Top 10 private student loan lenders: side-by-side comparison

Private student loan lenders vary significantly in rates, terms, and borrower benefits—this guide compares the top 10 side-by-side. You’ll learn our selection methodology, view a detailed comparison table, explore individual lender profiles, and find specific recommendations to identify which lender best matches your financial needs.

When private student loans make sense

Private student loans are designed to fill funding gaps when savings, income, and federal financial aid do not cover the full cost of attendance. While they are a valuable tool for many families, they operate differently than federal options. Unlike federal loans, which often have fixed rates set by Congress and flexible repayment plans based on income, private loans are credit-based obligations provided by banks, credit unions, and online lenders.

According to Betsy Mayotte, student loan expert, “In general, federal loans should be your first stop, but private loans can be appropriate when you’ve maxed out your federal eligibility.”

Before applying for private financing, students and families should always complete the Free Application for Federal Student Aid (FAFSA) to access grants, scholarships, and federal Direct Loans. For a step-by-step walkthrough, view our FAFSA guide. If a funding gap remains after accepting all federal aid, private loans can cover the difference, up to the school’s certified cost of attendance.

When evaluating private lenders, the focus shifts to creditworthiness and market competitiveness. Borrowers must compare Annual Percentage Rates (APRs), repayment term lengths, and fees. Additionally, because private loans lack the inherent protections of the federal system, features like cosigner release programs and hardship forbearance become critical decision factors. For a deeper dive into the differences, read our guide on federal vs. private student loans.

How we selected the top 10 lenders

To identify the top private student loan lenders for 2025, we utilized a rigorous methodology focused on the factors that impact the total cost of borrowing and the long-term financial health of the student. Our selection process prioritized lenders that offer a combination of competitive pricing, transparency, and borrower-centric features.

Our criteria included:

• Competitive interest rates: We analyzed both fixed and variable APR ranges to ensure the lenders offer market-competitive pricing for borrowers with varying credit profiles.
• Repayment flexibility: We looked for lenders offering multiple loan terms (e.g., 5, 10, 15 years) and various in-school repayment options (interest-only, flat payment, or full deferment).
• Accessibility: We evaluated eligibility requirements, including options for international students, DACA recipients, and borrowers with thin credit histories.
• Borrower benefits: We weighted value-added features such as cosigner release programs, autopay discounts, and graduation rewards.
• Customer service & reputation: We reviewed consumer sentiment, complaint databases, and digital user experience.

Data sources included lender websites, consumer reviews, and industry reports as of early 2025. It is important to note that while these lenders are ranked highly, the “best” lender is subjective and depends entirely on your specific credit profile and financial goals.

Side-by-side lender comparison table

The following table provides a direct comparison of the top 10 private student loan lenders. Use this data to identify which lenders offer the terms and flexibility that align with your repayment strategy.

Source: Lender websites (rates and features as of January 2025, subject to change based on creditworthiness and index rates).

Individual lender profiles

While interest rates are important, the best lender for you often depends on specific eligibility requirements or unique features. Here is a closer look at what makes each of these top 10 lenders stand out.

• Best for: Undergraduates and students in career training programs.
• Standout feature: Offers a wide variety of loan types, including specific loans for dental, medical, and bar study, as well as Career Training Smart Option loans for non-degree programs.
• Key eligibility note: Available to part-time students and international students (with a U.S. cosigner).

• Best for: Borrowers who want to customize their monthly payment.
• Standout feature: Highly flexible repayment terms allow you to choose from 5, 8, 10, or 15-year terms to dial in a monthly payment that fits your budget.
• Key eligibility note: Requires a valid social security number and strong credit history (or a creditworthy cosigner).

• Best for: Students with good academic standing.
• Standout feature: According to Discover’s loan terms as of January 2025, the lender offers cash rewards for good grades (typically 1% cash reward of the loan amount for a 3.0 GPA or better).
• Key eligibility note: Does not charge origination, application, or late fees, making it a fee-friendly option.

• Best for: Families with existing banking relationships.
• Standout feature: Multi-Year Approval allows eligible borrowers to get approved for four years of funding at once, simplifying the annual process.
• Key eligibility note: Offers loyalty rate discounts for existing Citizens Bank account holders.

