Private student loans accounted for 15% of all educational loans in 2022-23 according to the College Board. While federal student loans often offer the best terms, they might not cover all of your college expenses. That’s where a private student loan can help.
If you’ve received your financial aid package and it isn’t enough to cover your college costs, it may be a good time to start thinking about a private student loan. These are provided by private lenders and generally require a credit score of 670 or higher (from either you or a cosigner) to qualify.
Advertiser Disclosure$1,000 up to 100% of school-certified cost of attendance
Overview
Sallie Mae offers a wide range of loans tailored to different needs, including those for undergraduates, graduates, MBA programs, law school, medical school, and health profession programs. It's also one of the few private lenders that provides loans for career training and trade schools.
If you apply with a cosigner, you might qualify for a lower interest rate. Sallie Mae has one of the shortest cosigner release periods—just 12 months—compared to other lenders. However, there's no option to prequalify and check your rates without affecting your credit. You'll need to complete a full application, which includes a hard credit inquiry that could temporarily lower your credit score.
pros
- Offers loans for certificate and trade school programs
- Cosigners can be released after just 12 months
- No prepayment, origination, or application fees
cons
- No prequalification options to check rates
- Must submit an application to view loan terms
- Does not offer parent loans
Loan terms
10 to 15 years for the Smart Option Student Loan; 15 years for law school, MBA, and graduate school loans; 20 years for medical school loans
Loan amounts
$1,000 up to school-certified cost of attendance. Student must be listed as the borrower, and a parent may cosign.
Cosigner release
After you graduate, make 12 one-time principal and interest payments, and meet certain credit requirements
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens residing and attending school in the U.S. may qualify by applying with a creditworthy cosigner, who must be a U.S. citizen or permanent resident, and providing an unexpired government-issued photo ID.
$1,000 up to 100% of the school-certified cost of attendance
Overview
College Ave offers a simple three-minute application, and has loans for nearly every borrower, from undergraduates to law school students. It's a great option for graduate students, who can take advantage of extended grace periods. The lender offers multiple repayment plans, as well as a discount of 0.25 percentage points for autopay.
With College Ave's multiyear approval program, 95% of undergraduate students who apply with a cosigner are approved for additional student loans. On the downside, borrowers must complete at least half of their repayment term before they can release a cosigner. Parent borrowers also can't fully defer loans - they must pay at least the interest during school.
pros
- Graduate loans have grace periods up to 36 months
- Offers multiyear approval for efficient borrowing
- Discount of 0.25 percentage points for autopay
cons
- Cosigner release only available after half of your repayment term
- Parents can’t defer interest payments while child is in school
- Doesn’t disclose minimum credit score or income
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
Available after more than half of the scheduled repayment period has elapsed and other requirements are met
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
$1,000 up to cost of attendance
Overview
ELFI is a private student loan lender offering private student loans and refinancing for undergraduates, graduates, and parents. The lender, a division of Tennessee-based SouthEast Bank, offers loans starting at $1,000, with options to cover as much as the full cost of attendance.
ELFI student loans are available to students nationwide who are enrolled in a bachelor's degree program or higher. The lender offers multiple repayment terms and interest rates that are competitive in the industry. ELFI also provides support to borrowers through a Student Loan Advisor. You can borrow with a cosigner, but ELFI doesn't have a cosigner release option, nor does it offer any rate discounts.
pros
- One-on-one support available from a dedicated Student Loan Advisor
- Clearly discloses credit score and income required to qualify
- Wide range of repayment options
cons
- Loans only available for bachelor’s degree programs or higher
- Does not offer cosigner release
- No rate discounts for autopay
Loan amounts
$1,000 - Cost of attendance
Cosigner release
A cosigner may not be taken off a loan, but the borrower can apply for a new loan without their cosigner.
Eligibility
All 50 states as well as Washington DC and Puerto Rico.
Overview
Ascent offers several unique borrowing options that you don’t typically see with private lenders. In addition to traditional student loans for undergraduate, graduate, and medical programs, college juniors and seniors may qualify for its Outcomes-Based Loan — which doesn’t require established credit or a cosigner. Instead, Ascent reviews alternate factors such as your school, major, and GPA to determine your eligibility.
