Once you've maxed out federal financial aid to help finance your higher education, private student loans can help you cover the rest. They can be used for all types of educational expenses like tuition, housing, books and even laptops.
Borrowers can find private student loans offered at banks, credit unions and online lenders. And while they should only be an option after applying for federal student aid, they do have perks unique to them like access to higher loan limits and a faster approval process — and, for those with good credit, often lower interest rates.
CNBC Select set out to find the best private student loans. In choosing the top ones, we considered the loan types and loan amounts, interest rates, repayment terms, fees, availability, credit requirements and eligibility, as well as the application process and customer reviews. (See our methodology for more information on how we made this list.)
Best private student loans
Best overall
College Ave
Eligible borrowers
Undergraduate and graduate students, parents
Loan amounts
$1,000 minimum; maximum up to cost of attendance
Loan terms
Range from 5 to 20 years
Loan types
Variable and fixed
Borrower protections
Deferment, forbearance and grace period options available
Co-signer required?
Only for international students
Offer student loan refinancing?
Yes - click here for details
Terms apply.
Pros
- High loan amount
- Flexible repayment terms
- Variable and fixed rates, so you can choose
- Borrowers have hardship protections
- No co-signer required for U.S. students
- Offers co-signer release
- No origination, application or prepayment fees
- 0.25% interest rate discount for autopay
- Offers student loan refinancing
- Accepts in-school payments
Cons
- Non-cosigned loans tend to charge higher interest rates
- Co-signer release can't be made until half of repayment term has passed
Who's this for? College Ave stands out for private student loan borrowers because it hits all the marks, excelling especially for its low rates, high loan amounts that cover 100% of school costs and flexible repayment terms. Plus, borrowers don't need a co-signer to get funding from College Ave if you have qualifying credit.
Runner-up
Sallie Mae Student Loan
Eligible borrowers
Undergraduate and graduate students, borrowers seeking career training
Loan amounts
$1,000 minimum; maximum up to cost of attendance
Loan terms
Range from 10 to 15 years
Loan types
Variable and fixed
Borrower protections
Deferment and forbearance options available
Co-signer required?
No
Offer student loan refinancing?
No
Terms apply.
Pros
- High loan amount
- Variable and fixed rates, so you can choose
- Borrowers have hardship protections
- No co-signer required
- Offers co-signer release
- No origination, application or prepayment fees
- 0.25% interest rate discount for autopay
- Accepts in-school payments
Cons
- Non-cosigned loans tend to charge higher interest rates
- Doesn't offer student loan refinancing
Who's this for? Sallie Mae's offerings are extremely competitive, but it offers fewer repayment term options than some other lenders on this list. Borrowers can only choose to pay back their loan within 10 to 15 years.
Best for applying without a co-signer
Ascent® Funding
Eligible borrowers
Qualifying undergraduate juniors and seniors, graduate students
Loan amounts
Up to $200,000 for undergraduate and $400,000 for graduate loans
Loan terms
Range from 5 to 15 years
Loan types
Variable and fixed
Borrower protections
Deferment and forbearance options available
Co-signer required?
No
Offer student loan refinancing?
No
Terms apply.
Pros
- Considers borrowers with no credit
- High loan amount
- Variable and fixed rates, so you can choose
- Borrowers have hardship protections
- No co-signer required
- Offers co-signer release
- No origination, application or prepayment fees
- Up to 1% interest rate discount for autopay
- 1% cash back rewards
- Accepts in-school payments
Cons
- Non-cosigned loans tend to charge higher interest rates
- Doesn't offer student loan refinancing
Who's this for? Ascent stands out for opening up eligibility to prospective borrowers who don't have a co-signer. The lender will consider those without established credit, as well as those who meet the minimum credit requirements but not the income or repayment requirements. In these cases, the lender looks at other factors like a borrower's school, program, graduation date, major, GPA, cost of attendance and Satisfactory Academic Progress (SAP).
Best for fair credit
Earnest
Eligible borrowers
Undergraduate and graduate students, parents, half-time students, international and DACA students
Loan amounts
$1,000 minimum (or up to state); maximum up to cost of attendance
Loan terms
Range from 5 to 15 years
Loan types
Variable and fixed
Borrower protections
9-month grace period
Co-signer required?
