In March 2012, U.S. Bank announced that they would stop issuing new student loans. They cited high default rates and increased government oversight as the two main reasons for their decision. At the end of 2011, student loans made up about 2% of U.S. Bank’s total loan business.
Borrowers who still have U.S. Bank student loans can keep them as they are or move them to a new lender by refinancing. We’ll explain where to find help if you have questions or problems with your U.S. Bank student loans.
Even though U.S. Bank no longer offers student loans, borrowers can find many other student loan providers. Keep reading to learn about your funding options and how to choose the best lender.
Why did U.S. Bank stop offering student loans?
Like many lenders, U.S. Bank found that its student loan department wasn’t as profitable as its other lending products.
“It’s a very small business for the bank, so we made a strategic shift to move our resources elsewhere,” U.S. Bank spokeswoman Nicole Garrison-Sprenger said in a 2012 press release.
Student loans are becoming less of a money-making venture for many banks, so this closure is just one of several.
U.S. Bank student loan alternatives
If you need student loans to pay for school, you should turn to federal student loans first. Federal student loans often have lower interest rates, more loan forgiveness options, and longer forbearance periods than private student loans.
The annual limit for federal student loans ranges from $5,500 to $12,500 for undergraduate students, depending on the type of loan. The annual limit is $20,500 per year for graduate students. Once you’ve reached the annual limit, you can apply for a private student loan to fill the gap.
If you need to take out a private student loan, you can rely on the following alternatives to U.S. Bank:
College Ave
Information advertised valid as of 06/15/2026. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s).
All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit.
College Ave Student Loan Servicing, LLC, NMLS#1263410 NMLS Consumer Access
College Ave’s student loan products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or BTG Pactual Bank, N.A., member FDIC
- Up to 100% of costs are covered
- Choose between 20 different repayment schedules
- Apply in just 3 minutes
College Ave is a lender that offers private student loans for undergraduate and graduate students. Their marketed interest rates are some of the lowest on the market and don’t charge origination, application, or prepayment fees.
For undergraduate students, fixed interest rates range from 3.24% to 12.99% APR, and variable interest rates range from 0.94% to 11.98% APR.
For graduate students, fixed interest rates range from 3.99% to 11.98% APR, and variable interest rates range from 1.99% to 10.97% APR.
Students can borrow up to 100% of the cost of attendance minus other financial aid. You have to be enrolled at least part-time to be eligible, and you also must be a U.S. citizen or permanent resident. The minimum income is $35,000 a year. Students are allowed to apply with a cosigner.
Here are some other loan details:
- Repayment terms: 5, 8, 10, and 15 years
- In-school repayment options: Full interest and principal payment, interest-only payment, $25 monthly payments, and deferred payment
- Grace period: Six months
- Cosigner release: Available if your income is double the remaining loan amount and if you have had no major negative credit events in the past 24 months. Also, you must have reached the halfway point of the loan term.
- Unique benefits: Quick approval time
Sallie Mae
Borrow responsibly
We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.
Loans for Undergraduate & Career Training Students are not intended for graduate students and are subject to credit approval, identity verification, signed loan documents, and school certification. Student must attend a participating school. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., and apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident). Requested loan amount must be at least $1,000.
1. Loan application must be submitted to see available rates.
2. Although we do not charge you a penalty or fee if you prepay your loan, any prepayment will be applied as provided in your promissory note — first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.
3. Based on a comparison of the percentage of students who were approved with a cosigner to the percentage of students who were approved without a cosigner from October 1, 2023 to September 30, 2024.
4. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment.
5. Advertised APRs for undergraduate students assume a $10,000 loan with a 4-year in-school period, a 6-month grace, and the longest loan term offered. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment.
6. Savings comparison assumes a freshman student receives a $10,000 Smart Option Student Loan with the most common variable rate as of January 2025 and the longest loan term offered.
7. Examples of typical transactions for a $10,000 Smart Option Student Loan with the most common fixed rate, Fixed Repayment Option, two disbursements, a 4-year in-school period, and a 6-month grace: For a borrower with the shortest loan term, it works out to 16.16% fixed APR, 51 payments of $25.00, 119 payments of $296.32 and one payment of $41.82, for a total loan cost of $36,578.90. For a borrower with the longest loan term, it works out to 16.38% fixed APR, 51 payments of $25.00, 177 payments of $265.54 and one payment of $173.00, for a total loan cost of $48,448.58. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.
