Banks Offering Student Loans

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Student Loans

Updated Oct 17, 2024

8-min read

Written by Taylor Milam-Samuel

Written by Taylor Milam-Samuel

Expertise: Student loans, credit cards, debt, budgeting

Taylor Milam-Samuel is a personal finance writer and credentialed educator who is passionate about helping people take control of their finances and create a life they love. When she's not researching financial terms and conditions, she can be found in the classroom teaching.

Learn more about Taylor Milam-Samuel

Reviewed by Erin Kinkade, CFP®

Expertise: Insurance planning, education planning, retirement planning, investment planning, military benefits, behavioral finance

Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families.

Learn more about Erin Kinkade, CFP®

When federal student loans fall short of covering the full cost of college, private student loans from banks can help bridge the gap. These loans can be tailored to fit your financial needs, offering flexible terms and competitive interest rates.

Whether you’re looking to fund your entire education or need additional support for tuition and living expenses, exploring the best banks for private student loans can provide the financial solutions you need. Here are the top options to consider.

Bank	Rates (APR)	Our rating
Sallie Mae	4.15% – 15.70%	4.8/5
SoFi	4.19% – 14.83%	4.7/5
Citizens Bank	4.24% – 16.60%	4.7/5
Credible ¹	3.79% – 17.99%	4.6/5
LendKey	Starting at 4.39%	4.2/5

Banks offering student loans

Banks are popular sources for student loans because of their extensive customer service teams, physical locations, and trustworthiness due to stringent regulatory compliance requirements.

We’ve reviewed our top banks offering student loans and listed them below. Read each review for our insights into what makes the bank a preferred choice for borrowers, from cosigner benefits to career support services.

Sallie Mae

Best for cosigners

4.8 _/5

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Why it’s one of the best

Sallie Mae is notable for its cosigner-friendly terms, including offering the shortest period for cosigner release—just 12 on-time principal and interest payments. Its student loans can be used for undergraduate, graduate, and career-training programs.

Funds from its student loans cover a wide range of educational needs beyond tuition, including books and living expenses. Borrowers can choose to make payments while in school or wait until leaving school. Get a rate discount of 0.25% for enrolling in autopay.

You can get lower interest rates when you choose an in-school repayment plan, and Sallie Mae doesn’t have minimum enrollment requirements. However, it doesn’t offer a soft credit pull to check your eligibility—so checking rates will affect your credit. The shortest repayment term available with Sallie Mae is 10 years.

Shortest cosigner release period
Covers up to 100% of school-certified costs
No origination or prepayment fees

SoFi

Best for member benefits

4.7 _/5

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Why it’s one of the best

SoFi stands out for its consumer-friendly website and application. Checking your rate doesn’t affect your credit score; you can do it online in a few minutes. Students who take out a student loan with SoFi can access unique member benefits, such as premium offers on flights, hotels, and rental cars through SoFi Travel.

With no fees and flexible repayment options, including deferred, interest-only, partial, and immediate repayment, SoFi caters to various financial situations and offers loans for undergraduates, graduates, and parents. You can use its loans to cover the costs of your fall, spring, and summer terms.

SoFi doesn’t require borrowers to pay origination, application, or prepayment fees, and returning borrowers with the lender are eligible for a 0.125% rate discount. However, SoFi’s minimum loan amount is $5,000, higher than many other lenders.

Member benefits include financial planning and referral bonuses
No required fees
Check your rate without affecting your credit

Citizens Bank

Best for multiyear approval

4.7 _/5

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Why it’s one of the best

Citizens Bank has over 40 years of experience funding student loans for undergraduates, graduates, and parents. It offers a multiyear approval benefit, so applying once could simplify future student loan needs.

The bank also offers discounts for current customers and those who opt for automatic payments. However, Citizens doesn’t let borrowers prequalify with a soft credit check, and you must be enrolled at least half-time.

Multiyear approval benefit
Loyalty and autopay discounts
No origination or prepayment fees

Credible

Best marketplace

4.6 _/5

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Why it’s one of the best

Credible is a student loan marketplace rather than a direct lender, but it connects borrowers with a range of banks and financial institutions offering private student loans. By filling out one application, you can compare offers from multiple lenders, making it easier to find the best rates and terms without affecting your credit score.

