5 Best Private Student Loans for February 2023

Compare the best private student loan lenders

Lender	Best for	Rates (APR)	Our Rating
5.0 Rates (APR) 0.00% – 0.00%	Best Overall	0.00% - 0.00%2	5.0	Best Overall View Rates
4.8 Rates (APR) 0.00% – 0.00%	Best for Cosigners	0.00% – 0.00%	4.8	Best for Cosigners View Rates
4.3 Rates (APR) 0.00 – 0.00	Best for No Fees	0.00 – 0.00	4.3	Best for No Fees View Rates
4.7 Rates (APR) 0.00 – 0.00	Best for Student Support	0.00 – 0.00	4.7	Best for Student Support View Rates
4.1 Rates (APR) 0.00 – 0.00	Best for Member Benefits	0.00 – 0.00	4.1	Best for Customer Benefits View Rates

Reviews of the five best private student loans

Check out the reviews below for an in-depth explanation as to why we selected each lender as one of the best private student loans. If you’re interested in learning more about a specific lender, you can jump to that review by clicking on its name in the list below.

• Best overall: College Ave
• Best for cosigners: Sallie Mae
• Best for no fees: Earnest
• Best for student support: Ascent
• Best for member benefits: SoFi

College Ave

Our Pick: Best Overall

5.0

LendEDU Rating

View Rates Disclosures

×

Disclosures

College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

1. As certified by your school and less any other financial aid you might receive. Minimum $1,000.
2. Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
3. This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.

Information advertised valid as of 01/01/2022. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.

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Why It's One of the Best

College Ave is our choice as the best overall lender for the third year in a row because it has competitive rates, lets you choose your repayment term, and can cover up to 100% of your school-certified cost of attendance.

Variable Rates
0.00% - 0.00%² APR

Fixed Rates
0.00% - 0.00%² APR

Loan Amounts
$1,000 - 100% of school-certified cost of attendance¹

Pros & Cons

Eligibility Requirements

Repayment Details

Pros & Cons

Pros

• You choose your repayment term
• Offers all four in-school repayment options
• Multi-Year Peace of Mind™
• Option to apply for a six-month grace period extension
• Covers up to the total cost of attendance
• A+ rating from the BBB

Cons

• Cosigner release isn't available until you are at least halfway through your repayment term

Eligibility Requirements

College Ave student loans are available to undergraduates, graduates, parents, and for career training. According to the lender, 98% of all undergraduate loans are cosigned. By adding a cosigner, you can improve your chances of meeting the following eligibility requirements:

Financial Requirements

• Minimum credit score: Not disclosed
• Minimum income: $35,000 per year
• Approval after prior bankruptcy: No

Educational Requirements

• School eligibility: Must be enrolled in a degree-granting program at an eligible school
• Enrolled half-time or more: Yes

Other Requirements

• Citizenship: U.S. citizen or permanent resident or international students with a cosigner who is a U.S. citizen or permanent resident
• State: Available in all 50 states

Repayment Details

College Ave allows you to choose your repayment term (between 5, 8, 10, or 15 years³) and select amongst four in-school repayment options.

In-School Repayment Options

• Full: Pay principal and interest
• Interest-only: Pay interest every month
• Fixed: Pay $25 every month
• Deferred: No payment

Post-School Repayment Options

• Repayment terms: 5, 8, 10, or 15 years³
• Grace period: 6 months for undergraduates & 9 months for graduate students
• Grace period extension: Apply for an additional 6 months
• Deferment options: In-school & military
• Forbearance: Up to 12 months, in increments of 3 or 6 months

Other Repayment Options

• Cosigner release: Yes, after finishing more than half of the scheduled repayment period and meeting additional criteria
• Death discharge: Yes
• Disability discharge: Yes

Sallie Mae

Our Pick: Best for Cosigners

4.8

LendEDU Rating

View Rates Disclosures

×

Disclosures

Borrow Responsibly

We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.