Ascent also offers a wide range of loan terms and repayment plans to choose from. You may even qualify for its Progressive Repayment plan, which allows you to start with small payments that gradually increase over time. Borrowers who use a cosigner can release them after as few as 12 payments, though international students don’t qualify for this option.
pros
- No application or origination fees
- Autopay discounts of 0.25 to 1.00 percentage points
- 1% cash back reward at graduation
- Extended grace periods of 9 to 36 months
cons
- Higher interest rates than some competitors
- International students can’t release their cosigner
Loan terms
5, 7, 10, 12, 15, or 20 years
Loan amounts
$2,001 minimum up to your school’s annual cost of attendance; lifetime limits of $200,000 for undergrads and $400,000 for graduates
Eligibility
Must be a U.S. citizen or DACA student enrolled at least half time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
$1,000 to $350,000 (depending on degree)
Overview
Citizens provides loans to undergraduates, graduate students, and parents. The lender also accepts international students, as long as they have a cosigner who's a U.S. citizen or permanent resident. The lender's multiyear approval program makes it easy to reapply for loan funds each year.
Borrowers can take advantage of an autopay discount of 0.25 percentage points, in addition to a loyalty discount if they have an existing account with Citizens. While student borrowers can defer their loan payments until six months after graduation, parents are not eligible to defer their payments.
pros
- Offers loyalty and autopay discounts
- Qualifying borrowers can take advantage of multiyear approval
- International students are eligible when they add a qualifying cosigner
cons
- Few repayment term options
- Longer cosigner release requirement than some lenders
- Can’t defer parent loans
Loan terms
5, 10, or 15 years for student loans; 5 or 10 years for parent loans
Loan amounts
$1,000 minimum, up to a maximum of $225,000 for undergraduate and graduate degrees; $300,000 for MBA and law; and $225,000 or $400,000 for health care student loans, depending on the degree type
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.
$1,000 to $99,999 annually $180,000 aggregate limit)
Overview
Citizens provides loans to undergraduates, graduate students, and parents. The lender also accepts international students, as long as they have a cosigner who's a U.S. citizen or permanent resident. The lender's multiyear approval program makes it easy to reapply for loan funds each year.
Borrowers can take advantage of an autopay discount of 0.25 percentage points, in addition to a loyalty discount if they have an existing account with Citizens. While student borrowers can defer their loan payments until six months after graduation, parents are not eligible to defer their payments.
pros
- Offers loyalty and autopay discounts
- Qualifying borrowers can take advantage of multiyear approval
- International students are eligible when they add a qualifying cosigner
cons
- Few repayment term options
- Longer cosigner release requirement than some lenders
- Can’t defer parent loans
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $180,000)
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 such as DACA residents can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
$1,001 up to 100% of school certified cost of attendance
Overview
INvestEd is a student loan provider that offers loans exclusively to Indiana state residents. Students in the state and their parents who can meet INvestEd's income and credit requirements, or who have an eligible cosigner, are eligible. Loans of as little as $1,001 or as much as the school's cost of attendance minus other aid are available.
Potential borrowers can find detailed information on eligibility on INvestEd's website so they can determine whether or not to apply. But there's no option to prequalify with a soft credit check that doesn't affect your credit score. Cosigners can be released after just 12 on-time payments, which is considerably less time than many other lenders.
pros
- Minimum borrowing amounts lower than some other lenders
- Offers a quarter-point rate discount for using autopay
- Cosigner release after as few as 12 on-time payments
- Qualification requirements are easy to see online
cons
- Only Indiana residents can qualify for loans
- Cannot prequalify to see rates without a hard credit pull
- International students not eligible
Loan amounts
$1,001 minimum, up to the school certified cost of attendance
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.
$1,500 up to school’s certified cost of attendance less aid
Overview
Massachusetts Educational Financing Authority (MEFA) student loans fixed-rate options for undergraduate and graduate students across the country. MEFA's not-for-profit status helps it keep interest rates competitive, offering potentially lower borrowing costs than many other private lenders.
On the downside, flexibility is limited compared with some other lenders. Undergraduates can only choose between 10- or 15-year repayment terms, while graduate students must opt for a 15-year term. This might be restrictive if you're looking for more options. Cosigner release may also be a challenge. You'll need to make on-time payments for four consecutive years and meet specific credit and income criteria to release your cosigner.
pros
- No fees at any stage, including late payment fees
- Lower interest rates than many competitors
- Can cover your school’s full cost of attendance
cons
- Variable rate loans are not offered
- Fewer repayment term options than most lenders
- No autopay rate discount
- May be challenging to release a cosigner
- No option to prequalify with a soft credit check
Loan amounts
$1,500 minimum up to school-certified cost of attendance
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.