Information advertised valid as of 05/26/2026.
ALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION.
Sallie Mae loans are made by Sallie Mae Bank.
- Cover 100% of costs for the full year
- Lower your rate with in-school repayment
- No prepayment or origination fees
- Cosigners can be released after 12 on-time payments
- Choose your repayment plan and interest rate type
- Free study help and college expense calculators for borrowers
As one of the biggest private student loan companies, Sallie Mae offers undergraduate and graduate student loans, as well as career training loans. Borrowers can take out the annual cost of attendance minus other financial aid.
Sallie Mae offers undergraduate loans with fixed interest rates ranging from 3.75% to 12.85% APR and variable interest rates ranging from 1.87% to 11.97% APR.
Sallie Mae loans have no prepayment penalty or origination fees.
Here are some other loan details:
- Repayment terms: Between five and 20 years
- In-school repayment options: Deferred payment, interest-only payment, or $25 monthly payments
- Grace period: Six months
- Cosigner release: Available after making 12 consecutive on-time payments
- Unique benefits: Quick approval
Earnest
Interest Rates Disclosure
Actual rate and available repayment terms will vary based on your financial profile. Fixed annual percentage rates (APR) range from 2.79% to 16.74% (2.29% – 16.24% with Auto Pay and Loyalty discounts). Variable annual percentage rates (APR) range from 5.24% to 17.1% (4.74% – 16.6% with Auto Pay and Loyalty discounts). Earnest variable interest rate student loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent plus a margin and will change on the 1st of each month. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Our lowest rates are only available for our most credit qualified existing cosigned loan borrowers who receive the 0.25% Loyalty discount and requires selection of our shortest term offered, full principal and interest payment while in school, and enrollment in our 0.25% Auto Pay discount. Enrolling in Auto Pay is not required as a condition for approval. Interest rates are subject to change.
Loyalty Discount
To be eligible for the Loyalty Discount, applicants must have previously obtained an Earnest Private Student Loan and apply using the same email address associated with that loan. Only one Loyalty Discount may be applied per eligible Earnest Private Student Loan. Not all applicants may qualify. This offer cannot be combined with Earnest’s Rate Match program. Earnest may modify or discontinue this offer at any time and without notice, however, once a Loyalty Discount is earned, it will not be taken away.
In-School Loans Disclosures
Earnest Private Student Loans are subject to credit approval. Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grants, and work-study opportunities. 2) Next, fill out a FAFSA® form to apply for federal student loans options. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at studentaid.gov.
Auto Pay Discount
You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. It is important to note that the 0.25% Auto Pay discount is not available when loan payments are deferred during the interim period as a result of selecting the deferred repayment option.
Cosigner Release
To qualify for automatic cosigner release, the outstanding principal balance of your loan must be paid down to 50% or less of the original principal balance. The primary borrower must have made 36 months of required payments after the end of the Interim Period. The primary borrower must meet our eligibility and minimum credit requirements. Additional terms and conditions may apply.
To request cosigner release, the primary borrower must have made 12 consecutive, monthly on-time principal and interest payments (or an amount equal thereto) immediately preceding the cosigner release application. The primary borrower must satisfy certain eligibility and credit criteria at the time of application. Additional terms and conditions may apply.
Grace Period
Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.
Loan Cost Examples
Available interest rates are subject to change. Interest rates as of 03/19/2026. Earnest’s Loan Cost Examples:
1.) These examples provide estimates based on principal and interest payments beginning immediately upon loan disbursement. Variable annual percentage rate (“”APR””): A $10,000 loan with a 15-year term (180 monthly payments of $152.84) and a 16.85% interest rate without Auto Pay (16.85% APR) would result in a total estimated payment amount of $27,511.20. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $150.30) and a 16.49% interest rate without Auto Pay (16.49% APR) would result in a total estimated payment amount of $27,054.10.
2.) These examples provide estimates based on interest-only payments while in school. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $152.84) and a 16.85% interest rate without Auto Pay (16.85% APR) would result in a total estimated payment amount of $35,515.14. For a variable loan, after your starting rate is set, your rate will then vary with the market. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $140.42 for 57 months. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $150.30) and a 16.49% interest rate without Auto Pay (16.49% APR) would result in a total estimated payment amount of $34,886.94. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $137.42 for 57 months.
