Best Private Student Loans for College in 2025
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Compare NerdWallet's top-ranked private student loan providers to find the lowest interest rate. Always exhaust federal financial aid first, and only use private student loans to fill in funding gaps.
| Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
5.0 /5 | Mid-600s | 3.47-17.99% | 4.44-17.99% | COMPARE RATESon Credible’s websiteon Credible’s website | |
4.5 /5 | Mid-600's | 3.49-15.99% | 4.54-14.71% | COMPARE RATESon Credible’s websiteon Credible’s website | |
4.0 /5 | 680 | 3.69-14.22% | 5.00-13.97% | COMPARE RATESon Credible’s websiteon Credible’s website | |
5.0 /5 | Low-Mid 600s | 3.39-13.76% | 5.01-14.02% | COMPARE RATESon Credible’s websiteon Credible’s website | |
5.0 /5 | 600 | 4.24-14.04% | 4.44-14.08% | COMPARE RATESon Credible’s websiteon Credible’s website | |
4.0 /5 | None | 12.99-15.99% | N/A | ||
4.5 /5 | None | 7.95-12.49% | N/A | ||
5.0 /5 | Low-Mid 600s | 12.86-14.85% | 12.72-14.67% | COMPARE RATESon Credible’s websiteon Credible’s website | |
5.0 /5 | 660 | 3.95-8.01% | 6.54-11.08% | ||
4.0 /5 | Varies | N/A | 9.40-23.00% |
Our pick for
Private student loan
These lenders charge no origination fees and were among our top scoring providers. Most use a soft credit check to offer preliminary rates.
Ascent Credit-based Student Loan
Low-Mid 600s
3.39-13.76%
5.01-14.02%
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: $2,001 to $200,000 per year with an aggregate loan limit of $200,000.
Earnest Undergraduate Loan
650
3.47-16.49%
4.99-16.85%
- Option to skip one payment every 12 months.
- No late fees.
- Nine-month grace period is longer than most lenders offer.
- 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.
College Ave Private Student Loan
Mid-600s
3.47-17.99%
4.44-17.99%
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.
Sallie Mae Undergraduate Student Loan
Mid-600's
3.49-15.99%
4.54-14.71%
- One of the few lenders to provide loans to part-time students.
- Non-U.S. citizens, including DACA students, who live in the U.S. and attend school in the U.S. can apply with a qualified co-signer who is a U.S. citizen or permanent resident.
- 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.
SoFi Undergraduate Student Loan
Mid-600s
3.54-15.99%
4.64-15.99%
- 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.
- 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.
ELFI Private Student Loan
680
3.69-14.22%
5.00-13.97%
- 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.
- 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.
LendKey Private Student Loan
680
3.99-12.61%
5.98-13.74%
- 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.
- 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.
Custom Choice Loan
600
4.24-14.04%
4.44-14.08%
- 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.
- Co-signer release of 36 months is longer than what many lenders offer.
- Typical credit score of approved borrowers: 700 for a non-cosigned loan and 733 for co-signed loans.
- Minimum income: No minimum, but borrowers must demonstrate positive income.
- Loan amounts: $1,000 up to $99,999.
Funding U Private Student Loan
None
7.95-12.49%
N/A
- You don't need a co-signer or credit 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 12 states.
- Payment required while in school.
- 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.
Our pick for
Graduate school
College Ave Graduate Student Loan
Mid-600s
3.47-14.49%
4.44-14.49%
- 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.
Our pick for
Parent loan
ISL Private Student Loan
660
3.95-8.01%
6.54-11.08%
- 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
State-based student loan
RISLA Private Student Loan
680
4.05-8.64%
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.
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.
Edly Non-Cosigner Student Loan
Varies
N/A
9.40-23.00%
- No credit history required.
- Available to students without a co-signer.
- Borrowers have to repay 2.25X the borrowed amount if they want to pay off the loan early.
- Low income forbearance is not automatic and interest accrues.
- Not available to borrowers in Colorado, Connecticut, Iowa, Maine, Nebraska, Vermont and West Virginia.
Our pick for
No co-signer
Ascent Non-Cosigned Student Loan
Low-Mid 600s
12.86-14.85%
12.72-14.67%
- 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 the Outcomes-based loan.
- Typical credit score of approved borrowers: Did not disclose.
- Minimum income: $30,000 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
None
12.99-15.99%
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.
- 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 $50,000 per academic period.
Our pick for
Part-time students
College Ave Private Student Loan
Mid-600s
3.47-17.99%
4.44-17.99%
- 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.
What is a private student loan?
Private student loans originate with a bank, credit union or online lender — unlike federal student loans that are handled by the federal government.
You can use both federal and private loans to pay for school, but federal loans typically have more favorable terms, including lower interest rates, flexible repayment options and loan forgiveness. For those reasons, it’s best to prioritize federal student loans before private loans.
Private student loans can be a good option if:
You have already completed the Free Application for Federal Student Aid, or FAFSA, to see if you’re eligible for federal grants and work-study programs.
