17 Best Private Student Loans
Always borrow federal student loans before private loans. Once you've exhausted federal options, compare offers from multiple private lenders to find the lowest student loan interest rate.
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Private student loans are used to pay for college costs, but they originate with a bank, credit union or online lender rather than the federal government.
Private student loans can be a good option if:
You have already completed the Free Application for Federal Student Aid, known as the FAFSA, to see if you’re eligible for federal grants, work-study and federal loans.
You have already borrowed the maximum in both subsidized and unsubsidized federal student loans.
You have good credit (a credit score of 690 or above) or a co-signer who does. Most private student loan borrowers have a co-signer.
You borrow only what you need.
Below, you can get personalized rates and find NerdWallet's top-ranked private student loan providers for students, parents, independent students, international students, part-time students and graduate school.
Best Private Student Loans
| Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
4.5/5 Best for Private student loan | Mid-600's | 4.50-14.83% | 5.62-15.95% | Check rateon Sallie Mae's websiteon Sallie Mae's website | |
5.0/5 Best for Private student loan + International students | Varies | 4.62-14.99% | 5.86-14.14% | Check rateon Ascent's websiteon Ascent's website | |
5.0/5 Best for Private student loan + Part-time students | Mid-600s | 4.74-15.32% | 4.74-15.32% | Check rateon College Ave's websiteon College Ave's website | |
4.5/5 Best for Private student loan | 650 | 4.45-14.90% | 4.99-15.30% | Check rateon Earnest's websiteon Earnest's website | |
4.5/5 Best for Private student loan | Mid-600s | 4.49-13.80% | 5.49-13.07% | Check rateon SoFi's websiteon SoFi's website | |
 Discover Undergraduate and Graduate Student Loans Check rateon Discover's websiteon Discover's website | 4.0/5 Best for Private student loans | Does not disclose | 5.49-15.99% | 5.87-16.72% | Check rateon Discover's websiteon Discover's website |
Our pick for
Private student loan
Sallie Mae Private Student Loan
Mid-600's
4.50-14.83%
5.62-15.95%
- One of the few lenders to provide loans to part-time students.
- Non-U.S. citizens, including DACA students, can apply with a U.S. co-signer.
- You can't see if you’ll qualify and what rate you’ll get without a hard credit check.
- Typical credit score of approved borrowers or co-signers: Does not disclose.
- Minimum income: Did not disclose.
- Loan amounts: $1,000 up to 100% of the school-certified expenses.
Ascent Credit-based Student Loan
Varies
4.62-14.99%
5.86-14.14%
Online lender Ascent offers two private student loan products, one for borrowers who have a co-signer and one for independent students who don't have a co-signer or established credit.
- Among the best for payment flexibility.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Stands out for features that enable faster loan repayment.
- Students enrolled less than half-time are not eligible.
- Co-signer release not available to international students.
- Typical credit score of approved borrowers: Did not disclose.
- Minimum income: $0 for primary borrower. $24,000 for current and previous year for co-signer.
- Loan amounts: $1,000 to $200,000 per year with an aggregate loan limit of $200,000.
College Ave Private Student Loan
Mid-600s
4.74-15.32%
4.74-15.32%
College Ave Student Loans is an online lender that offers student loans for undergraduates, graduate students and parents, plus student loan refinancing.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- More flexible repayment options than other lenders.
- Six-month grace period extension is available.
- You must be at least halfway through your repayment term before you can request a co-signer release.
- Typical credit score of approved borrowers: Mid-700s.
- Minimum income: $35,000 per year.
- Loan amounts: $1,000 up to cost of attendance.
Earnest Private Student Loan
650
4.45-14.90%
4.99-15.30%
- Option to skip one payment every 12 months.
- No late fees.
- Nine-month grace period is longer than most lenders offer.
- You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
- Loans aren't available in Nevada.
- Typical credit score of approved borrowers: 758.
