Why You Should Trust Us: How We Picked the Best Private Student Loans
We rate all student loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths (15% of rating)
- Repayment options while in school (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is determined based on its importance to your borrowing experience. Rates and fees have the most significant impact on the total cost of your loan, so we weigh those the most heavily. Customer support and ethics are still crucial parts of the borrowing experience, but they are not directly tied to a student loan's terms, so they have less of an impact on the overall rating.
Read more about how we rate student loans »
Our Experts' Advice on Choosing the Best Private Student Loan
We consulted the following loan and financial experts to give their insights into finding the best low-interest student loans for your needs.
- Sean August, CEO at SoFi is one of the few lenders offering lower interest rates for graduate school loans than undergraduate loans.
While SoFi's interest rates are competitive with others on the list, what makes SoFi unique are its other features. Additionally, SoFi's student loans have no late fees (though it's worth noting that interest will still accrue).
Watch out for: High maximum loan amount. SoFi's minimum loan amount is $1,000 — if you need a small student loan, it might be worth turning to a lender that makes smaller loans.
Regular Annual Percentage Rate (APR): Fixed rates range from 3.43% - 15.99% APR with all discounts. Variable rates range from 4.64% - 15.99% APR with all discounts.
Fees: N/A
Loan Amount Range: Minimum of $1,000 and up to 100% of school-certified costs
Best Student Loan for Low Interest Rates: College Ave Undergraduate Student Loans
College Ave ties as one of the lowest starting private student loan interest rates since undergraduate fixed-rate loans start with an interest rate of 2.99%. Interest rates for grad school students are also competitive with SoFi's lower interest rates for this group.
It's a good choice for both graduate and undergraduate students, and it offers four options for repayment. College Ave allows cosigners for loans and offers parent loans in addition to undergraduate and graduate loans, starting at the same interest rate as the undergraduate interest rate.
What to watch out for: Late payment penalty. You'll fork over a late payment of 5% of the amount due, capped at $25 if you fall behind on your payments.
Regular Annual Percentage Rate (APR): 4.24% – 17.99% variable and 2.89% – 17.99% fixed (with AutoPay discount)
Fees: late payment of 5% of the amount due, capped at $25
Loan Amount Range: Minimum of $1,000
Best Student Loan for No Fees: Sallie Mae Undergraduate Student Loans
Sallie Mae doesn't charge any origination and prepayment fees, and you also get four months of the study service Chegg for free. Chegg offers expert Q&A, and students can submit up to 20 questions per month.
What to watch out for: Sallie Mae sets your repayment term length, so if you want to choose your term length another lender is a better option.
Regular Annual Percentage Rate (APR): 2.89% - 17.49 Fixed and 4.37%-16.99% variable with auto debit discount
Fees: late payment of 5% of the amount due, capped at $25
Loan Amount Range: Starts at $1,000
Best Student Loan for Cosigner Release: Ascent Undergraduate Student Loans
Ascent private school loans are a flexible option for almost any student loan borrowers. Interest rates are competitive, and terms range from five to 15 years.
Cosigners are allowed and encouraged. A relatively unique feature is Ascent's cosigner release. Make 12 consecutive on-time payments, and Ascent can release a cosigner from your student loan. If your parents are helping you get a loan by signing on as cosigners but don't want to maintain this responsibility in the long term, you'll need a loan that allows cosigner release.
What to watch out for: Ascent limits borrowers' total loans to $400,000, including any other federal or private student loans outside of Ascent.
Regular Annual Percentage Rate (APR): 4.95% - 14.85% variable and 3.44% - 15.00% fixed (with AutoPay discount, varies by plan)
Fees: None
Loan Amount Range: $2,001 - $200,000 ($200,000 aggregate total)
Best Student Loan for Flexible Repayment: Earnest Undergraduate Student Loans
Earnest's private student loans offer low starting interest rates and very flexible repayment terms. Earnest has four options for repayment, including a nine-month deferral after school. Earnest doesn't charge any fees, including prepayment or origination fees on private student loans, which makes it a strong option.
Earnest also advertises the ability to skip a payment once per year. But that doesn't mean that you're off the hook for that payment since interest will still add up, and your payoff will be delayed. Your payments could be higher if you take full advantage of these features, and they could increase your total payoff time and loan amount.
But if used the right way, Earnest's private student loans could still beat the competition with such low starting interest rates.
What to watch out for: Some of Earnest's flexible features aren't the right fit for everyone. The ability to delay loans for nine months may not be as great as it sounds, since interest still accrues during this period, growing your loan's balance.
