Federal student loans only provide students with $5,500 to $12,500 toward a college education each year — a fraction of the cost of many universities. The best private student loans can help you further cover the expenses.
Because these loans come from private companies, not the government, they won’t be eligible for student loan forgiveness. That makes it especially important to find a private student loan with terms you can afford.
- Best private student loans
- Other lenders to consider
- How do I apply for a private student loan?
- Private student loan FAQs
Best private student loans
Not all private student loans are created equal. For the best private student loans, look for a reputable lender who will work with your credit score while offering a loan amount that will cover your school costs.
The first eight lenders are Credible partners. See our methodology below.
1. Ascent: Best for discounts
Ascent offers various loan repayment terms, loans with cosigners, as well as the Ascent Outcomes-Based Loan, which offers flexible eligibility for those who don’t have a cosigner or need to build credit. Ascent also offers a few discounts, such as a rate discount of 0.25 percentage points when you enroll in autopay, and a 1% cash back graduation reward on the non-consigned outcomes-based student loan.
Pros:
- Cosigner release after 12 consecutive on-time payments
- Several repayment options available
Cons:
- Only juniors, seniors, and graduate students qualify for the Ascent Outcomes-Based Loan
- Parent loan options not available
2. Citizens: Best for graduate degrees
Citizens offers a variety of student loan types, including loans for undergraduates, graduate students, and parents. Perhaps the most unique feature of Citizens student loans is the option for multiyear approval. If you qualify, you can apply once and borrow for future years with a more streamlined process that only involves a soft credit inquiry.
Student borrowers can defer payments while in school and for six months after graduating. You can also score a 0.25 percentage point reduction on your interest rate for setting up autopay, as well as an additional 0.25 percentage point loyalty discount if you or your cosigner already have a qualifying account with Citizens.
- Interest rates: Fixed or variable
- Minimum credit score: Not disclosed
- Loan terms: 5, 10, or 15 years for student loans; 5 or 10 years for parent loans
- Repayment options: Immediate, interest-only, or deferred repayment (parent loans only come with immediate or interest-only payment options)
- Loan amounts: $1,000 minimum, up to a maximum of $150,000 for undergraduate and graduate degrees; $250,000 for MBA and law; and $180,000 or $350,000 for health care student loans, depending on the degree type
- Loan types: Undergraduate, graduate, MBA, law school, medical school, dental school, and parent loans
- Eligibility: Must be a U.S. citizen or permanent resident enrolled at least half-time in a degree-granting program at an eligible institution. International students can apply with a cosigner who’s a U.S. citizen or permanent resident. You or your cosigner must also meet credit requirements and make at least $24,000 per year.
Pros:
- Multiyear approval for qualifying applicants
- Lends to international students with an eligible cosigner
- Customized loans for various programs and parents
- Autopay and loyalty discounts
Cons:
- Parent loans don’t have deferred payment option
- Loan limits may not cover your full cost of attendance
- No option to prequalify
3. College Ave: Best for flexible repayment options
College Ave offers multiple options to pay down your debt while still in school, including full deferral, fixed repayment, full monthly payment, interest only, and immediate repayment. Deferment and forbearance is also available for those students experiencing economic hardship.
Pros:
- Rate discount of 0.25 percentage points when you enroll in autopay
- No fees for application, origination or disbursement
Cons:
- Half of your repayment term must be completed before cosigner release is available
- Minimum income and credit requirements not disclosed
4. Custom Choice: Best for past-due balances
Powered by Cognition Financial, Custom Choice offers student loans for undergraduate and graduate students starting at $1,000. You can borrow up to $99,999 per year with a total aggregate limit of $180,000.
Custom Choice accepts applications from U.S. citizens and permanent residents, as well as Deferred Action for Childhood Arrivals (DACA) program recipients who apply with a cosigner who’s a U.S. citizen or permanent resident. International students, however, are not eligible for a Custom Choice loan.
If you apply with a cosigner, you may be able to release them from your loan after 36 on-time payments. You can also receive a 0.25 percentage point discount on your interest rate by setting up autopay, as well as a 2% reduction of your principal balance after graduating.
Custom Choice doesn’t charge application, origination, prepayment, or late fees. It also lets you pause payments through forbearance if you qualify for its natural disaster or unemployment protection programs.