Loans for Undergraduate & Career Training Students are not intended for graduate students and are subject to credit approval, identity verification, signed loan documents, and school certification. Student must attend a participating school. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident), and provide an unexpired government-issued photo ID. Requested loan amount must be at least $1,000.

1. Only the borrower may apply for cosigner release. To do so, they must first meet the age of majority in their state and provide proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if their status has changed since they applied). In the last 12 months, the borrower can't have been past due on any loans serviced by Sallie Mae for 30 or more days or enrolled in any hardship forbearances or modified repayment programs. In addition, the borrower must have paid ahead or made 12 on-time principal and interest payments on each loan requested for release. The loan can't be past due when the cosigner release application is processed. The borrower must also demonstrate the ability to assume full responsibility of the loan(s) individually and pass a credit review when the cosigner release application is processed that demonstrates a satisfactory credit history including but not limited to no: bankruptcy, foreclosure, student loan(s) in default or 90-day delinquencies in the last 24 months. Requirements are subject to change.
2. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan's Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment.
3. Loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time.
4. Based on a comparison of approval rates for Sallie Mae Smart Option Student Loans for undergraduate students who applied with a cosigner versus without a cosigner during a rolling 12-month period from October 1, 2020 through September 30, 2021.
5. Sallie Mae loans cover enrollment periods of up to 12 months. Students must apply for a new loan each school year. This approval percentage is based on students who were approved for a Sallie Mae undergraduate loan with a cosigner in the 2019/20 school year and were approved for another Sallie Mae undergraduate loan when they returned with the same or new cosigner in 2020/21. It does not include the denied applications of students who were ultimately approved in 2020/21.
6. Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years.

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.

Information valid as of 11/25/2022

Smart Option Student Loans® are made by Sallie Mae Bank. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.

©2022 Sallie Mae Bank. All rights reserved.

SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America.

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Why It's One of the Best

Sallie Mae is our choice as the best for cosigners due to its short cosigner release period. Borrowers can apply for a release of their cosigner from the loan after they graduate, make 12 on-time principal and interest payments, and meet certain credit requirements.¹

Variable Rates
0.00% - 0.00% APR²

Fixed Rates
0.00% - 0.00% APR²

Loan Amounts
$1,000 - 100% of school-certified cost of attendance³

Pros & Cons

Eligibility Requirements

Repayment Details

Pros & Cons

Pros

• A short cosigner release period¹
• Multi-Year Advantage
• Students attending school less than half-time are eligible
• Covers up to the total cost of attendance³
• A+ rating from the BBB

Cons

• Can't prequalify with a soft credit check

Eligibility Requirements

Sallie Mae student loans are available to undergraduates, graduates, and for career training. According to the lender, students are nearly four times more likely to be approved when a cosigner is added to the application.⁵ Here are some of the eligibility requirements for a Sallie Mae student loan:

Financial Requirements

• Minimum credit score: Not disclosed
• Minimum income: Not disclosed
• Approval after prior bankruptcy: Yes, with no open bankruptcy

Educational Requirements

• School eligibility: Must be enrolled at an eligible school
• Enrolled half-time or more: Yes

Other Requirements

• Citizenship: U.S. citizen or permanent resident or non-U.S. citizen with a cosigner who is a U.S. citizen or permanent resident
• State: Available in all 50 states, plus Washington D.C. and Puerto Rico

Repayment Details

The Smart Option Student Loan^® offers repayment terms between 10 - 15 years.⁶ Borrowers also have access to several deferment options that allow for payments to be paused under certain conditions.

In-School Repayment Options

• Interest-only: Pay interest every month
• Fixed: Pay $25 every month⁶
• Deferred: No payment

Post-School Repayment Options

• Repayment terms: 10 - 15 years⁶
• Grace period: 6 months
• Deferment options: In-school, military, internship, residency, and fellowship
• Forbearance: Up to 12 months, in increments of 3 months

Other Repayment Options

• Cosigner release:¹ Yes, after graduation, 12 on-time principal and interest payments, and you meet certain credit requirements.
• Death discharge: Yes
• Disability discharge: Yes

Earnest

Our Pick: Best for No Fees

4.3

LendEDU Rating

View Rates

Why It’s One of the Best

When Earnest says it doesn't charge any fees, it means it. There are no origination, application, prepayment, or late payment fees.

