Best Private Student Loans in May 2025: 13 Options to Meet Every College Student’s Needs

Looking for the best private student loan in 2025? We’ve compared lenders to help you find the right fit for your specific needs—whether you want the lowest rates, flexible repayment options, fast cosigner release, or loans without a cosigner. Here are our top-rated picks.

Table of Contents

1. The best private student loans in 2025
2. How private student loans work
3. Private vs. federal student loans
4. Pros and cons of private education loans
5. How to choose the best student loans for college
6. How to qualify for private student loans
7. How to apply for private loans for college

The best private student loans in 2025

• Best overall: College Ave
• Best for fast cosigner release: Sallie Mae
• Best repayment perks: Earnest
• Best for graduate students: SoFi
• Great for multi-year approval: Citizens Bank
• Best for high academic performance: Funding U
• Best for customer service: ELFI
• Best for bad credit: Ascent
• Great for principal reduction: Custom Choice
• Great for a student loan marketplace: LendKey
• Best for no cosigner: Edly
• Great for discounts: PNC
• Great for military families: Navy Federal Credit Union

College Ave

Best Private Student Loan Lender

5.0 _/5

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Why it’s one of the best

College Ave is the overall best private student loan lender, thanks to its low interest rates, easy online application process, flexible repayment options, autopay discount, and variety of loans for undergrads, grad students, parents, and students enrolled in career training.

• Loans for undergrads, grads, parents, and career training
• Cover up to 100% of school costs
• Low starting interest rates
• Straightforward, fast online application
• Multiple options for paying during school, plus deferred payment option
• Flexible repayment terms (5, 8, 10, or 15 years)
• Prequalification without credit check

• Long path to cosigner release (half the original repayment term)
• High max interest rate

Favorite feature

College Ave has a solution for everyone, with financing for various types of students (and parents) and flexible repayment options and terms.

Key terms

Variable rates (APR)	5.59% – 16.85
Fixed rates (APR)	4.39% – 16.49%
Discounts	0.25% for automatic payments
Loan amounts	$1,000 – 100% of costs

Eligibility

Loan types	Undergrad, grad, parent, career training
Min. credit score	Mid-600s
Min. income	$35,000 per year
Enrollment	Half time or more
Citizenship	U.S. citizen, permanent resident, or international
State	All 50 states

Repayment

In-school repayment	Full, interest-only, fixed, deferred
Repayment terms	5, 8, 10, or 15 years
Grace period	6 months for undergrads, 9 months for grads, apply for 6-month extension
Deferment	In-school and military
Forbearance	Up to 12 months, in increments of 3 or 6 months
Cosigner release	After finishing more than half of the scheduled repayment period and meeting additional criteria

Sallie Mae

Best for Fast Cosigner Release

4.8 _/5

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Why it’s one of the best

Sallie Mae lets you remove your cosigner in as little as 12 months after graduation, as long as you make 12 on-time principal and interest payments.

• Industry-leading cosigner release (in as little as 12 months)
• Low starting interest rates
• Available for part-time enrollment
• Cover up to 100% of school costs
• Loans for trade school, certificate programs, and professional training

• No soft credit inquiry option when checking eligibility
• No choice of repayment terms
• Less flexible repayment terms (10 to 15 years)
• Poor ratings on Better Business Bureau and Trustpilot
• No student loan refinancing available

Favorite feature

Parents can feel more confident cosigning a student loan, knowing there’s a quick path to being removed after your child graduates.

Key terms

Variable rates (APR)	6.37% – 16.70%
Fixed rates (APR)	4.50% – 15.49%
Discounts	0.25% for automatic payments
Loan amounts	$1,000 – 100% of costs

Eligibility

Loan types	Undergrad, grad, parent, career training
Min. credit score	Mid-600s
Min. income	Not disclosed
Enrollment	Half time or more
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 50 states, plus Washington, D.C., and Puerto Rico

Repayment

In-school repayment	Interest only, fixed, deferred
Repayment terms	10 – 15 years
Grace period	6 months
Deferment	In-school, military, internship, residency, and fellowship
Forbearance	Up to 12 months, in increments of 3 months
Cosigner release	After 12 consecutive on-time payments

Earnest

Best for Repayment Perks

4.7 _/5

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Why it’s one of the best

Earnest has quite a few “gimmicks” that make it one of the best private student loan lenders, including its price match guarantee (with a $100 Amazon gift card) and the ability to skip one payment each year without consequences to your credit.