Loan Amounts
$1,000 up to 100% of school-certified cost of attendance
Overview
Sallie Mae offers a wide range of loans tailored to different needs, including those for undergraduates, graduates, MBA programs, law school, medical school, and health profession programs. It's also one of the few private lenders that provides loans for career training and trade schools.
If you apply with a cosigner, you might qualify for a lower interest rate. Sallie Mae has one of the shortest cosigner release periods—just 12 months—compared to other lenders. However, there's no option to prequalify and check your rates without affecting your credit. You'll need to complete a full application, which includes a hard credit inquiry that could temporarily lower your credit score.
pros
- Offers loans for certificate and trade school programs
- Cosigners can be released after just 12 months
- No prepayment, origination, or application fees
cons
- No prequalification options to check rates
- Must submit an application to view loan terms
- Does not offer parent loans
Loan terms
10 to 15 years for the Smart Option Student Loan; 15 years for law school, MBA, and graduate school loans; 20 years for medical school loans
Loan amounts
$1,000 up to school-certified cost of attendance. Student must be listed as the borrower, and a parent may cosign.
Cosigner release
After you graduate, make 12 one-time principal and interest payments, and meet certain credit requirements
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens residing and attending school in the U.S. may qualify by applying with a creditworthy cosigner, who must be a U.S. citizen or permanent resident, and providing an unexpired government-issued photo ID.
Loan Amounts
$1,000 up to 100% of the school-certified cost of attendance
Overview
College Ave offers a simple three-minute application, and has loans for nearly every borrower, from undergraduates to law school students. It's a great option for graduate students, who can take advantage of extended grace periods. The lender offers multiple repayment plans, as well as a discount of 0.25 percentage points for autopay.
With College Ave's multiyear approval program, 95% of undergraduate students who apply with a cosigner are approved for additional student loans. On the downside, borrowers must complete at least half of their repayment term before they can release a cosigner. Parent borrowers also can't fully defer loans - they must pay at least the interest during school.
pros
- Graduate loans have grace periods up to 36 months
- Offers multiyear approval for efficient borrowing
- Discount of 0.25 percentage points for autopay
cons
- Cosigner release only available after half of your repayment term
- Parents can’t defer interest payments while child is in school
- Doesn’t disclose minimum credit score or income
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
Available after more than half of the scheduled repayment period has elapsed and other requirements are met
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Loan Amounts
$1,000 up to cost of attendance
Overview
ELFI is a private student loan lender offering private student loans and refinancing for undergraduates, graduates, and parents. The lender, a division of Tennessee-based SouthEast Bank, offers loans starting at $1,000, with options to cover as much as the full cost of attendance.
ELFI student loans are available to students nationwide who are enrolled in a bachelor's degree program or higher. The lender offers multiple repayment terms and interest rates that are competitive in the industry. ELFI also provides support to borrowers through a Student Loan Advisor. You can borrow with a cosigner, but ELFI doesn't have a cosigner release option, nor does it offer any rate discounts.
pros
- One-on-one support available from a dedicated Student Loan Advisor
- Clearly discloses credit score and income required to qualify
- Wide range of repayment options
cons
- Loans only available for bachelor’s degree programs or higher
- Does not offer cosigner release
- No rate discounts for autopay
Loan amounts
$1,000 - Cost of attendance
Cosigner release
A cosigner may not be taken off a loan, but the borrower can apply for a new loan without their cosigner.
Eligibility
All 50 states as well as Washington DC and Puerto Rico.
Overview
Ascent offers several unique borrowing options that you don’t typically see with private lenders. In addition to traditional student loans for undergraduate, graduate, and medical programs, college juniors and seniors may qualify for its Outcomes-Based Loan — which doesn’t require established credit or a cosigner. Instead, Ascent reviews alternate factors such as your school, major, and GPA to determine your eligibility.
