If you need to secure funding for college, you have two options: federal and private student loans. Federal student loans have better borrower protections and forgiveness options. Private student loans have to be paid back in full.
Why would anyone use private student loans then? There are 2 good reasons.
- You know you need to pay back your debt in full and want to avoid Grad PLUS or Parent PLUS federal debt because of the approximately 4.25% origination fee and 7% interest rate.
- You’ve run out of federal student loan borrowing options because you’ve hit a cap on undergrad borrowing or some other mistake happened with financial aid.
In this guide, we’ll go over all the private student loan options available so you can find the best deal if you fall into either one of those two categories. We list the best converting lenders at the top if you want to apply to only a couple of lenders. Otherwise, read the full page for our list of 9.
- Variable APR 2.87% - 11.74%
- Fixed APR 4.74% - 12.87%
- No origination fee
- #1 lender in US by volume
- Variable APR 2.84% - 10.97%
- Fixed APR 4.54% - 11.98%
- No origination fee
- 12 months grace period
- Variable APR 3.31% - 9.29%
- Fixed APR 5.4% - 9.74%
- 2% origination fee
- Dental, law, med, MBA focus
- Variable APR 2.64% - 11.62%
- Fixed APR 3.82% - 12.49%
- No origination fee
- 7+ lenders compete
1. Sallie Mae
Sallie Mae is one of the most well-known private student loans lender on the market. The company offers various student loans not only for undergraduates and graduates but also for parents.
Loan options available:
- Undergraduate loan
- Graduate loan
- MBA loan
- Medical loan
- Dental school loan
- Health Professions loan
- Law school loan
- Parent loan
- Career training loan
Private student loan interest rates and repayment terms
| Sallie Mae Private Student Loans | Variable APR* | Fixed APR* | Repayment Term |
|---|---|---|---|
| Undergrad | 2.87 - 10.75% | 4.74 - 11.85% | Contact Lender |
| Grad | 3.87 - 9.52% | 5.50 - 10.23% | 15 years |
| MBA | 3.75 - 9.52% | 5.50 - 10.23% | 15 years |
| Medical | 3.87 - 9.24% | 5.49 - 9.98% | 20 years |
| Dental | 3.87 - 9.24% | 5.50 - 9.99% | 20 years |
| Health Professions | 3.87 - 9.52% | 5.50 - 10.23% | 15 years |
| Law | 3.75 - 9.27% | 5.50 - 9.99% | 15 years |
| Parent Loans | 5.12 - 11.74% | 5.49 - 12.87% | Contact Lender |
| Residency and Relocation | 4.61 - 11.10% | N/A | Contact Lender |
*The lowest rates include the 0.25% auto-debit deduction.
Fees:
All of Sallie Mae student loans have:
- No origination fee
- No prepayment penalty
Sallie Mae Process
Undergraduate loans
Borrowers needing to take out a private student loan for undergrad can check out the Smart Option Student Loan. This option can cover 100% of your school funding.
Once you apply for funding, the money will be sent to your school. You’ll need to provide some basic information and will likely need a cosigner. Then you’ll pick your interest rate type, repayment term and accept the loan. You will be able to choose from the following repayment options:
- Deferred, making no payments until after you’re done with school.
- Fixed repayment, paying $25 per month while in school, which can save money on interest.
- Interest repayment option, paying only the interest while in school.
Graduate student loans
If you’re pursuing a master’s or doctorate degree, you can take out 100% of the funding you need with a Sallie Mae graduate student loan. This loan comes with a six-month grace period and has a 15-year repayment term. You may qualify for 12 interest-only payments after the grace period. You’ll be able to choose from the following repayment options:
- Deferred, making no payments until after you’re done with school.
- Fixed repayment, paying $25 per month while in school, which can save money on interest.
- Interest repayment option, paying only the interest while in school.
The MBA loan and Health Professionals loan are similar, as they both have 15-year repayment terms and six-month grace periods.
The Law School Loan boasts a nine-month grace period.
