Best Private Student Loan Offers

The lenders in the table above are our top picks for private student loans. They offer competitive rates, flexible terms, and options for borrowers with and without cosigners.

Should you take out private student loans?

Before applying for private student loans, make sure you've exhausted your federal options first. Federal loans come with protections that private loans simply don't offer — income-driven repayment plans, deferment and forbearance options, and access to forgiveness programs like Public Service Loan Forgiveness (PSLF).

Private student loans make sense when you've maxed out federal aid and still have a gap between your financial aid package and your cost of attendance. They can also make sense for highly qualified borrowers who might secure a lower interest rate than what's available on federal loans.

When private student loans make sense

• You've maxed out your federal Direct Loan limits for the year.
• Your cost of attendance exceeds your total financial aid package.
• You have strong credit (or a creditworthy cosigner) and can secure competitive rates.
• You're attending a program with strong earning potential and a clear path to repayment.

When to avoid private student loans

• You haven't filled out the FAFSA or maxed out federal loan options.
• Your career path or income is uncertain.
• You don't have an emergency fund or financial cushion.
• You're likely to qualify for federal loan forgiveness (especially PSLF).

The bottom line: federal loans should be your first stop. Private loans are a tool to fill the gap, not replace federal borrowing.

How to get the best private student loan rate

Interest rates on private student loans vary widely based on your credit profile, income, debt-to-income ratio, and the lender you choose. Here's how to make sure you're getting the best deal.

Check multiple lenders

Don't settle for the first rate you see. Each lender uses different underwriting criteria, which means you might get a great offer from one company and a mediocre offer from another. It only takes a few minutes to get a rate estimate from each lender.

When you check your rate, lenders perform a “soft credit check” that doesn't impact your credit score. You can check as many lenders as you want without any downside.

Once you've identified the best offers, you'll complete a full application with a “hard credit check.” If you do this within a 30-day window across multiple lenders, it counts as rate shopping and only impacts your credit score once.

Fixed vs. variable rates

Private student loans come with either fixed or variable interest rates. Fixed rates stay the same for the life of the loan. Variable rates can fluctuate based on market conditions.

In the current interest rate environment, most borrowers opt for fixed rates. Variable rates might start lower, but they carry risk — if rates rise, your payments go up, too. Only consider a variable rate if you plan to pay off your loans quickly and can handle potential rate increases.

Look beyond the interest rate

The interest rate matters, but it's not the only thing to consider. Pay attention to:

• APR: The annual percentage rate (APR) includes fees and gives you a more complete picture of the loan's cost.
• Origination fees: Some lenders charge upfront fees; others don't.
• Repayment terms: Longer terms mean lower monthly payments but more interest paid over time.
• Autopay discounts: Most lenders offer a 0.25% rate reduction for automatic payments.
• Borrower protections: Look at grace periods, forbearance options, and cosigner release policies.

Private student loans with vs. without a cosigner

Here's the reality: If you're young with limited credit history, getting approved on your own can be tough. According to Enterval Analytics’ 2025 Private Student Loan Report, 95% of undergraduate loans and 72% of graduate loans are cosigned.

Benefits of having a cosigner

A cosigner with strong credit can help you qualify for a loan and secure a lower interest rate. This can save you thousands of dollars over the life of the loan. The trade-off is that your cosigner is equally responsible for the debt — if you can't pay, they're on the hook.

Options if you don't have a cosigner

If you don't have a cosigner, you still have options — but they're more limited.

Upperclassmen have better odds. Lenders like Ascent and Funding U specifically offer loans without cosigners to eligible upper‑class undergraduates, typically juniors and seniors, and in Funding U’s case, some sophomores as well. The logic is that you're closer to graduation and earning income.

Graduate students fare better. If you're pursuing a graduate degree, lenders may be more willing to approve you based on your expected future income, especially for high-earning fields like medicine, dentistry, or law.

Build credit first. If you have time before you need to borrow, focus on building your credit. Pay bills on time, keep credit card balances low, and avoid opening too many new accounts. A credit score that's at least in the high-600s significantly improves your chances of approval.

Cosigner release options

If you do use a cosigner, look for lenders that offer cosigner release. This allows you to remove your cosigner from the loan after meeting certain requirements — typically 12 to 48 months of on-time payments and proof that you can handle the debt on your own.