Ascent also offers a wide range of loan terms and repayment plans to choose from. You may even qualify for its Progressive Repayment plan, which allows you to start with small payments that gradually increase over time. Borrowers who use a cosigner can release them after as few as 12 payments, though international students don’t qualify for this option.
pros
- No application or origination fees
- Autopay discounts of 0.25 to 1.00 percentage points
- 1% cash back reward at graduation
- Extended grace periods of 9 to 36 months
cons
- Higher interest rates than some competitors
- International students can’t release their cosigner
Loan terms
5, 7, 10, 12, 15, or 20 years
Loan amounts
$2,001 minimum up to your school’s annual cost of attendance; lifetime limits of $200,000 for undergrads and $400,000 for graduates
Eligibility
Must be a U.S. citizen or DACA student enrolled at least half time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Loan Amounts
$1,000 to $350,000 (depending on degree)
Overview
Citizens provides loans to undergraduates, graduate students, and parents. The lender also accepts international students, as long as they have a cosigner who's a U.S. citizen or permanent resident. The lender's multiyear approval program makes it easy to reapply for loan funds each year.
Borrowers can take advantage of an autopay discount of 0.25 percentage points, in addition to a loyalty discount if they have an existing account with Citizens. While student borrowers can defer their loan payments until six months after graduation, parents are not eligible to defer their payments.
pros
- Offers loyalty and autopay discounts
- Qualifying borrowers can take advantage of multiyear approval
- International students are eligible when they add a qualifying cosigner
cons
- Few repayment term options
- Longer cosigner release requirement than some lenders
- Can’t defer parent loans
Loan terms
5, 10, or 15 years for student loans; 5 or 10 years for parent loans
Loan amounts
$1,000 minimum, up to a maximum of $225,000 for undergraduate and graduate degrees; $300,000 for MBA and law; and $225,000 or $400,000 for health care student loans, depending on the degree type
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.
Loan Amounts
$1,000 to $99,999 annually $180,000 aggregate limit)
Overview
Citizens provides loans to undergraduates, graduate students, and parents. The lender also accepts international students, as long as they have a cosigner who's a U.S. citizen or permanent resident. The lender's multiyear approval program makes it easy to reapply for loan funds each year.
Borrowers can take advantage of an autopay discount of 0.25 percentage points, in addition to a loyalty discount if they have an existing account with Citizens. While student borrowers can defer their loan payments until six months after graduation, parents are not eligible to defer their payments.
pros
- Offers loyalty and autopay discounts
- Qualifying borrowers can take advantage of multiyear approval
- International students are eligible when they add a qualifying cosigner
cons
- Few repayment term options
- Longer cosigner release requirement than some lenders
- Can’t defer parent loans
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $180,000)
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 such as DACA residents can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Loan Amounts
$1,001 up to 100% of school certified cost of attendance
Overview
INvestEd is a student loan provider that offers loans exclusively to Indiana state residents. Students in the state and their parents who can meet INvestEd's income and credit requirements, or who have an eligible cosigner, are eligible. Loans of as little as $1,001 or as much as the school's cost of attendance minus other aid are available.
Potential borrowers can find detailed information on eligibility on INvestEd's website so they can determine whether or not to apply. But there's no option to prequalify with a soft credit check that doesn't affect your credit score. Cosigners can be released after just 12 on-time payments, which is considerably less time than many other lenders.
pros
- Minimum borrowing amounts lower than some other lenders
- Offers a quarter-point rate discount for using autopay
- Cosigner release after as few as 12 on-time payments
- Qualification requirements are easy to see online
cons
- Only Indiana residents can qualify for loans
- Cannot prequalify to see rates without a hard credit pull
- International students not eligible
Loan amounts
$1,001 minimum, up to the school certified cost of attendance
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.
Loan Amounts
$1,500 up to school’s certified cost of attendance less aid
Overview
Massachusetts Educational Financing Authority (MEFA) student loans fixed-rate options for undergraduate and graduate students across the country. MEFA's not-for-profit status helps it keep interest rates competitive, offering potentially lower borrowing costs than many other private lenders.
