2 Banks That Offer Student Loans

Banks that offer student loans

Only a few national banks offer private student loans. These include:

• PNC.

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:

• JP Morgan Chase.

• Bank of America.

• Citibank.

• U.S. Bank.

• Capital One.

• HSBC.

• TD Bank.

• American Express.

• Wells Fargo.

» MORE: Banks that refinance student loans

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.

• 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.

• 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.

STUDENT LOAN RATINGS METHODOLOGY

Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.

We consider 40 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.

The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.