The best private student loans in 2024 for college, grad school

Methodology

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Our editorial and data research teams pitted about two dozen of the industry’s top lenders against each other. We judged them across four categories, including their interest rates and discounts; loan details, such as fees and borrowing amounts; eligibility criteria for various types of applicants; and customer experience, from the length of grace periods to the accessibility of support resources.

• Number of lenders reviewed: 23
• Number of data points analyzed: 851
• Number of features we considered: 37
• Number of primary data sources used: 27

Our complete methodology below details how our editors and researchers arrived at the best student loans for college.

Show summary

• SoFi

  : Best private student loan

• Rhode Island Student Loan Authority

  : Best for income-based repayment

• Sallie Mae

  : Best for part-time students

• Iowa Student Loan

  : Best for parent borrowers

• Ascent’s Cosigned Credit-Based Loan

  : Best for progressive repayment plan option

• Custom Choice

  : Best graduation reward

• Earnest

  : Best for flexible repayment terms

• College Ave Student Loans

  : Best for a fast application

• Education Loan Finance

  : Best for customer support

• Advantage Education Loan

  : Best for cosigner release

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Featured Offer

College Ave Student Loans

APRs

6.99% to 13.99% (fixed), 6.99% to 13.99% (variable)

Minimum credit score

Mid-600s

Repayment terms

5 to 20 years

Compare Rates

On Credible's Website

SoFi

Best private student loan

APRs

4.44% to 14.70% (fixed), 5.99% to 14.70% (variable)*

Loan amount

$1,000 to cost of attendance

Repayment terms

5, 7, 10 or 15 years

5/5

The CNN Underscored Money editorial team scores financial services products objectively. We weigh several factors consumers should consider when creating our methodologies.

Rhode Island Student Loan Authority

Best for income-based repayment

APRs

4.40% to 8.99% (fixed)*

Loan amount

$1,500 to $50,000

Repayment terms

10 or 15 years

4.9/5

Compare Rates

On Credible’s Website

Sallie Mae

Best for part-time students

APRs

4.50% to 15.49% (fixed), 6.37% to 16.70% (variable)*

Loan amount

$1,000 to cost of attendance

Repayment terms

10 or 15 years

4.8/5

Compare Rates

On Credible’s Website

Iowa Student Loan

Best for parent borrowers

APRs

3.95% to 8.01% (fixed), 6.54% to 11.08% (variable)*

Loan amount

$2,001 to cost of attendance

Repayment terms

10 or 15 years

4.8/5

Compare Rates

On Credible’s Website

Ascent’s Cosigned Credit-Based Loan

Best for progressive repayment plan option

APRs

4.09% to 15.66% (fixed), 6.22% to 16.08% (variable)*

Loan amount

$2,001 to $200,000 (aggregate)

Repayment terms

5, 7, 10, 12 or 15 years

4.8/5

Compare Rates

On Ascent’s Website

Custom Choice

Best graduation reward

APRs

4.43% to 14.04% (fixed), 5.38% to 15.56% (variable)

Loan amount

$1,000 to $180,000 (annual limit of $99,999)

Repayment terms

7, 10 or 15 years

4.4/5

Compare Rates

On Credible’s Website

Earnest

Best for flexible repayment terms

APRs

Starting at 4.11% (fixed)*

Loan amount

$1,000 to $250,000

Repayment terms

5, 7, 10, 12 or 15 years

4.4/5

Compare Rates

On Credible’s Website

College Ave Student Loans

Best for a fast application

APRs

4.07% to 15.48% (fixed), 5.59% to 16.69% (variable)*

Loan amount

$1,000 to cost of attendance

Repayment terms

5, 8, 10 or 15 years

4.4/5

Compare Rates

On Credible’s Website

Education Loan Finance

Best for customer support

APRs

8.42% to 13.01% (fixed), 4.98% to 12.79% (variable)*

Loan amount

$1,000 to cost of attendance

Repayment terms

5, 7, 10 or 15 years

4.2/5

Compare Rates

On Education Loan Finance’s Website

Advantage Education Loan

Best for cosigner release

APRs

5.29% to 8.04% (fixed)

Loan amount

$1,000 to cost of attendance

Repayment terms

10 years (or 15 years if balance is greater than $10,000)

4.2/5

Compare Rates

On Credible’s Website

How do student loans work?

