Best of
17 Best Private Student Loans
Compare offers from multiple private lenders to find the lowest student loan interest rate — but only after you've exhausted all federal financial aid.
Sep 27, 2023
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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 are usually a better choice. They often come with more favorable terms — like lower interest rates, flexible repayment options and loan forgiveness.
Private student loans can still 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 and work-study programs.
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 can pay back.
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.
Featured LendersSee all lenders
Best Private Student Loans
| Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
4.5 /5 | Mid-600's | 4.50-15.49% | 6.37-16.70% | Check rateon Sallie Mae's websiteon Sallie Mae's website | |
5.0 /5 | Mid-600s | 4.49-16.99% | 5.59-16.99% | Check rateon College Ave's websiteon College Ave's website | |
5.0 /5 | Low-Mid 600s | 4.53-15.36% | 6.16-15.59% | Check rateon Ascent's websiteon Ascent's website | |
4.5 /5 | 650 | 4.42-15.90% | 5.62-16.20% | Check rateon Earnest's websiteon Earnest's website | |
4.5 /5 | Mid-600s | 4.44-13.80% | 5.99-14.30% | Check rateon SoFi's websiteon SoFi's website | |
4.0 /5 | Varies | 5.24-15.99% | 6.62-17.49% | Check rateon Discover's websiteon Discover's website | |
 Education Loan Finance Private Student Loan Check rateon Education Loan Finance's websiteon Education Loan Finance's website | 4.0 /5 | 680 | 4.48-12.29% | 4.98-12.79% | Check rateon Education Loan Finance's websiteon Education Loan Finance's website |
4.0 /5 | None | 13.74-15.01% | N/A | Check rateon MPOWER's websiteon MPOWER's website | |
4.5 /5 | None | 6.99-12.99% | N/A | Check rateon Funding U's websiteon Funding U's website | |
4.0 /5 | 660 | 4.39-11.11% | 5.84-11.11% | Check rateon LendKey's websiteon LendKey's website |
Our pick for
Private student loan
Check rateon Sallie Mae's websiteon Sallie Mae's website
Sallie Mae Undergraduate Student Loan
Min. credit score
Mid-600's
Fixed APR
4.50-15.49%
Variable APR
6.37-16.70%
Check rateon Sallie Mae's websiteon Sallie Mae's website
Key factsBest for part-time students and those who want to make payments during school.
Pros
- 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.
Cons
- You can't see if you’ll qualify and what rate you’ll get without a hard credit check.
Qualifications
- 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.
Available Term Lengths10 to 15 years
DisclaimerLowest rates shown include the auto debit. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Advertised APRs are valid as of 8/25/2023. Loan amounts: For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website may be subjected to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years.
Check rateon College Ave's websiteon College Ave's website
College Ave Undergraduate Student Loan
Min. credit score
Mid-600s
Fixed APR
4.49-16.99%
Variable APR
5.59-16.99%
Check rateon College Ave's websiteon College Ave's website
Key facts
College Ave Student Loans is an online lender that offers student loans for undergraduates, graduate students and parents, plus student loan refinancing.
Pros
- 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.
Cons
- You must be at least halfway through your repayment term before you can request a co-signer release.
Qualifications
- Typical credit score of approved borrowers: Mid-700s.
- Minimum income: $35,000 per year.
- Loan amounts: $1,000 up to cost of attendance.
Available Term Lengths5, 8, 10 or 15 years
DisclaimerCollege Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. As certified by your school and less any other financial aid you might receive. Minimum $1,000. Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 12/1/2023. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
Check rateon Ascent's websiteon Ascent's website
Ascent Credit-based Student Loan
Min. credit score
Low-Mid 600s
Fixed APR
4.53-15.36%
Variable APR
6.16-15.59%
Check rateon Ascent's websiteon Ascent's website
Key facts
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.
Pros
- 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.
Cons
- Students enrolled less than half-time are not eligible.
- Co-signer release not available to international students.
Qualifications
- 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.
Available Term Lengths5, 7, 10, 12 or 15 years
DisclaimerAscent's undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 12/1/2023 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.
