After exhausting your federal student aid options, private student loans can help fill in any gaps in your college funding. But with so many private lenders on the market, finding the right loan for your financial situation can be a challenge.
In this guide to the best student loan companies, compare private student loan rates, terms, and requirements to find the right loan for you.
Compare student loan rates
Credible rating
Fixed (APR)
3.79% - 15.41%
Loan Amounts
$2,001* to $400,000
Min. Credit Score
Does not disclose
Credible rating
Fixed (APR)
3.89% - 17.99%
Loan Amounts
$1,000 up to 100% of the school-certified cost of attendance
Min. Credit Score
Does not disclose
Credible rating
Fixed (APR)
3.98% - 14.22%
Loan Amounts
$1,000 up to cost of attendance
Min. Credit Score
680
Credible rating
Fixed (APR)
3.99% - 15.49%
Loan Amounts
$1,000 up to 100% of school-certified cost of attendance
Min. Credit Score
Does not disclose
Credible rating
Fixed (APR)
3.99% - 15.60%
Loan Amounts
$1,000 to $350,000 (depending on degree)
Min. Credit Score
720
Credible rating
Fixed (APR)
4.24% - 14.02%
Loan Amounts
$1,000 to $99,999 annually ($180,000 aggregate limit)
Min. Credit Score
Does not disclose
Credible rating
Fixed (APR)
4.80% - 8.54%
Loan Amounts
$1,001 up to 100% of school certified cost of attendance
Min. Credit Score
670
Credible rating
Fixed (APR)
5.75% - 8.95%
Loan Amounts
$1,500 up to school’s certified cost of attendance less aid
Min. Credit Score
670
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
Best student loan companies
No-Cosigner Loans
Ascent
4.8
Credible Rating
Min. Credit Score
Does not disclose
Fixed APR
3.79 - 15.41%
Variable APR
5.99 - 16.10%
Loan Amount
$2,001* to $400,000
Term
5, 7, 10, 12, 15, 20
Pros and cons
More details
Multi-Year Approval
Citizens
4.8
Credible Rating
Min. Credit Score
720
Fixed APR
3.99 - 15.60%
Variable APR
5.99 - 16.60%
Loan Amount
$1,000 to $350,000 (depending on degree)
Term
5, 10, 15
Pros and cons
More details
Extended Grace Periods
College Ave
4.9
Credible Rating
Min. Credit Score
Does not disclose
Fixed APR
3.89 - 17.99%
Variable APR
5.59 - 17.99%
Loan Amount
$1,000 up to 100% of the school-certified cost of attendance
Term
5, 8, 10, 15 (20 for health professionals)
Pros and cons
More details
Discounts and Rewards
Custom Choice
4.4
Credible Rating
Min. Credit Score
Does not disclose
Fixed APR
4.24 - 14.02%
Variable APR
5.46 - 14.92%
Loan Amount
$1,000 to $99,999 annually ($180,000 aggregate limit)
Term
7, 10, 15
Pros and cons
More details
Flexible repayment options
ELFI
4.8
Credible Rating
Min. Credit Score
680
Fixed APR
3.98 - 14.22%
Variable APR
6.00 - 14.22%
Loan Amount
$1,000 up to cost of attendance
Term
5, 7, 10, 15
Pros and cons
More details
Indiana Students
INvested
4.6
Credible Rating
Min. Credit Score
670
Fixed APR
4.80 - 8.54%
Variable APR
7.75 - 11.79%
Loan Amount
$1,001 up to 100% of school certified cost of attendance
Term
5, 10, 15
Pros and cons
More details
Borrowers with Good Credit
MEFA
4.8
Credible Rating
Min. Credit Score
670
Fixed APR
5.75 - 8.95%
Variable APR
-
Loan Amount
$1,500 up to school’s certified cost of attendance less aid
Term
10, 15
Pros and cons
More details
specialized Loans
Sallie Mae
4.3
Credible Rating
Min. Credit Score
Does not disclose
Fixed APR
3.99 - 15.49%
Variable APR
5.37 - 15.70%
Loan Amount
$1,000 up to 100% of school-certified cost of attendance
Term
10 - 20
Pros and cons
More details
Other loans to consider
Federal student loans: Best overall
Federal loans are considered the best student loans because they offer benefits like flexible repayment plans, loan forgiveness programs, and generous deferment and forbearance options.
Direct Subsidized Loans are beneficial to undergraduate students who demonstrate financial need, as the government covers interest while you’re in school and during your six-month grace period. Unsubsidized loans are accessible to both undergraduates and graduates, regardless of financial need. The federal loan program also offers grad PLUS loans for graduate and professional students who don’t have adverse credit.
SoFi: Best for member benefits
SoFi private student loans are known for their generous member benefits, including access to financial planners and referral bonuses. Borrowers can also take advantage of a rate discount of 0.25 percentage points for enrolling in automatic payments. The minimum loan amount is $1,000, and SoFi covers up to the total cost of attendance of your school. You or your cosigner must be employed or have sufficient income from another source in order to qualify for a loan.
ISL: Best for no-cosigner loans
Iowa Student Loan Liquidity Corporation (ISL) is a private student loan lender accessible to residents in all states except Maine. As a nonprofit lender, ISL offers competitive rates for both undergraduate and graduate students, and even offers a no-cosigner loan for eligible borrowers attending a college in Iowa or Illinois. Its flexible repayment options include immediate payment, interest-only payment, and a deferred payment option.
Methodology
Credible evaluated these student loan lenders based on interest rates and origination fees, loan amounts, loan terms, discounts, whether cosigners are accepted, and more. Credible’s team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.
