If you’ve maxed out your federal financial aid and need more money for higher education, a private student loan could help fill the gap. You can find private student loans at various institutions, including banks, credit unions and online lenders.
Comparing offers from multiple lenders can help you find the most affordable loan with repayment terms that work for you. To help you shop around, we’ve reviewed the best private student loans for college students.
Here are our top picks for the best student loans based on interest rates, repayment terms, availability and other important features.
Methodology
What’s the best student loan? To answer this complex question, our editorial and data research teams pitted about two dozen of the industry’s top lenders against each other. We judged them across four categories, including their interest rates and discounts; loan details, such as fees and borrowing amounts; eligibility criteria for various types of applicants; and customer experience, from the length of grace periods to the accessibility of support resources.
- Number of lenders reviewed: 23
- Number of data points analyzed: 896
- Number of features we considered: 39
- Number of primary data sources used: 28
Our complete methodology below details how our editors and researchers arrived at the best student loans for college.
Discover Bank
Best private student loan
Why we picked it
Discover is our top choice for the best student loans, thanks to its competitive interest rates, large loan amounts and flexible repayment terms. With a Discover loan, you can choose between a fixed and variable interest rate and borrow up to your school-certified cost of attendance.
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Discover offers repayment terms as long as 20 years, depending on the type of loan, as well as deferment and forbearance options (that allow you to postpone repayment) if you go back to school or run into financial hardship. This online bank also doesn’t charge any fees on its student loans, so you don’t have to worry about application, origination or late charges.
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If you qualify for Discover’s multi-year option and foresee needing additional funding for later years in school, your application experience will be streamlined. Students who earn a 3.0 GPA or higher can also get a cash reward of 1% of their loan amount.
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Even though Discover student loans have a number of appealing features, there are a couple of downsides. For one, Discover doesn’t disclose its credit or income requirements. Second, Discover doesn’t offer a cosigner release option, meaning your cosigner will remain on the loan until you’ve repaid it in full (or refinanced it).
Pros
- No fees
- Deferment and forbearance options
- 1% cash reward for good grades
- Can borrow up to the cost of attendance
Cons
- Minimum credit score not disclosed
- Income requirement not disclosed
- No option for cosigner release
Who should consider it
A Discover student loan could be a good fit for you if you’re looking for flexible repayment options and the potential for a cash-back reward. However, it may not be your top choice if you want the option of cosigner release.
*Rates as of Nov. 8, 2023, assumes discounts
Rhode Island Student Loan Authority
Best for competitive fixed rates
Why we picked it
Although RISLA is a Rhode Island non-profit, it provides student loans in all 50 states, plus D.C. You can borrow up to $50,000 per year with the option of multi-year approval, which allows you to renew your student loan application over the years.
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RISLA offers fixed rates on its student loans and doesn’t charge application, origination, insufficient funds or late fees. It also uniquely offers a federal loan-like income-based repayment plan for borrowers with financial hardship, plus forbearance options.
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Rhode Island students and nurses may also qualify for RISLA’s Nursing Reward or Internship Reward program. The nursing program waives interest on your loan for up to four years, while the internship program offers $2,000 in student loan forgiveness.
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You or your cosigner will need a minimum credit score of 680 and an annual income of $40,000 to qualify for a RISLA loan. After making 24 months of consecutive on-time payments, you may be eligible to release your cosigner from the loan.
Pros
- Competitive fixed rates
- Income-based repayment option
- Rewards for qualifying nurses and interns
- Option for cosigner release
Cons
- Not available to international students
- Must have good credit to qualify
Who should consider it
A RISLA student loan could work for you if you’re seeking fixed rates, may need an income-based repayment option or qualify for its Nursing Reward or Internship Reward program.
*Rates as of Nov. 8, 2023, assumes discounts and immediate repayment
Ascent
Best for no-cosigner loans
Why we picked it
Ascent offers both cosigned and non-cosigned student loan options with repayment terms ranging anywhere from five to 20 years. Its non-cosigned, outcomes-based loan is available to juniors and seniors with a GPA of at least 3.0 who meet other requirements.