• They can help you pay for higher education. You can put student loans toward tuition, fees, room, board, books, supplies and other living expenses, considering the high cost of college.
• Federal loans should be your first stop. Federal student loans tend to have better interest rates than private loans, as well as more flexible repayment plans and opportunities for loan forgiveness — you can access them annually by completing the Free Application for Federal Student Aid.
• Private loans can fill a gap in funding. Borrowing a private loan could make sense if you need additional funding after receiving federal financial aid, grants and scholarships.
• You may need a cosigner. Private lenders require you to meet credit and income requirements, so you may need to apply with a cosigner, such as a parent, to qualify. However, there are student loans without cosigners available.
• Avoid overborrowing. Not only do you have to pay back the amount you borrow, but you’ll also cover student loan interest and any associated fees. So, only take out what you can realistically afford to repay.
• Rates and terms vary by lender. Each lender offers its own interest rates and repayment options, so shop around to find a loan offer that works for you. Here are current private student loan rates:

Types of student loans

There are various types of student loans that can help you pay for college, including federal loans from the Department of Education and private loans from a bank, credit union, online lender or state agency.

Federal student loan options include:

• Direct subsidized loans for undergraduates
• Direct unsubsidized loans for undergraduate and graduate students
• PLUS loans for graduate and professional students
• PLUS loans for parents

When you borrow a private loan, you can also find loans designed for specific students and programs, such as undergraduate loans, graduate loans, MBA loans and healthcare loans. There are also loans for part-time students, noncitizens and parents.

Did you know? According to 2023 data from College Board, 9% of bachelor’s-degree students at public colleges graduate with private loans, with an average balance of $34,600. And 13% of private college students depart owing $44,600 in private loans.

Related >> What’s the average student loan debt?

Federal student loans vs. private student loans

Federal student loans are usually a superior choice to private loans due to their competitive interest rates, easier qualification requirements, forbearance options, potential for forgiveness and other benefits, including the new SAVE plan.

In fact, about 92.5% of the outstanding $1.73 trillion in student loan debt in America comes from federal student loans, while about 7.5% comes from private loans, according to market research firm Enterval Analytics. However, federal loans come with borrowing limits, so you may need additional funding for school.

Here’s a closer look at how federal loans compare with private loans.

Here’s a closer look at current federal and private loan interest rates:

Private student loans for different borrowers

Private lenders often design loans for specific types of borrowers with unique rates, terms and eligibility requirements.

What about income-share agreements? Similar to student loans, income-share agreements offer funding for your education. However, instead of paying back the amount you borrowed on a certain term, you’ll agree to pay a percentage of your future income for a predetermined amount of time after you finish school.

7 alternatives to private student loans

Some of the following options are “free money,” while others can offset your educational costs to help you borrow less.

1. Federal financial aid

The US Department of Education offers financial aid to students who qualify and complete the FAFSA. When you submit the FAFSA, your college will evaluate your eligibility for financial aid. The aid you receive can be scholarships, grants, federal student loans and work-study opportunities.

Scholarships and grants are what’s referred to as gift aid and don’t need to be repaid. Federal student loans come with fixed interest rates and many borrower benefits. Work-study offers funds through a part-time, on- or off-campus job, often related to your field of study.

2. State grants

Nearly every state offers a grant, according to the National Association of Student Financial Aid Administrators. State grants are typically reserved for in-state residents and can be a way to reduce educational costs. Eligibility requirements vary.

3. Private scholarships

There are many types of college scholarships catered to different types of students. Some are merit-based, which are focused on academic or athletic achievement. Others are need-based, or dependent on your level of financial need. Scholarship websites and search engines can be a good starting point, but also check in with your school’s financial aid office.

4. Tuition reimbursement

Some companies offer tuition reimbursement as an employee benefit. Employers typically reimburse tuition costs for an employee up to a certain amount. Generally, your employer will only offer this benefit for studies related to your role or industry.

5. Part-time job

Income from a part-time job may cover groceries or part of your living expenses. Consider jobs related to your major or that are a good fit for your skillset. You can also consider tutoring or freelancing if you have writing, design or photography skills.

6. Crowdfunding

If you have a robust network (or the energy to build one), consider crowdfunding part of your college tuition costs. Using sites like GoFundMe, you can set a fundraising goal and make it a team effort by asking your friends, family, peers and colleagues to support you.

7. Attend a community college

Local community colleges are generally much more affordable than four-year institutions (particularly private ones). After two years of community college at a lower cost, you can transfer to a university.

How does student loan interest work?

Student loan interest is the cost you pay for borrowing money. It’s calculated as a percentage of your loan amount and usually accrues daily. As you make monthly loan payments, a portion of your payment will go toward paying off interest charges, while the rest will go toward your principal balance.

