These lenders offer competitive APRs and are highly rated by NerdWallet’s experts. College Ave offers private student loans with multiple repayment options and lets borrowers refinance at any repayment term between five and 20 years. They also won NerdWallet’s Best Private Student Loan Overall award in 2024. Sallie Mae offers flexible repayment options and is one of the only lenders serving part-time students.
Why these lenders stand out?
Why these lenders stand out?These lenders offer competitive APRs and are highly rated by NerdWallet’s experts. College Ave offers private student loans with multiple repayment options and lets borrowers refinance at any repayment term between five and 20 years. They also won NerdWallet’s Best Private Student Loan Overall award in 2024. Sallie Mae offers flexible repayment options and is one of the only lenders serving part-time students.
of combined experience covering higher education and student loans
across student loan origination and student loan refinance, ensuring accurate star-rating
covering affordability, eligibility, consumer experience, flexibility and application process
| Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
5.0 /5 | Mid-600s | 3.19-17.99% | 4.24-17.99% | Go To Lender Siteon College Ave's websiteon College Ave's website | |
 Sallie Mae Undergraduate Student Loan Go To Lender Siteon Sallie Mae's websiteon Sallie Mae's website | 4.5 /5 | Mid-600's | 3.19-16.99% | 4.37-16.49% | Go To Lender Siteon Sallie Mae's websiteon Sallie Mae's website |
5.0 /5 | Low-Mid 600s | 3.09-14.41% | 4.31-14.72% | Go To Lender Siteon Ascent's websiteon Ascent's website | |
5.0 /5 | Mid-600s | 3.23-15.99% | 4.39-15.99% | Go To Lender Siteon SoFi®'s websiteon SoFi®'s website | |
5.0 /5 | 650 | 3.19-16.49% | 4.99-16.85% | Go To Lender Siteon Earnest's websiteon Earnest's website |
College Ave Private Student Loan
College Ave Private Student Loan
- 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
Sallie Mae Undergraduate Student Loan
- 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
Ascent Credit-based Student Loan
- 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.
SoFi Undergraduate Student Loan
SoFi Undergraduate Student Loan
- Typical credit score of approved borrowers or co-signers: 700+.
- Minimum income: No minimum.
- Loan amounts: $1,000 minimum.
Earnest Undergraduate Loan
Earnest Undergraduate Loan
- Typical credit score of approved borrowers: 758.
- Minimum income: $35,000.
- Loan amounts: $1,000 up to your total 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.
Student Loan Terms to Know
Deferment: A period of authorized nonpayment that pauses student loan payments for up to three years. Deferment can be a good option if you have a federal subsidized and can’t afford to make payments now, but will be able to soon. If you need a longer-term fix, consider income-driven repayment instead.
Delinquent: The status of a student loan after one or more missed payment. Loans enter default after a prolonged period of delinquency. While you will probably face late fees, you can avoid credit damage and default by quickly paying the past-due amount.
Disbursement: The process of releasing loan funds to the borrower or directly to the school.
Fixed interest: An interest rate that does not change during the life of a loan. All federal student loans have fixed interest rates, but private loans can offer fixed or variable interest rates. Fixed interest is the safer option because you don’t have to worry about your rate — and payment — increasing.
Variable interest: Variable interest rates can change monthly or quarterly depending on the loan contract and come with rates caps as high as 25%. Variable interest loans are riskier than fixed interest loans but can save you money if the timing is right.
Origination fee: The fee a borrower pays to offset a lender’s cost for issuing a student loan. All federal student loans have origination fees, while many private student loans don’t. Origination fees typically have a minimal effect on undergraduates with lower loan amounts, but can be costly for graduates and those with higher loan totals.
Prepayment: Prepayment is when you pay off part or all of your loan before the scheduled due dates.
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.
How do I choose a private student loan online?
Compare loan offers: Check options from multiple lenders including banks, credit unions, online companies and state-based lenders to find the lowest interest rate.
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.
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.
Consider borrower protections: A private lender may offer deferment, forbearance or another temporary repayment adjustment if you can’t afford your payments.
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.
