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If you’ve already used your savings, federal student loans, and student aid to pay for college and still find that you’re short on cash, a private student loan could be a good option.
Note: Federal student loans should always come before private student loans — federal student loans have the lowest interest rates and also come with a level of protection that private lenders don’t offer.
Take the federal student loan forbearance offered by the government during the coronavirus pandemic. While private lenders may have offered their own help for people experiencing hardships, private student loan borrowers didn’t get that widespread benefit or keep interest rates at 0%. The best student loans available are federal student loans. But if you need to turn to a private lender, here are a few of the best places to begin your search.
Private student loan interest rates
Undergraduate loan rates
Graduate loan rates
Learn more
SoFi
SoFi Undergraduate Student Loans
SoFi Graduate Student Loans
SoFi Undergraduate Student Loans
Ascent
Ascent Undergraduate Student Loans
Ascent Graduate Student Loans
Ascent Undergraduate Student Loans
Earnest
Earnest Undergraduate Student Loans
Earnest Graduate Student Loans
Earnest Undergraduate Student Loans
College Ave Student Loans
College Ave Undergraduate Student Loans
College Ave Graduate Student Loans
College Ave Undergraduate Student Loans
Sallie Mae
Sallie Mae Undergraduate Student Loans
Sallie Mae Graduate Student Loan
Sallie Mae Undergraduate Student Loans
Discover Bank, Member FDIC
Discover Undergraduate Student Loans
Discover Graduate Student Loans
Discover Undergraduate Student Loans
Custom Choice
Custom Choice Undergraduate Student Loans
Custom Choice Graduate Student Loans
Custom Choice Undergraduate Student Loans
MPower Financing
MPower Financing Undergraduate Student Loan
MPower Financing Graduate Student Loan
MPower Financing Undergraduate Student Loan
Rates in this post are current as of 07/01/2022.
SoFi private student loans
Undergraduate interest rate range: SoFi Undergraduate Student Loans
Graduate interest rate range: SoFi Graduate Student Loans
Loan amounts available: $5,000 minimum, up to 100% cost of attendance
Repayment options available:
• Deferred: No payments until six months after leaving school
• Interest only: Only make payments on the loan’s interest while in school
• Partial payments: Pay $25 per month while in school
• Full repayment immediately: Start making full payments while still in school
Ascent private student loans
Undergraduate interest rate range: Ascent Undergraduate Student Loans
Graduate interest rate range: Ascent Graduate Student Loans
Loan amounts available: $2,001 minimum, up to 100% cost of attendance
Repayment options available:
• Deferred: No payments for up to nine months after leaving school
• Interest only: Only make payments on the loan’s interest while in school
• Partial payments: Pay $25 per month while in school
Earnest private student loans
Undergraduate interest rate range: Earnest Undergraduate Student Loans
Graduate interest rate range: Earnest Graduate Student Loans
Loan amounts available: $1,000 minimum, up to 100% cost of attendance
Repayment options available:
• Deferred: No payments for up to nine months after leaving school
• Interest only: Only make payments on the loan’s interest while in school
• Partial payments: Pay $25 per month while in school
• Full repayment immediately: Start making full payments while still in school
College Ave private student loans
Undergraduate interest rate range: College Ave Undergraduate Student Loans
Graduate interest rate range: College Ave Graduate Student Loans
Loan amounts available: $1,000 minimum, up to 100% cost of attendance
Repayment options available:
• Deferred: No payments for up to six months after leaving school
• Interest only: Only make payments on the loan’s interest while in school
• Partial payments: Pay $25 per month while in school
• Full repayment immediately: Start making full payments while still in school
Sallie Mae private student loans
Undergraduate interest rate range: Sallie Mae Undergraduate Student Loans
Graduate interest rate range: Sallie Mae Graduate Student Loan
Loan amounts available: $1,000 minimum, up to 100% cost of attendance
Repayment options available:
• Deferred: No payments for up to six months after leaving school
• Interest only: Only make payments on the loan’s interest while in school and during grace period
• Fixed payments: Pay $25 per month while in school and during grace period
Discover private student loans
Undergraduate interest rate range: Discover Undergraduate Student Loans
Graduate interest rate range: Discover Graduate Student Loans
Loan amounts available: $1,000 minimum, up to 100% cost of attendance