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If you borrow an Ascent student loan with a cosigner, you may apply for cosigner release after just 12 months of on-time payments. Ascent doesn’t charge application, origination or disbursement fees and offers a nine-month grace period.
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You can also choose a progressive repayment plan, which involves lower payments at first that gradually increase over time. Keep in mind, though, that Ascent charges late fees if you miss your payment due date.
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Although Ascent doesn’t disclose its minimum credit score requirement, it does share an income requirement of at least $24,000 per year.
Pros
- Both cosigned and non-cosigned loans available
- 9-month grace period
- Cosigner release option after 12 months
- Progressive repayment plan
- Can borrow up to the cost of attendance
Cons
- Minimum credit score not disclosed
- Charges late fees
- Non-cosigned loans only available to juniors and seniors
Who should consider it
Ascent could be a good option if you want a progressive repayment plan or non-cosigned student loan.
*Rates as of Nov. 8, 2023, assume a cosigner
Earnest
Best for flexible repayment terms
Why we picked it
Earnest stands out for its transparency, disclosing that it requires a minimum FICO score of 650, an annual income of $35,000 and three years of credit history to qualify. Earnest loans come with a lengthy nine-month grace period and let you choose repayment terms from five to 15 years. You can even pick your loan term down to the month to get a monthly payment that works for you.
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Earnest also offers a rate match guarantee, meaning it will match the rate you find on a competing loan offer and give you a $100 Amazon gift card. Plus, borrowers who make on-time payments have the option of skipping one payment per year. (Keep in mind that this skipped payment will still be tacked on to the end of your loan.)
Pros
- Loans available to borrowers with fair credit
- 9-month grace period
- Rate match guarantee
- Option to skip a payment once per year
- Customizable repayment plan options
Cons
- Loans not available in Nevada
- No 20-year repayment term option
Who should consider it
Earnest offers some of the best student loans for customizable repayment terms and a nine-month grace period.
*Rates as of Oct. 30, 2023, assume autopay discount and cosigner
Citizens Bank
Best for current Citizens customers
Why we picked it
Citizens Bank offers student loans with fixed and variable rates and repayment terms between five and 15 years. Qualifying borrowers can opt into multi-year approval, which makes it easy to borrow additional Citizens loans in subsequent years in school.
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Citizens may be a good fit if you’re already a Citizens banking customer, since it offers a 0.25 percentage point loyalty discount on your loan’s interest rate. Also, its student loans have the option of up to 12 months of forbearance if you run into financial stress. You can apply to release your cosigner after 36 months of on-time payments, too.
Pros
- Multi-year approval program
- Interest rate discount for Citizens customers
- Low income requirement of $12,000 per year
Cons
- Minimum credit score not disclosed
- Must make prompt and full payments for 36 months before you can apply for cosigner release
Who should consider it
Consider a Citizens student loan if you’re already a Citizens customer, want the option of multi-year approval or are an international student (with a citizen or permanent resident cosigner).
*Rates as of Nov. 8, 2023, assume discounts and cosigner
Education Loan Finance
Best for customer support
Why we picked it
ELFI’s student loans are available to borrowers with credit scores of at least 680 and annual incomes of $35,000 or more. You can borrow up to your school’s cost of attendance and pick repayment terms from five to 15 years.
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ELFI student loans come with a six-month grace period and a choice of fixed or variable rates.
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ELFI is a service-oriented lender. If you apply with ELFI, you’ll be assigned a lender-employed advisor to guide you through the process and answer your questions along the way. There are also five ways to get in touch — email, online chat, mail, telephone and fax — and its customer service team works weekends.
Pros
- Accessible and highly-rated customer service
- Student loan advisor can help you apply
- Can borrow up to the cost of attendance
Cons
- No cosigner release
- Must have good credit to qualify
- Not available to international students
Who should consider it
ELFI may be a good choice if customer service is a priority for you and you can meet its credit and income requirements.