- Minimum income: $35,000.
- Loan amounts: $1,000 up to your total cost of attendance.
SoFi Private Student Loan
Mid-600s
4.49-13.80%
5.49-13.07%
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Multiple in-school repayment options available, including interest-only and flat-fee, and deferred for undergrad and grad students.
- Additional perks like career planning, job search assistance and entrepreneurship support available.
- Does not offer bi-weekly payments via autopay.
- Typical credit score of approved borrowers or co-signers: 700+.
- Minimum income: No minimum.
- Loan amounts: $1,000 minimum.
Custom Choice Loan, Powered by Cognition
Varies
3.65-12.47%
5.67-14.19%
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- No late fees.
- Principal reduction of 2% if you graduate.
- Stands out for features that enable faster loan repayment.
- Doesn't apply extra payments to the principal balance by default.
- Forbearance program is less generous than others.
- Typical credit score of approved borrowers: 747.
- Minimum income: No minimum, but borrowers must demonstrate positive income.
- Loan amounts: $1,000 up to $99,999.
Education Loan Finance Private Student Loan
680
3.98-11.99%
3.98-11.99%
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- You are assigned a student loan advisor.
- Minimum loan amount is larger than other private lenders.
- No co-signer release available.
- Typical credit score of approved borrowers or co-signers: Not available.
- Minimum income: $35,000.
- Loan amounts: $1,000 up to your total cost of attendance.
Funding U Private Student Loan
None
7.49-12.99%
N/A
- You don't need a co-signer or credit history to get a loan.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Loans aren't available in 14 states.
- Payment required while in school and during the grace period.
- Typical credit score of approved borrowers: 650.
- Minimum income: No minimum, but borrowers must demonstrate they can pay $20 per month toward their loan.
- Loan amounts: $3,001 up to $10,000.
LendKey Private Student Loan
660
4.89-10.51%
5.36-10.37%
- Forbearance of 18 months is longer than many lenders offer.
- You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
- Payment required while in school and during the grace period.
- Typical credit score of approved borrowers: 748.
- Minimum income: $24,000 per year.
- Loan amounts: $1,000 up to cost of attendance, minus other aid received.
Our pick for
Private student loans
Discover Undergraduate and Graduate Student Loans
Does not disclose
5.49-15.99%
5.87-16.72%
- International and DACA students can qualify with a qualified U.S. citizen or permanent resident co-signer.
- No late fees.
- You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
- Minimum income: Did not disclose.
- Loan amounts: $1,000 minimum. Borrow up to 100% of school-certified cost of attendance — including tuition, housing, book and more — minus financial aid. Aggregate loan limits apply.
Our pick for
No co-signer
Federal student loans don't require a co-signer; neither do these lenders.
Funding U Private Student Loan
None
7.49-12.99%
N/A
- You don't need a co-signer or credit history to get a loan.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Loans aren't available in 14 states.
- Payment required while in school and during the grace period.
- Typical credit score of approved borrowers: 650.
- Minimum income: No minimum, but borrowers must demonstrate they can pay $20 per month toward their loan.
- Loan amounts: $3,001 up to $10,000.
Ascent Non-Cosigned Student Loan
Varies
12.96-14.24%
12.35-14.31%
- Among the best for payment flexibility.
- Grace period of 9 months is longer than most lenders.
- International students are not eligible.
- Freshmen, sophomores and those enrolled less than half-time are not eligible for future-income based loan.
- Typical credit score of approved borrowers: Did not disclose.
- Minimum income: $24,000 per year for credit-based loan. No minimum for future-income based loan.
- Loan amounts: $2,001 to $200,000 per year with an aggregate loan limit of $200,000 for credit-based loan. $2,001 to $20,000 per year for future-income based loan.
Our pick for
International students
Ascent requires a co-signer; MPOWER does not.
MPOWER Private Student Loan
N/A
13.72-15.01%
N/A
- Offers a hard-to-find option: non-co-signed student loans for international and DACA students.