Check rateon Earnest's websiteon Earnest's website
Earnest Undergraduate Loan
Min. credit score
650
Fixed APR
4.42-15.90%
Variable APR
5.62-16.20%
Check rateon Earnest's websiteon Earnest's website
Key factsAn option for undergraduate borrowers who want flexible repayment.
Pros
- Option to skip one payment every 12 months.
- No late fees.
- Nine-month grace period is longer than most lenders offer.
Cons
- Loans aren't available in Nevada.
Qualifications
- Typical credit score of approved borrowers: 758.
- Minimum income: $35,000.
- Loan amounts: $1,000 up to your total cost of attendance.
Available Term Lengths5, 7, 10, 12 or 15 years
DisclaimerActual rate and available repayment terms will vary based on your income. Fixed rates range from 4.67% APR to 16.15% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.87% APR to 16.35% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
Check rateon SoFi's websiteon SoFi's website
SoFi Undergraduate Student Loan
Min. credit score
Mid-600s
Fixed APR
4.44-13.80%
Variable APR
5.99-14.30%
Check rateon SoFi's websiteon SoFi's website
Key factsBest for flexible repayment options and no fees.
Pros
- 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.
Cons
- Does not offer bi-weekly payments via autopay.
Qualifications
- Typical credit score of approved borrowers or co-signers: 700+.
- Minimum income: No minimum.
- Loan amounts: $1,000 minimum.
Available Term Lengths5, 7, 10 or 15 years
DisclaimerUNDERGRADUATE LOANS: Fixed rates from 4.44% to 13.80% annual percentage rate ("APR") (with autopay), variable rates from 5.99% to 14.30% APR (with autopay). GRADUATE LOANS: Fixed rates from 4.99% to 13.60% APR (with autopay), variable rates from 5.99% to 14.10% APR (with autopay). PARENT LOANS: Fixed rates from 6.50% to 14.83% APR (with autopay), variable rates from 6.32% to 14.83% APR (with autopay). For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Lowest rates are reserved for the most creditworthy borrowers. If approved for a loan, the interest rate offered will depend on your creditworthiness, the repayment option you select, the term and amount of the loan and other factors, and will be within the ranges of rates listed above. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Information current as of 11/15/2023.
Check rateon Discover's websiteon Discover's website
Discover Undergraduate Loan
Min. credit score
Varies
Fixed APR
5.24-15.99%
Variable APR
6.62-17.49%
Check rateon Discover's websiteon Discover's website
Key facts Best for borrowers with strong finances.
Pros
- International and DACA students can qualify with a qualified U.S. citizen or permanent resident co-signer.
- No late fees.
Cons
- You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
Qualifications
- Minimum income: Did not disclose.
- Loan amounts: $1,000 minimum. Borrow up to 100% of school-certified cost of attendance — including tuition, housing, books and more — minus financial aid. Aggregate loan limits apply.
Available Term LengthsVisit Lender Website
DisclaimerLowest APRs are available to the most creditworthy applicants, and include an interest-only repayment discount and Auto Debit Reward. Applying with a creditworthy cosigner may improve your likelihood for loan approval and you may receive a lower interest rate. The fixed interest rate is set at the time of application and does not change during the life of the loan unless you are no longer eligible for one or more discounts. The variable interest rate and corresponding APR may increase over the life of the loan. The variable interest rate is calculated based on the 3-Month CME Term SOFR index plus the applicable margin percentage less any applicable discounts. The 3-Month CME Term SOFR index value for variable interest rate loans is 5.50% as of October 1, 2023. 3-Month CME Term SOFR is administered by CME Group and is published by CME Group on its website (cmegroup.com/termsofr). Discover Student Loans may adjust the variable interest rate quarterly on each January 1, April 1, July 1 and October 1 (each an “interest rate change date”), based on the 3-Month CME Term SOFR rate available for the day that is 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125), or 0%, whichever is greater. This may cause the monthly payments to increase, the number of payments to increase or both. If the 3-Month CME Term SOFR rate is less than zero percent, then the index will be deemed to be zero percent (as stated in the promissory note) for purposes of calculating your interest rate. Your variable interest rate (index + margin – applicable discounts) will not exceed 18%. Our lowest APRs are only available to applicants with the best credit. The APR will be determined after an application is submitted. It will be based on credit history, the selected repayment option and other factors, including a cosigner’s credit history (if applicable). If a student does not have an established credit history, the student may find it difficult to qualify for a private student loan on their own or receive the lowest advertised rate. Learn more about Discover Student Loans interest rates.