*Rates as of Nov. 8, 2023
SoFi
Why we picked it
SoFi lets you borrow up to your school’s cost of attendance and choose repayment terms between five and 15 years. SoFi student loans come with a six-month grace period and don’t have any fees, including origination, application, insufficient funds or late charges.
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Borrowing from SoFi means you’ll be eligible for various member benefits, including access to financial planning and career coaching. Like most lenders, SoFi offers a rate discount of 0.25 percentage points for using autopay. Returning in-school borrowers can also get an additional discount of 0.125 percentage points.
Pros
- No fees
- Can borrow up to the cost of attendance
- Access to various member benefits, including career coaching
Cons
- Minimum credit and income requirements not disclosed
- Grace period maxes out at 6 months (some lenders offer 9)
Who should consider it
Check out SoFi if you want a student loan with no fees that grants you access to member perks, including financial and career planning services.
*Rates as of Nov. 8, 2023, assumes autopay discount
Iowa Student Loan
Best for parent borrowers
Why we picked it
Despite its state-specific name, ISL Education Lending provides student loans, including for parent borrowers, across the country. It also funds cosigned and non-cosigned loans to Iowa or Illinois students through its Illinois Partnership Loan Program.
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Parents may appreciate ISL’s College Family Loans, which come with fixed rates and offer a deferred repayment option. The minimum credit score for an ISL education loan is 660.
Pros
- Can borrow up to the cost of attendance
- Specialized loans available for Iowa and Illinois students
- Parent loans have competitive fixed rates and a deferred payment option
Cons
- Not available in Maine
- No-cosigner loan only for Iowa and Illinois students
Who should consider it
Parents looking to help cover their children’s education costs may be interested in ISL’s College and Family Loan. Illinois and Iowa students also have specialized student loan options.
*Rates as of Nov. 8, 2023
Sallie Mae
Best for part-time students
Why we picked it
Sallie Mae offers various student loan options, including undergraduate loans, graduate loans, career training loans and trade school loans. Part-time students attending school less than half-time are also eligible.
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You can choose loan terms of 10 or 15 years and select a fixed or variable interest rate. Students applying with a cosigner may appreciate Sallie Mae’s fast path to cosigner release, which requires only 12 months of on-time payments.
Pros
- Cosigner release option after 12 months
- training and trade school loans available
- Loans for part-time students available
Cons
- Credit and income requirements not disclosed
- Charges late fees
Who should consider it
A Sallie Mae student loan could be a good choice for students looking for a fast path to cosigner release, as well as those enrolled part-time or attending career training or trade school programs.
*Rates as of Nov. 8, 2023, assume autopay discount
College Ave Student Loans
Best for a fast application
Why we picked it
College Ave’s student loans come with a unique eight-year term option, along with the typical 5-, 10- and 15-year choices. You can prequalify for multiple years through College Ave’s Multi-Year Peace of Mind program. Undergraduate loans come with a six-month grace period, while graduate student loans may come with a nine-month grace period.
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College Ave offers a fast and streamlined application process. You can see if you prequalify in just a few minutes and submit an official application online if you decide to move forward with a loan.
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One con of a College Ave student loan is the amount of time it takes to become eligible for cosigner release. Half of your repayment term must elapse before you can apply. If you’re on a 10-year term, for instance, you’ll have to wait five years before you can pursue cosigner release.
Pros
- Option to prequalify online
- Multiple repayment term options
- Some graduate loans have nine-month grace period
Cons
- Slow path to cosigner release
- High maximum APRs
Who should consider it
Check out College Ave for a fast application process and high loan amounts, particularly if you have a patient cosigner (or no cosigner) given the long path to cosigner release.
*Rates as of Nov. 8, 2023, assume autopay discount
Our picks at a glance
How do student loans work?
- They can help you pay for higher education. You can put student loans toward tuition, fees, room, board, books, supplies and other living expenses.
- Federal loans should be your first stop. Federal loans tend to have better interest rates than private loans, as well as more flexible repayment plans and opportunities for loan forgiveness — you can access them annually by completing the Free Application for Federal Student Aid.