All 7 private student loan lenders compared

Here's a closer look at each of the private student loan lenders we recommend. We've highlighted what makes each one unique, who they're best for, and key terms to know.

1. SoFi

SoFi offers private student loans with no fees, flexible repayment terms, and the chance to earn a cash bonus of up to $250 for maintaining a GPA of 3.0 or higher. You also benefit from a six-month grace period after graduation.

SoFi

• Fixed interest rates: 3.43% – 15.99% APR¹
• Variable interest rates: 4.64% – 15.99% APR¹
• Terms: 5 to 15 years
• Loan amounts: Borrow from $1,000 up to the full cost of attendance
• Autopay discount: Yes

Visit SoFi Up to $200 Bonus More Information

2. Sallie Mae

Sallie Mae is one of the most recognized names in private student lending, and for good reason. They work with a huge network of schools and offer a wide range of loan products for undergrads, grad students, and parents.

Sallie Mae

Read Review

• Fixed interest rates: 2.89% APR – 17.49% APR¹
• Variable interest rates: 3.75% APR – 16.37% APR¹
• Terms: 10 to 15 years
• Loan amounts: Borrow from $1,000 up to the full cost of attendance
• Autopay discount: Yes

Visit Sallie Mae More Information

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3. Earnest

Earnest stands out for borrower-friendly features like a longer grace period and the ability to skip a payment once per year if you need flexibility. They also have no origination fees and offer precision pricing — meaning you can customize your loan term down to the month.

Earnest

Read Review

• Fixed interest rates starting at 2.79% APR¹ for qualified cosigner borrowers (4.49% APR¹ for qualified primary borrowers)
• Variable interest rates starting at 4.99% APR¹
• Terms: 5, 7, 10, 12 or 15 years
• Loan amounts: Up to the full cost of attendance
• Autopay² discount: Yes

Visit Earnest Up to $200 Bonus More Information

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4. Ascent

Ascent is one of the few lenders that offers private student loans without a cosigner specifically for college juniors and seniors, as well as grad students. If you don't have a cosigner and you're in the later stages of your education, Ascent is worth a look.

Ascent

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• Fixed interest rates: Starting at 2.69% APR
• Variable interest rates: Starting at 3.66% APR
• Terms: 5, 7, 10, 12, 15 or 20 years
• Loan amounts: Up to the full cost of attendance
• Autopay discount: Yes

Visit Ascent Large Autopay Discounts More Information

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5. Funding U

Funding U takes a different approach to lending. Instead of relying heavily on credit scores, they look at your academic performance and federal loan history to make lending decisions. This makes them one of the few options for students without a credit history or cosigner.

Funding U

Read Review

• Fixed interest rates starting at 7.99% APR with autopay¹
• Variable interest rates: Not offered
• Terms: 5 or 10 years
• Loan amounts: Borrow from $3,001 up to to $20,000 per academic year
• Autopay discount: Yes

Visit Funding U No Cosigner Undergrad Loans More Information

6. Credible

Credible isn’t a direct lender, but a marketplace that lets you compare private student loan offers from multiple lenders with a single form. It’s a good fit if you want to shop rates and terms side by side without having to apply separately with each lender.

Credible

• Fixed interest rates: 2.69% – 17.99% APR¹
• Variable interest rates: 3.53% – 17.99% APR¹
• Terms: 5 to 20 years
• Loan amounts: Borrow from $1,000 up to the full cost of attendance
• Autopay discount: Yes

Visit Credible More Information

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7. College Ave

College Ave offers a straightforward application process and flexible repayment options. They're known for being borrower-friendly with multiple in-school payment options and competitive rates for well-qualified applicants.

College Ave

• Fixed interest rates starting at 2.84% APR (1)
• Variable interest rates starting at 3.89% APR (1)
• Terms: 5, 8, 10 or 15 years
• Loan amounts: Up to the full cost of attendance
• Autopay discount: Yes

Visit College Ave Flexible Repayment More Information

What to know before applying for private student loans

Private lenders evaluate your application differently than federal loan programs. Here's what you need to know before you apply.

Credit score requirements

Most private lenders want to see a credit score of at least 650 to 700. The higher your score, the better your rate. According to Experian, a “good” credit score is 700 or above.