- Interest rates: Fixed or variable
- Minimum credit score: Not disclosed
- Loan terms: 7, 10, or 15 years
- Repayment options: Immediate payments, interest-only payments, flat payments of $25 per month, or deferred payments until 6 months after graduation
- Loan amounts: $1,000 to $99,999 per year (lifetime limit of $180,000)
- Loan types: Undergraduate and graduate
- Eligibility: Must be a U.S. citizen or permanent resident at an eligible institution. You must also meet Custom Choice’s underwriting criteria for income and credit, or apply with a cosigner who does. Eligible noncitizens (DACA residents) can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Pros:
- 2% reduction of your principal balance upon graduation
- 0.25 percentage point discount on interest rate for autopay
- No fees — not even late fees
- Available to DACA students with an eligible cosigner
- Option to check your rates through online prequalification
Cons:
- No loan options for parents or international students
- Only three loan term options of 7, 10, or 15 years
- Minimum income and credit score requirements not disclosed
5. EDvestinU: Best for borrowers with good credit
Private lender EDvestinU, part of the nonprofit New Hampshire Higher Education Assistance Foundation Network, offers special discounts to New Hampshire students as well as affordable loan options for borrowers in about 20 other states and Puerto Rico.
EDvestinU provides undergraduate and graduate student loans with no origination, application fees, disbursement, or early payoff fees. While all applicants may qualify for competitive interest rates, New Hampshire students can receive a rate reduction up to 1.5 percentage points and more relaxed credit standards.
However, one downside is its strict requirements for cosigner release. Cosigners can be removed from a loan after 24 monthly payments if the primary borrower has at least a $30,000 gross income, a minimum credit score of 749, and no major collections activities during the past seven years.
- Interest rates: Fixed or variable
- Minimum credit score: Not disclosed
- Loan terms: 7, 10, or 15 years
- Repayment options: Immediate, interest-only or deferred payments while in school
- Loan amounts: $1,000 per academic year up to the school-certified cost of attendance. Lifetime limit of $200,000.
- Loan types: Undergraduate and graduate student loans
- Eligibility: Residents of Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin are eligible to apply. Applicants must be U.S. citizens or permanent residents, although international students can apply with a U.S. cosigner. Applicants must be enrolled at least half time at an eligible college or university.
Pros:
- New Hampshire students can access lower interest rates and looser eligibility criteria
- Autopay discount of 0.25 percentage points
- International students can qualify to borrow with an eligible U.S. cosigner
- Prequalification is available
Cons:
- Loans are available in a limited number of states
- Cosigner release requirements are strict
- Fewer choices of repayment terms (three) than some competitors
6. INvestEd: Best for Indiana residents
INvested is an Indiana company that offers affordable student loans exclusively to state residents. Loans are available to Indiana students and parents who can meet income and credit requirements, or who have an eligible cosigner. Borrowers can borrow as little as $1,001 or as much as the school-certified cost of attendance minus other aid.
INvested provides detailed information on eligibility so borrowers can quickly determine whether to apply for a loan — however, there’s no option to prequalify with a soft credit check. Cosigner release is also available after just 12 on-time payments, considerably shorter than many other lenders.
- Interest rates: Fixed or variable
- Minimum credit score: 670
- Loan terms: 5, 10, or 15 years
- Repayment options: Immediate, interest only, or deferred repayment
- Loan amounts: $1,001 minimum, up to the school certified cost of attendance
- Loan types: Student and parent loans
- Eligibility: Loans are available to Indiana residents only. Borrowers must have a FICO score of 670 or higher, a 30% maximum debt-to-income ratio or minimum monthly income of $3,333, continuous employment over two years, and no major collections or defaults in recent years. Borrowers who do not meet income or credit requirements can apply with a cosigner.
Pros:
- Low minimum borrowing limits
- Autopay discount of 0.25 percentage points
- Short cosigner release requirements
- Transparent qualification requirements
Cons:
- Loans are available only to Indiana residents
- No prequalification option to view your rates
- No loan options for international students
7. MEFA: Best for fixed-rate loans
Massachusetts Educational Financing Authority (MEFA) is a not-for-profit lender that offers low-cost undergraduate and graduate school loans to students nationwide. While only fixed-rate loans are available, interest costs may be lower than what you see with other private loans.
Loans start at $1,500 up to your school’s total cost of attendance, and MEFA charges absolutely no fees — something that only a handful of other lenders can match.