- Borrowers are assigned a dedicated student loan advisor.
- Borrowers can request forbearance of up to 24 months, which is longer than many lenders offer.
- Payment required while in school and during the grace period.
- Offers only one repayment term: 10 years.
- MPOWER considers future income potential but does not factor in credit scores.
- Loan amounts: Minimum $2,001. Maximum loan is $100,000, limited to $25,000 per academic period.
Ascent Credit-based Student Loan
Varies
4.62-14.99%
5.86-14.14%
- Among the best for payment flexibility.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Stands out for features that enable faster loan repayment.
- Students enrolled less than half-time are not eligible.
- Co-signer release not available to international students.
- Typical credit score of approved borrowers: Did not disclose.
- Minimum income: $0 for primary borrower. $24,000 for current and previous year for co-signer.
- Loan amounts: $1,000 to $200,000 per year with an aggregate loan limit of $200,000.
Our pick for
Parent loan
ISL Private Student Loan
670
3.85-7.91%
4.44-8.89%
- Forbearance of 24 months is longer than many lenders offer.
- No late fees.
- Only offers 2 loan terms.
- Typical credit score of approved borrowers or co-signers: 670.
- Minimum income: No minimum income.
- Loan amounts: $1,001 or $2,001, based on residency and school location, up to cost of attendance minus other aid received.
Our pick for
Part-time students
Not all lenders consider students enrolled less than half-time.
RISLA Private Student Loan
680
4.99-6.86%
N/A
- Income-based repayment plan available, with forgiveness after 25 years.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Partial loan forgiveness for eligible internships; interest forgiveness for qualifying nurses.
- Fewer repayment terms available than other lenders.
- Typical credit score of approved borrowers: 768.
- Minimum income: $40,000.
- Loan amounts: $1,500 to $45,000.
College Ave Private Student Loan
Mid-600s
4.74-15.32%
4.74-15.32%
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- More flexible repayment options than other lenders.
- Six-month grace period extension is available.
- You must be at least halfway through your repayment term before you can request a co-signer release.
- Typical credit score of approved borrowers: Mid-700s.
- Minimum income: $35,000 per year.
- Loan amounts: $1,000 up to cost of attendance.
Our pick for
Income-based private loan
Income-based private student loans give you money to finish school in return for part of your pay later.
- No credit history required.
- Available to students without a co-signer.
- No payment required if borrower's income is less than $30,000 per year.
- Borrowers have to repay 2.25X the borrowed amount if they want to pay off the loan early.
- Not available to freshmen and sophomores receiving a four-year degree.
- Not available to borrowers in Colorado, Maine, Vermont and West Virginia.
Our pick for
Graduate school
Ascent Graduate and Health Professions Student Loan
Varies
5.62-16.24%
6.87-15.39%
- Forbearance of 24 months is longer than many lenders offer.
- Grace period of 9 months is longer than many lenders offer.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- You must be enrolled at least half-time to qualify.
- Typical credit score of approved borrowers or co-signers: Not available.
- Minimum income: Not available.
- Loan amounts: up to $400,000.
College Ave Graduate Student Loan
Mid-600s
4.74-13.99%
4.74-13.99%
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- International students can qualify with a co-signer.
- Nine-month grace period is longer than other lenders offer.
- You must be at least halfway through your repayment term before you can request a co-signer release.
- Typical credit score of approved borrowers: Mid-700s.
- Minimum income: $35,000 per year.
- Loan amounts: $1,000 up to the total cost of attendance.
Learn more about private student loans
Find a student loan: Compare private student loans, types and rates
Pros and cons: How federal and private student loans differ
How to apply: Wondering where to apply for student loans first?
Find the best student loan companies for:
Options for independent students | |
Remove parents from your student loans quickly | |
College loans in a parent's name | |
Lenders that don't require a full-time class load | |
Funding without a credit score requirement | |
Most lenders require a U.S. co-signer | |
PLUS loans, co-signer and other options |
Loans for students
How do private student loans and federal student loans differ?