On the downside, flexibility is limited compared with some other lenders. Undergraduates can only choose between 10- or 15-year repayment terms, while graduate students must opt for a 15-year term. This might be restrictive if you're looking for more options. Cosigner release may also be a challenge. You'll need to make on-time payments for four consecutive years and meet specific credit and income criteria to release your cosigner.
pros
- No fees at any stage, including late payment fees
- Lower interest rates than many competitors
- Can cover your school’s full cost of attendance
cons
- Variable rate loans are not offered
- Fewer repayment term options than most lenders
- No autopay rate discount
- May be challenging to release a cosigner
- No option to prequalify with a soft credit check
Loan amounts
$1,500 minimum up to school-certified cost of attendance
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.
Fox Business does not make or arrange loans.
Unlike federal student loans, which have rates that are the same for all borrowers, private lenders offer rates that are determined by your credit score and other factors. Borrowers with the strongest credit are offered the lowest rates, meaning with good credit, it might be possible to get a lower interest rate on a private student loan than a federal one. Other factors that can affect your rate, including your debt-to-income ratio and whether you chose a private loan with a fixed or variable interest rate.
The amount you can borrow through a private student loan varies by lender. Some let you take out up to your school's full cost of attendance, minus any other federal financial aid you received. Other lenders may set lower annual or lifetime limits or offer different amounts for specific degrees, like an MBA or law and medical degrees.
Private lenders often let you choose your repayment terms, typically ranging from five to 15 years. Note that private student loans do not come with federal repayment plans or protections like income-driven repayment, deferment or forbearance. If you decide to go back to school or lose your job, some private lenders will temporarily postpone your payments, usually for between two and 12 months.
For many student borrowers, private student loans can be more expensive than federal ones. But if you aren’t eligible for federal aid or need extra funding to pay for college, these loans can come in handy.
Min. Credit Score
Does not disclose
Variable APR
5.66 - 15.16%
Loan Amount
$2,001 to $400,000
No application or origination fees
Autopay discounts of 0.25 to 1.00 percentage points
1% cash back reward at graduation
Extended grace periods of 9 to 36 months
Higher interest rates than some competitors
International students can’t release their cosigner
Overview
Ascent offers several unique borrowing options that you don’t typically see with private lenders. In addition to traditional student loans for undergraduate, graduate, and medical programs, college juniors and seniors may qualify for its Outcomes-Based Loan — which doesn’t require established credit or a cosigner. Instead, Ascent reviews alternate factors such as your school, major, and GPA to determine your eligibility.
Ascent also offers a wide range of loan terms and repayment plans to choose from. You may even qualify for its Progressive Repayment plan, which allows you to start with small payments that gradually increase over time. Borrowers who use a cosigner can release them after as few as 12 payments, though international students don’t qualify for this option.
Loan terms
5, 7, 10, 12, 15, or 20 years
Loan amounts
$2,001 minimum up to your school’s annual cost of attendance; lifetime limits of $200,000 for undergrads and $400,000 for graduates
Eligibility
Must be a U.S. citizen or DACA student enrolled at least half time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Best for Multi-Year Approval
Variable APR
5.50 - 16.12%
Loan Amount
$1,000 to $350,000 (depending on degree)
Offers loyalty and autopay discounts
Qualifying borrowers can take advantage of multiyear approval
International students are eligible when they add a qualifying cosigner
Few repayment term options
Longer cosigner release requirement than some lenders
Can’t defer parent loans
Overview
Citizens provides loans to undergraduates, graduate students, and parents. The lender also accepts international students, as long as they have a cosigner who's a U.S. citizen or permanent resident. The lender's multiyear approval program makes it easy to reapply for loan funds each year.
Borrowers can take advantage of an autopay discount of 0.25 percentage points, in addition to a loyalty discount if they have an existing account with Citizens. While student borrowers can defer their loan payments until six months after graduation, parents are not eligible to defer their payments.
Loan terms
5, 10, or 15 years for student loans; 5 or 10 years for parent loans
Loan amounts
$1,000 minimum, up to a maximum of $225,000 for undergraduate and graduate degrees; $300,000 for MBA and law; and $225,000 or $400,000 for health care student loans, depending on the degree type
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.
Best for Extended Grace Periods
Min. Credit Score
Does not disclose
Variable APR
5.34 - 17.99%
Loan Amount
$1,000 up to 100% of the school-certified cost of attendance
Term
5, 8, 10, 15 (20 for health professionals)
Graduate loans have grace periods up to 36 months
Offers multiyear approval for efficient borrowing
Discount of 0.25 percentage points for autopay
Cosigner release only available after half of your repayment term
Parents can’t defer interest payments while child is in school
Doesn’t disclose minimum credit score or income
Overview
College Ave offers a simple three-minute application, and has loans for nearly every borrower, from undergraduates to law school students. It's a great option for graduate students, who can take advantage of extended grace periods. The lender offers multiple repayment plans, as well as a discount of 0.25 percentage points for autopay.