• Nine-month grace period after graduation
• Low starting interest rates
• Interest rate match guarantee (plus a $100 Amazon gift card as part of the rate match)
• Ability to skip one payment each year
• Prequalification without credit check

• No cosigner release
• Skipping a payment extends loan term (and racks up interest)
• At least half-time enrollment required

Favorite feature

Earnest’s skip-a-payment feature can be handy if an emergency expense occurs one month or if you need extra spending money around the holidays.

Key terms

Variable rates (APR)	5.62% – 16.20%
Fixed rates (APR)	4.11% – 15.90%
Discounts	0.25% for automatic payments
Loan amounts	$1,000 – 100% of costs

Eligibility

Loan types	Undergrad, grad, parent
Min. credit score	650
Min. income	$35,000 per year
Enrollment	All states other than Nevada, plus Washington, D.C.
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

In-school repayment	Full, interest-only, fixed, deferred
Repayment terms	5, 7, 10, 12, or 15 years
Grace period	9 months
Deferment	In-school, military, residency, fellowship
Forbearance	Up to 12 months
Cosigner release	No

SoFi

Best for Graduate Students

4.7 _/5

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Why it’s one of the best

SoFi’s student loans run the gamut, with options for undergrads and parents, but also grad students, health professionals, lawyers, and students seeking MBAs. Grad loans are even available for grad-level certificates.

• Loan options for wide range of students
• Low starting interest rates
• Rewards program for good grades
• Easy and fast online application
• Cover up to 100% of school costs
• Flexible repayment terms and options

• High max interest rate
• Must graduate to be eligible for loan refinancing

Favorite feature

You can earn a $250 cash bonus for each school term, as long as you maintain a 3.0 GPA or higher (and have a SoFi Checking and Savings account).

Key terms

Variable rates (APR)	5.99% – 14.30%
Fixed rates (APR)	4.44% – 14.30%
Discounts	0.25% for automatic payments
Loan amounts	$5,000 – 100% of costs

Eligibility

Loan types	Undergrad, grad, parent
Min. credit score	679
Min. income	None
Enrollment	At least half time
Citizenship	U.S. citizen, permanent resident, visa holder (international & DACA w/ cosigner)
State	All 50 states

Repayment

In-school repayment	Full, interest-only, flat, deferred
Repayment terms	5, 7, 10, or 15 years
Grace period	6 months
Deferment	In-school, military, residency, internship
Forbearance	Yes, must call to discuss options
Cosigner release	24 on-time payments

Citizens Bank

Great for Multi-Year Approval

4.7 _/5

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Why it’s one of the best

With Citizens Bank, you don’t need to reapply for financing every year (with a fresh hit to your credit each time); instead, the lender offers multi-year approval.

• Multi-year approval
• Up to 0.50% interest rate discount (must use auto pay and have a Citizens Bank account)
• Low starting interest rates
• Small minimum loan amount ($1,000)
• Repayment terms up to 20 years

• At least half-time enrollment required
• No soft credit inquiry option when checking eligibility
• 36 months before you can request cosigner release

Favorite feature

The multi-year approval through Citizens Bank takes much of the hassle out of the student loan process.

Key terms

Variable rates (APR)	5.97% – 16.47%
Fixed rates (APR)	4.39% – 15.46%
Discounts	0.25% for loyalty, 0.25% for automatic payments
Loan amounts	$1,000 – $100,000

Eligibility

Loan types	Undergrad, grad, parent
Min. credit score	640
Min. income	$12,000
Enrollment	At least half time
Citizenship	U.S. citizen or permanent resident (international w/ cosigner)
State	All 50 states, D.C., U.S. territories

Repayment

In-school repayment	Full, interest-only, flat, deferred
Repayment terms	5, 10, or 15 years
Grace period	6 months
Deferment	In-school, internship, residency, military
Forbearance	Up to 12 months in 2-month increments
Cosigner release	36 on-time payments

Funding U

Best for High Academic Performers

4.7 _/5

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Why it’s one of the best

Funding U doesn’t consider your credit score when you apply, and you never need a cosigner. Instead, Funding U lends to borrowers based on their grades, what they’re studying (and thus what career path they might choose), and how likely they are to graduate on time.