This platform is useful for students who want to shop around and explore loan options in one place. Credible partners with several well-known banks and lenders, allowing you to access competitive interest rates and flexible repayment terms based on your needs and financial situation.

One of the key advantages of using Credible is its transparency and ease of use. The platform clearly displays the potential savings from refinancing or taking out new loans, and it doesn’t have hidden fees or obligations. Credible is an excellent starting point for students who want to explore various bank loan options.

LendKey

4.2 _/5

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Why it’s one of the best

LendKey offers a unique approach to student loans by connecting borrowers with a network of community banks and credit unions. This network often provides more favorable terms and lower interest rates compared to larger banks, thanks to their not-for-profit status and community focus. LendKey allows students to compare and choose from a range of loan options, offering flexibility in terms of repayment and rates.

The platform is user-friendly, and the application process is straightforward. Once you apply, LendKey matches you with lenders from its network that fit your specific criteria. One standout feature of LendKey is the customer support it provides, which includes guidance from a dedicated loan advisor to help you navigate the borrowing process. This personalized service, combined with competitive rates and terms from community-focused lenders, makes LendKey a strong contender for students looking for private loans.

Pros and cons of a student loan from a bank vs. online lenders

Traditional banks, such as PNC and Citizens Bank, have a physical presence—often multiple branch locations. Online lenders including SoFi and Discover don’t have in-person locations and only conduct business online.

Regardless of the type of lender, it’s important to compare multiple offers to find the best deal. Both types offer unique perks and potential drawbacks, but one might be a better fit for you.

Here are the pros and cons of using an online lender for student loans.

Pros

Quick application process

Many online lenders offer a short application that only takes a few minutes to complete. Once you’re approved, funds can arrive within a few business days.
Compare rates online

Due to quick applications and transparency, online lenders often make it easy to compare rates and get the best deal.

Cons

Higher credit score requirements

Some online lenders require higher credit scores, which might make it difficult for borrowers to qualify for loans.
Might have additional fees

Some lenders charge origination, late, and maintenance fees, which can add up.

Best private student loans from online lenders

Student loans from national banks vs. regional banks

If you decide to take student loans from a traditional bank, you have another decision: whether to borrow from a national or regional bank. Depending on your circumstances, one type of bank might work better.

Regional bank: Locations are limited to one or more regions within the country. If you’re not within the region, you might be able to borrow student loans online, but it depends on the bank.
National bank: These banks have locations across the country. National banks also have more total assets and can lend to customers nationwide.

When to borrow from a regional bank

Borrowing student loans from a regional bank might be a better fit in these circumstances.

There’s a local bank near you. If you live in a town or city with a reputable local bank, ask about student loans and current interest rates. Not every city has a local bank, but if you do, it’s worth checking.
You’re worried you won’t qualify. Some regional banks have additional flexibility for approving applications.

When to borrow from a national bank

Borrowing student loans from a national bank can make sense in the following situations.

You already have an account with the bank. Some national banks offer more competitive interest rates for current members.
You have a solid credit history. You can likely qualify for a competitive loan from a national bank if you have good or excellent credit. But that might not be the case if you have poor credit.

Not every bank offers student loans, so double-check before visiting in person. If you can’t find information about student loans online, call the bank to confirm whether the loans are available.

How to apply for a student loan with a bank

Here’s what you can expect when applying for a bank student loan.

Gather documents: You usually need proof of identification, such as a government-issued identification card. If you are applying with a cosigner, they also need proof of income.
Complete the application: Fill out the application online or in person, which often takes 15 minutes or less. Approval can be instant, but it can take up to three business days, depending on the lender.
Review the offer: The lender will provide an offer for the loan, including term length, interest rate, and fees. Read the offer, and ask followup questions.
Sign and accept the loan: Once you’re ready to move forward, sign the loan documents. When the documents are complete, the lender will disburse the funds.

If you’re applying with an online lender, you can always complete the application online. The same is often true for national banks. You might need to visit a branch to complete an application for regional or local banks.

Recap of banks offering student loans

Bank	Rates (APR)	Our rating
Sallie Mae	4.15% – 15.70%	4.8/5
SoFi	4.19% – 14.83%	4.7/5
Citizens Bank	4.24% – 16.60%	4.7/5
Credible	3.79% – 17.99%	4.6/5
LendKey	Starting at 4.39%	4.2/5