Best Private Student Loan Rates
When it comes to financing your education, federal student loans are generally the best first option due to their flexible repayment terms and borrower protections. However, they come with borrowing limits and eligibility requirements. Once you’ve reached your federal loan limit or if you’re not eligible, private student loans can help cover additional expenses such as tuition, accommodation, fees, and other educational costs.
Private student loans can be a good choice for:
- Students who aren’t eligible for federal financial aid, including international students.
- Borrowers who have already used their federal loan options.
- Those who prefer the flexibility of variable interest rates.
- Applicants with strong credit histories seeking favorable terms.
Before deciding, it’s important to compare interest rates, repayment terms, fees, and special features from different lenders. Understanding these factors will help you choose the most suitable loan option for your educational needs and financial situation.
Top Private Student Loans are:
1. Ascent
Overview: Ascent provides one of the most comprehensive incentive programs available. Eligible borrowers can benefit from features such as automatic payment discounts, cash-back rewards upon graduation, referral bonuses, and personalized guidance through a dedicated student success program.
Who It’s For:
Ideal for students enrolled in a degree-granting institution or a certified bootcamp program who wish to benefit from a range of borrower-friendly features and support programs designed to enhance their educational journey.
Stand-Out Features:
- Established in 2016
- Available only through select educational institutions
- Simple and convenient online application process
- Rewards program offering various borrower benefits
- Options for deferment and forbearance during financial hardship
- Collegiate coaching program to support student success
2. College Ave
Overview: College Ave provides private student loans for a wide range of academic programs, including undergraduate, graduate, medical, dental, law, and business degrees. It also offers loan options for parents who wish to support their children’s education. Additionally, students pursuing community college courses or career training programs may be eligible to apply.
Who It’s For:
Designed for students seeking flexibility in loan terms and eligibility, including international students with a qualified cosigner, as well as individuals pursuing training, certification, or professional development programs.
Stand-Out Features:
- Founded in 2014
- Available to borrowers in all 50 states
- Fast and user-friendly online application process
- Career loan options with success-based rewards
- Scholarship sweepstakes opportunities for students
- Reward partnerships through the Payce Rewards program
3. Citizens Bank
Overview:Â While most of the lenders we review only have an online presence, Citizens Bank has nearly 1,000 locations across the country. As the oldest institution on our list, Citizens Bank has garnered a solid reputation over the years as a reliable and staright-forward lending option.
Who It’s For:
Best suited for individuals with strong credit scores who value the option of in-person support at a local branch.
Stand-Out Features:
- Founded in 1828
- Available to borrowers in all 50 states
- Flexible application options: online, by phone, or in-person
- Cosigner release available after full repayment
- Multiyear approval options for continued funding
- Prequalification available to explore potential loan terms
4. Sallie Mae
Overview: Established in 1973, Sallie Mae lender is widely recognized in the student loan industry. It offers flexible options, allowing applicants to qualify regardless of whether they are enrolled full-time, across various degree programs and loan types.
Who It’s For:
Ideal for undergraduate and graduate students, MBA and law school applicants, individuals pursuing career training programs, and those preparing for medical or professional residencies.
Stand-Out Features:
- Established in 1973
- Simple and convenient online application process
- Multiyear approval for continued funding
- Complimentary access to FICO credit scores
- Eligibility for students enrolled less than half-time
- Scholarship opportunities and a built-in award search tool
5. Custom Choice
Overview: Custom Choice lender stands out with its unique Grad Reward program, which reduces your principal balance by 2 percent after graduation. Additionally, it is among the few that do not require borrowers to meet their school’s Satisfactory Academic Progress (SAP) standards to qualify.
Who It’s For:
Ideal for borrowers who want to save on repayment costs through a two percent principal reduction after graduation, helping them begin their student loan repayment with a financial advantage.
Stand-Out Features:
- Established in 1991
- Convenient online application process
- Available to borrowers in all 50 states
- Unemployment protection for eligible borrowers
- Forbearance options during natural disasters
- Scholarship sweepstakes opportunities
- Comprehensive private student loan guide for applicants
6. SoFi
Overview: SoFi lender is widely recognized in the student loan industry for its extensive member benefits and rewards. Borrowers can enjoy exclusive perks such as access to special events, personalized reward and redemption programs, and enhanced benefits through its premium membership options.
Who It’s For:
Ideal for borrowers who value added benefits such as reward and redemption programs, along with exclusive perks available through a membership-only platform.
Stand-Out Features:
- Founded in 2011
- Available in all 50 states and Washington, D.C.