• No cosigner needed
• Loans not based on credit score
• Dedicated loan officer to help with borrowing and repayment

• Not available in every state
• High starting interest rate
• High minimum loan amount ($3,001)
• Low max loan amount ($20,000 max per school year)
• In-school monthly repayments required
• Inflexible loan terms (5 or 10 years)

Favorite feature

Though you may pay a higher interest rate and are limited in how much you borrow, Funding U stands out because you don’t need good credit or a cosigner to qualify; you just need to be a good student.

Key terms

Variable rates (APR)	N/A
Fixed rates (APR)	7.99% – 13.45%
Discounts	0.50% for interest-only payments
Loan amounts	$3,001 – $20,000

Eligibility

Loan types	Undergrad
Min. credit score	None
Min. income	None
Enrollment	Full-time
Citizenship	U.S. citizen, permanent resident, or DACA
State	38 states

Repayment

In-school repayment	$20 fixed or interest-only
Repayment terms	5 or 10 years
Grace period	6 months
Deferment	In-school, military, or residency
Forbearance	24 months
Cosigner release	N/A

ELFI

Best for Customer Service

4.5 _/5

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Why it’s one of the best

Student loan lenders aren’t usually known for their positive customer experience, but ELFI is an exception. ELFI currently has a 4.8-star rating on Trustpilot based on thousands of borrower reviews, as well as an A+ rating with the Better Business Bureau.

• Many positive customer reviews
• Loans for undergrads, grads, and parents
• Flexible repayment terms and options
• Small minimum loan amount ($1,000)
• Low starting interest rates

• No cosigner release
• At least half-time enrollment required

Favorite feature

Borrowers get access to one-on-one assistance with a student loan advisor to help them through the entire application process—just one of the many reasons ELFI is known for its customer service.

Key terms

Variable rates (APR)	5.97% – 16.47%
Fixed rates (APR)	4.39% – 15.46%
Discounts	None
Loan amounts	$1,000 – 100% of certified costs

Eligibility

Loan types	Undergrad, grad, parent
Min. credit score	680
Min. income	$35,000 per year
Enrollment	At least half-time
Citizenship	U.S. citizen or permanent resident
State	All 50 states, D.C., and Puerto Rico

Repayment

In-school repayment	Full, interest-only, flat, deferred
Repayment terms	5, 7, 10, or 15 years
Grace period	6 months
Deferment	In-school and military
Forbearance	Up to 12 months
Cosigner release	N/A

Ascent

Best for Students With Bad Credit

4.4 _/5

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Why it’s one of the best

While Ascent offers traditional cosigned and non-cosigned student loans, students with poor or no credit history can instead get an outcomes-based loan, which is based on other criteria, such as where you’re attending school, what you’re majoring in, and what your GPA is.

• Loans available without credit history (or with poor credit)
• Grace period up to 9 months after graduation
• Career support available
• UPCash reward when you graduate (1% of principal balance)
• 1% autopay discount for non-cosigned outcomes-based student loans

• Outcomes-based loans are only available to juniors and seniors
• $2,001 minimum loan amount (more than many lenders)
• No student loan refinancing

Favorite feature

Students who successfully graduate earn 1% cash back on their total principal balance. If you borrow $100,000, that’s $1,000 in your pocket to fund the next stage in your life.

Key terms

Variable rates (APR)	5.01% – 14.02%
Fixed rates (APR)	3.39% – 13.76%
Discounts	0.25% for automatic payments
Loan amounts	$2,001 – $200,000

Eligibility

Loan types	Undergraduate, grad, parent, career training
Min. credit score	620 for cosigned, no min. for outcomes-based
Min. income	$24,000
Enrollment	At least half-time, must be  a junior or senior for no-cosigned loans
GPA	2.9 GPA or higher and meet your school’s SAP requirements
Citizenship	U.S. citizen or permanent resident (international & DACA w/ cosigner)
State	All 50 states

Repayment

In-school repayment	Full, interest-only, flat, deferred
Repayment terms	5, 7, 10, 12, or 15 years
Grace period	9 months
Deferment	In-school, military
Forbearance	Up to 24 months (increments of 4 months)
Cosigner release	12 on-time payments

Custom Choice

Great for Principal Reduction

4.3 _/5

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Why it’s one of the best

When you graduate, Custom Choice reduces your principal by 2%, which saves you money not just on the principal, but also on how much interest you’ll pay over time.