- Private loans can fill a gap in funding. Borrowing a private loan could make sense if you need additional funding after receiving federal financial aid, grants and scholarships.
- You may need a cosigner. Private lenders require you to meet credit and income requirements, so you may need to apply with a cosigner, such as a parent, to qualify.
- Rates and terms vary by lender. Each lender offers its own interest rates and repayment options, so shop around to find a loan offer that works for you.
- Avoid overborrowing. Not only do you have to pay back the amount you borrow, but you’ll also pay interest charges and any associated fees. So, only take out what you can realistically afford to repay.
Types of student loans
There are various student loans that can help you pay for college, including federal loans from the Department of Education and private loans from a bank, credit union, online lender or state agency.
Federal student loan options include:
- Direct subsidized loans for undergraduates
- Direct unsubsidized loans for undergraduate and graduate students
- PLUS loans for graduate and professional students
- PLUS loans for parents
When you borrow a private loan, you can also find loans designed for specific students and programs, such as undergraduate loans, graduate loans, MBA loans and healthcare loans. There are also loans for part-time students, noncitizens and parents.
Federal student loans vs. private student loans
Federal student loans are usually a superior choice to private loans due to their competitive interest rates, easier qualification requirements, forbearance options, potential for forgiveness and other benefits. However, they come with borrowing limits, so you may need additional funding for school.
Here’s a closer look at how federal loans compare with private loans.
*The only exception is PLUS loans, which require that you don’t have adverse credit. If you do, you might qualify by applying with an endorser.
Private student loans for different borrowers
Private lenders often design loans for specific types of borrowers with unique rates, terms and eligibility requirements.
What about income-share agreements? Similar to student loans, income-share agreements offer funding for your education. However, instead of paying back the amount you borrowed on a certain term, you’ll agree to pay a percentage of your future income for a predetermined amount of time after you finish school.
How does student loan interest work?
Student loan interest is the cost you pay for borrowing money. It’s calculated as a percentage of your loan amount and usually accrues daily. As you make monthly loan payments, a portion of your payment will go toward paying off interest charges, while the rest will go toward your principal balance.
The longer your repayment term, the more interest you’ll pay over time. Let’s say that you borrow $25,000 on a 5.00% fixed interest rate. On a 10-year term, you’d pay back the $25,000, plus an additional $6,820 in interest charges. On a 15-year term, you’d pay back $10,586 in total interest.
Good to know: The interest figures above assume you repay your loan on schedule. The truth is that most student loan borrowers get off schedule at some point during repayment. And when that happens, outstanding interest continues to accrue and capitalize on the principal balance, making repayment an even tougher task.
Interest rates may be fixed, meaning they stay the same over the life of your loan, or variable, meaning they could fluctuate over time with market conditions. All federal student loans have fixed rates, whereas private student loans may have fixed or variable rates.
How to choose the right student loan for you
To choose the best private student loans for college, determine what you’re looking for before you start shopping around. Consider how much you need to borrow, what monthly payment you could afford and which repayment terms work for your budget. An online student loan calculator (such as Calculator.net’s) can help you crunch the numbers.
Once you have a sense of your ideal loan, shop around with multiple lenders to find an offer that fits your needs. Some lenders let you prequalify for a loan online, allowing you to check your rates with no obligation or impact on your credit scores. As you compare loan offers, look for a loan with a competitive interest rate, flexible repayment terms and a reasonable monthly payment.
You might also consider other factors as you make your choice, such as the option for cosigner release, forbearance programs or customer service.
How to apply for a student loan
If you want to apply for a federal student loan, you’ll need to submit the Free Application for Federal Student Aid (FAFSA) via StudentAid.gov. The process for applying for a private student loan differs, though.
There’s no centralized application for private loans, so you’ll need to apply with individual lenders. As mentioned, some lenders let you check your rates through prequalification online, which can help you determine the best student loan to get.
When you find an offer you like, you’ll submit an official application with your personal and financial details, as well as your cosigner’s information, if applicable. The lender may require you to upload some verifying documentation, such as pay stubs or proof of address.
