6 Best Private Student Loans: Compare Banks & Online Lenders

Table of Contents

1. College Ave: Best Overall (5.0/5.0)
2. Sallie Mae: Best for Cosigners (4.8/5.0)
3. Earnest: Best for Large Loans (4.7/5.0)
4. SoFi: Best for Member Benefits (4.7/5.0)
5. Credible: Best Marketplace (4.6/5.0)
6. ELFI: Best Student Loan Advisors (4.5/5.0)
7. FAQ
8. How we rate private student loan lenders

College Ave

Best Overall

5.0 _/5

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Why College Ave is one of the best

College Ave is an online student loan lender based in Wilmington, Delaware. Its sole focus is making a college degree more attainable by helping students and parents afford the rising cost of higher education.

Its Multi-Year Peace of Mind™ program has resulted in 90% of undergraduate borrowers being approved for additional loans for future years with a cosigner.

College Ave lets you select your repayment term and explains how the term and plan you choose will impact your loan’s long-term cost.

• Borrow up to 100% of certified costs
• Choose your repayment terms
• Students enrolled less than half-time are eligible
• Multi-Year Peace of Mind™ increases your approval odds for future loans
• Ability to apply for an additional 6-month grace period

• Cosigners can’t be released until halfway through the repayment term

Rates (APR)	5.59% – 16.99%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 8, 10, or 15 years

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: Mid-600s
• 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 years) 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 the same flat amount each month
• Deferred: No payment

Post-school repayment options

• Repayment terms: 5, 8, 10, or 15 years
• 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

Best for Cosigners

4.8 _/5

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Why Sallie Mae is one of the best

Sallie Mae, the most widely known student loan lender, is based in Newark, Delaware. It was founded as a government entity servicing federal education loans. Then, between 1997 and 2004, Sallie Mae transitioned into a fully privatized bank, now controlling the largest share of the private student loan market.

Sallie Mae has a short cosigner release period on its student loans. Graduated students can release their cosigner after 12 on-time principal and interest payments.

Other benefits include its Multi-Year Advantage program and no origination or application fees. With Multi-Year Advantage, 96% of undergraduate students with a cosigner were approved again when they returned with a cosigner the following year.

• Borrow up to 100% of certified costs
• Choose your repayment terms
• Students enrolled less than half-time are eligible
• Multi-Year Peace of Mind™ increases your approval odds for future loans
• Cosigners can be released faster than most other lenders
• Borrowers receive free credit score tracking

• Doesn’t offer prequalification with a soft credit check
• Can’t choose to make full payments while enrolled in school

Rates (APR)	5.59% – 16.99%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	10 – 15 years

Eligibility requirements

Sallie Mae student loans are available to undergraduates, graduates, parents, 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. Here are some of the eligibility requirements for a Sallie Mae student loan:

Financial requirements

• Minimum credit score: Mid-600s
• Minimum income: Not disclosed
• Approval after prior bankruptcy: Yes, with no open bankruptcy

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: Available in all 50 states, plus Washington D.C. and Puerto Rico

Repayment details

Sallie Mae offers a wide range of repayment terms that can be anywhere between 10 and 15 years. Borrowers also have access to several deferment options, allowing payments to be paused under certain conditions.

In-school repayment options

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

Post-school repayment options

• Repayment terms: 10 – 15 years
• 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: Yes, after 12 consecutive on-time payments
• Death discharge: Yes
• Disability discharge: Yes

Earnest

Best for Large Loans

4.7 _/5

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Why Earnest is one of the best

Earnest is an online lender based out of San Francisco, California. Its loans can be used by undergraduates, graduates, and parents.

One of the main benefits of taking out a loan with Earnest is that there are no fees. Many lenders market their student loans as having no application fees, but this only refers to origination and application fees. With Earnest, you won’t be charged any fees to apply, plus you won’t be charged for paying off your loan early or any late payments.

Its loans can cover the total cost of your education and have several repayment benefits, such as the ability to skip one payment per year, no late payment fees, and a 9-month grace period.

• No late payment, disbursement, or origination fees
• Skip one payment per year if needed
• Choose your repayment terms
• 50% longer grace period than most lenders
• Check your rate in 2 minutes without impacting your credit score

• Cosigners can’t be released from the loan
• Must be enrolled at least half-time

Rates (APR)	5.59% – 16.99%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 7, 10, 12, or 15 years

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

SoFi

Best for Member Benefits

4.7 _/5

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Why SoFi is one of the best

SoFi is a nationally chartered bank based in San Francisco, California. It made a name for itself in 2012 as the first company to refinance federal and private student loans. Since then, it has expanded into nearly all consumer lending markets, with over $73 billion in loans funded.