Check rateon Education Loan Finance's websiteon Education Loan Finance's website
Education Loan Finance Private Student Loan
Min. credit score
680
Fixed APR
4.48-12.29%
Variable APR
4.98-12.79%
Check rateon Education Loan Finance's websiteon Education Loan Finance's website
Key factsBest for borrowers with a significant funding gap.
Pros
- 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.
Cons
- No co-signer release available.
Qualifications
- 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.
Available Term Lengths5, 7, 10 or 15 years.
Check rateon Funding U's websiteon Funding U's website
Funding U Private Student Loan
Min. credit score
None
Fixed APR
6.99-12.99%
Variable APR
N/A
Check rateon Funding U's websiteon Funding U's website
Key factsBest for high-achieving independent students enrolled in four-year programs who have small funding gaps.
Pros
- 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.
Cons
- Loans aren't available in 14 states.
- Payment required while in school and during the grace period.
Qualifications
- 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.
Available Term Lengths10 years
Check rateon LendKey's websiteon LendKey's website
LendKey Private Student Loan
Min. credit score
660
Fixed APR
4.39-11.11%
Variable APR
5.84-11.11%
Check rateon LendKey's websiteon LendKey's website
Key factsBest for students who value working with a community bank or credit union.
Pros
- Forbearance of 18 months is longer than many lenders offer.
Cons
- 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.
Qualifications
- 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.
Available Term Lengths5, 10 or 15 years.
Check rateon Monogram's websiteon Monogram's website
Custom Choice Loan
Min. credit score
600
Fixed APR
4.43-14.66%
Variable APR
5.39-15.21%
Check rateon Monogram's websiteon Monogram's website
Key factsCustom Choice student loans are best for upperclassmen who are confident they can take advantage of the 2% Grad Reward and returning borrowers who want to take advantage of a pre-filled application and income verification waiver.
Pros
- 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.
Cons
- Doesn't apply extra payments to the principal balance by default.
- Forbearance program is less generous than others.
Qualifications
- 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.
Available Term Lengths7, 10 or 15 years
DisclaimerBefore applying for a private student loan, Citizens and Monogram recommend comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans. The Custom Choice Loan® is made by Citizens (“Lender”). All loans are subject to individual approval and adherence to Lender’s underwriting guidelines. Program restrictions and other terms and conditions apply. LENDER AND MONOGRAM LLC EACH RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. TERMS, CONDITIONS AND RATES ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE. Interest rates and APRs (Annual Percentage Rates) depend upon (1) the student’s and cosigner’s (if applicable) credit histories, (2) the repayment option and repayment term selected, (3) the expected number of years in deferment, (4) the requested loan amount and (5) other information provided on the online loan application. If approved, applicants will be notified of the rate applicable to your loan. Rates and terms are effective as of 12/1/2023 The variable interest rate for each calendar month is calculated by adding the 30-Day Average Secured Overnight Financing Rate (“SOFR”) index, or a replacement index if the SOFR index is no longer available, plus a fixed margin assigned to each loan. The SOFR index is published on the website of the Federal Reserve Bank of New York . The current SOFR index is 5.33% as of 12/1/2023. The variable interest rate will increase or decrease if the SOFR index changes or if a new index is chosen. The applicable index or margin for variable rate loans may change over time and result in a different APR than shown. The fixed rate assigned to a loan will never change except as required by law or if you request and qualify for the auto pay discount. APRs assume a $10,000 loan with one disbursement. The high APRs assume a 7-year term with the Flat Payment Repayment option, a 2 month deferment period,
and a six-month grace period before entering repayment. The low APRs assume a 7-year term, and the Immediate Repayment option with payments beginning 30-60 days after the disbursement via auto pay. Auto pay yields a 0.25% interest rate reduction which is applied after the Servicer validates your bank account information and will continue until (1) three automatic deductions are returned for insufficient funds during the life of the loan (after which the discount cannot be reinstated) or (2) automatic deduction of payments is canceled. The auto pay discount is not available when reduced payments are being made or when the loan is in a deferment or forbearance, even if payments are being made. Custom Choice Loan® is a registered trademark of Monogram LLC.
