Ratings Methodology for Student Loan Origination
NerdWallet’s overall ratings for student loan origination are weighted averages of ratings in the following categories:
- Faster repayment.
- Disclosures.
- Availability.
- Payment flexibility.
- Customer support.
Data collection and review process
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.
Information updates
The review team
In addition to NerdWallet, the work of our team members has appeared in The New York Times, The Associated Press, Nasdaq, MSN, MarketWatch, Yahoo! Finance and other national and regional media outlets. The student loan team’s writers and editors combined have more than 30 years of experience in finance.
For faster repayment
The best lenders for faster repayment generally offer three or more in-school repayment options in addition to full in-school deferment and full in-school repayment.
For disclosures
Top lenders generally allow borrowers to get their interest rate and loan terms with a soft credit check and disclose their interest rate range, minimum income requirements and minimum credit score requirements.
For availability
Top lenders generally lend to students in all states, to visa-holders and to students enrolled less than full time. These lenders also don’t require co-signers and offer co-signer release after 24 months to students who do use one.
For payment flexibility
Lenders with the highest marks for payment flexibility generally offer hardship forbearance of 12 months or longer, at least four other forbearance or repayment options to help struggling borrowers and a grace period of longer than six months.
For customer support
Top lenders generally have a defined complaint process and separate complaint department or ombudsman, live chat and in-house customer service.
Note on 5-star must-haves
Half a star is deducted from lenders who meet the point requirement for five stars but don’t meet the must-have criteria.