Undoubtedly, one of the biggest draws to borrowing from SoFi is the wide range of benefits available to its members.

• Rewards points earned in the mobile app can be used for repayment
• Financial planning services
• No fees
• Rate discount for taking out multiple student loans
• Check your rate without impacting your credit score

• Must be enrolled at least half-time
• Higher minimum balance than other lenders

Fixed (APR)	4.19% – 14.83% w/ autopay
Variable (APR)	5.74% – 15.86% w/ autopay
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 7, 10, or 15 years

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, 7, 10, or 15 years. Borrowers have the option to choose between all 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, 7, 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

Credible

Best Marketplace

4.6 _/5

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Why Credible is one of the best

Credible is not a student loan lender, unlike the other companies on this list. Instead, it offers a free comparison tool where borrowers can fill out a quick online application and compare real prequalified rates from the lenders it partners with.

If you receive an offer that you’d like to move forward with, Credible’s staff will help you complete an application with that lender and confirm your approval. There are no fees for filling out an application, and your credit will not be impacted.

• Compare prequalified rates from multiple lenders
• No costs
• Doesn’t impact your credit score

• Only shows rates from lenders in its network

Rates (APR)	5.59% – 16.99%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5 – 20 years

Eligibility requirements

There are no eligibility requirements to use Credible’s comparison tool. Whether or not you’re approved by one of its partner lenders depends on that lender’s unique requirements.

Repayment details

The lender or its servicer of choice will handle your repayment responsibilities. Credible doesn’t collect or facilitate payments.

ELFI

Best Student Loan Advisors

4.5 _/5

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Why ELFI is one of the best

Education Loan Finance (ELFI) is a student loan provider based in Farragut, Tennessee. It offers loans for undergraduates, graduates, and parents.

All borrowers are paired with a student loan advisor who helps them through the application process and answers any questions as they arise. Many of ELFI’s customer reviews speak highly of these advisors, leading to an “Excellent” rating on Trustpilot.

• Paired with a student loan advisor
• Excellent ratings from over 2,000 borrowers on Trustpilot
• Owned by a not-for-profit organization
• Check your rate without impacting your credit score

• Requires a credit score of 680 or higher
• Must be enrolled at least half-time

Rates (APR)	5.59% – 16.99%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 7, 10, or 15 years

Eligibility requirements

ELFI recommends adding a cosigner to its student loans to improve your chances of approval.

Financial requirements

• Minimum credit score: 680
• Minimum income: $35,000 per year
• Approval after prior bankruptcy: Not disclosed

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
• State: Available in all 50 states, D.C., and Puerto Rico

Repayment details

ELFI offers repayment terms of 5, 7, 10, or 15 years and all four in-school repayment options.

In-school repayment options

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

Post-school repayment options

• Repayment terms: 5, 7, 10, or 15 years
• Grace period: 6 months
• Deferment options: In-school and military
• Forbearance: Up to 12 months

Other repayment options

• Cosigner release: Not available
• Death discharge: Reviewed case-by-case
• Disability discharge: Reviewed case-by-case

FAQ

How do private student loans compare to federal student loans?

You can get private student loans from private lenders, meaning traditional banks, credit unions, and online lenders. Individual lenders establish the terms of their loan offerings, including:

• What you can use the loan for
• Repayment terms
• Interest rates
• Fees
• Qualifications, including minimum credit score and income requirements

Lenders may offer private student loans for undergraduate school, graduate or professional degrees, or training and certificate programs. Private loan funds can cover various education expenses, including tuition and fees, books and supplies, and room and board. When you repay a private student loan, you repay it to your lender. 

The Department of Education offers federal student loans for undergraduate and graduate study. Students may take out federal loans, and parents can borrow through the PLUS Loan program. The Department of Education establishes federal student loan limits, while Congress sets federal loan interest rates annually. 

You must complete the Free Application for Federal Student Aid (FAFSA) to apply for federal student loans. Credit is not a consideration for most federal loans, except PLUS loans. When you repay federal student loans, you’ll pay an authorized loan servicer, not the government. 