Our pick for
International students
Ascent requires a co-signer; MPOWER does not.
Check rateon MPOWER's websiteon MPOWER's website
MPOWER Private Student Loan
Min. credit score
None
Fixed APR
13.74-15.01%
Variable APR
N/A
Check rateon MPOWER's websiteon MPOWER's website
Key factsBest for international students and students with Deferred Action for Childhood Arrivals, or DACA, status.
Pros
- 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.
Cons
- Payment required while in school and during the grace period.
- Offers only one repayment term: 10 years.
Qualifications
- 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.
Available Term Lengths10 years
DisclaimerNote: Our loan does not support Canadian citizens studying in Canada. Canadian Permanent Residents and U.S. citizens are considered “international” when studying in Canada. International students, U.S. citizens, U.S. permanent residents, and DACA recipients in the U.S. or Canada. ‘International’ means you are a non-U.S. citizen or U.S. non-permanent resident studying at a university in the U.S., or you are a non-Canadian citizen or Canadian non-permanent resident studying at a university in Canada. ‘DACA’ means the Deferred Action For Childhood Arrivals Program initiated by the U.S. Department of Homeland Security in 2012. In order to qualify as a DACA Student, you must have applied for, and been granted, DACA status by USCIS.
As a graduate student, you can borrow with a fixed interest rate of 12.99% (13.98% APR¹). This is the maximum rate and will not increase. However, MPOWER offers borrowers a way to qualify for a discount; a 0.25% rate discount is possible by making your loan payments through automatic withdrawal from your bank account. If you qualify for this discount, your rate will be 12.74% (13.72% APR²). ¹[International graduate student with regular interest rate] The APR is calculated using the following assumptions: A loan is approved in the amount of US$10,000 with a 5% origination fee of US$500. The student will start making payments 45 days after loan disbursement. Payments will be interest only until graduation, plus an additional 6-month grace period. The remaining months of repayment are calculated using a 120-month amortization schedule. All payments are made on-time, a forbearance is never utilized, and there is no pre-payment of any principal. At an APR of 13.98%, the monthly payment amount is US$113.66 for the first 30 months. For the next 120 months, the monthly payment amount is about $156.71. ²[International graduate student with discounted interest rate] The APRs with discounts are calculated using the following assumptions: A loan is approved in the amount of $10,000 with a 5% origination fee of US$500. The student will start making payments 45 days after loan disbursement. The borrower signs up for automatic debit immediately after the loan is disbursed and remains on it for the life of the loan, which reduces the rate by 0.25%. At an APR of 13.72%, the monthly payment is US$111.47 for the first 30 months. For the last 120 payments, the monthly amount is US$155.17.
Undergraduate Students in the U.S. or Canada
As an undergraduate student, you can borrow with a fixed interest rate of 13.99% (15.01% APR³). This is the maximum rate and will never increase. However, MPOWER offers borrowers a way to qualify for a discount; a 0.25% rate discount is possible by making your loan payments through automatic withdrawal from your bank account. If you qualify for this discount, your rate will be 13.74% (14.75% APR⁴). ³[International undergraduate student with regular interest rate] The APR is calculated using the following assumptions: A loan is approved in the amount of $10,000 with a 5% origination fee of $500. The student will start making payments 45 days after loan disbursement. Payments will be interest only until graduation plus an additional 6-month grace period. The remaining months of repayment are calculated using a 120-month amortization schedule. All payments are made on-time, a forbearance is never utilized, and there is no pre-payment of any principal. At an APR of 15.01%, the monthly payment amount is $122.41 for the first 30 months. For the next 120 months, the monthly payment amount is $162.97.
