Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Student Loans Best Private Student Loans in May 2025: 13 Options to Meet Every College Student’s Needs Updated May 21, 2025 25-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Methodology Methodology LendEDU evaluates 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. Written by Timothy Moore, CFEI® Written by Timothy Moore, CFEI® Expertise: Bank accounts, credit cards, taxes, insurance, personal loans Timothy Moore is a Certified Financial Education Instructor (CFEI®) specializing in bank accounts, student loans, taxes, and insurance. His passion is helping readers navigate life on a tight budget. Learn more about Timothy Moore, CFEI® Reviewed by Erin Kinkade, CFP® Reviewed by Erin Kinkade, CFP® Expertise: Insurance planning, education planning, retirement planning, investment planning, military benefits, behavioral finance Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families. Learn more about Erin Kinkade, CFP® 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. Company Best for… Rating (0-5) 5.0 View Rates Best Overall 5.0 View Rates 4.8 View Rates Best for Fast Cosigner Release 4.8 View Rates 4.7 View Rates Best Repayment Perks 4.7 View Rates 4.7 View Rates Best for Graduate Students 4.7 View Rates 4.7 View Rates Great for Multi-Year Approval 4.7 View Rates 4.7 View Rates Best for High Academic Performers 4.7 View Rates 4.5 View Rates Best for Customer Service 4.5 View Rates 4.4 View Rates Best for Bad Credit 4.4 View Rates 4.3 View Rates Great for Principal Reduction 4.3 View Rates 4.2 View Rates Great for a Student Loan Marketplace 4.2 View Rates 3.9 View Rates Best for No Cosigner 3.9 View Rates 3.6 View Rates Great for for Discounts 3.6 View Rates 3.5 View Rates Great for for Military Families 3.5 View Rates Show more Table of Contents The best private student loans in 2025 How private student loans work Private vs. federal student loans Pros and cons of private education loans How to choose the best student loans for college How to qualify for private student loans How to apply for private loans for college The best private student loans in 2025 Our team spent hours researching the best private student loans available to borrowers today. Here’s what you should know about our recommendations, who they are best for, and our favorite features and details. 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 View Rates 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% – 16.85Fixed rates (APR)4.39% – 16.49%Discounts0.25% for automatic paymentsLoan amounts$1,000 – 100% of costs Eligibility Loan typesUndergrad, grad, parent, career trainingMin. credit scoreMid-600sMin. income$35,000 per yearEnrollmentHalf time or moreCitizenshipU.S. citizen, permanent resident, or internationalStateAll 50 states Repayment In-school repaymentFull, interest-only, fixed, deferredRepayment terms5, 8, 10, or 15 yearsGrace period6 months for undergrads, 9 months for grads, apply for 6-month extensionDefermentIn-school and militaryForbearanceUp to 12 months, in increments of 3 or 6 monthsCosigner releaseAfter finishing more than half of the scheduled repayment period and meeting additional criteria Sallie Mae Best for Fast Cosigner Release 4.8 /5 View Rates 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%Discounts0.25% for automatic paymentsLoan amounts$1,000 – 100% of costs Eligibility Loan typesUndergrad, grad, parent, career trainingMin. credit scoreMid-600sMin. incomeNot disclosedEnrollmentHalf time or moreCitizenshipU.S. citizen or permanent resident or non-U.S. citizen with a cosigner who is a U.S. citizen or permanent residentStateAll 50 states, plus Washington, D.C., and Puerto Rico Repayment In-school repaymentInterest only, fixed, deferredRepayment terms10 – 15 yearsGrace period6 monthsDefermentIn-school, military, internship, residency, and fellowshipForbearanceUp to 12 months, in increments of 3 monthsCosigner releaseAfter 12 consecutive on-time payments Earnest Best for Repayment Perks 4.7 /5 View Rates 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%Discounts0.25% for automatic paymentsLoan amounts$1,000 – 100% of costs Eligibility Loan typesUndergrad, grad, parentMin. credit score650Min. income$35,000 per yearEnrollmentAll states other than Nevada, plus Washington, D.C.CitizenshipU.S. citizen or permanent resident or non-U.S. citizen with a cosigner who is a U.S. citizen or permanent residentStateAll states other than Nevada, plus Washington D.C. Repayment In-school repaymentFull, interest-only, fixed, deferredRepayment terms5, 7, 10, 12, or 15 yearsGrace period9 monthsDefermentIn-school, military, residency, fellowshipForbearanceUp to 12 monthsCosigner releaseNo SoFi Best for Graduate