No
Offer student loan refinancing?
Yes - click here for details
Terms apply.
Pros
- Applicants with fair credit can qualify
- High loan amount
- Variable and fixed rates, so you can choose
- Borrowers have hardship protections
- No co-signer required
- No origination or prepayment fees
- 0.25% interest rate discount for autopay
- Allows qualified borrowers to skip one payment every 12 months and make it up later
- Offers student loan refinancing
- Accepts in-school payments
Cons
- Non-cosigned loans tend to charge higher interest rates
- No co-signer release option available
- Variable rates not available everywhere
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 5.19% APR to 9.74% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.99% APR to 9.74% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 9.99% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account.
Who's this for? Earnest gives prospective borrowers with fair credit a chance at getting money more so than they may at other lenders. This is because Earnest allows applicants with a minimum FICO® Score of 650 to apply. Borrowers can also skip one payment a year without penalties, though we don't recommend making this a habit.
Best for refinancing
SoFi
Eligible borrowers
Undergraduate and graduate students, parents, health professionals
Loan amounts
$5,000 minimum (or up to state); maximum up to cost of attendance
Loan terms
Range from 5 to 15 years; up to 20 years for refinancing loans
Loan types
Variable and fixed
Co-signer required?
No
Offer student loan refinancing?
Yes - click here for details
Offer parent loan?
Yes - click here for details
Terms apply.
Pros
- High loan amount
- Variable and fixed rates, so you can choose
- No co-signer required
- No origination, application or prepayment fees
- 0.25% interest rate discount for autopay
- 0.125% interest rate discount on any additional SoFi lending product
- Offers student loan refinancing
- Accepts in-school payments
Cons
- Non-cosigned loans tend to charge higher interest rates
- No co-signer release option available
- Loan size minimum of $5,000
Who's this for? The only way to refinance your student loans is through a private lender, and SoFi leads the way here. The lender offers low refinancing rates and has perks exclusive to its members. Member benefits include referral bonuses, rate discounts on other SoFi loans and premium travel offers.
Compare offers to find the best student loan
More on our top private student loans
College Ave
College Ave offers competitive interest rates, plus no application, origination or prepayment fees. Borrowers can choose a fixed or variable rate and there's a 0.25% rate discount when signing up for autopay. College Ave also offers hardship protections like deferment, forbearance and grace period options. Borrowers with College Ave student loans can start repaying while still in school.
Eligible loans
Undergraduate and graduate loans, graduate health professions and parent loans
Loan amounts
$1,000 minimum; maximum up to cost of attendance
Loan terms
5, 8, 10, 15 years; graduate loans up to 20 years
Sallie Mae
Sallie Mae's interest rates are competitive with other private lenders, and they can be variable or fixed. Borrowers can score a 0.25% autopay rate discount and take advantage of no origination, application or prepayment fees. Borrower protections include deferment and forbearance. Sallie Mae lets its borrowers start repaying their loans while still in school.
Eligible loans
Undergraduate and graduate loans, health profession, medical and dental residency loans, bar study loans and career training student loans
Loan amounts
$1,000 minimum; maximum up to cost of attendance
Loan terms
10, 15 years
Ascent
Ascent borrowers can choose between a fixed or a variable rate, and there's an up to 1% interest rate discount for autopay. There are no fees for paying off your loan early, as well as no origination or application fee. Ascent also offers rewards like 1% cash back on principal loan amounts at graduation. There are also deferment and forbearance options available to borrowers. Ascent student loan borrowers can start making their payments while in school.
Eligible loans
Undergraduate and graduate loans, health professions and PhD, Master’s loans
Loan amounts
$2,001 minimum; maximum up to $200,000 for undergraduate loans; up to $400,000 for graduate loans
Loan terms
5, 7, 10, 12, 15, 20 years
Earnest
With Earnest, there are competitive interest rates and the option to choose between variable or fixed. Borrowers will also get a 0.25% autopay rate discount. There are no origination fees or prepayment penalties. Borrower protections include a 9-month grace period and borrowers can make payments while in school.