⁴[International undergraduate student with discounted interest rate] The APRs with discounts are calculated using the following assumptions: A loan is approved in the amount of US$10,000 with a 5% origination fee of US$500. The student will start making payments 45 days after loan disbursement. The borrower signs up for automatic debit immediately after the loan is disbursed and remains on it for the life of the loan, which reduces the rate by 0.25%. A forbearance is never utilized and there is no prepayment of any principal. At an APR of 14.75%, the monthly payment is US$120.22 for the first 30 payments. For the last 120 payments, the monthly amount is US$161.39.
Check rateon Ascent's websiteon Ascent's website
Ascent Credit-based Student Loan
Min. credit score
Low-Mid 600s
Fixed APR
4.53-15.36%
Variable APR
6.16-15.59%
Check rateon Ascent's websiteon Ascent's website
Key factsBest for students with a creditworthy co-signer.
Pros
- 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.
Cons
- Students enrolled less than half-time are not eligible.
- Co-signer release not available to international students.
Qualifications
- 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.
Available Term Lengths5, 7, 10, 12 or 15 years
DisclaimerAscent's undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 12/1/2023 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.
Our pick for
No co-signer
Federal student loans don't require a co-signer; neither do these lenders.
Check rateon Funding U's websiteon Funding U's website
Funding U Private Student Loan
Min. credit score
None
Fixed APR
6.99-12.99%
Variable APR
N/A
Check rateon Funding U's websiteon Funding U's website
Key factsBest for high-achieving independent students enrolled in four-year programs who have small funding gaps.
Pros
- 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.
Cons
- Loans aren't available in 14 states.
- Payment required while in school and during the grace period.
Qualifications
- 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.
Available Term Lengths10 years
Check rateon Ascent's websiteon Ascent's website
Ascent Non-Cosigned Student Loan
Min. credit score
Low-Mid 600s
Fixed APR
13.05-15.04%
Variable APR
13.27-15.18%
Check rateon Ascent's websiteon Ascent's website
Key factsBest for independent students with strong credit or upperclassmen with good grades.
Pros
- Among the best for payment flexibility.
- Grace period of 9 months is longer than most lenders.
Cons
- International students are not eligible.
- Freshmen, sophomores and those enrolled less than half-time are not eligible for future-income based loan.
Qualifications
- 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.
Available Term Lengths5, 7, 10, 12 or 15 years
DisclaimerAscent's undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 12/1/2023 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.
Our pick for
Graduate school
Check rateon College Ave's websiteon College Ave's website
College Ave Graduate Student Loan
Min. credit score
Mid-600s
Fixed APR
4.49-14.49%
Variable APR
5.59-14.49%
Check rateon College Ave's websiteon College Ave's website
Key factsBest for graduate students who'll need extra time before starting repayment.
Pros
- 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.
Cons
- You must be at least halfway through your repayment term before you can request a co-signer release.
Qualifications
- 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.
Available Term Lengths5, 8, 10 or 15 years
DisclaimerCollege Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. As certified by your school and less any other financial aid you might receive. Minimum $1,000. Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 12/1/2023. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
Check rateon Ascent's websiteon Ascent's website
Ascent Graduate and Health Professions Student Loan
Min. credit score
Low-Mid 600s
Fixed APR
5.37-15.11%
Variable APR
6.69-15.34%
Check rateon Ascent's websiteon Ascent's website
Key factsBest for graduate students who want flexible payment options.
Pros
- 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.
Cons
- You must be enrolled at least half-time to qualify.
Qualifications
- Typical credit score of approved borrowers or co-signers: Not available.
- Minimum income: Not available.
- Loan amounts: up to $400,000.
Available Term Lengths7, 10, 12 or 15 years
DisclaimerAscent's undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 12/1/2023 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.
Our pick for
Part-time students
Not all lenders consider students enrolled less than half-time.