	Federal student loans	Private student loans
Lender	Department of Education	Private lenders
Interest rates	Fixed	Fixed or variable
Loan limits	Annual and aggregate limits apply for undergraduate and graduate loans	Up to the full cost of attendance, less other aid received
Uses	Undergraduate and graduate education expenses	Undergraduate and graduate education expenses, career training, certificate programs
Repayment terms	Standard 10-year repayment, income-driven repayment options	Typically 5 to 25 years; varies by lender
Payments are made to	Loan servicers	Lenders
Credit requirements	No credit check, except for PLUS loans	Lenders generally require a credit check and minimum credit score
Cosigner requirements	None	Lenders may require a cosigner for borrowers with poor or limited credit
Benefits	Deferment and forbearance periods Grace period Income-driven repayment Loan forgiveness eligibility	Higher limits than federal loans Some lenders may offer deferments, forbearance periods, or grace periods Low rates for credit-worthy borrowers

Start with federal loans if they’re available. They have fixed interest rates and offer a range of benefits, including loan forgiveness programs for eligible borrowers. Private student loans can help fill the gap if you max out your federal student loan limits. 

Whether you borrow from the government or a private lender, always understand whether your postgraduation budget will allow you to repay your student loans before using them for your education.

Read More

Federal vs. private student loans

Should you take out a private student loan?

Private student loans can offer advantages if you exceed federal loan limits for the year, are ineligible for state loan programs, or don’t have a parent who can take out a PLUS loan to help pay for school. 

Here are the most notable benefits and downsides of private student loans.

Pros

• Loan limits

  Private lenders can offer higher loan limits than federal student loans. Depending on the lender, your maximum loan may equal your attendance cost, less any other aid you receive.

• Competitive rates

  Private student loans can offer competitive rates for borrowers with good to excellent credit. If you don’t have a perfect credit score, you could still qualify for a solid rate if you have a cosigner on board.

• Lender benefits

  Some private lenders offer special benefits or incentives to borrowers, such as autopay rate discounts, hardship programs, and cash bonuses for good grades. SoFi offers reward points for paying bills and checking your credit score, which you can apply to your loan balance.

Cons

• Credit checks

  Most private lenders consider credit scores when deciding what loan terms to offer. You may need a cosigner to get approved if you have a thin credit file or a low credit score.

• Fees

  Some lenders charge fees, which can add to your cost of borrowing. For example, you might pay an origination fee, credit check fee, application fee, or late payment fee.

• No federal benefits

  Private student loans are separate from the Department of Education’s loan program, so you’ll miss out on federal deferment and forbearance benefits, grace periods, income-driven repayment plans, or access to loan forgiveness programs.

Reviewing your financial situation can help you decide whether a private student loan makes sense. Consider using private student loans to pay for school if you:

• Have exhausted your federal student loan limits
• Are ineligible for federal student loans because of your citizenship status or some other reason
• Are reasonably certain you can qualify for low rates based on your credit scores and income or have a creditworthy person willing to cosign
• Expect your income to increase as you pursue a career

With all loans, you should understand your budget once you graduate. Once you pay for basic necessities such as housing, food, and transportation, you should have enough left to pay the monthly student loan payments from your expected starting salary.

If this is 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.

Are you eligible for a private student loan?

Private lenders set the criteria when determining who is eligible for a loan. Generally, you’ll need to be a U.S. citizen or permanent resident and attend a Title IV school at least half-time. Lenders can consider other factors too, including:

• Credit scores and overall credit history
• Income and employment status
• Degree program and career outlook
• Debt-to-income ratio (DTI) 

Lenders want reassurance that you can repay what you borrow. A strong credit score and stable income can work in your favor, while a low credit score or spotty work history can hurt you. 

Having a cosigner can help if they have a strong credit profile. The better your cosigner’s credit score, the better your loan terms will likely be. However, consider these drawbacks to having someone cosign a student loan:

• Cosigners share responsibility for the debt, so if you don’t pay, the lender could try to come after the other person to collect. 
• Finding a creditworthy cosigner could be difficult for borrowers with a smaller circle of friends and family. 
• Some lenders offer cosigner release, which allows the cosigner to be removed from the loan, but not all do. 

If you’re considering using a cosigner to get private student loans, it’s worth checking into cosigner release. That could persuade someone to agree to sign off on the loan if they know they can eventually be removed. 

Lenders may have specific requirements before a cosigner can be released. For instance, you might need to make 12 to 24 on-time payments before you can have a cosigner removed. If cosigner release isn’t an option, you could refinance instead. 

Refinancing private student loans means taking out a new loan to pay one off. You don’t eliminate or reduce debt—you move it around. That’s another option for removing a cosigner, assuming you can qualify for a new loan by yourself. 

How much do private student loans cost?

Private students can have fixed or variable interest rates. A fixed interest rate remains the same for the life of the loan, making your payments predictable and easier to budget for. Variable rates can increase or decrease over the loan term following changes in an underlying benchmark rate. 