The Dental School loan has a 20-year repayment term with a 12-month grace period.
The Medical School loan has the most generous offering, with a 20-year repayment term and a 36-month grace period.
You can apply for any of those programs through Student Loan Planner if you want to support our site.
Parent loan
If you’re a parent who wants to borrow for your child, you can check out the Sallie Mae Parent Loan. You can borrow 100% of the funding you need for the cost of education. You’ll provide your information and documentation when you apply, select the repayment term and interest rate, and accept your loan. Parents can choose from paying interest only or paying principal and interest.
Career training loan
If you’re going to a trade or technical school, the Career Training Smart Option Student Loan is for you. You can borrow 100% of the funding you need to cover your educational costs. You’ll provide your personal information and may add a cosigner. Then you can choose your repayment option and accept the terms of the loan. This loan offers the fixed-repayment option of $25 or the interest-only option.
2. CommonBond
CommonBond is known for student loan refinancing, but it also offers a variety of private student loan options. For every loan taken out, it funds the education of a child in a developing country.
Loan options available:
- Undergraduate loan
- Graduate loan
- MBA loan
- Dental loan
- Medical loan
Private student loan interest rates and repayment terms
| CommonBond Private Student Loans | Variable APR | Fixed APR | Repayment Term |
|---|---|---|---|
| Undergrad | 3.31 - 9.29% | 5.45 - 9.74% | 5, 10 or 15 years |
| Grad | 3.21 - 9.29% | 5.40 - 9.74% | 5, 10 or 15 years |
| MBA | 5.00 - 6.71% | 5.37 - 7.20% | 10 or 15 years |
| Dental | 4.98 - 6.62% | 5.33 - 6.98% | 10, 15 or 20 years |
| Medical | 5.21 - 6.39% | 5.56 - 6.76% | 10, 15 or 20 years |
Fees
CommonBond’s undergraduate private student loans have no origination fee; however, its MBA, medical and dental loans have a 2% origination fee. Additionally, there are no application fees or prepayment fees.
CommonBond process
Undergraduate loans
If you want to apply for undergraduate loans with CommonBond, you can do it online. You’ll need a cosigner. During the application process, you’ll submit your information and also get your credit checked as part of the approval process. When approved, the funds will be sent to your school.
You’ll have access to a money mentor to help you with things like budgeting, too. When you get your loan, you’ll have four repayment options:
- Full monthly payment, where you make full payments while in school.
- Fixed monthly payment of $25, where you pay $25 while in school.
- Interest-only payment, where you make payments only on the interest.
- Deferment, where you can postpone payments until graduation.
You can also utilize a six-month grace period or forbearance, which allows you to postpone your payments.
Graduate loans
You can apply for graduate student loans with CommonBond online in a few minutes. You’ll add a cosigner, and CommonBond will contact the financial aid office at your school to confirm your enrollment. You’ll submit some documentation, and your credit will be checked. When approved, funds will be sent to your school.
Your repayment options include:
- Full monthly payment, where you make full payments while in school.
- Fixed monthly payment of $25, where you pay $25 while in school.
- Interest-only payment, where you make payments only on the interest.
- Deferment, where you can postpone payments until graduation.
There are no prepayment penalties, and you can also postpone your payments for up to 12 months. After making two years of on-time payments, you may be eligible for cosigner release.
MBA loans
You can apply for a CommonBond MBA loan, which could offer a better rate than federal student loans. If part of an eligible program, you won’t have to apply with a cosigner. On top of that, there are no prepayment penalties, and if needed, you can postpone your payments for 12 months.
Dental loans
CommonBond now offers a dental loan that you can apply for online in a short period of time. You’ll submit some documentation, and your credit will be checked.
When approved, funds will be sent to your school. There’s no cosigner required, either. The loan offers resident deferral, so you can defer your loans during residency as well as a six-month grace period. You can also postpone your payments for 12 months, if needed.
Your repayment options include:
- Full monthly payment, where you make full payments while in school.
- Fixed monthly payment of $25, where you pay $25 while in school.