Students 4.7 /5 View Rates 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%Discounts0.25% for automatic paymentsLoan amounts$5,000 – 100% of costs Eligibility Loan typesUndergrad, grad, parentMin. credit score679Min. incomeNoneEnrollmentAt least half timeCitizenshipU.S. citizen, permanent resident, visa holder (international & DACA w/ cosigner)StateAll 50 states Repayment In-school repaymentFull, interest-only, flat, deferredRepayment terms5, 7, 10, or 15 yearsGrace period6 monthsDefermentIn-school, military, residency, internshipForbearanceYes, must call to discuss optionsCosigner release24 on-time payments Citizens Bank Great for Multi-Year Approval 4.7 /5 View Rates 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%Discounts0.25% for loyalty, 0.25% for automatic paymentsLoan amounts$1,000 – $100,000 Eligibility Loan typesUndergrad, grad, parentMin. credit score640Min. income$12,000EnrollmentAt least half timeCitizenshipU.S. citizen or permanent resident (international w/ cosigner)StateAll 50 states, D.C., U.S. territories Repayment In-school repaymentFull, interest-only, flat, deferredRepayment terms5, 10, or 15 yearsGrace period6 monthsDefermentIn-school, internship, residency, militaryForbearanceUp to 12 months in 2-month incrementsCosigner release36 on-time payments Funding U Best for High Academic Performers 4.7 /5 View Rates 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/AFixed rates (APR)7.99% – 13.45%Discounts0.50% for interest-only paymentsLoan amounts$3,001 – $20,000 Eligibility Loan typesUndergradMin. credit scoreNoneMin. incomeNoneEnrollmentFull-timeCitizenshipU.S. citizen, permanent resident, or DACAState38 states Repayment In-school repayment$20 fixed or interest-onlyRepayment terms5 or 10 yearsGrace period6 monthsDefermentIn-school, military, or residencyForbearance24 monthsCosigner releaseN/A ELFI Best for Customer Service 4.5 /5 View Rates 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%DiscountsNoneLoan amounts$1,000 – 100% of certified costs Eligibility Loan typesUndergrad, grad, parentMin. credit score680Min. income$35,000 per yearEnrollmentAt least half-timeCitizenshipU.S. citizen or permanent residentStateAll 50 states, D.C., and Puerto Rico Repayment In-school repaymentFull, interest-only, flat, deferredRepayment terms5, 7, 10, or 15 yearsGrace period6 monthsDefermentIn-school and militaryForbearanceUp to 12 monthsCosigner releaseN/A Ascent Best for Students With Bad Credit 4.4 /5 View Rates 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%Discounts0.25% for automatic paymentsLoan amounts$2,001 – $200,000 Eligibility Loan typesUndergraduate, grad, parent, career trainingMin. credit score620 for cosigned, no min. for outcomes-basedMin. income$24,000EnrollmentAt least half-time, must be a junior or senior for no-cosigned loansGPA2.9 GPA or higher and meet your school’s SAP requirementsCitizenshipU.S. citizen or permanent resident (international & DACA w/ cosigner)StateAll 50 states Repayment In-school repaymentFull, interest-only, flat, deferredRepayment terms5, 7, 10, 12, or 15 yearsGrace period9 monthsDefermentIn-school, militaryForbearanceUp to 24 months (increments of 4 months)Cosigner release12 on-time payments Custom Choice Great for Principal Reduction 4.3 /5 View Rates 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%Discounts0.25% for automatic paymentsLoan amounts$1,000 – $99,999 Eligibility Loan typesUndergradMin. credit scoreUndisclosedMin. incomeUndisclosedEnrollmentUndisclosedCitizenshipU.S. citizen or permanent resident (international w/ cosigner)State47 states Repayment In-school repaymentFull, interest-only, flat, deferredRepayment terms7, 10, or 15 yearsGrace period6 monthsDefermentNatural disasterForbearanceUp to 12 months (increments of 2 months)Cosigner release36 on-time payments LendKey Great for a Student Loan Marketplace 4.2 /5 View Rates 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%Discounts0.25% for automatic paymentsLoan amounts$1,000 – 100% of costs Eligibility Loan typesUndergradMin. credit score680Min. income$24,000EnrollmentAt least half-timeCitizenshipU.S. citizen or permanent residentState45 states Repayment In-school repaymentFull, interest-only, or flatRepayment terms10 yearsGrace period6 monthsDefermentMust call to discussForbearanceUp to 18 months (6 month increments)Cosigner release24 on-time payments Edly Best for No Cosigner 3.9 /5 View Rates 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% APRFixed rates (APR)N/ADiscountsNoneLoan amounts$5,000 – $25,000 Eligibility Loan typesJunior/senior, graduate, career trainingMin. credit scoreNoneMin. incomeNoneEnrollmentFull-timeCitizenshipU.S. citizen or permanent residentStateUndisclosed Repayment In-school