The longer your repayment term, the more interest you’ll pay over time. Let’s say that you borrow $25,000 on a 5.00% fixed interest rate. On a 10-year term, you’d pay back the $25,000, plus an additional $6,820 in interest charges. On a 15-year term, you’d pay back $10,586 in total interest.

Good to know: The interest figures above assume you repay your loan on schedule. The truth is that most student loan borrowers get off schedule at some point during repayment. And when that happens, outstanding interest continues to accrue and capitalize on the principal balance, making repayment an even tougher task.

Interest rates may be fixed, meaning they stay the same over the life of your loan, or variable, meaning they could fluctuate over time with market conditions. All federal student loans have fixed rates, whereas private student loans may have fixed or variable rates — that depend on your creditworthiness.

How to choose the right student loan for you

To choose the best private student loans for college, determine what you’re looking for before you start shopping around. Consider how much you need to borrow, what monthly payment you could afford and which repayment terms work for your budget. An online student loan calculator (such as Calculator.net’s) can help you crunch the numbers.

Once you have a sense of your ideal loan, shop around with multiple lenders to find an offer that fits your needs. Some lenders let you pre-qualify for a loan online, allowing you to check your rates with no obligation or impact on your credit scores. As you compare loan offers, look for a loan with a competitive interest rate, flexible repayment terms and a reasonable monthly payment.

You might also consider other factors as you make your choice, such as the option for cosigner release, forbearance programs or customer service.

Qualifying for a student loan: The basics

• Credit scores: Lenders consider your credit scores and history to assess your risk as a borrower. Minimum requirements vary, but some may want to see that the borrower or cosigner has scores of 670 or higher.
• Income and debt: To ensure you can pay back the loan, lenders may also look at your income and debt-to-income ratio, which compares your gross monthly income with your current debt payments.
• Cosigner: If you can’t meet a lender’s credit, income and debt requirements on your own, applying with a creditworthy cosigner can help you get approved or unlock more favorable rates and terms.
• State residency: Some lenders offer loans nationwide, while others only operate in certain states.
• School and program: You may need to be attending an eligible school and program to qualify for a private loan.
• Loan amount: You can’t borrow more than your school-certified cost of attendance, though some lenders set lower borrowing limits.

Note that some lenders offer no-cosigner loans to students based on alternative factors, such as your major and career prospects, rather than your credit and income. These loans may have higher interest rates and fees than cosigned loans.

4 tips to qualify for private student loans

Typically, you need to show that you have good credit and steady income to get approved for private loans. For teens and 20-something students, that may be difficult. Here are four tips to boost your chances of qualifying for private loans.

1. Check your credit reports

Credit scoring models use information from your credit reports. If there are any inaccuracies (or records of not paying debt on time) on your reports, they could negatively impact your scores.

Check your credit reports at no cost using AnnualCreditReport.com. If you find mistakes, dispute them with the credit bureau (Equifax, Experian or TransUnion).

2. Increase your credit scores

To qualify for a private student loan, you typically need minimum credit scores of 670, according to myFICO, though some lenders allow scores in the mid-600s. In many instances, your bank or credit card issuer may offer free access to your scores, or you can pay for a third-party service.

If you don’t quite meet the mark, work on increasing your credit scores. Start by paying your bills by the due date and only utilizing a small percentage of your credit limit. Also, avoid closing any accounts and don’t apply for credit unnecessarily.

3. Lower your debt-to-income ratio (DTI)

Your DTI shows what percentage of your monthly, pre-tax income goes toward your monthly debt obligations. This is often used by lenders to assess your financial health and borrowing capacity.

If your DTI is higher than 36%, you may be considered a risky borrower. You can lower your debt-to-income ratio in two ways:

• Increase your income, perhaps by taking on a side hustle
• Reduce your debt balances

4. Get a cosigner

You may have a tough time qualifying for a private student loan, even after taking the steps listed above, particularly if you’re an undergraduate student. That’s where a cosigner can help.

A cosigner is someone who has good credit and agrees to be held responsible for the loan if it’s in default. A parent, other family member or spouse may fill this role. Understand the responsibilities — a cosigner’s credit would be harmed if you don’t make good on repayment. Look for lenders that offer cosigner release, in case you’re able to manage the loans independently down the line.

How to apply for a private student loan

If you want to apply for a federal student loan, you’ll need to submit the Free Application for Federal Student Aid (FAFSA) via StudentAid.gov. The process for applying for a private student loan differs, though.

