BEST OF
3 Banks That Offer Student Loans
Few traditional banks offer student loans, but private loans are available from online lenders.
Which banks offer student loans? Not many. Traditional brick-and-mortar banks used to be a student lending staple, but only a handful still have private loan programs.
If you already use one of these banks — such as Citizens Bank or Wells Fargo — they may offer you a lower interest rate. But compare that offer with rates from other lenders, and exhaust available federal loans before turning to any private option.
Here’s a look at banks that do and don’t offer student loans, plus information on getting a private student loan from a bank.
Which banks offer student loans? Not many. Traditional brick-and-mortar banks used to be a student lending staple, but only a handful still have private loan programs.
If you already use one of these banks — such as Citizens Bank or Wells Fargo — they may offer you a lower interest rate. But compare that offer with rates from other lenders, and exhaust available federal loans before turning to any private option.
Here’s a look at banks that do and don’t offer student loans, plus information on getting a private student loan from a bank.
Summary of Banks That Offer Student Loans
| Lender | NerdWallet Rating | Fixed APR | Variable APR | Min. Credit Score | Learn More |
|---|---|---|---|---|---|
Best for International students with an eligible co-signer | 4.24 - 11.61% | 1.68 - 11.33% | Does not disclose | Check Rate on Citizens Bank's website | |
Best for Borrowing from a community bank | 4.25 - 12.59% | 1.13 - 11.23% | 660 | Check Rate on LendKey's website | |
Best for Students who plan to start repayment immediately | 4.49 - 9.64% | 2.92 - 8.07% | Does not disclose | Read review |
on Citizens Bank's website
Citizens One Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
on Citizens Bank's website
on LendKey's website
LendKey Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
on LendKey's website
PNC Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
Banks that offer student loans
Only a few national banks offer private student loans. These include:
Citizens Bank.
PNC.
Wells Fargo.
Some community banks provide private loans through third-party services, such as LendKey and iHELP. State banks — for example, the Bank of North Dakota — may have loan programs for students who are from or attending college in that state.
Many of the biggest and most well-known banks and financial institutions in the United States don’t offer private student loans, including:
Citibank.
HSBC.
TD Bank.
How to get a student loan from a bank
If you’ve found a bank that offers student loans, follow these steps before you borrow:
Exhaust federal student loans. Banks only offer private student loans. Before borrowing those, max out unsubsidized and subsidized federal student loans because of their low fixed rates and consumer protections. You can qualify for federal student aid by completing the Free Application for Federal Student Aid, or FAFSA.
Compare offers. If federal loans won’t cover all your costs, compare private student loans to get the best rate possible. That may be with a bank — for example, Citizens Bank offers a 0.25 percentage point discount to its existing customers — or an online lender may offer a better deal.
Check your qualifications. Banks can be tight-lipped about their financial requirements. But private lenders typically want you to have a credit score above 670 and enough income to afford all your debts and expenses. Banks may have additional requirements; for example, as of July 1, 2020, Wells Fargo only lends to borrowers with outstanding Wells Fargo student loans.
Apply with the bank. You’ll likely be able to complete the application process on the bank’s website. If a smaller or local bank has not partnered with a lending platform like LendKey, find out the steps you’ll need to complete your paperwork.
Which bank has the best student loan?
The best student loan is generally the one that costs you the least. That may come from a bank, especially if it offers a loyalty discount that lowers your interest rate.
But if your bank doesn’t have a student loan program, evaluate all your options.
Online lenders may lack the brand recognition of some banks, but there are reputable options that offer quick preapproval and match other features you might value in a bank. For example:
One-stop shopping. Online lender SoFi provides multiple products in addition to student loans, including mortgages and investment accounts. This matches the convenience banks offer of working with a single financial institution.
Long-term experience. Education Loan Finance, or ELFI, is not a bank itself, but it is an offshoot of SouthEast Bank in Tennessee. ELFI is a nonprofit organization that has worked with student borrowers for 25 years.
Personal support. Online lender CommonBond rates among NerdWallet’s best private student loans for customer service. Its personalized support includes offering students a dedicated Money Mentor who can answer questions on topics like financial aid, budgeting and credit.
Last updated on February 9, 2021
To recap our selections...
NerdWallet's Banks That Offer Student Loans
- Citizens One Private Student Loan: Best for International students with an eligible co-signer
- LendKey Private Student Loan: Best for Borrowing from a community bank
- PNC Private Student Loan: Best for Students who plan to start repayment immediately