• 2% principal reduction upon graduation
• Prequalification without credit check
• Cover up to 100% of school costs
• Flexible in-school repayment options, including deferred payments
• Flexible repayment terms (7, 10, or 15 years)

• Higher starting interest rates
• Small minimum loan amount ($1,000)
• 36 months before you can request cosigner release

Favorite feature

Custom Choice offers a great gift upon graduation: a 2% reduction in how much money you owe.

Key terms

Variable rates (APR)	5.39% – 15.57%
Fixed rates (APR)	4.43% – 14.04%
Discounts	0.25% for automatic payments
Loan amounts	$1,000 – $99,999

Eligibility

Loan types	Undergrad
Min. credit score	Undisclosed
Min. income	Undisclosed
Enrollment	Undisclosed
Citizenship	U.S. citizen or permanent resident (international w/ cosigner)
State	47 states

Repayment

In-school repayment	Full, interest-only, flat, deferred
Repayment terms	7, 10, or 15 years
Grace period	6 months
Deferment	Natural disaster
Forbearance	Up to 12 months (increments of 2 months)
Cosigner release	36 on-time payments

LendKey

Great for a Student Loan Marketplace

4.2 _/5

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Why it’s one of the best

LendKey doesn’t offer student loans; instead, it’s a marketplace where you can compare more than 300 lenders in one place. Even better, those lenders are all community banks and credit unions.

• Compare multiple lenders in one place
• Work with smaller banks and credit unions
• Referral program ($200 bonus per successful referral)
• Soft credit check to see potential lenders
• Career counseling and job placement services through NextJob

• Only a platform—can’t actually borrow through LendKey
• Fees and rates vary by lender
• $2,000 minimum loan amount (more than many lenders)

Favorite feature

LendKey’s referral program could earn you (and a friend) $200 each, and you can earn it more than once. That could put a serious dent in your principal balance if you use it to make an extra payment.

Key terms

Variable rates (APR)	4.54% – 8.62%
Fixed rates (APR)	4.39% – 10.39%
Discounts	0.25% for automatic payments
Loan amounts	$1,000 – 100% of costs

Eligibility

Loan types	Undergrad
Min. credit score	680
Min. income	$24,000
Enrollment	At least half-time
Citizenship	U.S. citizen or permanent resident
State	45 states

Repayment

In-school repayment	Full, interest-only, or flat
Repayment terms	10 years
Grace period	6 months
Deferment	Must call to discuss
Forbearance	Up to 18 months (6 month increments)
Cosigner release	24 on-time payments

Edly

Best for No Cosigner

3.9 _/5

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Why it’s one of the best

Edly offers a unique student loan option without a cosigner; these loans are on an income-based repayment plan (like some federal student loans), which can make them more manageable.

• Income-based repayment option to keep loans manageable
• Available without a cosigner
• No payments if you make less than $30,000 or lose your job
• Prequalification without credit check

• Short grace period (four months)
• Only available if you’re within two years of graduating
• Still must meet minimum credit score requirements
• Higher payments if you make more money

Favorite feature

The income-based repayment option protects you in the event of job loss or if you don’t get a high starting salary right out of college.

Key terms

Variable rates (APR)	Earlier of 60 or 84 completed payments, 2.25x the borrowed amount, or 23% APR
Fixed rates (APR)	N/A
Discounts	None
Loan amounts	$5,000 – $25,000

Eligibility

Loan types	Junior/senior, graduate, career training
Min. credit score	None
Min. income	None
Enrollment	Full-time
Citizenship	U.S. citizen or permanent resident
State	Undisclosed

Repayment

In-school repayment	None
Repayment terms	60 payments or 2.25x borrowed amount
Grace period	None
Deferment	If income drops below certain threshold
Forbearance	None
Cosigner release	12 on-time payments

PNC

Great for Discounts

3.6 _/5

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Why it’s one of the best

PNC student loans break standard protocol by offering borrowers a 0.50% interest rate discount for autopay; most other best student loan lenders only offer 0.25% off your rate for enrolling in autopay.

• Larger autopay discount
• Loans for undergrads, grads, health professionals, law students, and more
• Low starting interest rates
• Flexible repayment terms (5, 10, and 15 years)
• Small minimum loan amount ($1,000)

• Max $75,000 annual loan limit
• No soft credit inquiry option when checking eligibility
• Late fees

Favorite feature

PNC’s autopay discount is double what most other private lenders offer.

