Best Private Student Loans

Since 2015, LendEDU has helped readers find the best student loans. Our latest analysis of 25 lenders and financial institutions included 725 data points. Compare our top choices for the 2025 to 2026 school year.

Reviews of the best private student loan lenders

• Best overall:
  College Ave
• Best for cosigner release:
  Sallie Mae
• Great for repayment flexibility:
  Capable
• Great graduation reward:
  Ascent
• Best repayment perks:
  Earnest
• Best for graduate students:
  SoFi
• Best for multi-year approval:
  Citizens Bank

Best overall: College Ave

Best Overall

5.0 _/5

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Why it’s one of the best
College Ave offers personalized solutions to undergraduates, graduates, parents, and career trainees. Its online experience is the best of all the companies we reviewed, featuring interactive calculators and tools that let you customize your loan terms and see how each choice affects your total cost.

• Covers up to 100% of school costs
• Low starting interest rates
• Quick 3-minute online application
• Excellent educational resources and interactive tools
• You choose your repayment plan and term length
• Multi-Year Peace of Mind program for additional loans

• Cosigners can’t be released until halfway through repayment
• Higher interest rates for applicants with bad credit

Rates & funding

Variable rates (APR)	5.59% – 16.85
Fixed rates (APR)	4.39% – 16.49%
Rate discounts	0.25% for automatic payments
Loan amounts	$1,000 – 100% of school costs

Eligibility

Loan types	Undergrad, grad, parent, career training
Min. credit score	Mid-600s
Min. income	$35,000 per year
Enrollment	Half time or more
Citizenship	U.S. citizen, permanent resident, or international
State	All 50 states

Repayment

In-school repayment	Full, interest-only, fixed, deferred
Repayment terms	5, 8, 10, or 15 years
Grace period	6 months for undergrads, 9 months for grads, apply for 6-month extension
Deferment	In-school and military
Forbearance	Up to 12 months, in increments of 3 or 6 months
Cosigner release	After finishing more than half of the scheduled repayment period and meeting additional criteria

Best for fast cosigner release: Sallie Mae

Best for Fast Cosigner Release

4.8 _/5

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Why it’s one of the best
Sallie Mae is the most recognized name in student lending, which helps it serve a broader range of borrowers than most competitors. It’s also an excellent choice for cosigners, offering one of the fastest paths to release of repayment responsibility in as little as 12 months with consistent on-time payments.

• Shortest path to cosigner release in as little as 12 months
• Receive funds for the full year with one application
• Covers up to 100% of school costs
• Low starting interest rates
• Part-time and career-training students are eligible
• Lower interest rates for in-school repayment

• No prequalification with a soft credit check
• Less loan customization than other lenders

Rates & funding

Variable rates (APR)	6.37% – 16.70%
Fixed rates (APR)	4.50% – 15.49%
Rate discounts	0.25% for automatic payments
Loan amounts	$1,000 – 100% of costs

Eligibility

Loan types	Undergrad, grad, parent, career training
Min. credit score	Mid-600s
Min. income	Not disclosed
Enrollment	Half time or more
Citizenship	U.S. citizen or permanent resident or non-U.S. citizen with a cosigner who is a U.S. citizen or permanent resident
State	All 50 states, plus Washington, D.C., and Puerto Rico

Repayment

In-school repayment	Interest only, fixed, deferred
Repayment terms	10 – 15 years
Grace period	6 months
Deferment	In-school, military, internship, residency, and fellowship
Forbearance	Up to 12 months, in increments of 3 months
Cosigner release	After 12 consecutive on-time payments

Great for repayment flexibility: Capable

Great for Repayment Flexibility

4.8 _/5

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By Sallie Mae

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Why it’s one of the best
Capable student loans are powered by Sallie Mae and share the same interest rates, repayment terms, and eligibility criteria. Because Sallie Mae is one of our top lenders and offers an optional 12-month interest-only repayment plan for qualified borrowers, we believe it’s worth including Capable in our list. We expect new features and benefits for borrowers to be released in the future to differentiate the offers.

