Best Student Loans of 2021
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- Apply in as little as 3 minutes and get an instant credit decision
- Multiple repayment options from deferred to immediate principal and interest
- Choice of how long you take to repay the loan – 5, 8, 10, or 15 years3
- 0.25% interest rate reduction when you make required payments by automatic debit2
- Borrow up to 100% of your cost of attendance (minimum $1,000)1
- Variable rates starting at 1.78% APR (including 0.25% Auto Pay discount)*
- Check your eligibility in just 2 minutes
- Fast application and decision-making process
- Flexible repayment options
- No fees for origination, disbursement, prepayment, or late payment
- Skip a payment once per year (once repayment period restarted)**
- Covers up to 100% of the school's certified cost of attendance
- 9 month grace period (3 months more than most lenders)***
- Lowest rates shown include Auto Debit discount.1
- Choose from multiple repayment options, including no payments while in school.2
- Cover all types of learning, whether you're studying online or on campus.
- Chegg Study - Get 4 months of study help included with your Undergraduate Loan.3
- Ability to make payments while in school.
- Consider adding a cosigner: Student are nearly 4X more likely to be approved with a cosigner5 and it may help you get a better rate.
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.
This information is for undergraduate students attending participating degree- granting schools. Borrowers must be U.S. citizens or U.S. permanent residents if the school is located outside of the United States. Non-U.S. citizen borrowers who reside in the U.S. are eligible with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident) and are required to provide an unexpired government- issued photo ID to verify identity. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.
1Interest is charged starting at disbursement, during school and the separation/grace period, and until the loan is paid in full. 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. Payments may be required during the grace/separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a freshman with no other Sallie Mae loans. 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 and may be suspended during periods of forbearance or deferment, if available for the loan.
2Although 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.
3This promotional benefit is provided at no cost to borrowers with loans that first disburse between July 1, 2018 and April 30, 2021. Borrowers who reside in, attend school in, or borrow for a student attending school in Maine are not eligible for this benefit. No cash value. Terms and Conditions apply. Please visit Chegg.com/studystarter/termsandconditions for complete details. This offer expires one year after issuance.
4Loan amount cannot exceed the cost of attendance less financial aid received as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount.
5Based on a comparison of approval rates for Sallie Mae Smart Option Student Loans for undergraduate students who applied with a cosigner versus without a cosigner during a rolling 12 month period from October 1, 2017 through September 30, 2018.
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.
Information valid as of 6/25/2020.
Smart Option Student Loans® are made by Sallie Mae Bank or a lender partner.
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.
©2020 Sallie Mae Bank. All rights reserved.
SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America.
How do I choose the right private student loan?
Do your homework
Check out our Guide to Student Loans below to learn more about financing college expenses.
Have a cosigner
A cosigner is almost always required to get approved for a private student loan – and to get the best rate.
Apply directly with the lender
Apply with each lender to find out the exact rate you will be eligible for.
Guide to Student Loans
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What’s the difference between Federal Student Loans and Private Student Loans?
Federal Student Loans are education loans made directly by the Department of Education of the U.S. Federal Government. (In fact, they’re officially called “Federal Direct Student Loans”). Federal Student Loans are very widely available, with few eligibility requirements. A co-signer is not required (or possible) for a Federal Student Loan. These loans also have competitive fixed interest rates and very flexible deferment and repayment provisions. The amount that undergraduate students can borrow is limited to a set amount based on year in school.
Private Student Loans are loans made by private lenders. Private Student Loans have relatively stringent credit and income requirements. A co-signer with strong credit is usually required to qualify. Most Private Student Loan lenders offer fixed rate and variable rate versions. Interest rates vary, depending on the credit and income profiles of the borrower and co-signer.
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Which is better – Federal or Private Student Loans?
It almost always makes sense to borrow through the Federal Student Loan program first before turning to Private Student Loans. The reason is that Federal Student Loans have competitive interest rates, but especially because Federal Student Loans have extremely flexible deferment and repayment provisions. Private Student Loans might be a good option if a student needs to borrow more than is available through the Federal Student Loan program.
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How much should I borrow?
As little as you possibly can. Students should always – always – exhaust every resource for paying college costs before turning to student loans. But if, as is often the case, you need to borrow for college, keep track of what your total loan principal and the future monthly payment will be. This can be confusing because many students borrow through multiple loan programs over multiple years. However, it is very important to end up with a total borrowed amount that is manageable, especially during the first several years out of college, when a graduate’s income will be low. Some experts suggest keeping total student loan payments within 10-12% of gross monthly income. Of course, it’s impossible to fully predict what the future graduate’s income will be, but it is worth consulting with the financial aid office and career services office at your school to come up with an estimate.
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Do I need a co-signer for Private Student Loans?
Almost definitely, yes. Private Student Loans are made based on credit and income analysis of the borrower(s). If a student borrower has no credit history and no sizable income – which is usually the case – the student will not be approved for the loan. Overall, Private Student Loans have roughly a 95% co-signer rate.
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How do I pick the right Private Student Loan?
Most Private Student Loans have similarities to each other: things like choice of fixed or variable rate, option to defer some or all of the payments while enrolled in school, and repayment lengths.
The main differences to look out for in making your choice are:
- Cost of Borrowing – The most important thing to shop for is a low (if not “lowest”) cost of borrowing. You usually have to apply for the loan – or fill out part of the application – to find out the actual interest rate (and the effective APR) you will receive. Note that most lenders offer a way to get a price quote without incurring a full credit check. This means that checking your rate won’t impact your credit score. Caution though: some lenders don’t enable this. A rate check process with no credit impact (via what’s called a “soft pull” of your credit) usually involves answering 10-12 bits of information on the borrower and co-signer. If you need to complete a full application to find out, check carefully before applying as part of a rate check.
- Borrower Benefits – Most lenders offer rate reductions for setting up auto debit of payments, but some lenders offer interesting benefits that go further, such as a one-time graduation credit, or a credit for getting good grades. Another one to look out for is a “loyalty discount,” offered to borrowers who have other financial accounts with the lender.
- Co-signer Release – some loans offer the feature of “releasing” a co-signer after a certain number of ontime payments (typically two or three years’ worth) AND the borrower passing a credit / income test on their own. Many co-signers appreciate this feature, for obvious reasons.
- Variations on Repayment Length – most lenders have 5, 7, and 10 year repayment lengths as options. A couple allow 15 or 20 years, and some even allow to pick any length (in years) from 5 to 15. That added flexibility can help you select a repayment that solves for a monthly payment that works best for you. (But note that longer repayment terms, while bringing a lower monthly payment, will mean a higher total cost of borrowing because you’re paying interest for a longer period of time.)
- Something Special – once in a while, a lender offers an unusual benefit. Examples include sessions with financial planners, an annual skipped payment, or homework help services.
In addition, you can also research Better Business Bureau reviews of each lender, as well as third party consumer reviews provided via some services like Trust Pilot.