You have already borrowed the maximum in both subsidized and unsubsidized federal student loans.
You or a co-signer have good credit (a credit score of 690 or above). Many private student loan borrowers apply with a co-signer to improve their chances of qualifying.
You borrow only what you need and expect you can repay.
Types of private student loans:
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 |
How do private student loans and federal student loans differ?
Federal and private student loans vary in interest types, fees and borrower protections, and there are pros and cons to each type of loan.
Federal student loans:
Are offered by the federal government. Students apply by submitting the FAFSA.
Have fixed interest rates that don't change over the life of the loan.
Charge origination fees.
Come with protections like income-driven repayment and Public Service Loan Forgiveness.
Private student loans:
Are offered by banks, credit unions and online lenders.
Have fixed or variable rates based on borrowers' creditworthiness.
Typically do not charge origination fees.
Do not have the same protections as federal student loans.
How much can I borrow for college?
Only borrow what you need and can expect to pay back. Start with federal loans, and take private loans if you need additional funds to pay for college.
The maximum in federal student loans you can borrow depends on your year in school, whether you’re a dependent or independent student and the type of loan. With private loans, the amount you borrow can’t exceed your school’s total cost of attendance, less other financial aid.
A 2024 high school graduate who will depend on student loans to pay for college can expect to borrow about $37,000 for their bachelor’s degree, according to a recent NerdWallet analysis.
How do I choose a private student loan online?
1. Compare loan offers
Check options from multiple lenders including banks, credit unions, online companies and state-based lenders to find the lowest interest rate.
2. Decide on fixed or variable 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.
3. Choose a loan term
You may also have the option to choose your loan term. A short term gives you higher monthly payments, but also faster repayment and less total interest. A longer term allows you to pay less each month, but more interest over a longer period of time.
4. Consider borrower protections
A private lender may offer deferment, forbearance or another temporary repayment adjustment if you can’t afford your payments.
» MORE: How to get a student loan
Will I qualify for a private student loan?
Each lender has its own qualification requirements. Credit score and income are key considerations for most student loans. Borrowers with higher credit scores and incomes tend to get the best rates and highest loan amounts.
Since undergraduate borrowers are unlikely to have established credit or income, lenders will usually prompt students to apply with a co-signer. Some lenders who offer loans for borrowers without a co-signer will consider academic performance 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.
» MORE: Student loan calculator
Can I get a private student loan with bad credit?
You’ll have a harder 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 have bad credit. 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 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, it's hard to demonstrate that you can pay bills on time. Your co-signer will need a steady income and good credit scores. A co-signer is responsible for repaying the loan if you fail to make payments.
Some private lenders will let students apply without a co-signer. Instead of basing your loan offer on your credit, they look at your academic performance and earning potential to determine your ability to pay back the debt.
How do I apply for a private student loan?
Follow these steps to apply for a private student loan.
1. Find a lender.
Check your local banks, credit unions and state-based agencies to find private student loans. Online lenders also offer private loans, though be sure to review the fine print for a thorough understanding of interest type (fixed or variable), rates and fees.
2. Know the requirements.
Each lender has its own application requirements. You’ll usually need to provide documents that prove citizenship, identity and income along with school information, like cost of attendance or the financial aid award letter from your college.
You or your co-signer will need to have credits scores in the high 600s or higher, as well as cash flow to make loan payments. Lenders will 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.
3. Compare lenders before applying.
Shop around to gather and compare data on interest rates, repayment terms and co-signer requirements from multiple lenders before deciding on one. It may be helpful to read online reviews of lenders to gain insight from other consumers’ experiences.
How 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.
STUDENT LOAN RATINGS METHODOLOGY
Our survey of more than 26 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 April 18, 2025
NerdWallet's Best Private Student Loans for College in 2025
- Ascent Credit-based Student Loan: Best for Private student loan
- College Ave Graduate Student Loan: Best for Graduate school
- Earnest Undergraduate Loan: Best for Private student loan
- College Ave Private Student Loan: Best for Private student loan + Part-time students
- Sallie Mae Undergraduate Student Loan: Best for Private student loan
- SoFi Undergraduate Student Loan: Best for Private student loan
- ELFI Private Student Loan: Best for Private student loan
- ISL Private Student Loan: Best for Parent loan
- LendKey Private Student Loan: Best for Private student loan
- Custom Choice Loan: Best for Private student loan
- Funding U Private Student Loan: Best for Private student loan
- RISLA Private Student Loan: Best for State-based student loan
- Edly Non-Cosigner Student Loan: Best for Income-based private loan
- Ascent Non-Cosigned Student Loan: Best for No co-signer
- MPOWER Private Student Loan: Best for International students
Frequently asked questions
- When should I get a private student loan?
Take out a private student loan only after you've exhausted your eligibility for federal student loans and you need additional money to cover college costs.
- Who qualifies for a private student loan?
To qualify for most private student loans, you (or your co-signer) 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 the lender meets your other needs, like offering funding in your state or for your degree program.
- Will I need a co-signer for a private student loan?
Students 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 and instead look at career and income potential.
