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Recent and planned policy changes have led to much uncertainty within the federal student loan environment. As many of these changes take effect, it’s likely more borrowers will need private student loans, at least in part, to cover their full college expenses.
To help borrowers choose the best student loan for their needs, our editorial team analyzed and scored numerous private student lenders and the loans they offer. We’ve compiled a list of the lenders that scored highest in several categories and overall.
Federal vs. private student loans
Before diving into our list of the top private student lenders, let’s stop and visit an important rule of thumb. We always recommend maxing out federal student loans and grants before turning to private lenders.
- Federal student loans are issued by the government and offer protections, like income-driven repayment plans and forgiveness programs, that private loans can’t match. They also typically have relatively low fixed interest rates and usually don’t require a credit check — parent PLUS loans require a credit check to determine "adverse credit history," as noted on studentaid.gov.
- Private student loans come from banks, credit unions or online lenders. They may have fixed or variable interest rates. Your ability to get the loan depends on your credit. Private student loans tend to lack the borrower protections that come with federal loans.
The benefits of federal student loans make them the logical first choice, but private student loans can fill a need for certain borrowers. In particular, planned changes from the One Big Beautiful Bill Act (OBBBA) could push more borrowers toward private student loans. These changes include eliminating Graduate PLUS loans, setting new caps on graduate, professional and parent borrowing, and modifying federal repayment programs.
Top features of a private student lender and loan
- Competitive interest rates with rate transparency.
- Enables borrowers to see rates with a soft credit inquiry.
- Charges no origination, prepayment or late fees.
- Offers multiple in-school repayment options, including full deferral.
- Has at least 12 months of forbearance or hardship support.
- Assigns dedicated support for borrowers throughout the loan process.
Our 2026 list of the best student loans
- Federal student loans. We’ve already explained why federal student loans, offered by the government, should be maxed out first. They usually come with lower interest rates and more borrower protections. Submit the Free Application for Federal Student Aid, known as the FAFSA, to apply for federal student loans.
If you need private student loans, these are our top choices. (In a few cases, we have a tie.)
- Best overall → Ascent
- Best for payment flexibility → College Avenue
- Best for wide availability → Ascent
- Best for faster repayment options → ABE & Custom Choice
Visit our Best Private Student Loans page for a more in-depth comparison of lenders and our top picks in categories such as parent loans and graduate school loans.
Ascent: Best overall, for customer support and wide availability
When a private student lender scores the highest in two categories and overall, we know it’s doing something right for its borrowers. That’s because our team surveys nearly 20 lenders and then does a detailed analysis of each one. It’s not easy for a lender to rank first in multiple categories, as Ascent did.
Ascent offers undergraduate and graduate loans, and it serves students seeking a range of degrees including medical, dental, health professions, law and master of business administration. It also provides parent loans.
Ascent makes student loans based on applicant credit. Borrowers can apply with or without a co-signer. You can see if you’ll qualify and at what interest rate without a hard credit check, which can temporarily lower your credit scores.
Ascent also offers an outcomes-based loan for eligible college juniors and seniors with at least a 3.0 GPA. This option is one of only a few that doesn’t require credit, income or a co-signer, expanding access for certain borrowers.
What makes Ascent a strong choice
Ascent excels at combining flexibility, accessibility and some of the strongest customer service we’ve seen. Representatives help guide borrowers through both the application and repayment process, which can make applying for a private student loan less intimidating, especially for anyone doing it for the first time.
Ascent’s repayment flexibility is another key strength. We like that credit-based borrowers can apply with a co-signer or independently, and both options offer several in-school repayment plans: interest-only payments, a flat-fee payment, full payments or deferment. Ascent also has generous forbearance options for borrowers facing financial difficulty.
Borrowers can also make greater-than-minimum and biweekly payments with autopay, which reduces the debt faster. All of these borrower-focused features — combined with competitive interest rates, no origination or prepayment fees and loans that match a range of needs — helped Ascent earn top marks from our team.