While you can apply with a cosigner to lock in the best rate possible, removing that cosigner later may be tough. Only one repayment plan allows cosigner release, and you must make four years of consecutive on-time payments and meet other credit and income requirements to qualify.
- Interest rates: Fixed
- Minimum credit score: Does not disclose
- Loan terms: 10 or 15 years
- Repayment options: Full payments, interest-only payments, deferred payments, deferred payments with cosigner release
- Loan amounts: $1,500 minimum up to school-certified cost of attendance
- Loan types: Undergraduate and graduate loans
- Eligibility: Must be a U.S. citizen or permanent resident, enrolled at least half time at a degree-granting, nonprofit institution, and must maintain satisfactory academic progress. Must have no history of default on an education loan and no history of bankruptcy or foreclosure in the past 60 months. Applicants who can’t meet the minimum credit and income requirements may apply with a cosigner.
Pros:
- No fees whatsoever
- Competitive interest rates
- Can borrow up to the cost of attendance
- Flexible repayment options
Cons:
- No rate discounts available
- No variable interest rates
- Only two repayment terms
- Strict cosigner release requirements
- Can’t prequalify with a soft credit check
8. Sallie Mae: Best for cosigner release
Sallie Mae offers the Smart Option Student Loan to undergraduate and graduate students. You can borrow up to your school-certified cost of attendance and apply just once annually to get the funds you need for the entire academic year. Plus, it may be easy to get reapproved for your future years of study — undergraduates have a 97% approval rate when they return to Sallie Mae with a cosigner.
Sallie Mae doesn’t charge origination or prepayment fees, so you can pay off your loan ahead of schedule without penalty. This lender also offers a 0.25 percentage point interest rate reduction when you set up automatic payments on your student loans.
Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for Master of Business Administration (MBA) programs, law school, bar study, medical school, medical residency, dental programs, dental residency, and other health profession programs. However, this lender no longer offers a career training loan.
- Interest rates: Fixed or variable
- Minimum credit score: Not disclosed
- Loan terms: 10 to 15 years for Smart Option Student Loan; up to 15 years for law school and bar study loans; up to 20 years for medical school, medical residency, dental school, dental residency, and health professions loans
- Repayment options: Immediate repayment, interest-only payments, flat payments of $25 per month, in-school deferment
- Loan amounts: $1,000 up to school-certified cost of attendance
- Loan types: Undergraduate, graduate, MBA, medical school, medical residency, dental school, dental residency, law school, bar study, health professions
- Eligibility: Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens may qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Pros:
- Can borrow up to school-certified cost of attendance
- No prepayment or origination fees
- Loans available to noncitizens with an eligible cosigner
- Cosigner release after 12 on-time payments
Cons:
- No parent loan options
- No option to check your rates through prequalification
- Loan terms not disclosed until after you apply
- Relatively long loan terms
9. SoFi: Best for no fees
SoFi offers a broad array of private student loans, including specialized products for MBA, law, and health profession students. There’s no maximum limit on the amount borrowed and SoFi doesn’t charge any fees — not even late fees.
But where SoFi really shines is in its added member benefits. Borrowers can access free financial planning services, personalized career coaching, unemployment protection, specialized travel offers, and local networking events and happy hours.
SoFi also offers cosigner release. Borrowers can apply to release their cosigner after making 24 months of principal-and-interest payments, assuming they are the age of majority in their state at the time they apply.
- Interest rates: Fixed or variable
- Minimum credit score: Not disclosed
- Loan terms: 5, 7, 10, and 15 years
- Repayment options: Full payments, interest-only payments, $25 flat payments, or deferred payments (parent borrowers are limited to full or interest-only payments)
- Loan amounts: $1,000 minimum, up to the school-certified cost of attendance
- Loan types: Undergraduate, parent, graduate, MBA, law school, health professional
- Eligibility: Borrowers or their cosigners must be a U.S. citizen, permanent resident, or non-permanent resident alien enrolled at least half time in a bachelor’s program or higher. Must also meet minimum income and credit requirements.