Eligible loans
Undergraduate and graduate loans, parent loans, half-time student loans, international and DACA student loans
Loan amounts
$1,000 minimum (or up to state); maximum up to cost of attendance
Loan terms
5, 7, 10, 12, 15 years
SoFi
SoFi offers solid refinancing rates, both fixed and variable, as well as a 0.25% autopay rate discount. There are no application or origination fees and no prepayment penalties. Borrowers can get unemployment protection and other forbearance options, plus make student loan payments while still in school.
Eligible loans
Undergraduate and graduate loans, parent loans, health professions loans
Loan amounts
$5,000 minimum (or up to state); maximum up to cost of attendance
Loan terms
5, 7, 10, 15 years; refinancing loans up to 20 years
FAQs
How to choose the best private student loan?
To choose the best private student loan, consider your financing needs — meaning the type of loan you need, the loan amount you're looking for and the ideal loan term (or how long you want to be paying off your loan). Knowing these things can help you filter through different lenders, as they have different offerings. Start by searching the lenders on this list, all of which offer competitive interest rates on private student loans.
Is it a good idea to get a private student loan?
A private student loan can help fill in the gap to pay for college or grad school, which is typically considered a good investment. So, getting one is a good idea if it allows you to pursue higher education. Just be mindful of just how much you take out in all student loans (federal and private), as well as the interest rates, and have some sort of plan of how you'll start paying them off.
When should you get a private student loan?
You should get a private student loan once you've maxed out all federal aid possible and still need funding to afford your studies.
Who qualifies for a private student loan?
Private student loan qualification is up to the respective lender, but most will consider factors such as your credit score, income, debt-to-income (DTI) ratio, savings, payment history and overall financial health.
What fees should I look out for with a private student loan?
With a private student loan, look out for origination, application or prepayment fees, the latter being a fee for paying off your loan early. The best lenders won't charge you for these things, and, on the contrary, they'll even offer an interest rate reduction when you sign up for autopay.
Bottom line
Private student loans can help bridge the financial gap once you've maximized your federal aid options and need help covering the rest of college. Start by comparing your options with the lenders on this list.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every student loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of student loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best private student loans.
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Our methodology
To determine which private student loans are the best for borrowers, CNBC Select analyzed and compared private student loan funding from national banks, credit unions and online lenders. We narrowed down our ranking by only considering those that offer competitive student loan rates and prequalification tools that don't hurt borrowers' credit.
While the companies we chose in this article consistently rank as having some of the market's lower interest rates, we also compared each company on the following features:
- Broad availability: All of the companies on our list offer undergraduate and graduate private student loans, and they all offer variable and fixed interest rates to choose from
- Flexible loan terms: Each company provides a variety of financing options that borrowers can customize based on their monthly budget and how long they need to pay back their student loan. Each company also allows borrowers to start repaying their student loans while still in school, ultimately saving them money
- No origination or signup fee: None of the companies on our list charge borrowers an upfront "origination fee" for taking out their loan
- No early payoff penalties: The companies on our list do not charge borrowers prepayment penalties for paying off loans early
- Streamlined application process: We made sure companies offered a fast online application process
- Autopay discounts: All of the companies listed offer an autopay interest rate discount
- Private student loan protections: Each company on our list offers some type of financial hardship protection for borrowers
- Loan sizes: The above companies offer private student loans in an array of sizes, all the way up to the cost of college attendance. Each company advertises its respective loan sizes, and completing a preapproval process can give borrowers an idea of what their interest rate and monthly payment would be
- Credit requirements/eligibility: We took into consideration the minimum credit scores and income levels required if this information was available
- Customer support: Every company on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help borrowers educate themselves about student loans in general
After reviewing the above features, we sorted our recommendations by best overall, runner-up, best for applying without a co-signer, best for fair credit and best for refinancing.
Note that the rates and fee structures for private student loans are not guaranteed forever; they are subject to change without notice and they often fluctuate in accordance with the Fed rate. Choosing a fixed-rate APR will guarantee that one's interest rate and monthly payment will remain consistent throughout the entire term of the loan.
A borrower's interest rate depends on their credit score, income, debt-to-income (DTI) ratio, savings, payment history and overall financial health. To take out private student loans, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.
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