- Interest-only payment, where you make payments only on the interest.
- Deferment, where you can postpone payments until graduation.
Medical loans
The new CommonBond medical loan can help if you need to fund medical school. You can apply online by submitting some documents and getting your credit checked. This loan option has flexible repayment options, so if you’re in a residency program, you can make payments as low as $100.
The good news is there’s no cosigner required, and if you need to, you can postpone your loans for 12 months.
3. College Ave
Another lender on the private student loans scene is College Ave. You can check its rates and find out if you can qualify within a few minutes. The company offers student loans for nearly everyone, ranging from undergraduates to graduates to parents.
Loan options available:
- Undergraduate loan
- Graduate loan
- Dental loan
- MBA loan
- Medical school loan
- Law school loan
- Parent loan
- Career loan
Private student loan interest rates and repayment terms
| College Ave Private Student Loans | Variable APR* | Fixed APR* | Repayment Term |
|---|---|---|---|
| Undergrad | 2.84 - 10.97% | 4.54 - 11.98% | 5, 8, 10 or 15 years |
| Grad | 4.45 - 10.97% | 5.20 - 11.68% | 5, 8, 10 or 15 years |
| Dental | 4.37 - 8.69% | 4.85 - 9.75% | 5, 8, 10, 15 or 20 years |
| MBA | 4.45 - 10.97% | 5.20 - 11.68% | 5, 8, 10 or 15 years |
| Medical | 4.23 - 8.69% | 4.67 - 9.75% | 5, 8, 10, 15 or 20 years |
| Law | 4.47 - 8.69% | 4.97 - 9.75% | 5, 8, 10, 15 or 20 years |
| Parent | 2.72 - 10.88% | 4.64 - 12.01% | 5 to 15 years |
| Career | 2.84 - 10.97% | 4.54 - 11.98% | 5, 8, 10 or 15 years |
*All of the interest rates include the 0.25% rate reduction through autopay.
Fees
College Ave loans don’t include the following fees:
- No application fees
- No origination fees
- No prepayment fees
College Ave Process
Applying for all College Ave loans is pretty similar. You can cover the cost of your education and apply within three minutes. You can apply online, where you’ll submit your personal information and get your credit checked.
If your credit isn’t well-established or good, you’ll likely need a cosigner. In most cases, you can choose from a repayment term of:
- 5 years
- 8 years
- 10 years
- 15 years
Law school loans, medical school loans and dental school loans also have a 20-year repayment term option.
College Ave loans have four repayment options:
- Full Principal & Interest Payment, where you start making payments in full right away.
- Interest Only Payment, where you pay only the interest while in school.
- Flat Payment, where you pay $25 per month while in school.
- Deferred Payment, where you defer payment while in school.
The Medical School loan does offer up to 36 months of deferred payments after school.
4. LendKey
LendKey is a different type of lender, as it works with community banks and credit unions and acts as a middleman between financial institutions and borrowers. Its mission is to create low-cost borrowing opportunities with more transparency so you always know the type of loan you’re getting.
Loan options available:
- Undergraduate loans
- Graduate loans
Private student loan interest rates and repayment terms
| LendKey Private Student Loans | Variable APR* | Fixed APR* | Repayment Term |
|---|---|---|---|
| Undergrad | 3.79% + | 4.86% + | Depends on Lender |
| Grad | 3.79% + | 4.86% + | Depends on Lender |
*The lowest rates include the 0.25% autopay interest rate reduction.
The lowest possible variable APR is reserved for borrowers with a strong credit score — 810 or above. It’s also reserved for only loan terms of five years.
Fees
LendKey has no application fees. No origination fees. No prepayment penalty fees.
LendKey process
You can apply through LendKey online. You’ll be asked a few questions and then referred to one of its lending partners. You can then review the loan terms, such as APR and repayment term, to see if it’s a good fit.
5. Credible
Credible is another aggregate site that connects you with multiple private student loan lenders. You can find a personalized offer based on your needs. The good part about Credible is you don’t have to fill out multiple applications. You also score customer support.