Key terms

Variable rates (APR)	8.44% – 15.64%
Fixed rates (APR)	6.69% – 13.89%
Discounts	0.50% for automatic payments
Loan amounts	Undisclosed

Eligibility

Loan types	Undergrad, grad, bar study
Min. credit score	Undisclosed
Min. income	Undisclosed
Enrollment	At least half-time
Citizenship	U.S. citizen or permanent resident
State	All 50 states

Repayment

In-school repayment	Full, iInterest-only, deferred
Repayment terms	5 – 15 years
Grace period	6 months
Deferment	Undisclosed
Forbearance	Undisclosed
Cosigner release	48 on-time payments

Navy Federal Credit Union

Great for Military Families

3.5 _/5

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Why it’s one of the best

If you or your parents are in the military and thus have access to a Navy Federal Credit Union account, you can apply for a student loan from this credit union, which is known for its customer service.

• Great for military families
• Available for undergrad and grad students
• Known for its great member service
• Cover up to 100% of school costs
• Career assistance available

• Limited repayment terms (max is 10 years)
• Higher interest rates
• No soft credit inquiry option when checking eligibility
• Only available to members of the credit union

Favorite feature

Navy Federal Credit Union is known for stellar customer service for military families; you can expect that same service with your student loan.

Key terms

Variable rates (APR)	7.79%+
Fixed rates (APR)	5.50%+
Discounts	0.25% for automatic payments
Loan amounts	Up to 100% of costs

Eligibility

Loan types	Undergrad, grad
Min. credit score	None
Min. income	None
Enrollment	Undisclosed
Citizenship	U.S. citizen or permanent resident
State	All 50 states

Repayment

In-school repayment	Full, interest-only, or flat
Repayment terms	5 or 10 years
Grace period	6 months
Deferment	Undisclosed
Forbearance	Undisclosed
Cosigner release	24 on-time payments

How do private student loans work?

When scholarships, grants, and federal student loans don’t cover everything, private student loans can help fill the gaps. These loans come from private lenders, like banks, credit unions, and online companies, rather than the government. They can be used for all kinds of college costs, from tuition and fees to room and board, living expenses, and even textbooks.

The way it usually works is straightforward:

1. You apply for a loan (sometimes with a cosigner, sometimes on your own)
2. Get approved based on your credit history and income (or your cosigner’s)
3. The lender sends the money straight to your school.
4. After that, anything left over is typically refunded to you to use for other education-related expenses.

You’ll usually have a choice between starting payments right away or waiting until after you leave school—it just depends on the loan terms you pick. Some lenders offer several options for in-school repayment, like deferring payment, paying only interest or a flat monthly rate (e.g., $25), or making full interest-plus-principal payments.

Unlike federal loans, the interest rates, repayment options, and fees can vary significantly from one lender to another, so comparing your options really matters.

Types of private student loans

Not every student’s journey looks the same, so private lenders offer many loan types to match different needs. Whether you’re going to a traditional four-year college, picking up a trade, studying part-time, or even coming from another country, a loan out there likely meets your needs.

Check out these links to learn more about student loan types for specific needs.

How do student loan interest rates work?

When you take out a private student loan, the lender charges you interest—basically a fee for borrowing the money. Student loan interest rates can be either fixed or variable.

• Fixed rates stay the same for the life of your loan. What you see is what you get, and your monthly payments won’t change.
• Variable rates can go up or down over time based on market conditions. They often start out lower than fixed rates but could end up higher.

Your interest rate is usually based on a mix of factors, including your credit score, income, debt-to-income ratio, and whether you have a cosigner. In general, the stronger your financial profile (or your cosigner’s), the better rate you’ll get.

One important thing to know: Some lenders show you their lowest possible rates, but only the most qualified borrowers actually get them. So it’s always smart to get a few quotes and see what offers are available to you.

How private student loan options differ from federal loans

When you’re shopping for student loans, it’s important to know that private loans and federal loans aren’t the same. They both help you pay for school, but they come with some significant differences in how they’re issued, how you qualify, and how repayment works.