Repayment options available:
• Deferred: No payments for up to six months after leaving school
• Interest only: Only make payments on the loan’s interest while in school and during grace period
• Fixed payments: Pay $25 per month while in school and during grace period
Custom Choice private student loans
Undergraduate interest rate range: Custom Choice Undergraduate Student Loans
Graduate interest rate range: Custom Choice Graduate Student Loans
Loan amounts available: $1,000 loan minimum, up to $180,000 lifetime loan limit
Repayment options available:
• Deferred: No payments for up to six months after leaving school
• Interest only: Only make payments on the loan’s interest while in school and during six month grace period
• Flat payments: Pay $25 per month while in school and during grace period
• Immediate repayment: Start making full payments while still in school
MPower Financing private student loans
Undergraduate interest rate range: MPower Financing Undergraduate Student Loan
Graduate interest rate range: MPower Financing Graduate Student Loan
Loan amounts available: $2,001 minimum, up to $100,000 lifetime limit
Repayment options available:
• Interest only: Only make payments on the loan’s interest while in school, then full payments after a 6-month grace period
Comparing best private student loans
SoFi private student loans (jump to SoFi student loan details »)
What makes SoFi stand out: Student Loans private student loans are best for graduate students. SoFi is one of the few lenders that offers lower interest rates for graduate school loans than undergraduate loans, with graduate loans starting 0.1% lower than undergraduate loans.
While SoFi’s interest rates are competitive with others on the list, what makes SoFi unique are its other features. This lender offers some good protections for student loan borrowers, like career services and unemployment protection. Additionally, SoFi’s student loans have no fees, including no late fees (though it’s worth noting that interest will still accrue).
Watch out for: High maximum loan amount. SoFi’s minimum loan amount is $5,000 — if you need a small student loan, it might be worth turning to a lender that makes smaller loans.
Read Insider’s full review of SoFi.
Ascent private student loans (jump to Ascent student loan details »)
What makes Ascent stand out: Student Loans private student loans are a flexible option for almost any student loan borrowers. Interest rates are competitive, and terms range from five to 15 years.
Cosigners are allowed and encouraged. A relatively unique feature is Ascent’s cosigner release. Make 24 consecutive on-time payments, and Ascent can release a cosigner from your student loan.
What to watch out for: Ascent isn’t a great option if you want to repay your student loans while you’re still in school, as this lender doesn’t offer a repayment plan with full payments while borrowers are still enrolled. But there’s no prepayment penalty on loans if you want to make partial payments in school. It’s also worth noting that Ascent limits borrowers’ total loans to $200,000, including any other federal or private student loans outside of Ascent.
Read Insider’s full review of Ascent.
Earnest private student loans (jump to Earnest student loan details »)
What makes Earnest stand out: Student Loans private student loans offer low starting interest rates and very flexible repayment terms. Earnest has four options for repayment, including a nine-month deferral after school. Earnest doesn’t charge any fees, including prepayment or origination fees on private student loans, which makes it a strong option.
Earnest also advertises the ability to skip a payment once per year. But that doesn’t meant that you’re off the hook for that payment, since interest will still add up and your payoff will be delayed. Your payments could be higher if you take full advantage of these features, and they could increase your total payoff time and loan amount.
But if used the right way, Earnest’s private student loans could still beat the competition with such low starting interest rates.
What to watch out for: Some of Earnest’s flexible features aren’t the right fit for everyone. The ability to delay loans for nine months may not be as great as it sounds, since interest still accrues during this period, growing your loan’s balance.
Read Insider’s full review of Earnest.
College Ave private student loans (jump to College Ave student loan details »)
What makes College Ave stand out: Student Loans ties with Earnest for the lowest starting interest rates on private student loans, since undergraduate fixed-rate loans start with an interest rate of 2.94%. Interest rates for grad school students are also competitive with SoFi’s lower interest rates for this group.