Loan options available:
- Undergraduate loan
- Graduate loan
Private student loan interest rates and repayment terms
| Credible Private Student Loans | Variable APR* | Fixed APR* | Repayment Term |
|---|---|---|---|
| Undergrad | 2.64% + | 3.82% + | Depends on Lender |
| Grad | 2.64% + | 3.82% + | Depends on Lender |
*Because Credible works with multiple lending partners, the interest rates can vary by lender.
Fees
All lending partners on Credible have:
- No origination fees
- No service fees
- No prepayment penalty fees
Credible process
You can apply for a Credible private student loan online to get connected with various lending partners. You’ll be asked if you want to add a cosigner, what school you’ll be attending, what your degree is and what amount you’re requesting.
You’ll include some financial and personal information to complete your application. You’ll then see what lending offers are available to you. You can select the loan of your choice and accept the loan terms to receive funding.
6. Discover
You may know Discover from its credit card offerings, but it also offers private student loans. Similar to CommonBond, Discover additionally offers various private loans depending on the type of degree.
Loan options available:
- Undergraduate loan
- Graduate loan
- Health Professions loan
- MBA loan
- Law loan
Private student loan interest rates and repayment terms
| Discover Private Student Loans | Variable APR | Fixed APR | Repayment Term |
|---|---|---|---|
| Undergrad | 2.80 - 11.37% | 4.74 - 12.49% | 15 years, after deferment |
| Grad | 3.74 - 11.37% | 4.99 - 12.24% | 20 years, after deferment |
| Health Professions | 3.74 - 9.37% | 4.99 - 9.74% | 20 years, after deferment |
| MBA | 3.74 - 11.62% | 4.99 - 11.49% | 20 years, after deferment |
| Law | 3.74 - 9.37% | 4.99 - 10.24% | 20 years, after deferment |
Fees
The good news is that all Discover private student loans have no zero fees. There are:
- No application fees
- No origination fees
- No late fees
Discover process
Based on Discover’s website, the process for applying for a private student loan is the same, regardless of the type of loan you take out. There are four steps:
- Apply online or on your phone in less than 15 minutes.
- Add a cosigner, if required.
- Choose your interest rate type and your repayment option of choice.
- Sign your loan terms.
Discover also has the same three repayment options for all of its loans:
- In-school fixed, paying $25 payments while in school and during grace period.
- In-school interest-only, making interest-only payments while in school and during your grace period. This scores you a 0.35 % rate reduction.
- Deferred, where you defer payments until six months post-graduation for undergraduate loans or after dropping below half-time. Graduate and other profession-specific loans can defer up to nine months.
You can check Discover student loan rates at our partner site Credible.
7. Citizens Bank
Citizens Bank offers private student loans, as well as other financial tools like credit cards, bank accounts and more. The company offers three different types of private student loans.
Loan options available:
- Undergraduate loan
- Graduate loan
- Law school loan
- MBA student loan
- Health professions loan
- Parent loan
Private student loan interest rates and repayment terms
| Citizens Bank Private Student Loans | Variable APR* | Fixed APR* | Repayment Term |
|---|---|---|---|
| Undergrad | 2.90 - 11.01% | 4.72 - 12.04% | 5, 10 or 15 years |
| Grad | 2.85 - 10.17% | 4.64 - 11.35% | 5, 10 or 15 years |
| Law | 2.83 - 9.56% | 4.45 - 10.59% | 5, 10 or 15 years |
| MBA | 2.83 - 9.56% | 4.45 - 10.59% | 5, 10 or 15 years |
| Health Professions | 2.83 - 8.46% | 4.40 - 9.49% | 5, 10 or 15 years |
| Parent | 4.45 - 7.59% | 5.48 - 8.52% | 5 or 10 years |
*The lowest interest rates shown includes a 0.25 % interest rate reduction through autopay.