• Covers up to 100% of school-certified costs
• Apply for cosigner release after 12 on-time payments
• No origination fees
• Accepts students with less than half-time enrollment
• Optional 12-month interest-only repayment plan for qualified borrowers
• Loans for undergraduate, graduate, and career-training programs

• No differentiators from Sallie Mae’s student loans
• Limited information available on its website
• No soft credit check to prequalify

Rates & funding

Variable rates (APR)	6.37% – 16.70%
Fixed rates (APR)	4.50% – 15.49%
Rate discounts	0.25% for automatic payments
Loan amounts	$1,000 – 100% of costs

Eligibility

Loan types	Undergrad, grad, parent, career training
Min. credit score	Mid-600s
Min. income	Not disclosed
Enrollment	Half time or more
Citizenship	U.S. citizen or permanent resident or non-U.S. citizen with a cosigner who is a U.S. citizen or permanent resident
State	All 50 states, plus Washington, D.C., and Puerto Rico

Repayment

In-school repayment	Interest only, fixed, deferred
Repayment terms	10 – 15 years
Grace period	6 months
Deferment	In-school, military, internship, residency, and fellowship
Forbearance	Up to 12 months, in increments of 3 months
Cosigner release	After 12 consecutive on-time payments

Best graduation reward: Ascent

Best Graduation Reward

4.8 _/5

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Why it’s one of the best
Ascent offers borrowers who provide proof of graduation a 1% cash back reward, plus long-term career benefits like access to paid remote internship opportunities and career resources.

• Cover up to 100% of costs with or without a cosigner
• 1% cash back graduation reward
• Up to 40 repayment plans
• Access to paid remote internship opportunities
• No fees
• Check your rates without affecting your credit score

Rates & funding

Variable rates (APR)	4.34% – 14.75%
Fixed rates (APR)	2.89% – 14.41%
Rate discounts	0.25% for automatic payments
Loan amounts	$2,001 – $200,000

Eligibility

Loan types	Undergrad, grad, parent
Min. credit score	620
Min. income	$24,000 per year
Enrollment	At least half-time in a degree program at an eligible institution
Citizenship	U.S. citizen, U.S. permanent resident, or DACA status with a valid Social Security number; Non-U.S. citizens or permanent residents may apply with eligible resident status and a creditworthy cosigner who is a U.S. citizen or permanent resident
State	All 50 states, plus Washington, D.C.

Repayment

In-school repayment	Full, interest-only, fixed, deferred
Repayment terms	5, 7, 10, 12, or 15 years
Grace period	9 months
Deferment	In-school
Forbearance	Yes
Cosigner release	Yes; after 12 on-time payments

Best repayment perks: Earnest

Best for Repayment Perks

4.7 _/5

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Why it’s one of the best
Earnest is another lender with an excellent online experience and several benefits that won’t be found elsewhere. It offers a 100% rate-match guarantee (with a $100 Amazon gift card) and lets borrowers skip one payment each year if needed without penalty.

• 100% rate-match guarantee (with $100 Amazon gift card)
• 9-month grace period vs. 6 months for most others
• Skip one payment each year without penalty if needed
• No application or late payment fees
• 2-minute eligibility check with no credit impact

• Doesn’t allow cosigners to be released

Rates & funding

Variable rates (APR)	5.62% – 16.20%
Fixed rates (APR)	4.11% – 15.90%
Rate discounts	0.25% for automatic payments
Loan amounts	$1,000 – 100% of costs

Eligibility

Loan types	Undergrad, grad, parent
Min. credit score	650
Min. income	$35,000 per year
Enrollment	At least half-time
Citizenship	U.S. Citizen, Permanent Resident Card Holder (10-year non-conditional or 2-year conditional), Deferred Action for Childhood Arrivals (DACA) Recipient, Asylee, or H-1B visa with a U.S. Citizen cosigner.
State	All states other than Nevada, plus Washington D.C.