Here’s a quick side-by-side comparison to help you see the differences at a glance:

Feature	Federal student loans	Private student loans
Who offers them	U.S. Department of Education	Banks, credit unions, online lenders
How you apply	FAFSA (Free Application for Federal Student Aid)	Directly through the lender
Credit check required	No credit check for most loans	Yes—your credit and income (or cosigner’s) matter
Interest rates	Fixed, set by the government	Fixed or variable, set by the lender
Repayment start	After graduation or dropping below half-time enrollment	Sometimes while in school, sometimes after—depends on the lender
Repayment plans	Income-driven options, forgiveness programs available	Limited flexibility—repayment terms vary by lender
Loan forgiveness	Possible through programs like Public Service Loan Forgiveness (PSLF)	Not available—you’re expected to repay the full amount
Borrowing limits	Set amounts based on your year in school	Varies—you can sometimes borrow up to the full cost of attendance

Private loans can be a great tool, but they usually make the most sense after you’ve maxed out your federal loan options first. That way, you can take advantage of federal benefits like income-driven repayment and loan forgiveness before turning to private lenders.

Pros and cons of private education loans

Private student loans can be a lifesaver when you need extra help paying for school—but they’re definitely not one-size-fits-all. Like anything else, they come with their upsides and downsides. Knowing both can help you make the smartest choice for your situation.

Pros

• You can borrow more if you need to

  Private lenders often let you borrow up to the full cost of attendance, which can help if you have a big gap after using federal aid.

• Competitive rates for strong credit

  If you (or your cosigner) have excellent credit, you could snag a lower interest rate than you’d get with federal loans.

• Variety of options

  There are private loans for undergrad, grad school, professional degrees, career training, and even international students.

• Cosigner release programs

  Some lenders let you apply to remove your cosigner after you make a set number of on-time payments.

• Fast application process

  You can usually apply online and get a decision fast—sometimes within minutes.

Cons

• Less borrower protection

  Private loans don’t offer income-driven repayment plans, forgiveness programs, or generous deferment and forbearance options like federal loans do.

• Credit and income requirements

  You (or your cosigner) need good credit and solid income to qualify for the best rates. Otherwise, you could get stuck with a higher interest rate.

• Variable rates can rise

  If you choose a variable-rate loan, your interest rate (and monthly payment) could climb over time.

• Harder to adjust payments if life changes

  Unlike federal loans, most private lenders don’t offer easy options to lower your payment if you lose your job or take a pay cut.

• Less standardization

  Every lender has its own rules, fees, and repayment terms, so you must do a little more homework to find the right fit.

How to choose the best student loans for college

Choosing a student loan isn’t just about grabbing the first offer you see—it’s about finding the one that actually fits your needs (and doesn’t cause unnecessary stress later). The best loan for you might not be the same as the best loan for your friend, and that’s totally OK.

Here are some smart questions to ask yourself when you’re comparing private student loan options:

• How much do I actually need to borrow? Try to borrow only what you need—not what you’re offered. Remember, you’ll be paying it back later (plus interest).
• Do I have a cosigner? If your credit history is limited or your income is low, having a cosigner with strong credit can help you qualify for a better rate.
• What interest rate am I getting? Make sure you know whether the rate is fixed or variable—and what the APR (annual percentage rate) is. That’s the real number to watch.
• What are my repayment options? Some lenders let you start paying while you’re in school, while others let you wait. See what fits your budget and future plans.
• Are there any fees? Watch out for origination fees, late payment fees, and prepayment penalties. (The best loans don’t have many extra charges.)
• Is there a cosigner release option? If you’re applying with a cosigner, check whether the lender offers a way to remove them after you’ve made a certain number of on-time payments.
• What happens if I run into financial hardship? Life happens. Some lenders offer options like deferment or forbearance, but others don’t—and it’s way better to know up front.

At the end of the day, it’s about picking a loan that supports your education goals without making life harder down the road. Take your time, read the fine print, and don’t be afraid to shop around for the best offer.

My top tip for comparing private student loan lenders is to start by identifying reputable lenders that offer the loan amount you need. Once you’ve narrowed it down to at least three options, compare them based on interest rates, loan terms, repayment structure, and any loan forgiveness or forbearance options they may provide.

How to qualify for private student loans

Qualifying for a private student loan is a little different from getting a federal loan. Private lenders are taking a financial risk by lending you money, so they want to make sure you’re likely to pay it back. That means they will take a close look at your finances—or your cosigner’s.

Here’s what private lenders usually want to see:

• Good credit history: Most lenders like to see a strong credit score (think 650 or higher), but the best rates usually go to borrowers with scores in the 700s.
• Stable income: You (or your cosigner) should be able to show proof of steady income that’s high enough to handle your future loan payments.
• Low debt-to-income ratio: If you already have a ton of debt compared to your income, it might be harder to qualify—or you might get stuck with a higher interest rate.
• U.S. citizenship or permanent residency: Some lenders require you to be a U.S. citizen or permanent resident. International students usually need a U.S.-based cosigner.
• Enrollment in an eligible school: You’ll usually need to be enrolled at least half time in an approved college, university, or trade program.