What Ascent doesn’t do well
Just as important as listing the positives of a private student lender is alerting borrowers to any negatives. We had to look hard to find downsides with Ascent, but we came up with two: Ascent loans aren’t available to students enrolled less than half time, and loans without a co-signer aren't available for international students.
College Avenue: Best for payment flexibility
College Avenue scores well above other private student lenders for “best payment flexibility.” Our team gives this category the most weight because it helps borrowers manage monthly payments and interest costs.
College Finance provides loans for undergraduates, graduate students and parents. It offers specific lending products for graduate students seeking medical, dental, law and business degrees. It also offers student loan refinancing.
What makes College Avenue a strong choice
For students who want more repayment choices while they’re still in school, College Finance stands out. For example, College Avenue’s undergraduate loan has in-school options of interest-only payments, a fixed $25 monthly payment or full payments. You can also choose to defer payments until after graduation. Borrowers who elect to make payments while in school (and who select shorter repayment terms) can qualify for lower interest rates than they otherwise would.
College Finance is also more flexible than many lenders when it comes to grace period, or the amount of time after graduation before full repayment is required. The initial grace period of six months can be extended by an additional six months, giving new graduates 12 months of breathing room.
We also like that College Finance has many other borrower-friendly features. You can see potential interest rates with a soft credit check, enabling you to compare loan offers without affecting your credit scores. There are no origination or prepayment fees. And, for faster repayment, borrowers can make greater-than-minimum and biweekly payments by autopay.
What College Avenue doesn’t do well
College Avenue requires borrowers to reach the halfway point of their repayment term before applying for co-signer release — longer than many competitors that allow release after 12 to 48 months of on-time payments. That means co-signers remain legally responsible for the debt for years, and the loan continues to affect their credit during that time.
ABE: Best for faster repayment options
ABE rewards students who stay on track to complete school and pay off their loans. In our analysis for faster repayment options, ABE receives top marks due to borrower incentives, features to reduce overall interest costs and multiple in-school repayment options.
ABE also stands out for serving a wider range of borrowers, including full-time and part-time undergraduate and graduate students, as well as those pursuing certificate programs.
What makes ABE a strong choice
ABE offers a 0.05% rate reduction for every six months of consecutive payments, up to 0.25%. Borrowers can reduce their rate an additional 0.25% by electing automatic payment. Also, upon request, borrowers can receive a 2% loan principal reduction with proof of graduation. These features — combined with no origination, prepayment or late fees — can lower overall borrowing costs to make faster repayment possible.
This private student lender also gives borrowers control over how quickly they want to tackle repayment, with in-school options that include interest-only payments, a fixed $25 monthly payment or full payments. Payments can also be deferred until after graduation, but interest still accrues.
ABE enables applicants to see their interest rate offer without a hard credit pull. It also allows greater-than-minimum and biweekly payments to be made with autopay, which can speed up repayment. We also like that ABE provides forbearance and alternative repayment options for borrowers with financial hardship after graduation.
What ABE doesn’t do well
ABE’s lowest scoring category is for customer support, due to its lack of a dedicated advisor or representative to assist borrowers. Having such support is especially important for students or parents who are new to navigating private student loans.
Custom Choice: Best for faster repayment options
Custom Choice also comes out on top for faster repayment options. Like ABE, Custom Choice incentivizes students to complete school and make payments on time. (Both ABE and Custom Choice are offered through the same partnership between DR Bank and Monogram.)
Note: Borrowers must attend Title IV-certified school that offers 2-year or 4-year degrees to be eligible for a Custom Choice loan.
What makes Custom Choice a strong choice
Custom Choice provides several ways for students to reduce borrowing costs. Borrowers can receive a 0.25% interest rate discount if they set up automatic payment. An additional rate reduction of 0.05% is automatically applied for every 6 months of consecutive payments, up to a maximum discount of 0.25%. This available rate reduction of up to 0.50% is unusual among private student lenders, and we appreciate the effort to keep borrowers current on their loan payments.
Another notable Custom Choice perk is the “grad reward.” Students who earn a bachelor’s degree or higher can request a 2% principal reduction upon showing proof of graduation.