3.) These examples provide estimates based on fixed $25 payments while in school. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $253.39) and a 16.85% interest rate without Auto Pay (14.92% APR) would result in a total estimated payment amount of $47,035.20. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $246.61) and a 16.49% interest rate without Auto Pay (14.65% APR) would result in a total estimated payment amount of $45,814.80. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $25.00.
4.) These examples provide estimates based on deferred payments. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $275.17) and a 16.85% interest rate without Auto Pay (14.67% APR) would result in a total estimated payment amount of $49,530.60. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $268.03) and a 16.49% interest rate without Auto Pay (14.39% APR) would result in a total estimated payment amount of $48,245.40. Your actual repayment terms may vary. Other repayment options are available. It is important to note that the 0.25% Auto Pay discount is not available when the deferred repayment option has been selected and the loan is in the interim period. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $0.
Loan Minimum
Residents of Hawaii must request a loan of at least $1,501.
Repayment Terms and Options
Repayment terms and repayment options available vary based on loan type.
Skip a Payment
Earnest clients may skip a payment through a single, one-month forbearance during a 12 month period. Your first request to skip a pay can be made once you’ve made at least 6 months of consecutive on-time full principal and interest payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Any unpaid accrued interest may capitalize (added to the principal balance) at the end of the forbearance period by adding unpaid accrued interest to the outstanding principal as permitted by law and the terms of the loan agreement. Please note that skipping a payment is not guaranteed and is at Earnest’s discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.
No Fees
Earnest does not charge fees for origination, late payments, returned check, or prepayments. Florida Stamp Tax: For Florida residents, Florida documentary stamp tax is required by law, calculated as $0.35 for each $100 (or portion thereof) of the principal loan amount, the amount of which is provided in the Final Disclosure. Lender will add the stamp tax to the principal loan amount. The full amount will be paid directly to the Florida Department of Revenue. Certificate of Registration No. 78-8016373916-1.
Earnest Private Student Loans are made by FinWise Bank, Member FDIC. FinWise Bank, 756 East Winchester, Suite 100, Murray, UT 84107. Earnest student loans are serviced by Earnest Operations LLC, 300 Frank H. Ogawa Plaza, Suite 340, Oakland, CA 94612. NMLS #1204917, with support from Higher Education Loan Authority of the State of Missouri (MOHELA) (NMLS# 1442770). FinWise Bank and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
- Fixed rates from 2.29% – 16.24%APR (with loyalty and autopay discount)
- Checking your rate doesn’t affect your credit score
- Choose your repayment plan and adjust your term down to the month
- 50% longer grace period than most lenders
Earnest provides student loans for undergraduate and graduate students and student loan refinancing. Interest rates start at 3.24% for fixed-rate loans and 0.94% for variable-rate loans. It doesn’t charge origination, disbursement, prepayment, or late payment fees.
Unlike other lenders, Earnest requires that borrowers be full-time students to qualify for a loan. Most other lenders only require that students have a part-time schedule to qualify.
Here are some other loan details:
- Soft credit check: Yes
- Repayment terms: Between five and 20 years
- In-school repayment options: Interest-only, principal and interest, deferred repayment, or $25 monthly payments
- Grace period: Nine months after graduation
- Cosigner release: Not available
- Unique benefits: Can skip one payment per year
Ascent
Ascent Funding, LLC products are made available through Bank of Lake Mills or DR Bank, each Member FDIC. Subject to credit approval. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations, terms and conditions may apply for Ascent‘s Terms and Conditions please visit AscentFunding.com/Ts&Cs. Annual Percentage Rates (APRs) displayed above are effective as of 06/01/2026 and reflect an Automatic Payment Discount (ACH). The ACH discount consists of 0.25% on credit-based college student loans submitted prior to 6/1/2025, a 0.5% discount for on credit-based college student loans submitted on or after 6/1/2025 and a 1.00% discount on outcomes-based loans when you enroll in automatic payments. Loans subject to individual approval, restrictions and conditions apply. Loan features and information advertised are intended for college student loans and are subject to change at any time. For more information, see repayment examples or review the Ascent Student Loans Terms and Conditions. The final amount approved depends on the borrower’s credit history, verifiable cost of attendance as certified by an eligible school and is subject to credit approval and verification of application information. Lowest interest rates require full principal and interest (Immediate) payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. Variable rates may increase after consummation.1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/
- 4.09% to 16.09% APR
- $2,001 to $200,000
- Cosigned, non-cosigned, international, and DACA student loans
- 1% cash back with proof of graduation
Ascent is a student loan provider that offers loans for undergraduate and graduate students. One of the key differences between Ascent and its competitors is that the former offers loans for undergraduate students with and without a cosigner. Almost all private lenders require a cosigner, especially for undergraduates.