Check rateon RISLA's websiteon RISLA's website
RISLA Private Student Loan
Min. credit score
680
Fixed APR
4.99-6.94%
Variable APR
N/A
Check rateon RISLA's websiteon RISLA's website
Key factsBest for students who may need wiggle room on payments in the future.
Pros
- 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.
Cons
- Fewer repayment terms available than other lenders.
Qualifications
- Typical credit score of approved borrowers: 768.
- Minimum income: $40,000.
- Loan amounts: $1,500 to $45,000.
Available Term Lengths10 or 15 years
Check rateon College Ave's websiteon College Ave's website
College Ave Undergraduate Student Loan
Min. credit score
Mid-600s
Fixed APR
4.49-16.99%
Variable APR
5.59-16.99%
Check rateon College Ave's websiteon College Ave's website
Key factsBest for students who want to make payments while they're still in school.
Pros
- 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.
Cons
- You must be at least halfway through your repayment term before you can request a co-signer release.
Qualifications
- Typical credit score of approved borrowers: Mid-700s.
- Minimum income: $35,000 per year.
- Loan amounts: $1,000 up to cost of attendance.
Available Term Lengths5, 8, 10 or 15 years
DisclaimerCollege Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. As certified by your school and less any other financial aid you might receive. Minimum $1,000. Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 12/1/2023. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
Our pick for
Parent loan
ISL Private Student Loan
Min. credit score
660
Fixed APR
3.85-8.40%
Variable APR
5.59-10.71%
Key factsBest for low-interest loans with consumer-friendly features, like a generous forbearance policy.
Pros
- Forbearance of 24 months is longer than many lenders offer.
- No late fees.
Cons
- Only offers 2 loan terms.
Qualifications
- 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.
Available Term Lengths10 or 15
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
Min. credit score
Varies
Fixed APR
N/A
Variable APR
9.40-23.00%
Key factsBest for seniors and graduate students with small funding gaps and no co-signer or credit history.
Pros
- No credit history required.
- Available to students without a co-signer.
Cons
- 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, Iowa, Maine, Vermont and West Virginia.
Available Term Lengths5 years of payments and up to 10 years with deferment periods.
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 the 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 only come with fixed interest rates — rates that are locked in for the life of the loan — that are set by Congress annually. Private lenders can offer fixed or variable rates that are based on your creditworthiness — and your co-signer's if you have one. Federal loans also charge origination fees; private loans typically do not.
Borrowers of federal student loans get extra protections — like income-driven repayment and Public Service Loan Forgiveness — that private loans lack.
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 other 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. Credit score and income are taken into account for most student loans. Higher credit scores and incomes tend to get the best rates and are more likely to be approved for higher borrowing amounts. Since undergraduate borrowers are less likely to have established credit or 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 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.
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 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 excellent credit scores, typically in the high 600s. Signing with a co-signer means they’re on the hook for your loan if you can no longer pay it.
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?
Each lender will have 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.
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.
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.
Recent studies on paying for college
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 September 27, 2023
NerdWallet's Best Private Student Loans
- Sallie Mae Undergraduate Student Loan: Best for Private student loan
- College Ave Undergraduate Student Loan: Best for Private student loan + Part-time students
- Ascent Credit-based Student Loan: Best for Private student loan + International students
- Earnest Undergraduate Loan: Best for Private student loan
- SoFi Undergraduate Student Loan: Best for Private student loan
- Discover Undergraduate Loan: Best for Private student loan
- Education Loan Finance Private Student Loan: Best for Private student loan
- MPOWER Private Student Loan: Best for International students
- Funding U Private Student Loan: Best for Private student loan + No co-signer
- LendKey Private Student Loan: Best for Private student loan
- College Ave Graduate Student Loan: Best for Graduate school
- Ascent Non-Cosigned Student Loan: Best for No co-signer
- Ascent Graduate and Health Professions Student Loan: Best for Graduate school
- Custom Choice Loan: Best for Private student loan
- RISLA Private Student Loan: Best for Part-time students
- ISL Private Student Loan: Best for Parent loan
- Edly Non-Cosigner Student Loan: Best for Income-based private loan
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.