With College Ave's multiyear approval program, 95% of undergraduate students who apply with a cosigner are approved for additional student loans. On the downside, borrowers must complete at least half of their repayment term before they can release a cosigner. Parent borrowers also can't fully defer loans - they must pay at least the interest during school.
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
Available after more than half of the scheduled repayment period has elapsed and other requirements are met
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Best for Discounts and Rewards
Min. Credit Score
Does not disclose
Variable APR
4.97 - 14.52%
Loan Amount
$1,000 to $99,999 annually $180,000 aggregate limit)
Offers loyalty and autopay discounts
Qualifying borrowers can take advantage of multiyear approval
International students are eligible when they add a qualifying cosigner
Few repayment term options
Longer cosigner release requirement than some lenders
Can’t defer parent loans
Overview
Citizens provides loans to undergraduates, graduate students, and parents. The lender also accepts international students, as long as they have a cosigner who's a U.S. citizen or permanent resident. The lender's multiyear approval program makes it easy to reapply for loan funds each year.
Borrowers can take advantage of an autopay discount of 0.25 percentage points, in addition to a loyalty discount if they have an existing account with Citizens. While student borrowers can defer their loan payments until six months after graduation, parents are not eligible to defer their payments.
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $180,000)
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 such as DACA residents can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Best for Indiana Students
Variable APR
7.77 - 11.81%
Loan Amount
$1,001 up to 100% of school certified cost of attendance
Minimum borrowing amounts lower than some other lenders
Offers a quarter-point rate discount for using autopay
Cosigner release after as few as 12 on-time payments
Qualification requirements are easy to see online
Only Indiana residents can qualify for loans
Cannot prequalify to see rates without a hard credit pull
International students not eligible
Overview
INvestEd is a student loan provider that offers loans exclusively to Indiana state residents. Students in the state and their parents who can meet INvestEd's income and credit requirements, or who have an eligible cosigner, are eligible. Loans of as little as $1,001 or as much as the school's cost of attendance minus other aid are available.
Potential borrowers can find detailed information on eligibility on INvestEd's website so they can determine whether or not to apply. But there's no option to prequalify with a soft credit check that doesn't affect your credit score. Cosigners can be released after just 12 on-time payments, which is considerably less time than many other lenders.
Loan amounts
$1,001 minimum, up to the school certified cost of attendance
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.
Best for borrowers with good credit
Loan Amount
$1,500 up to school’s certified cost of attendance less aid
No fees at any stage, including late payment fees
Lower interest rates than many competitors
Can cover your school’s full cost of attendance
Variable rate loans are not offered
Fewer repayment term options than most lenders
No autopay rate discount
May be challenging to release a cosigner
No option to prequalify with a soft credit check
Overview
Massachusetts Educational Financing Authority (MEFA) student loans fixed-rate options for undergraduate and graduate students across the country. MEFA's not-for-profit status helps it keep interest rates competitive, offering potentially lower borrowing costs than many other private lenders.
On the downside, flexibility is limited compared with some other lenders. Undergraduates can only choose between 10- or 15-year repayment terms, while graduate students must opt for a 15-year term. This might be restrictive if you're looking for more options. Cosigner release may also be a challenge. You'll need to make on-time payments for four consecutive years and meet specific credit and income criteria to release your cosigner.
Loan amounts
$1,500 minimum up to school-certified cost of attendance
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.
Min. Credit Score
Does not disclose
Variable APR
5.04 - 15.21%
Loan Amount
$1,000 up to 100% of school-certified cost of attendance
Offers loans for certificate and trade school programs
Cosigners can be released after just 12 months
No prepayment, origination, or application fees
No prequalification options to check rates
Must submit an application to view loan terms
Does not offer parent loans
Overview
Sallie Mae offers a wide range of loans tailored to different needs, including those for undergraduates, graduates, MBA programs, law school, medical school, and health profession programs. It's also one of the few private lenders that provides loans for career training and trade schools.