Repayment

In-school repayment	Full, interest-only, fixed, deferred
Repayment terms	5, 7, 10, 12, or 15 years
Grace period	9 months
Deferment	In-school, military, residency, fellowship
Forbearance	Up to 12 months
Cosigner release	No

Best for graduate students: SoFi

Best for Graduate Students

4.7 _/5

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Why it’s one of the best
SoFi^® is an excellent online bank that offers all types of financial products, including student loans. Its benefits are consistently some of the best available, with up to $250 earned for good grades, financial planning services, and the option to redeem points to pay down your student loan balance.

• Up to $250 with GPAs of 3.0 or higherⓘ
• Earn and redeem points to pay down your balance
• Financial planning services
• Covers up to 100% of school-certified costs
• No origination, prepayment, or late payment fees
• Choose your repayment terms
• Interactive calculators and tools to estimate costs
• Check your rate without affecting your credit

• Doesn’t offer loans for career training

Rates & funding

Variable rates (APR)	5.99% – 14.30% with autopay
Fixed rates (APR)	4.44% – 14.30% with autopay
Rate discounts	0.25% for automatic payments
Loan amounts	$1,000 – 100% of school-certified costs

Eligibility

Loan types	Undergrad, grad, parent
Min. credit score	Not disclosed
Min. income	None
Enrollment	At least half time
Citizenship	U.S. citizen, permanent resident, visa holder (international & DACA w/ cosigner)
State	All 50 states

Repayment

In-school repayment	Full, interest-only, deferred, and more
Repayment terms	5, 7, 10, or 15 years
Grace period	6 months for most loans
Deferment	In-school, military, residency, internship
Forbearance	Yes, must call to discuss options
Cosigner release	12 consecutive on-time paymentsⓘ

Great for multi-year approval: Citizens Bank

Great for Multi-Year Approval

4.7 _/5

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Why it’s one of the best
Citizens Bank does an excellent job of focusing on the borrower’s future with its benefits. It offers a Multi-Year Approval program, where borrowers can accept an offer to receive additional loans for future years without a new application.

• Multi-Year Approval to simplify funding needs for future semesters
• Multiple rate discounts
• 2-minute prequalification with no credit impact
• Rate quotes are valid for 30 days

• Cosigners can’t be released for at least 36 months

Rates & funding

Variable rates (APR)	5.97% – 16.47%
Fixed rates (APR)	4.39% – 15.46%
Rate discounts	0.25% for loyalty, 0.25% for automatic payments
Loan amounts	$1,000 – $100,000

Eligibility

Loan types	Undergrad, grad, parent
Min. credit score	640
Min. income	$12,000
Enrollment	At least half time
Citizenship	U.S. citizen or permanent resident (international w/ cosigner)
State	All 50 states, D.C., U.S. territories

Repayment

In-school repayment	Full, interest-only, flat, deferred
Repayment terms	5, 10, or 15 years
Grace period	6 months
Deferment	In-school, internship, residency, military
Forbearance	Up to 12 months in 2-month increments
Cosigner release	36 on-time payments

How do private student loans work?

When scholarships, grants, and federal student loans don’t cover everything, private student loans can help fill the gaps. These loans come from private lenders, like banks, credit unions, and online companies, rather than the government. They can be used for all kinds of college costs, from tuition and fees to room and board, living expenses, and even textbooks.

The way it usually works is straightforward:

1. You apply for a loan (sometimes with a cosigner, sometimes on your own)
2. Get approved based on your credit history and income (or your cosigner’s)
3. The lender sends the money straight to your school.
4. After that, anything left over is typically refunded to you to use for other education-related expenses.

You’ll usually have a choice between starting payments right away or waiting until after you leave school—it just depends on the loan terms you pick. Some lenders offer several options for in-school repayment, like deferring payment, paying only interest or a flat monthly rate (e.g., $25), or making full interest-plus-principal payments.