Fees
All private student loans from Citizens Bank have:
- No application fees
- No origination fees
- No disbursement fees
Citizens Bank process
Undergraduate loans
Citizens Bank offers student loans to undergraduates with a minimum amount of $1,000 and a maximum of $150,000. You can apply online and submit your personal and financial information along with your school name to get started.
Once you complete the application and get approved, you can select your interest rate and term, then accept the loan. You can choose a repayment term of 5, 10 or 15 years. You also have three repayment options:
- Full payments
- Interest-only
- Defer payment while in school
Graduate loans
Citizens Bank offers student loans to students going to graduate school, with a minimum loan of $1,000. Graduate loans have a maximum amount of $150,000, MBA and Law School loans have a maximum loan of $225,000, and Health Profession loans have a maximum of $180,000 to $350,000, depending on your profession.
You can apply online and submit your personal and financial information as well as your school name to get started. Once you complete the application and get approved, you can select your interest rate and term, then accept the loan. All graduate and profession-specific loans have a repayment term of 5,10 or 15 years. You also have three repayment options:
- Full payments
- Interest-only
- Defer payment while in school
Parent loans
Citizens Bank offers parents who want to borrow student loans for their child’s education up to $350,000, with a minimum loan of $1,000. You can apply online and submit your personal and financial information as well as the name of the school your child will be attending to get started.
Once you complete the application and get approved, you can select your interest rate and term, then accept the loan. You can choose a repayment term of 5 or 10 years and choose between making full payments or interest-only payments.
You can check Citizens Bank student loan rates at our partner site Credible.
8. Wells Fargo
Wells Fargo is more than just a bank; it also offers various private student loan options as well. From undergrad to grad, parent to career loans, there’s something for everyone.
Loan options available:
- Undergraduate loan
- Graduate loan
- MedCAP Medical School Loans
- Parent loan
- Career and community college loan
Private student loan interest rates and repayment terms
| Wells Fargo Private Student Loans | Variable APR* | Fixed APR* | Repayment Term |
|---|---|---|---|
| Undergrad | 3.39 - 10.09% | 4.53 - 10.72% | 15 or 20 years |
| Grad | 4.67 - 10.84% | 5.64 - 11.76% | 15 or 20 years |
| MedCAP Medical | 3.88 - 8.67% | 4.82 - 9.54% | 15 or 20 years |
| Parent | 5.49 - 11.99% | 6.74 - 12.99% | 15 or 20 years |
| Community College | 6.35 - 11.65% | 7.24 - 12.45% | 15 or 20 years |
*The lowest rates shown include a 0.25% rate reduction for having a Wells Fargo account.
You may also receive another 0.25% rate reduction by signing up for autopay.
Fees
All Wells Fargo private student loans have:
- No application fees
- No origination fees
- No prepayment penalty fees
Wells Fargo Process
When you borrow with Wells Fargo, you can take out 100% of the funding you need for school. You will have up to six months after you graduate until you make your first payment. The MedCAP Medical School Loan can postpone payment up to 36 months for allopathic students as well as osteopathic students. Parent loan repayment begins right away.
You can apply online and submit your personal and financial information to get approved. If you don’t have established credit or poor credit, you may need a cosigner. Your repayment term may vary but could be up to 15 or 20 years. You may be eligible for a forbearance of 12 months to three years, depending on eligibility.
9. Brazos (Texas Residents Only)
Brazos has a private loan alternative to the Parent PLUS loan that carries 0 fees and has fixed interest rates that are among the lowest I’ve seen, especially for the highest qualified borrowers who take out a 5-year term.
If you live in Texas, you should definitely make them part of your search and compare their options to the other national lenders on this list.
When to Take Out a Private Loan for School
These are the two reasons to take out a private loan to fund your education:
- You want to pay your debt back in full and thus want to minimize your interest costs with a private loan compared to higher interest federal options
- You have no choice because you cannot get access to the funding you need via the federal student aid system
Hopefully you find yourself in the first category, but remember that finishing your degree is usually the best decision even if you have to take out a small amount of high cost debt.
Do your due diligence and leave a comment below if you have any questions. Someone on our team would be happy to help.
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