If you apply with a cosigner, you might qualify for a lower interest rate. Sallie Mae has one of the shortest cosigner release periods—just 12 months—compared to other lenders. However, there's no option to prequalify and check your rates without affecting your credit. You'll need to complete a full application, which includes a hard credit inquiry that could temporarily lower your credit score.
Loan terms
10 to 15 years for the Smart Option Student Loan; 15 years for law school, MBA, and graduate school loans; 20 years for medical school loans
Loan amounts
$1,000 up to school-certified cost of attendance. Student must be listed as the borrower, and a parent may cosign.
Cosigner release
After you graduate, make 12 one-time principal and interest payments, and meet certain credit requirements
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens residing and attending school in the U.S. may qualify by applying with a creditworthy cosigner, who must be a U.S. citizen or permanent resident, and providing an unexpired government-issued photo ID.
We evaluated these student loan lenders based on interest rates and origination fees, loan amounts, loan terms, discounts, whether cosigners are accepted, and more. Our team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.
There are two main types of student loans: federal loans, which are offered by the Department of Education, and private loans, which are available through private companies like online lenders, banks, and credit unions.
Federal student loans are the most common type, making up an estimated 92% of the student loan market, according to a 2023 Enterval Analytics report. That’s because these loans come with special benefits and protections, including:
- Relatively low, fixed rates that aren’t based on your credit
- More relaxed qualification requirements
- Flexible repayment options, such as income-driven repayment plans
- Forgiveness programs for eligible borrowers
Private lenders generally can’t match those perks, but private student loans may still have a place in your borrowing plan. While federal loans may be more affordable, they also tend to come with lower borrowing limits. If you max out the federal aid available to you, private loans can help you access additional funds.
In addition, well-qualified borrowers (or applicants with cosigners who have strong credit) may be able to access lower rates on the private market. Compare all your options before deciding what type of loan is best for you.
Learn more: Federal vs. private student loans: Which should you choose?
Private student loans have stricter eligibility requirements than federal student loans, because credit is taken into consideration. Requirements vary by lender, but most lenders will look for the following:
- A good to excellent credit score – A FICO score of 670 or higher is usually required.
- A steady income and stable finances
- U.S. citizenship or permanent resident status
- Enrollment in an eligible educational degree program
Tip:
If you can’t qualify on your own or you want to access a better interest rate, consider applying with a cosigner who has strong credit.
Related: Best student loans for bad credit of 2024
Pros and cons of private student loans
Interest rates could be lower than what you’ll find with some federal student loans, particularly for borrowers with excellent credit.
Many private loans come with higher borrowing limits compared to federal loan, and you can usually cover up to your school’s total cost of attendance
Private student loan repayment terms start at 5 years compared to 10 years for federal loans. Opting for a shorter loan term means you’ll be debt-free faster.
Unlike federal student loans, which have origination fees ranging from 1.057% to 4.236% in 2023-24, most private lenders don’t charge origination fees.
For borrowers with poor or average credit, private loans may be more expensive compared to federal options.
You won’t have access to federal relief programs such as income-driven repayment plans that set your monthly payments based on your income and family size.
For borrowers facing financial hardship, it’s less common for private lenders to offer financial relief.
Private loans from a bank or credit union don’t provide a path to federal student loan forgiveness.
Related: Best student loans without a cosigner of 2024
Bottom line:
Before considering a private loan, determine how much you can get in federal financial aid by submitting the FAFSA. Once you receive your financial aid award letter, you can decide how much you’ll need to take out in private student loans.
Many private lenders allow you to choose either a fixed APR or variable APR on a loan. These have significant differences, and can greatly affect the total cost of your debt.
- Fixed rates: These stay the same over the life of your loan, so they're extremely predictable. You'll easily be able to project out your total cost of borrowing, and your monthly payment won't change.
- Variable rates: These can fluctuate with the market, and will rise or fall depending on larger economic benchmarks. There's the potential to save money, but you could also pay more in the long term if the market takes a dive.
When you choose a fixed-rate private student loan term, your rate remains constant throughout the life of the loan. For those with variable interest rates, your terms will fluctuate with national interest rates.
In 2024, private student loan interest rates ranged from around 5.36% in January to 12.34% in August. A 10-year fixed loan term went as high as 10.45% in April 2024 and has fluctuated between 7.05% to 9.40% throughout the year.