Variable Rates
0.00% – 0.00% APR

Fixed Rates
0.00% – 0.00% APR

Loan Amounts
$1,000 – 100% of school-certified cost of attendance

Pros & Cons

Eligibility Requirements

Repayment Details

Pros & Cons

Pros

• No fees
• A long grace period
• Skip a payment once per year
• Check your eligibility without affecting your credit
• Covers up to the total cost of attendance
• A+ rating from the BBB

Cons

• Cosigner release is not available

Eligibility Requirements

Earnest student loans are available to undergraduates, graduates, and parents. According to the lender, two-thirds of its borrowers have a cosigner, and students are four times more likely to get approved when applying with a cosigner. Here are some of the eligibility requirements for an Earnest student loan:

Financial Requirements

• Minimum credit score: 650
• Minimum income: $35,000 per year
• Approval after prior bankruptcy: No

Educational Requirements

• School eligibility: Must be enrolled in a degree-granting program at an eligible school
• Enrolled half-time or more: Yes

Other Requirements

• Citizenship: U.S. citizen or permanent resident or non-U.S. citizen with a cosigner who is a U.S. citizen or permanent resident
• State: All states other than Nevada, plus Washington D.C.

Repayment Details

Earnest offers several repayment terms of 5, 7, 10, 12, or 15 years. With a longer than average grace period, borrowers can take extra time, if needed, to set themselves up to comfortably meet future payments.

In-School Repayment Options

• Full: Pay principal and interest
• Interest-only: Pay interest every month
• Fixed: Pay $25 every month
• Deferred: No payment

Post-School Repayment Options

• Repayment terms: 5, 7, 10, 12, or 15 years
• Grace period: 9 months
• Deferment options: In-school, military, residency, and fellowship
• Forbearance: Up to 12 months

Other Repayment Options

• Cosigner release: No
• Death discharge: Yes
• Disability discharge: Yes

Ascent

Our Pick: Best for Student Support

4.7

LendEDU Rating

View Rates Disclosures

×

Disclosures

Ascent Student Loans are funded by Bank of Lake Mills, Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 11/14/2022 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.

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Why It's One of the Best

Ascent doesn't just want to help students afford an education, it also wants to help them succeed in the classroom, and outside of it. With Ascent Connect, undergraduates gain access to exclusive student success coaching.

Variable Rates
0.00% – 0.00% APR

Fixed Rates
0.00% – 0.00% APR

Loan Amounts
$2,001 – $200,000

Pros & Cons

Eligibility Requirements

Repayment Details

Pros & Cons

Pros

• Student success coaching for undergraduates
• Forbearance flexibility
• Graduation reward
• Prequalify with no impact on your credit
• Job loss and natural disaster protection
• Covers up to the total cost of attendance
• A+ rating from the BBB

Cons

• Limits to the amount you can borrow

Eligibility Requirements

Ascent student loans come in the form of cosigned and non-cosigned loans for undergraduates and graduates. If you can't meet the eligibility requirements for the cosigned loan listed below, you may be eligible for Ascent’s non-cosigned loan.

Financial Requirements

• Minimum credit score: Varies
• Minimum income: $24,000 per year
• Approval after prior bankruptcy: Yes, but not in the last 5 years

Educational Requirements

• School eligibility: Must be enrolled in a degree-granting program at an eligible school
• Enrolled half-time or more: Yes

Other Requirements

• Citizenship: U.S. citizen or permanent resident, and international or DACA students with a U.S. citizen or permanent resident as a cosigner
• State: Available in all 50 states

Repayment Details

Ascent offers several repayment terms of 5, 7, 10, 12, or 15 years. The lender has some of the best repayment benefits for borrowers who may find themselves experiencing periods of financial difficulty.

