payments if you lose your job and whether your loans will be forgiven if you become disabled.

In general, you want to find the loan that will cost the least overall. This means comparing options from online lenders, banks, and your local credit union.

You might see an origination fee or similar fees that some lenders will add to your loan. Avoiding these can save you money, reducing your monthly loan payment and the total cost of your loan.

Also look for discounts that can save you money. Some lenders offer discounts to customers who have a bank account with them or who sign up for automatic payment for their monthly loan payment.

What do I need to qualify for a private student loan?

Every lender has different requirements for people applying for a private student loan.


Like most loans, your credit score will play a major role in your ability to get a private student loan. This is problematic for many students because young people tend to have poor credit or no credit at all since they haven’t had time to build a credit history.


Other factors include your income, debt-to-income ratio and the duration of employment with your current employer.

Most lenders also want to make sure you’re attending an accredited school and some may even look at your major and other information about your education, such as your grades and year in school.

If you don’t have solid credit, lenders might ask you to have a creditworthy cosigner. Cosigners agree to accept responsibility for repaying your debt if you stop making payments. You’ll want to find a cosigner with good credit to improve your chances of getting the loan and qualifying for a good rate.

Do I need a cosigner for private student loans?

Many private student lenders require a cosigner for student loans if the student doesn’t have good credit or steady income. Cosigners accept responsibility for repaying the loan if the borrower doesn’t repay it. So, you need to find a cosigner who trusts you and is willing to put their finances at risk for you. Often, this will be a parent or guardian.


The lender will look at the cosigner’s credit in addition to yours when making a lending decision. The better the cosigner’s credit, the better the impact they’ll have on your loan’s terms.

If you have good credit or a source of income, lenders may not require a cosigner, but you may still be able to secure a lower interest rate by finding a cosigner with excellent credit."

How does being a cosigner work?

A cosigner should be a responsible adult with strong credit and consistent income. Anyone who cosigns a student loan should understand how it works and the potential risks.

Cosigners are just as responsible for paying back the debt as the borrower. If the borrower fails to make a payment on their loan, the cosigner is responsible for making that payment. If the borrower stops paying the loan entirely, the cosigner must make the remaining loan payments.


Being a cosigner also has an impact on your credit score as it will increase the debt on your credit reports. Late payments will affect your credit history, not just the student’s credit history. Both your credit history and debt-to-income ratio play a major role in your ability to qualify for loans. If you cosign a large student loan, you may struggle to qualify for other loans.

What is a cosigner release?

Some private lenders offer an option for a cosigner release. This means that eventually, once specific requirements are met, a cosigner can be released from their obligation to repay the loan.

Often a lender will require a set number of consecutive on-time payments (such as one, two, three or four years) before it will allow a cosigner release. Lenders also check the borrower’s credit before approving the cosigner release, making sure the borrower could qualify for the loan on their own without a cosigner. So, the borrower will need good credit and steady income, not just a good payment history.


Even if a lender offers a cosigner release, there isn’t a guarantee that the borrower will qualify for cosigner release. Most don’t. Cosigners should assume they’ll be cosigners for the life of the loan rather than counting on a cosigner release partway through the loan term.

When do I have to start repaying student loans?

Most private student loan lenders offer several options for repayment during the in-school and grace periods.

Many lenders give borrowers the option to completely defer, or postpone, payments until after graduation or when enrollment drops below half-time. This lets the borrower avoid paying for the loan while they’re in school, but means that the loan’s interest will accumulate (and possibly compound) until they graduate.


It can often be worthwhile to make small payments or interest-only payments on a loan while you’re in school, even if they aren’t required, to try to reduce the amount of interest that accrues.

Some loans require fixed payments or interest-only payments while the borrower is still in school. Many loans also have a grace period (usually six months) after you graduate or go below half-time. After the grace period is over, you will be required to make full payments.

Some lenders provide discounts, such as small interest-rate reductions, to borrowers who agree to make fixed, interest-only or full payments during the in-school and grace periods.

What is the difference between fixed and variable interest rates?

A fixed interest rate means the loan’s interest rate stays the same throughout the life of the loan. Variable interest rates can go up and down. Borrowers may be persuaded to choose a variable interest rate because it is initially lower than the fixed interest rate, but keep in mind, this interest rate can increase and eventually exceed the interest rate offered by the fixed rate option.

In general, one of the best ways to take advantage of variable interest rate loans is to repay them as quickly as possible. This lets you receive the benefit of the lower interest rate without leaving much time for the rate to rise.


Fixed-rate loans are often better if you plan to keep the loan for the long-term. If interest rates rise, you get to keep your loan’s lower rate. If interest rates drop significantly, you can try student loan refinancing to reduce your loan’s interest rate.

Important Disclaimers

Savingforcollege.com provides our readers with free access to objective information, articles and tools to help them make informed decisions about saving and paying for education. We are able to do this because we are compensated by our partners, including some private student lenders. Some, though not all, of the products featured here are offered by partners who may pay us a sales commission. Our partnerships do not influence our ratings or reviews, which are based on in-depth research and objective methodologies, though they may influence which products we write about and where those products appear on our site. Our opinions are our own.

While Savingforcollege.com strives to keep our information up to date, the lender rates, terms and other information are subject to change at any time.

Exhaust all other resources, such as scholarships and grants, before borrowing student loans. If you need to borrow loans, federal student loans offer many benefits that private student loans do not. Read the fine print and disclaimer from any potential lender and understand how student loans work before borrowing.

Savingforcollege.com is an independent publisher. We do not provide legal, financial, accounting or tax advice. The information and tools published on this website are general in nature and may not apply to your specific circumstances. You should seek specific guidance from a qualified legal, financial, accounting or tax professional.

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