You apply for a federal student loan by submitting a FAFSA. Taking on a federal loan means you’re borrowing from the government. You apply for a private student loan through a bank, credit union or online lender.
Federal student loans also have flat interest rates set by Congress, while the interest rate on a private student loan depends on your or your co-signer’s credit. Federal loans charge origination fees; private loans typically do not.
Federal student loans offer borrowers protections and alternative repayment options that private loans usually don't, such as income-based repayment and forgiveness programs. The current interest-free loan forbearance does not include private student loans; any future forgiveness offer is unlikely to include them.
How do I choose a private college loan online?
Compare offers from multiple lenders including banks, credit unions, online companies and state-based lenders to find the lowest interest rate. Depending on the lender, you may be able to choose a fixed or a variable interest rate. A fixed rate stays the same throughout the life of a loan. A variable rate may start out lower than a fixed rate, but could increase or decrease over time depending on economic conditions.
Consider any borrower protections your private lender offers, including deferment and forbearance, as well as repayment options. You may also have the option to choose your loan term, which means you could pay off your loan faster and with less interest by making higher payments or pay lower amounts with more interest over a longer period of time.
» MORE: How to get a student loan
How do I qualify for a private student loan?
Each lender will have its own requirements for taking out a loan. With most loans for students, credit score and income are taken into account. Higher scores and incomes tend to get the best rates or higher borrowing amounts. However, since undergraduate borrowers are less likely to have established credit or an income, lenders will usually require students to apply with a co-signer. Some lenders who have loans for borrowers without a co-signer will consider career and income potential.
Lenders will often require you to attend a Title IV school, which means your school processes federal student aid. Some lenders don't offer loans in certain states.
Can I get a private student loan with bad credit?
You’ll have a hard time finding a private student loan from a bank, credit union or online lender if you have bad credit. Federal student loans don’t require borrowers to demonstrate creditworthiness, so they’ll be your best option. If you’ve already hit your limit on federal loans, you may be able to get a private student loan if you apply with a co-signer who has solid credit — typically scores in the high 600s or better.
Will I need a co-signer for a private student loan?
If you have no income and either no credit or bad credit, you’ll need a co-signer to get a private student loan. Without bills in your name, such as a credit card, car loan or utility, you have no way to demonstrate that you can pay bills on time. Your co-signer will need to have a steady income as well as good to excellent credit scores, typically at least in the high 600s. Signing with a co-signer means they’re on the hook for your loan bill if you can’t pay.
Some lenders offer loans exclusively for student borrowers that don't take credit into consideration. Instead, these lenders look at the school you’re attending as well as your income and career potential to determine the amount you can borrow and at what rate.
How do I apply for a private student loan?
Each lender will have its own application requirements. You’ll usually need to provide documents that prove citizenship, identity and income along with school attendance and cost information or a financial aid award letter from your college.
As part of underwriting, you or your co-signer will need to show you have a credit score in the high 600s or higher, as well as cash flow to make loan payments. They’ll also look at your or your co-signer’s debt-to-income ratio to make sure you have the funds to pay a student loan bill in addition to any other bills in your name.
Private student loan interest rates
The NerdWallet team of student loans experts analyzed reported rates from 24 lenders over a period of 39 months. We considered four variables — average maximum fixed rates, average minimum fixed rates, average maximum variable rates and average minimum variable rates — for each lender on a month-over-month basis.
The average rates as of Mar. 10, 2023, were:
Minimum fixed interest rate - 5.34%.
Maximum fixed interest rate - 13.76%.
Minimum variable interest rate - 5.74%.
Maximum variable interest rate - 13.86%.
Average rates in general have trended upward over the last 12 months, with average fixed rates falling slightly since the previous month.