repaymentNoneRepayment terms60 payments or 2.25x borrowed amountGrace periodNoneDefermentIf income drops below certain thresholdForbearanceNoneCosigner release12 on-time payments PNC Great for Discounts 3.6 /5 View Rates 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%Discounts0.50% for automatic paymentsLoan amountsUndisclosed Eligibility Loan typesUndergrad, grad, bar studyMin. credit scoreUndisclosedMin. incomeUndisclosedEnrollmentAt least half-timeCitizenshipU.S. citizen or permanent residentStateAll 50 states Repayment In-school repaymentFull, iInterest-only, deferredRepayment terms5 – 15 yearsGrace period6 monthsDefermentUndisclosedForbearanceUndisclosedCosigner release48 on-time payments Navy Federal Credit Union Great for Military Families 3.5 /5 View Rates 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%+Discounts0.25% for automatic paymentsLoan amountsUp to 100% of costs Eligibility Loan typesUndergrad, gradMin. credit scoreNoneMin. incomeNoneEnrollmentUndisclosedCitizenshipU.S. citizen or permanent residentStateAll 50 states Repayment In-school repaymentFull, interest-only, or flatRepayment terms5 or 10 yearsGrace period6 monthsDefermentUndisclosedForbearanceUndisclosedCosigner release24 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: You apply for a loan (sometimes with a cosigner, sometimes on your own) Get approved based on your credit history and income (or your cosigner’s) The lender sends the money straight to your school. 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. Student loan types Low-income student loans Student loans for trade school Student loans for real estate school Student loans for continuing education Non-degree-seeking students Student loans for cosmetology school Flight school loans Parent student loans Graduate school loans Ph.D. student loans MBA student loans Dental school loans Medical school loans Physician assistant student loans Medical School in the Caribbean Law school loans Bar study loans Student loans for pharmacy school Vocational school student loans Part-time loans 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. Learn more about how student loan interest rates work. 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: FeatureFederal student loansPrivate student loansWho offers themU.S. Department of EducationBanks, credit unions, online lendersHow you applyFAFSA (Free Application for Federal Student Aid)Directly through the lenderCredit check requiredNo credit check for most loansYes—your credit and income (or cosigner’s) matterInterest ratesFixed, set by the governmentFixed or variable, set by the lenderRepayment startAfter graduation or dropping below half-time enrollmentSometimes while in school, sometimes after—depends on the lenderRepayment plansIncome-driven options, forgiveness programs availableLimited flexibility—repayment terms vary by lenderLoan forgivenessPossible through programs like Public Service Loan Forgiveness (PSLF)Not available—you’re expected to repay the full amountBorrowing limitsSet amounts based on your year in schoolVaries—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. Learn more about the differences between federal vs. private student loans. 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. Erin Kinkade , CFP®, ChFC® 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: 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. 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. 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. 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. 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. Erin Kinkade , CFP®, ChFC® 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. List of Student Loan Companies We Evaluated A.M. Money Ascent Citizens Bank College Ave Credible Custom Choice Earnest Edly EDvestinU ELFI Funding U INvestEd ISL Education Lending LendKey MEFA MPOWER Navy Federal Nelnet Bank PNC Prodigy Finance RISLA Sallie Mae SoFi Sparrow Union Federal Company Best for… Rating (0-5) 5.0 View Rates Best Overall 5.0 View Rates 4.8 View Rates Best for Fast Cosigner Release 4.8 View Rates 4.7 View Rates Best Repayment Perks 4.7 View Rates 4.7 View Rates Best for Graduate Students 4.7 View Rates 4.7 View Rates Great for Multi-Year Approval 4.7 View Rates 4.7 View Rates Best for High Academic Performers 4.7 View Rates 4.5 View Rates Best for Customer Service 4.5 View Rates 4.4 View Rates Best for Bad Credit 4.4 View Rates 4.3 View Rates Great for Principal Reduction 4.3 View Rates 4.2 View Rates Great for a Student Loan Marketplace 4.2 View Rates 3.9 View Rates Best for No Cosigner 3.9 View Rates 3.6 View Rates Great for Discounts 3.6 View Rates 3.5 View Rates Great for Military Families 3.5 View Rates