• Best for: Borrowers with excellent credit and those seeking career support.
• Standout feature: Members get access to free career coaching, financial planning, and networking events.
• Key eligibility note: No fees whatsoever (no late fees, no origination fees). Requires strict credit criteria.

• Best for: Borrowers who need payment flexibility.
• Standout feature: “Skip-a-payment” feature allows borrowers to skip one payment every 12 months (once repayment begins) without penalty.
• Key eligibility note: Uses “merit-based underwriting” that looks at savings patterns and earning potential, not just credit scores.

• Best for: Juniors and seniors without a cosigner.
• Standout feature: Offers a “Non-Cosigned Outcomes-Based” loan that bases approval on GPA, major, and future earning potential rather than just credit history.
• Key eligibility note: One of the few viable options for undergraduate students who cannot secure a cosigner.

• Best for: International students and DACA recipients.
• Standout feature: Does not require a cosigner or a U.S. credit history for approval.
• Key eligibility note: Fixed rates only. Supports students from 190+ countries attending eligible U.S. and Canadian universities.

• Best for: Parents and graduate students preferring a traditional bank.
• Standout feature: Offers a dedicated private loan for parents who want to take on the debt for their child without using the federal Parent PLUS program.
• Key eligibility note: According to PNC’s loan terms as of January 2025, the lender offers a 0.50% interest rate discount for automated payments, which is higher than the industry standard of 0.25%.

• Best for: Students looking for a principal reduction reward.
• Standout feature: According to Custom Choice’s loan program details as of January 2025, borrowers can receive a 2% principal reduction on their loan balance upon proof of graduation.
• Key eligibility note: Loans are funded by credit unions but serviced through the Custom Choice brand.

Borrower benefits and unique features compared

Beyond the interest rate, the “extras” a lender offers can significantly change the value of the loan. When comparing offers, look closely at how these features align with your post-graduation plans.

• Autopay discounts: Almost all private lenders offer an interest rate reduction if you sign up for automatic payments. The industry standard is a 0.25% reduction, though PNC offers 0.50%. This simple step lowers the total interest paid over the life of the loan.
• Cosigner release: This is a critical feature for families. It allows the primary borrower to apply to remove the cosigner from the loan after making a set number of on-time payments (typically 12 to 48 months) and meeting credit requirements. According to Mark Kantrowitz, financial aid expert, “Cosigner release is a valuable feature offered by some private lenders, rewarding responsible repayment.” Lenders like Sallie Mae and Ascent offer release after just 12 months, whereas others may require 36 months or more.
• Career support: Lenders like SoFi view the loan as an entry point into a broader financial relationship, offering free career coaching and financial planning tools. This can be invaluable for recent graduates entering the job market.
• Graduation rewards: Custom Choice and Discover incentivize academic success. Custom Choice offers a 2% principal reduction upon graduation, while Discover offers cash rewards for maintaining a 3.0 GPA.
• Flexible payments: Earnest stands out with the ability to skip a payment once a year and adjust payment dates / amounts to match your budget, providing breathing room that traditional banks often lack.

Fees, protections, and fine print

Understanding the fee structure is essential to calculating the true cost of a loan. Fortunately, the private student loan market has become more consumer-friendly in recent years.

• Origination fees: None of the top 10 lenders listed in this guide charge origination fees. According to StudentAid.gov, this is a distinct advantage over federal Parent PLUS loans, which charge an origination fee of 4.228% as of October 1, 2024.
• Prepayment penalties: All reputable private student loan lenders, including those listed here, allow you to pay off your loan early without penalty. This allows you to save on interest by making extra payments whenever possible.
• Late fees: Policies vary. Some lenders charge a flat fee (e.g., $10), while others charge a percentage of the missed payment (e.g., 5%). Some, like SoFi and Discover, do not charge late fees at all.
• Deferment and forbearance: Most private lenders offer in-school deferment and a 6-month grace period after graduation. However, hardship forbearance policies—which allow you to pause payments if you lose your job—are generally shorter than federal options. While federal loans can offer years of unemployment deferment, private lenders typically cap forbearance at 12 months over the life of the loan.
• Discharge policies: While federal loans have statutory death and disability discharge, many private lenders have voluntarily adopted similar policies. Check the fine print to ensure the loan is forgiven if the student borrower passes away or becomes permanently disabled.