In-School Repayment Options

• Interest-only: Pay interest every month
• Fixed: Pay $25 every month
• Deferred: No payment

Post-School Repayment Options

• Repayment terms: 5, 7, 10, 12, or 15 years
• Grace period: 9 months
• Deferment options: In-school and military
• Forbearance: Up to 24 months, in up to 4 consecutive periods

Other Repayment Options

• Cosigner release: Yes, after 12 consecutive on-time monthly payments
• Death discharge: Yes
• Disability discharge: Yes

SoFi

Our Pick: Best for Member Benefits

4.1

LendEDU Rating

View Rates

Why It’s One of the Best

SoFi members enjoy a wide range of benefits, including a 0.125% rate discount, career coaching, unemployment protection, and more.

Variable Rates
0.00% – 0.00% APR

Fixed Rates
0.00% – 0.00% APR

Loan Amounts
$5,000 – 100% of school-certified cost of attendance

Pros & Cons

Eligibility Requirements

Repayment Details

Pros & Cons

Pros

• Rate discount if you or your cosigner are a SoFi member
• No fees
• Prequalify with no impact on your credit
• Career coaching
• Unemployment protection
• Covers up to the total cost of attendance

Cons

• High minimum loan amount

Eligibility Requirements

SoFi offers student loans for undergraduates, graduates, and parents. According to the lender, those with a creditworthy cosigner are seven times more likely to be approved. Here are some eligibility requirements for a SoFi student loan:

Financial Requirements

• Minimum credit score: Not disclosed
• Minimum income: None
• Approval after prior bankruptcy: Yes

Educational Requirements

• School eligibility: Must be enrolled in a degree-granting program at an eligible school
• Enrolled half-time or more: Yes

Other Requirements

• Citizenship: U.S. citizen, permanent resident, or visa holder (E-2, E-3, H-1B, J-1, L-1, or O-1), and international or DACA students with a U.S. citizen or permanent resident as a cosigner
• State: Available in all 50 states

Repayment Details

SoFi offers several repayment terms of 5, 10, or 15 years. Borrowers have the option to choose between all four in-school repayment options and can enjoy unemployment protection.

In-School Repayment Options

• Full: Pay principal and interest
• Interest-only: Pay interest every month
• Fixed: Pay $25 every month
• Deferred: No payment

Post-School Repayment Options

• Repayment terms: 5, 10, or 15 years
• Grace period: 6 months
• Deferment options: In-school and military
• Forbearance: Up to 12 months, for three months at a time

Other Repayment Options

• Cosigner release: Yes, after 24 consecutive on-time monthly payments
• Death discharge: Yes
• Disability discharge: Reviewed on a case-by-case basis

How we chose the best private student loans

Since 2014, LendEDU has been reviewing private student loan lenders to determine the best in the industry. Our most recent evaluation consisted of nine of our partners, including several of the largest in market share.

Here are the nine categories that we reviewed to score each lender:

• Interest rates: The rate on your loan is the most significant indicator of how much your loan will cost over time. We valued lenders that offered low rates and discounts.
• Repayment: Most borrowers will spend years repaying their student loans, and because of this, offering flexible repayment options was an important factor in our evaluation. Lenders that had borrower-friendly terms scored the highest.
• Loan amount: When you take out a student loan, you want to make sure that the loan can cover all your expenses. Lenders that cover up to the total cost of education were scored highest. Important note: You should only take out what you need. Small student loans are available to avoid borrowing more than you need.
• Cosigner benefits: Most estimates have over 90% of new private student loans including a cosigner. Lenders that allowed cosigners to be released from the loan were valued above those that didn't.
• Eligibility requirements: If you can't get approved by a lender, then the benefits and details that made it stand out don't matter. For that reason, eligibility was an important factor in our review. We looked at minimum credit and income requirements, state availability, and citizenship status to determine which lenders were more likely to approve borrowers than others. Lenders with less stringent eligibility requirements scored better.
• Fees: No private lender charging origination, application, or prepayment fees is eligible to be featured on this page. However, there are other fees that lenders may charge, such as late payment fees. The fewer fees charged by a lender, the better they scored.
• Customer service: Whenever working with a lender, it's important to know that your questions and concerns will be addressed in a timely manner. We reviewed the BBB rating for each lender to determine how likely they were to interact with customers. We also checked to make sure the lender had an in-house team to handle questions from borrowers. Lenders with higher BBB ratings and in-house customer service teams scored better than those with low ratings or no in-house team.
• Benefits: To stand out amongst their competitors, most student loan lenders offer unique benefits and rewards. These benefits can include a free subscription, a graduation reward, unemployment assistance, and more. Lenders that provided benefits that helped borrowers better control the cost of their loan were scored highest.
• User experience: Being able to easily navigate a lenders website and application to find answers to common questions is an important part of the borrowing process. Our team went through each lender's website and application to ensure students could find educational resources, easily navigate the application, and find information on important loan details. Lenders that offered all three of these things scored best.