How to choose the right student loan company
Private student loan companies have different loan options, rates, and repayment terms. Before jumping into a loan agreement with any company, there are a few factors you’ll want to consider, including:
- Eligibility: Check if the lender offers loans in your state, or if it requires a minimum credit score or cosigner on the application.
- Interest rates: Confirm whether the private loan has a fixed or variable rate. Fixed rates never change so you’ll always have the same payment. Variable rates might start low at first, but can change and are unpredictable.
- Loan terms: Look at the repayment timelines offered by private lenders. Although a 10-year repayment period might be common, some lenders offer loans that must be repaid in less time, like a 5- or 7-year loan.
- Borrower perks: Explore whether the lender offers special incentives for its customers, like a rate discount if you enroll in automatic payments, or career resources after leaving school.
- Customer reviews: Read about other customers’ experience working with the lender, and see if there are any patterns that might be red flags. For example, customers may have recurring concerns about misinformation or mishandling of payments.
Private vs. federal student loans
If you’re borrowing money for college, federal student loans are generally a good first choice because of the many borrower protections and benefits they offer, like student loan forgiveness and fixed-rate subsidized loans for eligible borrowers. Applying for federal student loans is free and generally doesn’t require a credit check.
Private student loans are nonfederal loans and therefore not eligible for any of the federal perks. Instead, lenders set their own repayment guidelines, rates, and loan details, which are typically based on your credit score and income. Overall, private student loans offer fewer protections in the event of an unexpected financial hardship that prevents you from making your payments.
Pros and cons of private student loans
Like any financial product, private student loans have advantages and disadvantages to consider.
Pros
Many lenders offer the convenience of borrowing up to your school’s certified cost of attendance (COA), minus any financial aid you’ve already received. If you have a significant gap in federal aid versus your school costs, a private student loan might be your ideal solution.
In some situations, private student loans may offer lower rates than federal loans. This might be the case if you’re a graduate student, for example. Federal graduate PLUS loans are the most expensive federal loan option, at a fixed rate of 8.05% for the 2023-24 year — but if you have excellent credit, you might find a lower rate through a private lender.
Cons
The flipside of private student loans is that their eligibility is generally credit-based, among other factors. You usually must have strong credit to get approved, and must have a top-tier credit score for the lender’s lowest rates.
Private student loans may also come with variable rates, which fluctuate based on market conditions. This type of rate makes it harder to maintain a consistent budget since your payment can go up or down from month to month. Private student loans are also not eligible for federal programs, like loan forgiveness and income-driven repayment plans.
Am I eligible for a student loan?
Private student loan eligibility can be restrictive for some borrowers. Lenders have their own unique underwriting requirements that you must meet. For example, you might need to meet age and residency requirements. Companies also look at your credit score, income, monthly debt and housing payments, school, and your area of study.
Sometimes students haven’t developed a substantial credit record, or they have an imperfect credit history. In these situations, some lenders let you apply with a cosigner. A cosigner is usually a trusted family member who takes legal responsibility for repaying the loan if you fall behind on payments. Some lenders let you release your cosigner from their obligation if you meet certain payment requirements, but not all do.
Related: Can You Get a Student Loan With Bad Credit?
How to get a student loan
If you’ve decided that borrowing a private student loan is the best option for you, getting started is fairly straightforward. Each student loan company has its own application process, but here are the general steps to get a private student loan:
- Compare lenders: The best student loan companies are transparent about their rates, fees, repayment timelines, discounts, and perks. Use this information to narrow down your preferred list of private student loan lenders.
- Check your student loan rates: See if the student loan companies you’re considering offer a prequalification tool online. This feature lets you check your rates and the loan that you might qualify for with only a soft credit check. A soft credit inquiry doesn’t harm your credit.
- Find a cosigner (optional): Submitting an application with a cosigner who has strong credit can improve your chances of getting approved and a competitive interest rate. If you don’t have strong credit, talk to a parent, grandparent, spouse, or close friend to ask if they’re willing to cosign your loan.
- Submit an application: Loan applications might ask you in-depth questions about your enrollment, as well as income information for you and your cosigner, if applicable. After submitting your application, you’ll need to wait for the lender’s decision.
Best student loan companies FAQ
What is the best loan for a student to take out?
The best student loan to borrow is a federal student loan. These loans offer fixed interest rates and flexible repayment options, among other benefits. For this reason, it's wise to maximize your federal student loan offers before considering a private student loan.
Which student loan is the best overall?
Overall, loans from the Department of Education are the best student loans to consider. Federal loans offer borrower protections, like income-driven repayment plans, deferment programs, extended forbearance, and more. As a federal student loan borrower, you might also be eligible for loan forgiveness programs that cancel a portion of your student debt. Private student loans, on the other hand, don’t qualify for these benefits, but they can help you bridge the cost of college if you don’t have enough aid.
What is the cheapest way to get a student loan?
The cheapest student loan option is a federal Direct Subsidized Loan, and applying is free. While you’re enrolled in school and during periods of deferment (like your grace period), the government pays for any interest that accrues. Once you enter repayment six months after leaving school, you’ll only be responsible for your unpaid principal balance, plus any interest moving forward. To qualify for subsidized loans, you must demonstrate financial need via the FAFSA.
How are student loan interest rates determined?
Fixed interest rates on federal student loans align with the 10-year Treasury note high yield, plus a fixed add-on rate, which depends on the Direct Loan type and the student’s enrollment status. Rates for newly disbursed federal student loans change annually. For private student loans, lenders decide their own fixed or variable rate ranges. The rate you’re offered on a private loan is typically based on your credit history, score, and income, among other factors.