For a more detailed breakdown of how these mechanics work, read our guide to private student loan basics.

Which lender is best for your situation?

No single lender is the perfect fit for everyone. Based on our analysis of features and approval criteria, here are our recommendations for specific borrower scenarios:

• Best for excellent credit (no cosigner): SoFi and Earnest. These lenders compete aggressively on rates for highly qualified borrowers and offer superior flexibility and member benefits.
• Best for borrowers who need a cosigner: Sallie Mae, College Ave, and Discover. These lenders have high approval rates for students applying with creditworthy cosigners and offer straightforward application processes.
• Best for cosigner release priority: Sallie Mae and Ascent. With release options available after just 12 months of on-time payments, these are ideal for parents who want to limit their long-term liability.
• Best for international & DACA students: MPOWER Financing. As one of the few lenders serving this demographic without requiring a U.S. cosigner, MPOWER is a vital resource for non-citizens.
• Best for students with no cosigner (thin credit): Ascent. Their Non-Cosigned Outcomes-Based loan is specifically designed for juniors and seniors who may not have credit history but have strong academic potential.
• Best for flexible repayment: Earnest. The ability to adjust payments and skip a payment makes them the top choice for borrowers worried about cash flow fluctuations.
• Best for parents borrowing for children: PNC and Sallie Mae. Both offer specific parent loan products that serve as competitive alternatives to the federal Parent PLUS loan, often with lower rates for borrowers with good credit.

Ready to see your personalized rates? Compare offers from multiple lenders in minutes.

Frequently asked questions about private student loans

Can I get a private student loan without a cosigner?
Yes, but it is difficult for most undergraduates who lack credit history and income. Lenders like Ascent and MPOWER Financing specialize in non-cosigned loans. For other lenders, you will typically need excellent credit and steady income to qualify alone.

What credit score do I need for private student loans?
According to industry lending standards as of January 2025, most private lenders look for a FICO score of at least 670 to qualify, though the best interest rates are reserved for scores of 750 or higher. If your score is lower, applying with a creditworthy cosigner can significantly improve your chances of approval and lower your rate. Learn more in our guide to cosigners.

Are private student loan rates negotiable?
No, individual borrowers cannot negotiate rates with lenders. Your rate is determined by the lender’s underwriting algorithm based on your credit profile (and your cosigner’s). However, you can effectively “negotiate” by shopping around and choosing the lender that offers the lowest rate for your specific situation.

How long does private student loan approval take?
Many online lenders provide conditional approval in minutes. Once you submit documents, final approval can take a few days. However, the school must certify the loan amount, which can take 1-3 weeks depending on the university’s financial aid office.

Can I refinance private student loans later?
Yes, refinancing is a common strategy. After you graduate, secure a job, and build your credit history, you can refinance your private loans to potentially lower your interest rate or remove a cosigner.

Do private student loans affect financial aid?
Yes. Private loans are considered part of your total financial aid package. You cannot borrow more than your school’s certified Cost of Attendance minus other aid received. Your school’s financial aid office will certify the loan amount to ensure you don’t exceed this limit.

Choosing the right private student loan lender is a significant financial decision that impacts your budget for years to come. By doing your research now, you can secure funding that supports your education without unnecessary cost.

Key takeaways:

• Maximize federal aid first: Always exhaust federal grants and Direct Loans before applying for private financing.
• Shop around: Rates vary by lender and credit profile. Checking rates with multiple lenders ensures you aren’t overpaying.
• Look beyond APR: Consider the total cost, including fees, and the value of protections like cosigner release and hardship forbearance.
• Match the lender to you: Choose the lender that fits your specific needs, whether that’s a parent loan, a non-cosigned option, or maximum repayment flexibility.
• Borrow responsibly: Private loans are a legitimate and helpful tool for filling funding gaps when used thoughtfully.

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References and resources

• StudentAid.gov – Official U.S. Department of Education information on federal loans.
• CFPB Paying for College – Tools and resources for making informed financial decisions.
• College Finance FAFSA Guide – Step-by-step help for federal aid applications.
• Federal vs. private loans – A detailed comparison of your borrowing options.
• Student loan cosigner guide – How to apply with a cosigner and release them later.
• Scholarship search guide – Find free money to reduce your borrowing needs.