If your credit isn't there yet, a cosigner with strong credit can help you qualify and get a better rate.

Building credit if you're starting from scratch

If you have no credit history, here's how to start building it:

• Pay all bills on time, every time
• Keep credit card balances low (under 30% of your limit)
• Avoid opening too many new accounts at once
• Consider a secured credit card if you're just starting out

You can monitor your credit score for free through sites like Credit Karma or through your bank.

What lenders evaluate

Beyond credit score, lenders look at:

• Debt-to-income ratio: How much debt you have relative to your income
• Employment and income: Current or expected earnings
• School and program: Some lenders favor certain institutions or degree programs
• Academic standing: A few lenders (like Funding U) factor in your GPA and academic progress

Federal loan limits and when you'll need private loans

Federal student loans have annual and aggregate (lifetime) limits. Once you hit those limits, private loans may be your only option to cover remaining costs.

Annual federal loan limits for dependent undergrads

Year	Subsidized Limit	Total Limit (Sub + Unsub)
Freshman	$3,500	$5,500
Sophomore	$4,500	$6,500
Junior & Senior	$5,500	$7,500

Independent undergrads can borrow more, and graduate students have higher limits still. But even with those higher limits, many students — especially those attending expensive programs — will hit the ceiling.

Program costs and the private loan gap

If you're attending a program where the cost of attendance exceeds federal loan limits — which is common for graduate programs in medicine, dentistry, law, and other professional fields — you'll need to decide how to cover the difference.

Options include: private student loans, scholarships, employer tuition assistance, or reducing your cost of attendance (living with roommates, choosing a less expensive program, etc.).

Coming soon: Which grad programs are worth the debt?

We're working on a larger study to help you figure out which graduate programs make financial sense — and which ones might leave you with more debt than you can reasonably repay. Stay tuned for that research.

Private student loan FAQs

Can I get a private student loan without a cosigner?

Yes, but it's harder. About 90% of private student loans require a cosigner. Your best options without one are Ascent and Funding U, which offer loans to juniors and seniors based on factors beyond just credit. Graduate students also have better odds of qualifying solo.

What credit score do I need for a private student loan?

Most lenders want a credit score of at least 650-700. The higher your score, the better your interest rate. If your credit is limited, a cosigner with strong credit can help you qualify and get better terms.

Can I use private student loans for living expenses?

Yes, private student loans can cover any expense included in your school's cost of attendance, which typically includes tuition, fees, room and board, books, transportation, and personal expenses.

What's the difference between federal and private student loans?

Federal loans come from the government and offer income-driven repayment plans, deferment/forbearance options, and forgiveness programs. Private loans come from banks and lenders, are credit-based, and have fewer borrower protections. Always max out federal loans first.

Should I choose a fixed or variable interest rate?

In the current rate environment, most borrowers should choose fixed rates. Variable rates might start lower but can increase over time. Only consider variable if you plan to pay off the loan quickly and can handle potential rate increases.

Can I refinance private student loans later?

Yes. Once you graduate and have income, you may be able to refinance your private loans to get a lower interest rate. You can refinance as many times as you find a better rate. Check out our refinancing page for current options.

What happens if I can't make my private loan payments?

Private loans have fewer protections than federal loans. Most lenders offer some forbearance (usually up to 3-12 months), but options vary. If you're struggling, contact your lender immediately to discuss options before you miss payments.

When do I start repaying private student loans?

Most private loans have a grace period of 6 months after graduation (Earnest offers 9 months). Some lenders also offer in-school payment options where you pay interest only or a small fixed amount while enrolled.

How much can I borrow with private student loans?

Most lenders let you borrow up to your school's certified cost of attendance, minus other financial aid. Some lenders have lifetime caps. Funding U, for example, limits you to $20,000 per year and $100,000 total.

Does checking my rate affect my credit score?

No. Getting a rate estimate involves a soft credit check, which doesn't impact your score. You can check rates at multiple lenders without any downside. A hard credit check only happens when you formally apply for the loan.

Ready to compare lenders?

The best way to find the right private student loan is to check rates at multiple lenders. It only takes a few minutes, and soft credit checks won't impact your score.

Use the comparison table at the top of this page to get started, or scroll up to learn more about each lender.

Have questions? Send us an email — we're happy to help.