The right loan for you depends on your needs and your situation. For example, if you're looking for the most savings, the interest rate might be the most important factor, since it determines long-term costs. But if you plan on going into a profession that has a low starting salary, you might be more interested in things like repayment options and grace periods.
Before taking out any loan, make sure you consider factors like:
- How much you're able to borrow
- How long you have to repay the loan
- What your monthly payment and lifetime costs will be
- Your interest rate
- Your current student loan debt
- Your expected family contribution
- Fees and discounts
- Available repayment plans
- When you're required to start making payments
- How the lender may help if you later have trouble affording your payments
- Cosigner policies, including the option to release a cosigner later
- The lender's reputation and customer service options
Related: Best graduate student loans of 2024
Before applying for a private loan, it may be wise to check your eligibility for federal loans and other aid. To do so, you'll need to fill out the Free Application for Federal Student Aid (FAFSA). Your school will use this form to see what you qualify for and determine your financial aid package. Once you have that information, you'll have a better idea of how much you need to borrow from a private lender.
When you're ready to apply for a private loan, take the following steps:
- Compare private lenders: Each lender determines your eligibility differently, and will offer you various interest rates and loan terms. By comparing multiple lenders, you can make sure you find the best loan for your situation. In addition to borrowing costs, review the repayment options, grace period lengths, and discounts offered by each lender.
- Get prequalified: Many lenders allow you to prequalify with only a soft credit check. After inputting a few pieces of personal information, you can view the estimated rates and terms you're likely to qualify for. This can give you a better sense of what each lender has to offer.
- Choose a cosigner, if needed: If you know that your credit won't be sufficient to qualify on your own, finding a cosigner is an important step. This is someone who agrees to share responsibility for your debt. By adding a cosigner who has strong credit to your application, you could get approved or access lower rates.
- Submit an application: Once you've picked a lender, you can formally apply for a loan. You'll need information about yourself, your school, as well as any cosigner to get it done.
- Sign your loan agreement: If approved, you can review your loan offer and, if desired, sign your loan documents. This will make everything official.
- Wait for disbursement: Your lender will send the loan funds directly to your school, which will apply the money to any outstanding tuition and fees. Any extra cash left over can be distributed to you.
Related: Best parent student loans of 2024
Private student loans are separate from federal, state, or school-based financial aid. But because your financial aid package (including federal loans) may be based - at least partially - on your financial need, consider waiting to apply for private loans until you've sent in your FAFSA and have your financial aid package in hand.
Unlike most federal loans, private student loans typically depend on your credit. You'll generally need good-to-excellent credit to qualify, in addition to a verifiable income source.
Yes, a private student loan can affect your credit just like any other type of debt. Once you submit a formal application, a hard inquiry is added to your credit profile, which can slightly impact your score. And once you enter repayment, any late or missed payments could adversely affect your score. (Signing up for autopay can help here.) However, making consistent on-time payments can help your credit score.
In general, student lenders want to see a credit score in the mid- to high-600s to qualify for a private loan. However, if your score is lower than that, you may still qualify by adding a cosigner with solid credit. Some student lenders cater specifically to borrowers with poor credit, or use alternate factors like your GPA or degree program to gauge your eligibility. However, these loans typically come with much higher interest rates and less favorable terms.
Yes. If you have sufficient credit, a private lender will allow you to take out a loan without a cosigner. However, many undergraduate students simply don't have the required credit history to borrow on their own. Using a cosigner is very common - more than 90% of private loans were cosigned, often by a parent or grandparent, according to data from the Consumer Finance Protection Bureau (CFPB). Even if you can qualify for a loan on your own, including a well-qualified cosigner can help you access lower rates and better terms. Note that most types of federal loans don't require a credit check or cosigner, so it's easier for young students to access these loans on their own.
Typically, no. Private student loan forgiveness doesn't exist with most lenders, though many will discharge the loan if the borrower dies or becomes seriously disabled. Private loan borrowers may also be eligible for forgiveness through state-based assistance programs, though these typically require you to work in a high-need career for several years to qualify.
Meet the contributor:
Devon Delfino
Devon Delfino has over eight years of finance experience with bylines at U.S. News & World Report, CNN, and The Motley Fool.
