BEST OF
16 Best Private Student Loans of January 2021
Always borrow federal student loans before private loans. Once you've exhausted federal options, compare offers from multiple private lenders to find the lowest interest rate.
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 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 from these well-established lenders and learn more about borrowing private student loans, including NerdWallet's top-ranked loans for students, parents, independent students, international students and part-time students.
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 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 from these well-established lenders and learn more about borrowing private student loans, including NerdWallet's top-ranked loans for students, parents, independent students, international students and part-time students.
Summary of Best Private Student Loans of January 2021
Lender | NerdWallet Rating | Fixed APR | Variable APR | Min. Credit Score | Learn More |
---|---|---|---|---|---|
Best for Private student loan | 3.49 - 12.99% | 1.04 - 11.98% | Mid-600s | Check Rate on College Ave's website | |
Best for Private student loan + International students | 3.34 - 13.57% | 2.46 - 12.40% | 540 | Check Rate on Ascent's website | |
Best for Private student loan | 4.25 - 12.59% | 1.25 - 11.35% | Does not disclose | Check Rate on Sallie Mae's website | |
Best for Private student loan | 4.59 - 12.99% | 1.59 - 11.99% | Does not disclose | Check Rate on Discover's website | |
Best for Private student loan | 4.13 - 11.52% | 1.78 - 11.89% | Does not disclose | Check Rate on SoFi's website | |
Best for Private student loan | 3.49 - 12.78% | 1.05 - 11.44% | 650 | Check Rate on Earnest's website | |
Best for Private student loan | 3.99 - 10.56% | 1.06 - 9.55% | 625 | Check Rate on Cognition's website | |
Best for Private student loan | 3.99 - 10.99% | 4.13 - 9.64% | 660 | Check Rate on CommonBond's website | |
Best for Private student loan + No co-signer | 7.99 - 14.99% | N/A | None | Check Rate on Funding U's website |
Our picks for
Private student loan
on College Ave's website
College Ave Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
on College Ave's website
on Ascent's website
Co-signed Student Loan
Fixed APR
Variable APR
Min. Credit Score
on Ascent's website

on Sallie Mae's website
Sallie Mae Private Student Loan

Fixed APR
Variable APR
Min. Credit Score
on Sallie Mae's website

on Discover's website
Discover Private Student Loan

Fixed APR
Variable APR
Min. Credit Score
on Discover's website

on SoFi's website
SoFi Private Student Loan

Fixed APR
Variable APR
Min. Credit Score
on SoFi's website
on Earnest's website
Earnest Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
on Earnest's website

on Cognition's website
Custom Choice Loan, Powered by Cognition

Fixed APR
Variable APR
Min. Credit Score
on Cognition's website
on CommonBond's website
CommonBond Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
on CommonBond's website

on Funding U's website
Funding U Private Student Loan

Fixed APR
Variable APR
Min. Credit Score
on Funding U's website
on LendKey's website
LendKey Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
on LendKey's website

on Citizens Bank's website
Citizens One Private Student Loan

Fixed APR
Variable APR
Min. Credit Score
on Citizens Bank's website
Our picks for
No co-signer
on Ascent's website
Independent Student Loan
Fixed APR
Variable APR
Min. Credit Score
on Ascent's website

on Funding U's website
Funding U Private Student Loan

Fixed APR
Variable APR
Min. Credit Score
on Funding U's website
Our picks for
International students
on Ascent's website
Co-signed Student Loan
Fixed APR
Variable APR
Min. Credit Score
on Ascent's website
MPOWER Private Student Loan

Fixed APR
Variable APR
Min. Credit Score
Our pick for
Parent loan
A good parent loan offers several options to begin repayment immediately.
on College Ave's website
College Ave Parent Student Loan
Fixed APR
Variable APR
Min. Credit Score
on College Ave's website
Our pick for
Part-time students
Not all lenders consider students enrolled less than half-time.
Advantage Education Private Student Loan

Fixed APR
Variable APR
Min. Credit Score
Our pick for
Income share agreement
Income share agreements give you money to finish school in return for part of your pay later.

on Stride's website
Stride Funding Income Share Agreement

Fixed APR
Variable APR
Min. Credit Score
on Stride's website
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 a loan funded by the government. You apply for a private student loan through a bank, credit union or online lender.
Federal student loans offer borrowers protections and alternative repayment options that private loans may not, such as income-based repayment and forgiveness programs. 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. Without a credit score of at least 690, you'll likely pay a higher interest rate for a private loan than you would for a federal loan.
» MORE: How to get a student loan
How do I choose a private student loan online?
Compare offers from multiple lenders including banks, credit unions and online 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.
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.
Find the best student loan for you
Last updated on December 23, 2020
To recap our selections...
NerdWallet's Best Private Student Loans of January 2021
- College Ave Private Student Loan: Best for Private student loan
- Co-signed Student Loan: Best for Private student loan + International students
- Sallie Mae Private Student Loan: Best for Private student loan
- Discover Private Student Loan: Best for Private student loan
- SoFi Private Student Loan: Best for Private student loan
- Earnest Private Student Loan: Best for Private student loan
- Custom Choice Loan, Powered by Cognition: Best for Private student loan
- CommonBond 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
- Citizens One Private Student Loan: Best for Private student loan
- Independent Student Loan: Best for No co-signer
- MPOWER Private Student Loan: Best for International students
- College Ave Parent Student Loan: Best for Parent loan
- Advantage Education Private Student Loan: Best for Part-time students
- Stride Funding Income Share Agreement: Best for Income share agreement
Frequently asked questions
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.
To qualify for a private student loan, 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.
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.
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.