Custom Choice allows you to see your estimated interest rate without a hard credit inquiry, enabling you to compare to other lenders without affecting your credit scores. It doesn’t charge origination, prepayment or late fees, and it offers multiple repayment options — including interest-only, fixed $25 or full payments during school and deferred payments until graduation.
What Custom Choice doesn’t do well
Unlike some lenders, Custom Choice doesn’t apply extra payments to the principal balance by default. This is a disadvantage for borrowers who may not know to ask that extra payments be applied to principal first to reduce the loan balance and interest costs faster. Custom Choice is also somewhat limited in the audience it services, with no loans for parents or students in non-degree granting programs.
ELFI: Best for customer support
ELFI is the only lender on our “best” list with less than a 5-star rating, but it has earned its spot with the highest score for customer support. Even if it falls a little short in other categories for a lower overall rating, we think the customer support aspect is pretty significant.
ELFI offers loans for undergraduate and graduate programs for students enrolled half-time or more. ELFI loans can’t be used for community college or professional certificate programs. ELFI also offers parent loans and student loan refinancing.
What makes ELFI a strong choice
Every ELFI borrower is assigned a student loan advisor who can answer questions via phone, email or text. This advisor provides personalized support from application through repayment — an unusual level of service that gives ELFI an edge for best customer support. ELFI also claims to maintain a written escalation process in which complaints are routed to the Chief Compliance Officer.
ELFI’s entire application process is online, and an application can be completed in minutes. Applicants can see an estimated interest rate with a soft credit check, which won’t affect their credit scores. Another customer-focused feature is live chat on the ELFI site, although it’s only available during the week.
In-school repayment options with ELFI include full, interest-only or a fixed $25 monthly payment. Payments can also be deferred until graduation, but interest continues accruing. ELFI allows greater-than-minimum payments but not biweekly payments via autopay.
What ELFI doesn’t do well
ELFI makes it harder than most lenders to release a co-signer from its loans. Borrowers who want to release a co-signer from an ELFI loan must qualify to refinance to a new loan in their own name, which is a longer process than a simple co-signer release. Also, ELFI does not lend to students in associate degree programs.
How to find the best private student loan and apply
Following these steps can help you choose the best private student lender for your needs. It can also help make the application process easier.
1. Shop private student lenders
Compare multiple lenders and the student loan interest rates you may qualify for. Decide if a fixed or variable rate makes more sense for you. Review available loan terms to see how monthly payments and total interest costs compare. Finally, consider borrower protections. All federal student loans offer deferment and forbearance. Some private student lenders may offer similar protections or temporary payment relief if you have a financial hardship.
2. Ensure you meet the lender’s credit requirements
Most private lenders look for credit scores in the mid-600s or higher, along with steady income to cover student loan payments. It’s likely they will have other credit requirements too, like a maximum debt-to-income ratio that indicates you’re able to pay for student loans along with other bills. If you apply with a co-signer, that person’s credit and income will also be considered.
3. Gather your documents
It’s easiest to have your paperwork ready before you apply. Lenders typically ask for proof of identity, citizenship and income. You’ll also need information about your school, such as the cost of attendance and your financial aid award letter.
4. Submit your application
Apply directly through the lender’s website or through one of the buttons in our “best” list above. Carefully review the loan terms again — including fees and repayment options — before signing.
Methodology
How we chose the best student loans
Our team of student loan experts follows an objective and robust methodology to rate lenders and pick the best.
19
Lenders reviewed
We reviewed 19 banks, credit unions, and online lenders — including the top 10 by market share and search volume — plus lenders serving niche and nontraditional borrowers.
40
Features assessed
Each lender is evaluated across five weighted categories, covering dozens of features related to affordability, eligibility, consumer experience, flexibility, and application process.
50+
Data points analyzed
Our team tracks and reassesses more than 50 data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
Star rating categories
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
NerdWallet reviewed 19 banks, credit unions and online lenders offering student loans and student loan refinancing. We included the top 10 lenders by market share and the top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets. Some lenders are NerdWallet partners, but this did not influence our selection of the winner.
We consider 40 features and more than 50 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 a wide range of 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.
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