The reported rates represent lenders' advertised ranges. It's best to prequalify with multiple lenders to ensure you accept the best rate available to you.
Lenders typically offer the lowest rates to those with the strongest financial profiles. Based on our analysis, less than 30% of borrowers are offered the lowest rate. That percentage includes companies that offer all borrowers the same rate. Excluding those companies, less than 18% of borrowers are offered the lowest rate.
Use this chart and data to gauge how your student loan offers measure against typical interest rate ranges.
How exactly do student loan interest rates work?
Learn more about how student loan interest rates are determined, including a history of rate changes through the years. Private student loan interest rates can sometimes be lower than federal rates, but approval for the lowest rates requires excellent credit. If you have good credit, you may be able to refinance existing student loans to get a lower rate.
Sallie Mae study: Less than half of families with college-bound students feel confident about paying for college.
Among families with college-bound students, 47% think they’ll need to borrow to finance a college education, according to Sallie Mae’s 2022 College Confidence study. Yet just under half of those families identified federal direct subsidized and unsubsidized loans as aid that needs to be repaid, underlining the importance of learning the obligations of the debt you’ve been offered before accepting it.
Additionally, those families with college-bound students aren’t clear on the purpose of the FAFSA; 34% don’t know why someone would submit the FAFSA, and 44% don’t know that it’s for everyone, regardless of income level. If you or your child are considering going to college, familiarize yourself with all of the options available to you to fund that education –– and submit the FAFSA to be considered for the most aid possible.
NerdWallet study: College-bound grads could exit with nearly $40K of student loan debt
A 2022 high school graduate who will depend on student loans to pay for college could expect to borrow $39,500 for their bachelor’s degree, according to a new NerdWallet analysis. The share of parents taking out federal parent PLUS loans to help cover the costs of their children's college education has also grown significantly.
For more details, and to learn a number of ways to cut down on the amount borrowed for a bachelor's degree before, during and after college, see the full study here.
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.
Read more about our ratings methodologies for student loans and our editorial guidelines.
Last updated on March 21, 2023
NerdWallet's Best Private Student Loans
- Sallie Mae Private Student Loan: Best for Private student loan
- Ascent Credit-based Student Loan: Best for Private student loan + International students
- College Ave Private Student Loan: Best for Private student loan + Part-time students
- Earnest Private Student Loan: Best for Private student loan
- SoFi Private Student Loan: Best for Private student loan
- Discover Undergraduate and Graduate Student Loans: Best for Private student loans
- Custom Choice Loan, Powered by Cognition: Best for Private student loan
- Education Loan Finance Private Student Loan: Best for Private student loan
- Funding U Private Student Loan: Best for Private student loan + No co-signer
- LendKey Private Student Loan: Best for Private student loan
- Ascent Non-Cosigned Student Loan: Best for No co-signer
- MPOWER Private Student Loan: Best for International students
- ISL Private Student Loan: Best for Parent loan
- RISLA Private Student Loan: Best for Part-time students
- Edly Private Student Loan: Best for Income-based private loan
- Ascent Graduate and Health Professions Student Loan: Best for Graduate school
- College Ave Graduate Student Loan: Best for Graduate school
Frequently asked questions
- When should you get a private student loan?
Take out a private student loan only after you have exhausted your eligibility for federal student loans and you need additional financing to cover your remaining financial need. Borrow only what you need.
- Who qualifies for a private student loan?
To qualify for most private student loans, you (or your co-signer) will need good credit and income. Information on your citizenship and your education costs, among other criteria, is also required.
- How do you find the best private student loan?
Compare offers from multiple lenders to see which will offer you the lowest interest rate. Ensure that lender meets your other needs, like offering funding in your state or for your degree program.
- Will you need a co-signer for a private student loan?
You will almost certainly need a co-signer to meet a lender’s credit and income requirements. A few lenders consider borrowers without a co-signer, looking at career and income potential instead.