Pros:
- No late, origination, application, or insufficient fund fees
- Rate discounts for automated payments and existing customers
- Added member benefits like financial planning and career coaching
- Four different repayment options
Cons:
- Credit and income requirements not disclosed
- Parent borrowers must make at least interest-only payments while student is in school
10. PNC Bank: Best for customizable payment plans
- Minimum credit score: Does not disclose
- Maximum loan amount: $50,000
Methodology
Credible evaluated private student loan lenders in 10 different categories to determine the best lenders for private student loans. This included interest rates, repayment options, terms, fees, discounts, customer service availability, as well as eligibility requirements and cosigner release options.
How do I apply for a private student loan?
The process for a private student loan application is the same as other types of loans:
Decide how much you need. Calculate an estimate of your tuition costs, fees, and room and board expenses (if applicable). Don’t forget to account for books, travel, and any gear or equipment you’ll need, such as a computer. If you’ve received any other financial aid, include it in your calculations as well. Understand that the amount you borrow, along with the interest rate, will have an effect on your monthly payments.
Provide your information. The lender will need your Social Security number, employment and income details, existing loan payments, monthly rent or mortgage amount, bank statements, and your address. Ideally, you’ll already have established good credit, whether through a secured credit card or with a cosigner. The better your credit, the better the rates you’ll qualify for.
Fill out and sign the application. You’ll also need to provide the lender with details about your school, educational year, enrollment status, and major or field of study. Once you’ve signed the application and been approved, your school will need to certify the loan before it is disbursed. The total process can take two to three weeks or more.
Private student loan FAQs
What are the different types of student loans?
Federal student loans and private student loans are the two most common types available.
Federal student loans come from the government and they include subsidized loans, which are based on financial need, and unsubsidized loans, which are not. There are also federal loans for parents of students or students pursuing a master’s degree or PhD. These are called Direct PLUS (or parent PLUS) loans. Private student loans come from banks and credit unions.
Do private student loans affect financial aid?
Financial aid just means money to help pay for school. After grants, scholarships, and work-study, you may need to borrow money to cover any remaining balance. That’s where student loans come in. Since there is a cap on the amount you can borrow via federal loans, private student loans help you bridge the gap. It’s better to make private loans the last step in your school funding journey, since they can affect your eligibility for some types of aid from your school.
Do I need a cosigner for a student loan?
Not everyone needs a cosigner for a student loan. Federal student loans are available to students without a cosigner. But since private student loans are typically credit-based, you’ll need someone to cosign with you if your credit is too new or too low to qualify on your own. Keep in mind that in most cases, the cosigner will be there for the life of the loan.
What is the maximum amount of private student loans you can borrow?
The max you can borrow from the government is $31,000 for undergraduate degrees ($57,500 if you’re not a dependent student) and $138,500 for graduate degrees (which includes what graduate students have borrowed for undergrad).
With many private lenders, you can borrow as much as you need to, up to the cost of attending your school of choice — whether that’s $2,000 or $200,000. Check with your lender to see if it caps the lifetime amount you can borrow, and if so, how much.
What are the drawbacks of private loans?
Although private student loans serve an important purpose, they do have some drawbacks.
- They aren’t eligible for student loan forgiveness or federal repayment plans.
- The interest rates are often higher than federal student loans (and may include variable interest rates).
- It can be tough to get a cosigner released from the loan when you’re ready.
It’s best to use up all the federal aid available to you before exploring private loans.
Do private student loans affect credit score?
Your private student loans can definitely affect your credit score, and your cosigner’s, too. When you apply for a private student loan, the lender will run a hard credit check on you, which can lower your score temporarily. The good news is that making consistent, timely payments on your student loan can help improve your score over time.
As with any loan, it’s important to make your payments by the due date to keep your credit history in good standing. Even one missed payment can affect your score and stay on your report for years.
Is a parent PLUS loan better than a private loan?
Like private student loans, parent PLUS loans typically require a credit check to be approved. But unlike private loans, you retain the ability to consolidate your parent loans with a no-fee federal Direct Consolidation Loan. Parent PLUS loans also may be eligible for federal student loan forgiveness and repayment programs, while private loans are not. Still, parent PLUS loans are not the right choice for everyone. Compare all your options before you choose a student loan.
Can I get a student loan with a 600 credit score?
If your credit score is 600, you can still borrow for college, but you’ll most likely need a cosigner. Many lenders don’t publish their minimum credit score requirements, making it tough to know what score you need to qualify, but the lowest rates they provide are usually reserved for people with excellent credit. In general, a score of 600 is considered “fair” or even “poor,” so your best bet may be to cosign with a trusted person until you can raise your score.