Regular Annual Percentage Rate (APR): 4.99% - 16.85% variable and 3.47% - 16.49% fixed (with AutoPay discount)
Fees: $0
Loan Amount Range: $1,000 - 100% of education cost
Best Student Loan for Rate Discounts: Custom Choice Undergraduate Student Loans
Custom Choice offers loans of up to $99,999 annually that come without fees, and you can check your rates within a few minutes.
Custom Choice also offers a 2% reduction on your loan principal after you provide the lender with proof of graduation, as well as a .25% interest rate reduction when you sign up for AutoPay.
What to watch out for: No mobile app. If you want to manage your loans on the go, you won't be able to with Custom Choice.
Regular Annual Percentage Rate (APR): 4.45% - 14.08% variable and 4.24% - 14.02% fixed
Fees: N/A
Loan Amount Range: $1,000 - $99,999
Best Student Loan for International Students: MPower Financing Undergraduate Student Loan
MPower Financing offers fixed loans designed for international students. You can get a loan without a cosigner, collateral, or US credit history. Most other lenders that offer loans to international students require a US citizen or permanent resident to cosign on the loan.
What to watch out for: High interest rates. While the lender's starting interest rates are higher than many of the other lenders on this list, we included it because of its accessibility for international students.
Regular Annual Percentage Rate (APR): 9.99% to 16.99% fixed (with AutoPay discount)
Fees: 5% origination fee and undisclosed late fee
Loan Amount Range: $2,001 — $100,000 lifetime
Understanding Private Student Loans
What are private student loans?
Private student loans are educational loans offered by private companies. Any student loan that isn't offered through the federal government is considered a private student loan.
How are private student loans different from federal loans?
Unlike federal student loans, which are issued by the government, private student loans are issued by private lending companies and don't offer as many opportunities for loan forgiveness.
Take the federal student loan forbearance offered by the government during the coronavirus pandemic. While private lenders may have offered their own help for people experiencing hardships, private student loan borrowers didn't get that widespread benefit or keep interest rates at 0%.
While federal student loans have fixed interest rates, private college loans can have fixed or variable rates, and they're typically higher than federal rates. Private student loans generally offer fewer options for repayment.
If you need student loans to afford college, you should start by exploring your federal loan options by completing the Work-study programs provide part-time jobs, generally on campus, to students with financial need. Students can use the funds to pay for tuition, books, and other living expenses. To be eligible for work-study, you'll need to submit the FAFSA and demonstrate financial need.
FAQs About Private Student Loans
Who can apply for a private student loan?
Students can apply for a private student loan either on their own or with a co-signer. The private student loan application process usually requires a credit check, so if you don't have an established credit history, you may need a co-signer to qualify.
What is the best way to pay your student loans?
The best way to pay your student loans is to make consistent, on-time payments and aim to pay more than the minimum when possible. If your loans accrue interest while you're in school, consider making small monthly payments toward that interest, since unpaid interest will capitalize and increase your total loan balance once repayment begins.
What are the repayment options for private student loans?
While private student loan repayment options vary from lender to lender, in general the options include immediate repayment, interest-only payments while you're in school, and defering payments until after you graduate.
What's the difference between federal and private student loans?
Federal student loans have a number of protections that private student loans don't, for instance, the widespread forbearance during the pandemic. Income-based repayment plans are also only available for federal student loans. Be sure to use all your available federal loan options first to take advantage of these protections.
Is it a good idea to take out a private student loan?
Whether or not it's a good idea to take out a private student loan depends on your unique financial situation. You may consider alternatives such as a less expensive school, scholarships, or a side job to earn more money. Whatever your decision is, make sure you understand the terms of your loan before making a choice.
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs. Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi's underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. View payment examples. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is current as of 5/21/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nm/sconsumeraccess.org)..
* Interest Rates: Eligibility and Important Details. Fixed rates range from 3.43% APR to 15.99% APR with 0.25% autopay discount. Variable rates range from 4.64% APR to 15.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates are capped at 17.95%. SoFi rate ranges are current as of 9/3/2025 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term and type of repayment option you select, evaluation of your creditworthiness, income, presence of a co-signer (if applicable) and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. Check out our eligibility criteria at https://www.sofi.com/eligibility-criteria/. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
Sallie Mae Student Loans: Borrow responsibly We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan. Explore federal loans and compare to make sure you understand the terms and features. Private student loans that have variable rates can go up over the life of the loan. Federal student loans are required by law to provide a range of flexible repayment options, including, but not limited to, income -based repayment and income-contingent repayment plans, and loan forgiveness and deferment benefits, which other student loans are not required to provide. Federal loans generally have origination fees, but are available to students regardless of income. SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. ©️ 2025 Sallie Mae Bank. Sallie Mae loans are made by Sallie Mae Bank. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners. SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America. W646400 0325 Information valid as of 04/17/2025.