Unlike federal loans, the interest rates, repayment options, and fees can vary significantly from one lender to another, so comparing your options really matters.

71% of borrowers would recommend taking out a private student loan.

— LendEDU private student loans survey

Types of private student loans

Not every student’s journey looks the same, so private lenders offer many loan types to match different needs. Whether you’re going to a traditional four-year college, picking up a trade, studying part-time, or even coming from another country, a loan out there likely meets your needs.

Check out these links to learn more about student loan types for specific needs.

How do student loan interest rates work?

When you take out a private student loan, the lender charges you interest—basically a fee for borrowing the money. Student loan interest rates can be either fixed or variable.

• Fixed rates stay the same for the life of your loan. What you see is what you get, and your monthly payments won’t change.
• Variable rates can go up or down over time based on market conditions. They often start out lower than fixed rates but could end up higher.

Your interest rate is usually based on a mix of factors, including your credit score, income, debt-to-income ratio, and whether you have a cosigner. In general, the stronger your financial profile (or your cosigner’s), the better rate you’ll get.

One important thing to know: Some lenders show you their lowest possible rates, but only the most qualified borrowers actually get them. So it’s always smart to get a few quotes and see what offers are available to you.

When choosing a private student loan lender, nearly 75% of borrowers say a low interest rate is the most important term.

— LendEDU private student loans survey

How private student loan options differ from federal loans

When you’re shopping for student loans, it’s important to know that private loans and federal loans aren’t the same. They both help you pay for school, but they come with some significant differences in how they’re issued, how you qualify, and how repayment works.

Here’s a quick side-by-side comparison to help you see the differences at a glance:

Feature	Federal student loans	Private student loans
Who offers them	U.S. Department of Education	Banks, credit unions, online lenders
How you apply	FAFSA (Free Application for Federal Student Aid)	Directly through the lender
Credit check required	No credit check for most loans	Yes—your credit and income (or cosigner’s) matter
Interest rates	Fixed, set by the government	Fixed or variable, set by the lender
Repayment start	After graduation or dropping below half-time enrollment	Sometimes while in school, sometimes after—depends on the lender
Repayment plans	Income-driven options, forgiveness programs available	Limited flexibility—repayment terms vary by lender
Loan forgiveness	Possible through programs like Public Service Loan Forgiveness (PSLF)	Not available—you’re expected to repay the full amount
Borrowing limits	Set amounts based on your year in school	Varies—you can sometimes borrow up to the full cost of attendance

Private loans can be a great tool, but they usually make the most sense after you’ve maxed out your federal loan options first. That way, you can take advantage of federal benefits like income-driven repayment and loan forgiveness before turning to private lenders.

The most common reason borrowers are ineligible for federal student aid is being enrolled less than half-time. Private student loans can help if you’re studying part-time.

— LendEDU private student loans survey

Pros and cons of private student loans

Private student loans can be a lifesaver when you need extra help paying for school—but they’re definitely not one-size-fits-all. Like anything else, they come with their upsides and downsides. Knowing both can help you make the smartest choice for your situation.

Pros

• You can borrow more if you need to

  Private lenders often let you borrow up to the full cost of attendance, which can help if you have a big gap after using federal aid.

• Competitive rates for strong credit

  If you (or your cosigner) have excellent credit, you could snag a lower interest rate than you’d get with federal loans.

• Variety of options

  There are private loans for undergrad, grad school, professional degrees, career training, and even international students.

• Cosigner release programs

  Some lenders let you apply to remove your cosigner after you make a set number of on-time payments.

• Fast application process

  You can usually apply online and get a decision fast—sometimes within minutes.

Cons

• Less borrower protection

  Private loans don’t offer income-driven repayment plans, forgiveness programs, or generous deferment and forbearance options like federal loans do.

• Credit and income requirements

  You (or your cosigner) need good credit and solid income to qualify for the best rates. Otherwise, you could get stuck with a higher interest rate.