It’s a good choice for both graduate and undergraduate students, and it offers four options for repayment. College Ave allows cosigners for loans and offers parent loans in addition to undergraduate and graduate loans, starting at the same interest rate as the undergraduate interest rate.
What to watch out for: Late payment penalty. You’ll fork over a late payment of 5% of the amount due, capped at $25 if you fall behind on your payments.
Read Insider’s full review of College Ave.
See your rates with College Ave »
Sallie Mae private student loans (jump to Sallie Mae student loan details »)
What makes Sallie Mae stand out: Sallie Mae Undergraduate Student Loans doesn’t charge any origination and prepayment fees, and you also get four months of the study service Chegg for free. Chegg offers expert Q&A, and students can submit up to 20 questions per month.
What to watch out for: Sallie Mae sets your repayment term length, so if you want to choose your term length another lender is a better option.
Read Insider’s full review of Sallie Mae.
See your rates with Sallie Mae »
Discover private student loans (jump to Discover student loan details »)
What makes Discover stand out: You may like Discover Undergraduate Student Loans undergraduate student loans if you want to avoid fees, as the lender doesn’t have any prepayment penalties, origination fees, or late charges. However, you may be able to find lower fixed rates with other lenders on our list.
Discover also boasts a one-time 1% cash reward on its student loans for borrowers who get a GPA of 3.0 or higher for any academic term covered by the loan. You’ll have to redeem your reward within six months after the loan’s disbursement or six months after the academic term has ended, whichever is later.
What to watch out for: Limited term length options. Discover has only one standard term available, 15 years, which makes it a bad option if you want a different length.
Read Insider’s full review of Discover.
See your rates with Discover »
Custom Choice private student loans (jump to Custom Choice student loan details »)
What makes Custom Choice stand out: Custom Choice Undergraduate Student Loans offers loans of up to $99,999 annually that come without fees, and you can check your rates within a few minutes.
Custom Choice also offers a 2% reduction on your loan principal after you provide the lender with proof of graduation, as well as a .25% interest rate reduction when you sign up for AutoPay.
What to watch out for: No mobile app. If you want to manage your loans on the go, you won’t be able to with Custom Choice.
Read Insider’s full review of Custom Choice.
See your rates with Custom Choice »
MPower private student loans (jump to MPower student loan details »)
What makes MPower stand out: MPower Financing Undergraduate Student Loan offers fixed loans designed for international students. You can get a loan without a cosigner, collateral, or US credit history. Most other lenders that offer loans to international students require a US citizen or permanent resident to cosign on the loan.
What to watch out for: High interest rates. While the lender’s starting interest rates are higher than many of the other lenders on this list, we included it because of its accessibility for international students.
Read Insider’s full review of MPower Financing.
See your rates with MPower Financing »
Other private student loans we considered
Citizens Bank private student loans. Citizens Bank offers good rates, but there are fewer repayment options through this lender, as Citizens doesn’t give the option to pay during school. Credible private student loans. Credible doesn’t directly make student loans — rather, this is a marketplace that makes loans through the lenders listed above and more. Credible works with Ascent, Citizens Bank, College Ave, and Sallie Mae, for example.
Which lender is the most trustworthy?
We’ve only selected private student loan lenders with no public controversies in the last three years. We’ve also compared each institution’s Better Business Bureau score.
The BBB, a non-profit organization focused on consumer protection and trust, evaluates companies by judging a business’s responses to consumer complaints, honesty in advertising, and clarity about business practices. Here is each company’s score:
LenderBBB grade
SoFi
A+
Ascent
A-
Earnest
A
College Ave Student Loans
A+
Sallie Mae
A+
Discover Bank, Member FDIC
A+
Custom Choice
N/A
MPower Financing
NR
Of our top picks, only Custom Choice and MPower are not currently rated an A- or higher by the BBB. Custom Choice isn’t rated by the BBB at all, and the BBB doesn’t have sufficient information to rate MPower Financing. That said, this doesn’t necessarily reflect Custom Choice or MPower’s trustworthiness, and you should ask others about their experiences with the businesses before deciding against borrowing from the companies.