If the lender approves you for a loan, it will reach out to your school to certify your cost of attendance. Then, the lender will send the funds to your financial aid office, where they’ll be applied to your tuition bill.
Once the financial administrator has paid your tuition and fees, they will send any leftover funds to you, which you can use on books, food and other living expenses. (You can also return any extra funds directly to your lender, which would be a boon to your repayment.)
Methodology
To determine the best private student loans for college, our editorial and data research and analysis team collected nearly 900 inputs from almost 30 primary sources, including lender websites and independent organizations like the Better Business Bureau and the Consumer Financial Protection Bureau. We then analyzed the data across the following five categories to create an out-of-5 star rating for each reviewed lender.
Rates (20%)
This category most directly gets at the cost of a student loan, since a lower interest rate equals a less expensive loan to repay. To that end, we collected lenders’ lowest and highest fixed and variable rates (as of Nov. 3, 2023), also accounting for discounts as well as whether prequalification is offered to rate-shopping borrowers.
Loan details (15%)
Here, we took a closer look at the nuts and bolts of lenders’ products, namely what fees they charge as well as how little and how much they allow you to borrow. (Loan amounts are critical on both ends of the spectrum: Some borrowers might only need several thousand dollars to bridge a gap in their cost of attendance, and others might need to borrow up to their school’s full cost of attendance.)
Eligibility (15%)
Yes, we compared lenders across black-and-white underwriting criteria like minimum credit score, income and debt-to-income ratio, awarding those with the most accessible standards. But we also looked at whether nontraditional borrowers — such as part-time enrollees, trade school students and noncitizens — could gain eligibility (with or without the help of a cosigner). Finally, lenders with a faster route to cosigner release (say 12 months of on-time payments instead of 36 or more) scored especially well in this category.
Repayment (30%)
In our judgment, the best student loan is very often the one that’s easiest to repay. And that’s no small feat in the context of student loans, which are known to confound many students and their families. Lenders scored higher in our formula if they offer the following repayment benefits:
- Longer-than-average grace periods
- Various repayment term options
- An income-based repayment plan (akin to federal loans)
- Deferment and forbearance programs
- Relatively longer allowance of repayment pauses (say, 36 months instead of 12)
- Discharge in the case of permanent disability or death
Customer experience (20%)
And since some student loan lenders have been known to get in the way of their borrowers’ repayment success — and perhaps even fuel their failures — we gave a fair weighting to lenders’ customer support options and resources. We considered nine data points in this category alone, including whether the lender farms out loan servicing to a third party or handles it in-house; offers weekend services over the phone and other contact modes; and receives positive (or negative) feedback from its current customers.
What didn’t make the cut
Before narrowing our list of the best private student loans down to 10 lenders, we started with a group of 23 banks, credit unions, online lenders and state-sponsored agencies. That means 13 financial institutions didn’t pass muster.
Here are examples of popular lenders that fell short for various reasons.
Frequently asked questions (FAQs)
To qualify for a private student loan, you’ll need to meet a lender’s requirements for credit and income. If you don’t have good (or any) credit yet, you might need to apply with a creditworthy cosigner to get approved.
If you have bad credit, you may be required to apply with a creditworthy cosigner to get a private student loan. However, some lenders, like Ascent, offer outcomes-based student loans that are based on alternative factors, such as your program, major and GPA, rather than your credit score.
The process for getting a private student loan varies by lender. Expect it to span at least a few weeks, since even after being approved, the lender will need your school to verify its cost of attendance.
Applying for a student loan can ding your credit score by a few points when the lender runs a hard credit inquiry. In the long term, making on-time payments on your student loans can improve your credit score, while late payments, delinquency or default will damage it.
Federal student loans never expire, but private student loans have a statute of limitations that varies by state. However, federal student loans and some private student loans are discharged in the event of the primary borrower’s permanent disability or death. You may also pursue federal, state, employer and private student loan forgiveness or repayment assistance programs to pay down your balance faster.
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