• Variable rates can rise

  If you choose a variable-rate loan, your interest rate (and monthly payment) could climb over time.

• Harder to adjust payments if life changes

  Unlike federal loans, most private lenders don’t offer easy options to lower your payment if you lose your job or take a pay cut.

• Less standardization

  Every lender has its own rules, fees, and repayment terms, so you must do a little more homework to find the right fit.

As long as you understand the terms and know that you will end up with a degree that you can use to easily pay it back, it is worth furthering your education [with private student loans].

— 2025 LendEDU private student loans survey respondent

How to choose the best student loans for college

Choosing a student loan isn’t just about grabbing the first offer you see—it’s about finding the one that actually fits your needs (and doesn’t cause unnecessary stress later). The best loan for you might not be the same as the best loan for your friend, and that’s totally OK.

My top tip for comparing private student loan lenders is to start by identifying reputable lenders that offer the loan amount you need. Once you’ve narrowed it down to at least three options, compare them based on interest rates, loan terms, repayment structure, and any loan forgiveness or forbearance options they may provide.

Here are some smart questions to ask yourself when you’re comparing private student loan options:

• How much do I actually need to borrow? Try to borrow only what you need—not what you’re offered. Remember, you’ll be paying it back later (plus interest).
• Do I have a cosigner? If your credit history is limited or your income is low, having a cosigner with strong credit can help you qualify for a better rate.
• What interest rate am I getting? Make sure you know whether the rate is fixed or variable—and what the APR (annual percentage rate) is. That’s the real number to watch.
• What are my repayment options? Some lenders let you start paying while you’re in school, while others let you wait. See what fits your budget and future plans.
• Are there any fees? Watch out for origination fees, late payment fees, and prepayment penalties. (The best loans don’t have many extra charges.)
• Is there a cosigner release option? If you’re applying with a cosigner, check whether the lender offers a way to remove them after you’ve made a certain number of on-time payments.
• What happens if I run into financial hardship? Life happens. Some lenders offer options like deferment or forbearance, but others don’t—and it’s way better to know up front.

At the end of the day, it’s about picking a loan that supports your education goals without making life harder down the road. Take your time, read the fine print, and don’t be afraid to shop around for the best offer.

With a reputable lender, the terms are spelled out and there are no surprises. Everyone is aware of the particulars and there is relative peace of mind.

— 2025 LendEDU private student loans survey respondent

How to qualify for private student loans

Qualifying for a private student loan is a little different from getting a federal loan. Private lenders are taking a financial risk by lending you money, so they want to make sure you’re likely to pay it back. That means they will take a close look at your finances—or your cosigner’s.

Here’s what private lenders usually want to see:

• Good credit history: Most lenders like to see a strong credit score (think 650 or higher), but the best rates usually go to borrowers with scores in the 700s.
• Stable income: You (or your cosigner) should be able to show proof of steady income that’s high enough to handle your future loan payments.
• Low debt-to-income ratio: If you already have a ton of debt compared to your income, it might be harder to qualify—or you might get stuck with a higher interest rate.
• U.S. citizenship or permanent residency: Some lenders require you to be a U.S. citizen or permanent resident. International students usually need a U.S.-based cosigner.
• Enrollment in an eligible school: You’ll usually need to be enrolled at least half time in an approved college, university, or trade program.

Every lender is a little different, but these are the basics they’ll check when you apply.

Do I need a cosigner?

In many cases, yes—especially if you’re a younger student without much (or any) credit history yet.

A cosigner is typically a parent, guardian, or supportive adult who agrees to be responsible for the loan if you can’t make the payments. Having a cosigner can:

• Make it easier to qualify: If your cosigner has strong credit and steady income, you’re way more likely to get approved.
• Help you get a lower interest rate: Lenders see you as less risky with a cosigner on board, which can mean better terms.
• Open up more lender options: Some lenders might not approve you at all without a cosigner—at least while you’re still building your financial profile.