- Fast and fully online application process
- Cosigner release option available
- Does not require Satisfactory Academic Progress (SAP) for approval
- Hardship deferment and forbearance options offered
7. ELFI (Education Loan Finance)
Overview: ELFI nonprofit lender focuses on building strong, personal relationships with its borrowers and has contributed more than $20 million in scholarships. It is also recognized for promoting financial literacy through high school programs and for supporting borrowers with initiatives that help reduce student debt burdens.
Who It’s For:
Ideal for borrowers who appreciate personalized customer service and dedicated support. It’s also well-suited for students seeking flexible repayment options and tailored financial solutions.
Stand-Out Features:
- Established in 2015
- Available to borrowers in all 50 states
- Convenient online application process
- Prequalification option to explore potential loan terms
- Participation in the Tennessee Lending Program
- Cosigner option available for eligible applicants
8. Earnest
Overview: Earnest online lender is recognized for offering a wide range of flexible repayment options that many other lenders do not. Its programs include extended loan terms, deferment and forbearance options, loan forgiveness and discharge opportunities, as well as a hardship rate reduction program.
Who It’s For:
Ideal for students seeking flexible repayment choices, including unique options such as extended-term loans, to better manage their student debt.
Stand-Out Features:
- Founded in 2013
- Available in 49 states
- Easy online application process
- Rate-match guarantee to secure competitive interest rates
- Prequalification option to review potential loan terms
- No origination or hidden fees
- Rate reduction program for eligible borrowers
9. INvestEd
Overview: INvestEd is an online lender that provides competitive student loan options for Indiana residents and students attending in-state schools. Known for its high level of engagement, the lender participates in hundreds of events each year and maintains an active events calendar to connect with borrowers and the community.
Who It’s For:
Best suited for borrowers with strong credit, typically a FICO score of 670 or higher, as well as those who have a qualified cosigner to support their loan application.
Stand-Out Features:
- Founded in 2016
- Available to borrowers in Indiana
- Online application with optional over-the-phone support
- Free financial aid guidance for students and families
- College Planning Toolbox program to assist with academic and financial planning
- Tools and resources for scholarship and grant assistance
10. MEFA
Who It’s For:
Ideal for students needing loans for summer courses, to cover past-due balances, or for current degree programs at eligible nonprofit colleges and universities.
Stand-Out Features:
- Founded in 1982
- Online application with email and phone support
- Available to borrowers in all 50 states
- MEFA Pathway program for flexible borrowing options
- Savings and tuition planning solutions
Financial hardship payment plans to assist borrowers in need
Conclusion:
Choosing the right private student loan depends on your individual needs, eligibility, and financial goals. Each lender offers unique features, from flexible repayment options and cosigner releases to rewards programs and personalized support. By carefully comparing interest rates, repayment terms, and borrower benefits, you can find a loan that best supports your education while minimizing long-term financial strain. Always consider starting with federal student loans first, and use private loans to supplement when additional funding is needed.
FAQS:
1: What is a private student loan?
A private student loan is a non-federal loan provided by banks, credit unions, or online lenders to help cover education costs that federal loans do not fully cover. They often have variable or fixed interest rates and less flexible repayment options than federal loans.
2: Who can apply for a private student loan?
Typically, U.S. citizens, permanent residents, and international students with a qualified cosigner can apply. Eligibility varies by lender, and some require enrollment at an eligible college, university, or training program.
3: Can I get a private student loan if I already have federal loans?
Yes. Private loans can supplement federal student loans if you have reached the federal borrowing limit or need extra funds for tuition, room and board, or other education-related expenses.
4: What is a cosigner, and do I need one?
A cosigner is someone—usually a parent or close relative—who agrees to share responsibility for the loan. Many lenders require a cosigner if the student has limited credit history or income.
5: How do interest rates work for private student loans?
Interest rates can be fixed (remain the same over the life of the loan) or variable (change over time based on market rates). Borrowers with strong credit typically qualify for lower rates.
6: Can I defer or forbear my private student loan?
Some private lenders offer deferment or forbearance options for financial hardship, unemployment, or certain life events. Terms vary by lender, so it’s important to check each loan’s policies.
7: Are there any rewards or benefits with private student loans?
Certain lenders offer benefits such as principal reductions after graduation, reward programs, scholarship sweepstakes, or access to coaching and financial literacy programs.
8: How can I compare private student loans?
Compare interest rates, repayment terms, fees, borrower benefits, and eligibility requirements. Prequalification tools allow you to estimate rates without affecting your credit score.
9: Should I choose a private student loan over a federal loan?
Federal student loans generally have more protections, lower interest rates, and flexible repayment options. Private loans are best used to supplement federal loans when additional funding is needed.
10: What happens if I can’t repay my private student loan?
Failure to repay can lead to credit damage, collection actions, and legal consequences. Some lenders offer hardship programs or forbearance to help avoid default.