• Research lenders and pre-qualify. There’s no centralized application for private loans, so you’ll need to apply with individual lenders. Some lenders let you check your rates through online pre-qualification, which can help you select the best student loan.
• Apply with your preferred lender. When you find an offer you like, you’ll submit an official application with your personal and financial details, as well as your cosigner’s information, if applicable. The lender may require you to upload some verifying documentation, such as pay stubs or proof of address.
• Wait for approval and funding. If the lender approves you for a loan, it will contact your school to certify your cost of attendance. Then, the lender will send the funds to your financial aid office, where they’ll be applied to your tuition bill.
  Once the financial administrator has paid your tuition and fees, they will send any leftover funds to you, which you can use on books, food and other living expenses. You can also return any extra funds directly to your lender, which would be a boon to your repayment.

Methodology

To determine the best private student loans for college, our editorial and data research and analysis team collected more than 850 inputs from almost 30 primary sources, including lender websites and independent organizations like the Better Business Bureau and the Consumer Financial Protection Bureau. We then analyzed the data across the following five categories to create an out-of-5 star rating for each reviewed lender.

Rates (20%)

This category most directly gets at the cost of a student loan, since a lower interest rate equals a less expensive loan to repay. To that end, we collected lenders’ lowest and highest fixed and variable rates, also accounting for discounts as well as whether pre-qualification is offered to rate-shopping borrowers.

Loan details (15%)

Here, we took a closer look at the nuts and bolts of lenders’ products, namely what fees they charge as well as how little and how much they allow you to borrow. (Loan amounts are critical on both ends of the spectrum: Some borrowers might only need several thousand dollars to bridge a gap in their cost of attendance, and others might need to borrow up to their school’s full cost of attendance.)

Eligibility (15%)

Yes, we compared lenders across black-and-white underwriting criteria like minimum credit score, income and debt-to-income ratio, awarding those with the most accessible standards. But we also looked at whether nontraditional borrowers — such as part-time enrollees, trade school students and noncitizens — could gain eligibility (with or without the help of a cosigner). Finally, lenders with a faster route to cosigner release (say 12 months of on-time payments instead of 36 or more) scored especially well in this category.

Repayment (30%)

In our judgment, the best student loan is very often the one that’s easiest to repay. And that’s no small feat in the context of student loans, which are known to confound many students and their families. Lenders scored higher in our formula if they offer the following repayment benefits:

• Longer-than-average grace periods
• Various repayment term options
• An income-based repayment plan (akin to federal loans)
• Deferment and forbearance programs
• Relatively longer allowance of repayment pauses (say, 36 months instead of 12)
• Discharge in the case of permanent disability or death

Customer experience (20%)

And since some student loan lenders have been known to get in the way of their borrowers’ repayment success — and perhaps even fuel their failures — we gave a fair weighting to lenders’ customer support options and resources. We considered seven data points in this category alone, including whether the lender farms out loan servicing to a third party or handles it in-house; offers weekend services over the phone and other contact modes; and receives positive (or negative) feedback from its current customers.

What didn’t make the cut

Before narrowing our list of the best private student loans down to 10 lenders, we started with a group of 23 banks, credit unions, online lenders and state-sponsored agencies. That means 13 financial institutions didn’t pass muster.

Here are examples of popular lenders that fell short for various reasons:

• Citizens Bank, which previously made this list, dropped off because of its long path to cosigner release and unclear eligibility requirements.
• A.M. Money was among lenders charging substantial origination fees.
• Ascent’s and MPower Financing’s non-cosigned loans reported high starting APRs.
• Edly’s maximum loan amounts were relatively low.
• EdvestinU doesn’t lend nationally.
• MEFA and PNC Bank offer relatively long paths to cosigner release.
• Prodigy Finance’s minimum loan amount was five figures, far higher than competitors.

Additional reporting by Melanie Lockert

Frequently asked questions (FAQs)

Can I get a private student loan with bad credit?

If you have bad credit, you may be required to apply with a creditworthy cosigner to get a private student loan. However, some lenders, like Ascent, offer outcomes-based student loans that are based on alternative factors, such as your program, major and GPA, rather than your credit scores.

How long does it take to get a private student loan?

The process for getting a private student loan varies by lender. Expect it to span at least a few weeks, since even after being approved, the lender will need your school to verify its cost of attendance.

How do student loans affect your credit scores?

Applying for a student loan can ding your credit scores by a few points when the lender runs a hard credit inquiry. In the long term, making on-time payments on your student loans can improve your credit scores, while late payments, delinquency or default will damage it.

Do student loans expire?

Federal student loans never expire, but private student loans have a statute of limitations that varies by state. However, federal student loans and some private student loans are discharged in the event of the primary borrower’s permanent disability or death. You may also pursue federal, state, employer and private student loan forgiveness or repayment assistance programs to pay down your balance faster.