Methodology
Personal Finance Insider’s goal is to help smart people make the best possible decisions with their money. To do that, we combed through many student loans, comparing interest rates, terms, and fine print so you don’t have to. We looked for several factors in determining the best student loans, including:
Interest rates: The lower the interest rate the better, and we prioritized lenders with the lowest interest rates for both grad school and undergrad students.Nationwide availability: We searched for student loans available in all or most US states. Flexibility of repayment plans: There are four main options for repayment offered by most lenders: defer payments until after school; interest-only payments in school; small, fixed payments in school; and full monthly in-school payments. We looked for lenders with the most ways to pay.No or few fees: We prioritized lenders that didn’t charge fees, like origination fees or prepayment penalties.Cosigner eligibility: All of the student loans we considered had the option to apply with a cosigner to help with chances for approval and lower interest rates. Several of our top picks also have the ability to release a cosigner —Ascent and College Ave both offer this after 24 months of consecutive, on-time payments.
Frequently asked questions
Questions to ask yourself
Should I take out a student loan?
There’s no one-size-fits-all answer to this question, as your decision depends on your unique financial situation. You may consider alternatives such as a less expensive school, scholarships, or a side job to earn more money. Whatever your decision is, make sure you understand the terms of your loan before making a choice.
Should I pay student loans while I’m still in school?
This depends on your financial situation. Interest will still accrue while you’re in school, so it may be beneficial to make your interest payments each month or set aside a certain amount of money for monthly payments.
Paying either the principal of your student loans or the interest could be a good idea, because when your loan goes into repayment, any unpaid interest will capitalize. This means it will become part of the principal balance of your loan, which ups the loan. Interest is then determined using this new, higher loan balance.
Should I refinance my student loans?
Often, borrowers refinance to take advantage of lower interest rates or smaller monthly payments. You usually won’t pay any fees to refinance your loans, but that depends on the specific lender. Be careful before you refinance federal student loans, as you will lose key federal protections as a result.
Questions to ask your lender
Do I need a cosigner to get a student loan?
For most younger students, it’s unlikely you’ll be approved without a cosigner. It is possible, but mainly for students who have an established credit history and an income.
Once you have some credit established, however, you may be able to remove your cosigner by refinancing. Some lenders also allow borrowers to remove cosigners after several years of consecutive payments.
What are my options for repayment term length?
As you’ll likely be repaying your student loans over a longer period, you’ll want to know your options for your term length. You may want an extended length to spread your costs out, but be aware that you’ll pay more in overall interest this way. Some lenders, like Sallie Mae, set your repayment term for you.
What repayment options are available while I’m enrolled?
Every lender is different when it comes to your repayment choices while you’re in school. Some allow you to pay down your monthly debt in full every month, others offer interest-only or flat payments, and you may be able to defer all costs until after you graduate.
What’s the difference between federal and private student loans?
Federal student loans have a number of protections that private student loans don’t. The widespread forbearance and 0% interest rates during the coronavirus pandemic are some examples.
Similarly, income-based repayment plans are only available for federal student loans, and help to lower payments to a percentage of a person’s income. That’s a protection not available to private student loan borrowers that could make a big difference.
It’s a good idea to use all of your available federal loan options first to take advantage of these protections.
Does interest accrue during the grace period?
Yes, interest will accrue during the grace period, similar to how it does while you are in school. Private lenders may have suspended this practice during the pandemic, but they are under no obligation to do so.
Variable interest rate student loan vs. fixed-rate student loans — which is best?
Interest rates are at record lows in 2022, dropping across the board for both fixed- and variable-rate loans. And variable interest rates are exactly what they sound like — these loans have interest rates that change based on interest rate indexes, like the LIBOR or prime rate, plus a margin. When that index rate increases, the amount of interest you owe increases, along with your payment.
On variable-rate loans, interest rates and payments change over time. So, it’s important to remember that what goes up must come down, and vice versa. There’s a chance that interest rates will increase before a long loan (like a student loan) is paid off, and your interest rate and payment may not always be as low as it is now.
Can my private student loans be forgiven?
Unfortunately, no. Private student loans would not be eligible for any sweeping federal forgiveness programs that could the government may potentially enact.