5 Standout Student Loan Lenders

See why the lenders make the grade

• Sallie Mae: Best for part-time students and those who want flexibility with repayment.

• Earnest: Best for borrowers who want to customize their repayment schedule to pay off debt fast.

• Ascent: Best for students who don't have a co-signer, and borrowers can make biweekly payments via autopay.

• Sofi: Solid option for borrowers who have exhausted their federal student loan options and need additional money to fund college costs. It also offers perks like career coaching, community events and no-fee investing.

• College Ave: More flexible repayment options than other lenders and best for students who want to make payments while they're still in school.

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 from the government. You apply for a private student loan through a bank, credit union or online lender.

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. Federal loans charge origination fees; private loans typically do not.

Federal student loans offer borrowers protections and alternative repayment options that private loans usually don't, such as income-based repayment and forgiveness programs. The current interest-free loan forbearance does not include private student loans; any future forgiveness offer is unlikely to include them.

How do I choose a private student 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 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.