Once we scored each lender, we then determined who was the best for different situations. If a lender wasn't the best for anything, or they didn't allow borrowers to choose between in-school or deferred payments, they were not included on this page.

Is a private student loan a good option for you?

Federal student loans are limited to a certain amount each year of undergraduate study. If you need to borrow more, your options might include federal Parent PLUS loans, private student loans, and some states have loan programs for residents or students in the state.

With all loans, you should understand your budget once you graduate. Once you pay for your basic necessities such as housing, food, and transportation, you should have enough left over to pay the monthly student loan payments from your expected starting salary. If it looks like this will be a problem, more student debt may not be the answer to pay for your college expenses.

Be sure you and your family compare all the costs and repayment options for the various student loan choices.

How to decide which private student loan is the best for you

While our evaluation of our private student loan partners was created as a starting point for students and their families to find the best private student loan, we recommend you do your own research as well.

When looking for a private student loan, comparing your options is the most important thing you can do. By doing this, you’ll be able to find an affordable loan that comes with borrower-friendly repayment terms. Here are the steps we recommend taking to find the best private student loan:

1. Compile a list of student loan lenders that you're interested in. Ideally, you’ll want to choose between reputable companies that have demonstrated an ability to support borrowers during repayment.
2. Review the eligibility requirements for each lender. All private lenders have their own unique eligibility requirements. Make sure you're eligible with a lender before applying to limit unnecessary hard credit checks. Remember, we recommend adding a cosigner to your loan to improve your chances of approval, but that cosigner is on the hook to pay back your loan if you are unable to. If you and your cosigner don't meet the eligibility requirements, you should remove that lender from consideration.
3. Review the loan terms. Make sure you understand what happens if you were to die or become disabled during the loan term. The lenders in our reviews all allow loan discharge for death or disability, but not all lenders have this feature. If you borrow from a lender that doesn’t allow for forgiveness due to death or disability, students should consider inexpensive life insurance to protect their cosigners. Although private student lenders do not have the same income-driven repayment plans as federal student loans, they might have forbearance programs if you lose your job during the repayment period. It can be helpful to understand those programs up-front.
4. Get quotes from the lenders you're eligible with. While most lenders display an interest rate range on their website, the only way to know the rate you'll receive is by prequalifying or submitting a complete application. Make sure to utilize soft credit checks when possible to reduce the total number of hard credit inquiries on your credit report.
5. Compare your quotes. Once you’ve received a rate estimate from each lender, compare your offers to see which lender offers you the lowest rate. Make sure to consider other factors like the repayment term, borrower protections, and unique benefits as well.
6. Choose a lender. The lender you borrow from should offer you the most affordable loan, with borrower protections that help you in times of need during repayment. Once you select a lender, you can submit your application and wait for the lender to inform you of your next steps.

Private student loan FAQ

How do private student loans work?

Private student loans are a form of financial aid that students can use to cover the cost of their education. These loans are offered by banks, credit unions, and online lenders.

You’ll need to apply for a loan directly with a lender and meet certain eligibility requirements to be approved. If you can’t meet the eligibility requirements alone, you’ll need to add a creditworthy cosigner who can.