Comparing fixed and variable private student loan costs is challenging. Predicting how rates will move is difficult. With fixed rates, you can use a student loan calculator to estimate your monthly payments based on your loan amount and loan term. 

For example, say you plan to borrow $40,000 at 6% fixed with a 10-year repayment term. Here’s how the cost works out:

• Monthly payment: $444.08
• Total interest paid: $13,289.84

Now, assume you get the same loan with a variable rate of 4.5%. The numbers look like this:

• Monthly payment: $414.55
• Total interest paid: $9,746.44

You’ll get a lower payment and pay less interest, but these calculations assume your rate will never exceed 4.5%. If it does, you could find a much larger payment and more interest going to your lender. 

If you’re unsure whether to choose a fixed or variable-rate private student loan, consider the following:

• What’s the current rate environment like? Are rates likely to go up or down in the future? 
• Is your main concern getting the lowest rate or payment, or are you more interested in making sure you can afford your payments for the long term? 
• If you choose a variable rate to start, can you refinance into a fixed-rate loan later, if necessary? 

A fixed-rate loan could be best if you don’t want to be surprised by rate changes later. On the other hand, if you’re certain that your income will increase to accommodate potentially higher payments, you might consider a variable-rate loan instead. 

How are private student loan funds disbursed?

Disbursement is the student loan process step in which your loan funds are sent to your school. Private student loan disbursement typically takes one to two weeks; your lender may need to certify your loans first. Certification means the lender verifies your information with your school before releasing the funds. 

Private student loans are usually disbursed to the school, not the borrower. Your school will apply the funds to your outstanding balance for tuition, fees, and other expenses and turn over any remaining funds to you. 

You can repay overages to your lender, so you have less to repay once you graduate. Or you can use the money to cover other expenses, including: 

• Rent and utilities, if you live off-campus
• Food
• Transportation
• Equipment and supplies
• Dependent care expenses, if you need to pay for child or adult care while you’re at school

Remember that regardless of how you use any extra student loan funds, you still must repay it with interest. 

How can you choose the right student loan for your needs?

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

When looking for a private student loan, comparing your options is the most important move you can make. This will ensure you find an affordable loan 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 can support borrowers during repayment.

2. Review the eligibility requirements for each lender

All private lenders have their own unique eligibility requirements. Ensure 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 can’t. If you and your cosigner don’t meet the eligibility requirements, remove that lender from consideration.

3. Review the loan terms

Ensure you understand what happens if you 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, consider inexpensive life insurance to protect your cosigner. 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 repayment. It can be helpful to understand those programs upfront.

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 your rate is to prequalify or submit a complete application. Take advantage of soft credit checks when possible to reduce the number of hard credit inquiries on your credit report.

5. Compare your quotes

Once you have a rate estimate from each lender, compare your offers to see which lender offers you the lowest rate. Consider other factors, including the repayment term, borrower protections, and unique benefits.

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.

Are payments due while in school?

Private lenders can decide when you’ll need to begin making payments toward your loans. With some loans, repayment begins as soon as funds are disbursed. With others, payments don’t begin until you graduate or otherwise withdraw from school. 

Your lender might allow you to make payments while in school without requiring it. You could make full payments, partial payments, or interest-only payments. Anything you pay while you’re enrolled and taking classes can help reduce what you’ll owe once you leave school. 

Some private lenders offer a grace period, which allows you to delay payments for a certain period after graduation. For example, payments may not kick in until three or six months after you finish school. Once the grace period ends, you’ll start making regular payments according to your loan agreement. 

Are cosigners required for a private student loan?

Cosigners are encouraged but not necessarily required for private student loans. Having a cosigner could make it easier to get approved and qualify for the most favorable loan terms, including the lowest interest rates. About 90% of private student loans are acquired with the help of a cosigner. 

How is the amount of money you receive calculated?

Private lenders look at various factors to decide what you can borrow, including your cost of attendance, credit scores, income, and debt. Your cost of attendance, which your lender requests from your school, includes tuition, fees, books, supplies, and room and board. Lenders will also factor in any financial aid you’ve received when deciding what to lend. 

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 think you should pay a fee to take out a loan or pay one off early.

More common student loan fees include origination fees, application fees, late payment fees, and prepayment fees. Federal student loans come with an origination fee, but none of the private student loan lenders in our list above charge application, origination, or prepayment fees.

How we rate private student loan lenders

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.

We organize these data points 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.

We award higher star ratings 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.

Recap of the best private student loan lenders