Students who don’t have a cosigner will be judged on their credit score and income. If they don’t have a credit history or current source of income, then their GPA and major will be used to determine eligibility.
The maximum annual loan amount is up to 100% of the cost of attendance and up to $200,000 in total. Ascent offers up to 24 months of forbearance, which is longer than most other lenders. If you experience financial hardship, having a long forbearance period can help you get back on your feet.
With Ascent, there are no application or prepayment fees.
Here are some other loan details:
- Soft credit check: Yes
- Repayment terms: 5, 7, 10, 12, and 15 years for most loans
- In-school repayment options: Deferred repayment, $25 monthly payments, or interest-only repayment
- Grace period: Nine months
- Cosigner release: After 12 months of consecutive on-time payments
- Unique benefits: Borrowers can get a 1% cash bonus when they graduate
How to choose the best alternative
When you’re deciding between multiple lenders, compare the interest rates and repayment terms to find the lender with the lowest rates. Look for other features like cosigner release or a long grace period. Research the forbearance period for each lender and consider how much of a buffer you’ll need if you can’t afford to pay your student loans anymore.
Check out our list of student loan companies for other reviews or compare our picks for the best private student loan lenders.
If you hold existing U.S. Bank student loans
If you still have U.S. Bank student loans, they may be serviced by a different company. When student loans are sold to a new servicer, the basic details of the loan, like the interest rate and repayment term, don’t change. The only thing that changes is the company that you make payments to.
You can keep the loans with the existing servicer or refinance them with a different lender. If you refinance, you may be eligible for a lower interest rate which could lead to less in total interest over the life of the loan.
Who manages existing U.S. Bank student loans
If you took out a student loan through U.S. Bank, the loan may be serviced by one of the following companies:
- Great Lakes (acquired by Nelnet in June 2023)
- Nelnet
- Edfinancial
- Iowa Student Loans
- Mohela
- SLSC
- SLSA
Some of these servicers, like Nelnet or Mohela, service student loans for other issuers. If you have a problem or need to ask a question about your student loans, you should contact the customer service hotline for the servicer you have. You can find this information on your monthly billing statement or your online account.
Can I refinance my U.S. Bank student loans?
If you currently have student loans from U.S. Bank, you can keep them as they are or refinance them with a new lender. Most borrowers refinance student loans to get a lower interest rate, a lower monthly payment, or both.
Refinancing a student loan means moving the loan from the current lender to a new lender. Once the refinance process is finalized, U.S. Bank will no longer be the lender of your loan.
When you refinance, you have to choose what repayment term you want. There is a direct correlation between the length of the repayment term and the interest rate you qualify for. The shorter the term, the lower the interest rate. And the lower the interest rate, the more you’ll save overall.
If you pick a repayment term significantly longer than your current term, you may end up paying more total interest over the life of the loan. Here’s how that might work. Let’s say you owe $40,000 with a 10% interest rate and a 10-year term. If you refinance to a 6% interest rate and a 20-year term, you’ll pay $5,345 more in total interest.
However, your monthly payment will be $242 less each month. Borrowers who opt for a longer repayment term generally do so because they can’t afford their current monthly payment or have elected to prioritize paying off higher-interest debt.
What if I have a federal student loan through U.S. Bank?
U.S. Bank used to issue federal student loans through the Federal Family Education Loan (FFEL) program. This federal loan program was discontinued in 2010, so U.S. Bank has not issued new FFEL loans since then. However, you may still have FFEL loans.
FFEL loans have fewer benefits than newer types of federal loans like Direct Loans. If you have an FFEL loan, you should consider consolidating it into a Direct Consolidation Loan, which may provide more loan forgiveness and repayment options.
You can also choose to refinance FFEL loans into a private student loan if you can receive a lower interest rate. However, doing so will make you ineligible for federal benefits and protections.
About our contributors
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Written by Zina KumokZina Kumok is a personal finance writer dedicated to explaining complex financial topics so real people can understand them. As a former newspaper reporter, she has covered everything from murder trials to the Final Four.