Most lenders allow you to borrow up to the total cost of attendance, minus any other financial aid you receive. Once your loan amount is finalized, the funds will be disbursed to your school to cover tuition and other expenses. Any remaining funds will be sent directly to you to use as needed.

When you start repaying your loan will depend on which in-school repayment plan you select. Your options include making full, interest-only, fixed, or deferred payments. If you choose full, interest-only, or fixed payments, you'll start making payments while attending school. If you defer your payments until after you graduate, repayment won't begin until your grace period is over. After your grace period, you’ll start making full payments for the duration of your loan term, typically from five to 20 years.

>> Read More: Pros and cons of private student loans

What are the eligibility requirements for a private student loan?

Each lender has its own eligibility requirements. Generally, you'll need to be a U.S. citizen or permanent resident, have good credit, attend a Title IV school at least half-time, and meet an income threshold.

If you can't meet those requirements independently, you'll likely need to add a cosigner to your loan application. Make sure your cosigner understands the risks of being added to the loan. If you’re unable to make your monthly payments, your cosigner will be responsible for continuing to pay back the loan.

If you can't meet the eligibility requirements and don't have a cosigner to add to your loan, there are student loan lenders that student loans without a cosigner and student loans for international students.

>> Read More: Private student loan eligibility requirements

How do student loan interest rates work?

Your interest rate is arguably the most important part of your student loan. For private loans, the interest rate you receive will depend on you or your cosigner’s credit and income, amongst other factors. If you have an excellent credit score and steady income, you are more likely to receive a lower interest rate.

Private student loans also come with either a fixed or variable interest rate. If you choose a fixed rate, your rate will remain the same for the duration of your loan. If you choose a variable rate, your rate will change throughout your loan term and increase or decrease depending on economic conditions.

With private student loans, interest accrues while you attend school. This means that your balance will be larger than your original loan amount when you begin repayment under a deferred repayment plan. However, lenders typically allow you to save on interest by selecting an in-school repayment plan where you make partial payments while still attending school.

>> Read More: Student loan interest rates

Do private student loans have fees?

Private student loans can come with fees; however, none of the lenders listed above charge an origination, application, or prepayment fee. We take this stance because we don't believe borrowers should be charged for taking out a loan or paying one off early.

That being said, let’s look at the different types of fees typically discussed with student loans.

• Origination fee: This fee is charged when you take out a loan. It's usually calculated as a percentage of the total loan amount. For example, if you have a $10,000 loan with a 5% origination fee, the fee would come to $500. While federal student loans do come with an origination fee, none of the lenders in our list above charge one.
• Application fee: This fee is charged to you when you fill out and submit an application for a loan. Like the origination fee, none of the lenders selected above charge this fee.
• Late payment fee: This fee is charged to you if you don't make a payment on time. A lender may set this as a flat amount (e.g., $25) or a percentage of the missed payment (e.g., 5%). Some of the lenders in our list do charge this fee, so we recommend putting together a repayment plan that can help you ensure you stay on schedule with payments.
• Prepayment fee: This fee is charged if you pay off your loan early. None of the lenders listed above charge this fee.

How do private student loans differ from federal student loans?

Federal student loans are offered by the Department of Education and require you to fill out the Free Application for Federal Student Aid (FAFSA) to determine eligibility. Federal student loans should always be considered before borrowing private student loans due to lower rates and friendlier repayment benefits, such as income-driven repayment plans and forgiveness programs.

Unfortunately, federal student loans come with borrowing limits that can limit students’ ability to cover their entire cost of attendance. Because of this, many turn to private student loans to bridge the gap.

Private student loans are offered by banks, credit unions, and online lenders. These loans typically allow you to borrow up to the total cost of attendance. Unlike federal student loans, you can’t fill out one application to determine your eligibility for all private student loans. Each lender sets its own eligibility requirements, typically including income and credit minimums.

Whether you borrow from the government or a private lender, always understand if your after-graduation budget will allow you to pay back your student loans before deciding to use them for your education.

>> Read More: Federal vs. private student loans

Recap of the best private student loan companies