Every lender is a little different, but these are the basics they’ll check when you apply.

Do I need a cosigner?

In many cases, yes—especially if you’re a younger student without much (or any) credit history yet.

A cosigner is typically a parent, guardian, or supportive adult who agrees to be responsible for the loan if you can’t make the payments. Having a cosigner can:

• Make it easier to qualify: If your cosigner has strong credit and steady income, you’re way more likely to get approved.
• Help you get a lower interest rate: Lenders see you as less risky with a cosigner on board, which can mean better terms.
• Open up more lender options: Some lenders might not approve you at all without a cosigner—at least while you’re still building your financial profile.

That said, not every borrower needs a cosigner. If you already have good credit and a solid income (or if you’re a grad student with a strong financial history), you might qualify on your own. A few lenders even specialize in no-cosigner loans for qualified applicants—although they can be a little tougher to snag.

And if you do use a cosigner, check if the lender offers a cosigner release program. That way, after you make a certain number of on-time payments, you might be able to take them off the hook.

How to apply for private loans for college

Applying for a private student loan isn’t too complicated, but there are a few steps you’ll want to follow to make sure you’re getting the best deal (and setting yourself up for success).

Here’s a simple breakdown:

1. Figure out how much you need to borrow. Before you apply, do a little math. How much are your tuition, fees, and living expenses? How much are you already covering through savings, grants, scholarships, and federal aid? Try to borrow just enough to cover the gap—no more, no less.
2. Shop around and compare lenders. Rates, fees, repayment options, and customer service can vary between lenders. It’s worth getting prequalified (which usually doesn’t affect your credit score) with a few different companies so you can see what kind of rates and terms you’re being offered.
3. Choose your lender and fill out the application. Once you find a loan you like, you’ll fill out an application directly with the lender. You’ll usually need to share personal information, school details, and financial info. If you’re applying with a cosigner, they’ll need to submit their info too.
4. Get certified by your school. After you’re approved, your school usually needs to certify the loan amount—basically double-checking that it matches your actual costs and financial aid eligibility.
5. Sign the final documents and receive the funds. Once everything’s good to go, you’ll sign the loan agreement, and the funds will typically be sent straight to your school. Any extra money after covering your tuition and fees usually gets refunded to you for living expenses.

Do you have to reapply each year or each semester?

Most of the time, you’ll need to reapply each academic year you need a loan. Private loans aren’t like a one-and-done deal that automatically covers all four years of college. Each year, you’ll go through the application process again—and your rates and terms could change depending on your financial situation and the lender’s current offers.

(If your school is on a semester system and you need a loan for just one semester, you can sometimes apply just for that term—but most people apply by the year.)

Should you shop around each time, or stick with the same lender?

It’s always smart to shop around each year—even if you liked your lender before. Rates, fees, and loan perks can change from year to year, and different lenders might offer you better deals as your credit history gets stronger.

That said, if you had a great experience with your lender last year and it’s still offering competitive rates this time around, there’s nothing wrong with sticking with it for convenience. Just make sure you’re not missing out on a better offer elsewhere.

Taking out a private student loan will affect your budget until the loan is repaid or forgiven. It can affect your cash flow and potentially your credit report. While the loan may place a financial burden on your monthly budget, making consistent, on-time payments can help build your credit profile and strengthen your overall financial credibility.

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Private student loans can be a great tool for covering the gaps when scholarships, grants, and federal aid don’t quite stretch far enough. The key is knowing what you’re signing up for—and making sure you’re choosing the loan that actually works for you, not just for right now, but for your future.

Take your time, ask the right questions, and don’t be afraid to shop around. A little extra effort up front can save you a lot of money (and stress) later on. You’ve got this!

How we rated the best private student loans

Since 2015, LendEDU has evaluated student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These data points are organized into broader categories, which our editorial team weights and scores based on their relative importance to readers. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Higher star ratings are ultimately awarded to companies that create an excellent borrower experience. This includes offering online eligibility checks, cost transparency, competitive interest rates with no fees, flexible repayment plans, and unique benefits that support borrowers throughout repayment.