That said, not every borrower needs a cosigner. If you already have good credit and a solid income (or if you’re a grad student with a strong financial history), you might qualify on your own. A few lenders even specialize in no-cosigner loans for qualified applicants—although they can be a little tougher to snag.

And if you do use a cosigner, check if the lender offers a cosigner release program. That way, after you make a certain number of on-time payments, you might be able to take them off the hook.

How to apply for private loans for college

Applying for a private student loan isn’t too complicated, but there are a few steps you’ll want to follow to make sure you’re getting the best deal (and setting yourself up for success).

Here’s a simple breakdown:

1. Figure out how much you need to borrow. Before you apply, do a little math. How much are your tuition, fees, and living expenses? How much are you already covering through savings, grants, scholarships, and federal aid? Try to borrow just enough to cover the gap—no more, no less.
2. Shop around and compare lenders. Rates, fees, repayment options, and customer service can vary between lenders. It’s worth getting prequalified (which usually doesn’t affect your credit score) with a few different companies so you can see what kind of rates and terms you’re being offered.
3. Choose your lender and fill out the application. Once you find a loan you like, you’ll fill out an application directly with the lender. You’ll usually need to share personal information, school details, and financial info. If you’re applying with a cosigner, they’ll need to submit their info too.
4. Get certified by your school. After you’re approved, your school usually needs to certify the loan amount—basically double-checking that it matches your actual costs and financial aid eligibility.
5. Sign the final documents and receive the funds. Once everything’s good to go, you’ll sign the loan agreement, and the funds will typically be sent straight to your school. Any extra money after covering your tuition and fees usually gets refunded to you for living expenses.

Do you have to reapply each year or each semester?

Most of the time, you’ll need to reapply each academic year you need a loan. Private loans aren’t like a one-and-done deal that automatically covers all four years of college. Each year, you’ll go through the application process again—and your rates and terms could change depending on your financial situation and the lender’s current offers.

(If your school is on a semester system and you need a loan for just one semester, you can sometimes apply just for that term—but most people apply by the year.)

Should you shop around each time, or stick with the same lender?

It’s always smart to shop around each year—even if you liked your lender before. Rates, fees, and loan perks can change from year to year, and different lenders might offer you better deals as your credit history gets stronger.

That said, if you had a great experience with your lender last year and it’s still offering competitive rates this time around, there’s nothing wrong with sticking with it for convenience. Just make sure you’re not missing out on a better offer elsewhere.

Taking out a private student loan will affect your budget until the loan is repaid or forgiven. It can affect your cash flow and potentially your credit report. While the loan may place a financial burden on your monthly budget, making consistent, on-time payments can help build your credit profile and strengthen your overall financial credibility.

Can I afford a private student loan?

Once you’ve seen what different lenders offer—or even prequalified for a few rates—it’s time to ask the big question: Can I actually afford this loan?

That’s where our student loan affordability calculator comes in. Just plug in your expected starting salary, one of the interest rates you’ve seen, and your ideal repayment term, and we’ll estimate your monthly payment and how it stacks up against your income. It’s a quick gut check before you move forward with an application.

Private student loans can be a great tool for covering the gaps when scholarships, grants, and federal aid don’t quite stretch far enough. The key is knowing what you’re signing up for—and making sure you’re choosing the loan that actually works for you, not just for right now, but for your future.

Take your time, ask the right questions, and don’t be afraid to shop around. A little extra effort up front can save you a lot of money (and stress) later on. You’ve got this!

How we rated the best private student loans

Since 2015, LendEDU has evaluated student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These data points are organized into broader categories, which our editorial team weights and scores based on their relative importance to readers. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Higher star ratings are ultimately awarded to companies that create an excellent borrower experience. This includes offering online eligibility checks, cost transparency, competitive interest rates with no fees, flexible repayment plans, and unique benefits that support borrowers throughout repayment.