Best Private Student Loans
- Skip a payment once per year (once repayment period restarted)**
- Check your eligibility in just 2 minutes
- 9 month grace period (3 months more than most lenders)***
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 3.24% APR to 13.03% APR (excludes 0.25% Auto Pay discount). Variable rates range from 1.19% APR to 11.69% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance 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. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada.
Earnest Highlights
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For people who need a very flexible repayment plan, the nine-month grace period feature and ability to skip one payment annually highlights this
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Repayments options range from:immediate, deferred, fixed, interest-only, and full in-school deferment
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During medical residency, internship, or fellowship, you have the ability to defer payments for up to 48 months (4 years)
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Forbearance for up to 1 year”
- 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
- You can see if you’ll qualify and what rate you’ll get without a hard credit check
College Ave Student Loans products are made available through either Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1. As certified by your school and less any other financial aid you might receive. Minimum $1,000.
2. Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
3. This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 4/19/2022. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
College Ave Highlights
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You can use this loan to pay for tuition, student fees, housing, books, and more. Borrow up to 100% of your cost of attendance (minimum $1,000)1.
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The co-signer release period is 24 months, in line with private lending industry standards.
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Loan terms (how long you have to repay the loan) range from 5 to 15 years. In general, the longer the repayment terms of a loan, the smaller the monthly payment you’ll have to make.
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Flexible repayment options available.
- Easy online application!
- Flexible repayment options to help you find the right loan for you
- 0.25% discount when you set up autopay*
UNDERGRADUATE LOANS: Fixed rates from 4.19% to 14.30% annual percentage rate (“APR”) (with autopay), variable rates from 5.74% to 14.30% APR (with autopay). GRADUATE LOANS: Fixed rates from 4.74% to 14.10% APR (with autopay), variable rates from 5.74% to 14.10% APR (with autopay). PARENT LOANS: Fixed rates from 6.50% to 13.98% APR (with autopay), variable rates from 6.32% to 13.13% APR (with autopay). 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. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Lowest rates are reserved for the most creditworthy borrowers. If approved for a loan, the interest rate offered will depend on your creditworthiness, the repayment option you select, the term and amount of the loan and other factors, and will be within the ranges of rates listed above.
* 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. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Information current as of 06/04/2024.
SoFi Highlights
- Fast and very easy application process
- Do not need a hard credit check to see if you qualify and what rate you will receive
- Flexible repayment options for in-school: interest-only and flat fee, also repayment can be delayed for undergraduate and graduate students
- Lots of resources available with this loan including entrepreneurship support and career planning
- Skip a payment once per year (once repayment period restarted)**
- Check your eligibility in just 2 minutes
- 9 month grace period (3 months more than most lenders)***
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 3.24% APR to 13.03% APR (excludes 0.25% Auto Pay discount). Variable rates range from 1.19% APR to 11.69% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance 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. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada.
Earnest Highlights
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For people who need a very flexible repayment plan, the nine-month grace period feature and ability to skip one payment annually highlights this
-
Repayments options range from:immediate, deferred, fixed, interest-only, and full in-school deferment
-
During medical residency, internship, or fellowship, you have the ability to defer payments for up to 48 months (4 years)
-
Forbearance for up to 1 year”
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.