Best private student loans of April 2024
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Updated 4:08 p.m. UTC April 8, 2024
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If you’ve exhausted all of your federal student aid options and you still need to cover some funding gaps, you can explore private student loans. While federal student loans are disbursed from the federal government, private student loans come from private lenders.
There’s no universal standard with private student loans, which means they aren’t all managed equally. We’ve weeded through lenders to find the best private student loans of 2024 based on eligibility, customer experience, application process and more.
Editor’s note: This article contains updated information from a previously published story.
Best private student loan lenders
- Ascent: Best for thin credit.
- SoFi: Best for customer experience.
- Citizens: Best bank lender.
- MEFA: Best not-for-profit lender.
- RISLA: Best for variety of loan options.
- College Ave: Best for flexible repayments.
- Advantage Education Loan: Best for part-time students.
Why trust our student loan experts
Our team of experts evaluated hundreds of student loan products and analyzed thousands of data points to help you find the best fit for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 18 private student loan lenders reviewed.
- 270 data points analyzed.
- 6-stage fact-checking process.
Laurel Road
SoFi
Advantage Education Loan
Compare the best private student loan lenders
| FIXED APR | VARIABLE APR | LOAN TERMS (YEARS) | |
|---|---|---|---|
Ascent
| 4.09% to 15.66%
| 6.22% to 16.08%
| 5, 7, 10, 12, 15
|
SoFi
| 4.44% to 14.7%
| 5.99% to 14.70%
| 5, 7, 10, 15
|
Citizens
| 5.99% to 14.00%
| 6.97% to 15.03%
| 5, 10, 15
|
MEFA
| 5.35% to 7.95%
| N/A
| 10 to 15
|
RISLA
| 4.40% to 8.45%
| N/A
| 10 to 15
|
College Ave
| 4.07% to 15.48%
| 5.59% to 16.69%
| 5, 8, 10, 15
|
Advantage Education Loan
| 5.29% to 8.04%
| N/A
| 10 |
All rates include discounts where noted by the lender and are current as of April 8, 2024.
Methodology
Our expert writers and editors have reviewed and researched multiple lenders to help you find the best private student loans. Out of all the lenders considered, the seven that made our list excelled in areas across the following categories (with weightings): loan details (10%), loan cost (40%), eligibility and accessibility (30%), customer service experience (15%), and ease of application (5%).
Within each major category, we considered several characteristics, including available loan repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers and if they offer co-signer release. Finally, we evaluated each provider’s customer support options, borrower perks and features that simplify the borrowing process like mobile apps.
Why some lenders didn’t make the cut
Of the private student loan lenders that we reviewed, about half made the cut. The lenders that didn’t have high enough scores to be included received lower ratings due to higher interest rates and lower maximum loan terms, as well as having no hardship options and fewer customer service options.
Choosing the best private student loans
There’s no universal standard between private student loan lenders. That means you’ll need to compare many different lenders based on what you qualify for as well as your needs to find the right loan for you. Here are some important factors to consider as you weigh your options:
- APR: Your annual percentage rate (APR) includes your interest rate and any fees the lender charges. The lower your APR, the less you’ll pay on top of what you borrow.
- Loan amounts: While some lenders let you borrow up to your cost of attendance (minus other financial aid you’ve received), others have maximum limits.
- Repayment terms and options: For private student loans, terms typically range from five to 20 years, depending on the lender. While a longer term will get you a lower monthly payment, it also means paying more in interest over time. It’s usually best to choose the shortest term you can afford to avoid excessive interest charges.
- Repayment options: Depending on the lender, you might have the option for immediate repayment, interest-only payments during school or full deferment. Making payments while you’re in school — even interest-only payments — can help keep a lot of interest from racking up during that time.
- Fees: Some lenders charge fees, such as origination or late fees, that can add to your borrowing costs.
- Eligibility: Some lenders are more stringent in their qualifications. Common criteria include meeting minimum income and credit requirements, citizenship (or permanent residency) and attending a qualified school. If you can’t qualify on your own, you could consider applying with a creditworthy co-signer — though keep in mind that this person will be liable for the loan if you don’t make your payments.
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How to apply for private student loans
Before applying for private student loans, it’s important to exhaust your other options. Be sure to complete the Free Application for Federal Student Aid (FAFSA) to take advantage of federal student aid. This includes federal grants like the Pell Grant, work-study programs and federal student loans, which come with federal benefits and protections that private loans don’t offer. Also apply for as many private scholarships and grants as you can as, unlike student loans, they don’t have to be repaid.
After you’ve looked into these other possibilities, private student loans can help to fill any financial gaps left over. If you’re ready to apply for a private loan, follow these steps:
- Determine how much you need. Consider how much you’ll need to borrow to cover your education expenses. This way, you can set a budget and avoid borrowing more than necessary.
- Compare lenders. It’s important to shop around and compare your options with as many lenders as possible. This way, you can find a student loan that works best for you. As you do your research, consider lenders based on interest rates, fees, repayment terms, eligibility requirements and other important factors. This can also help you see if you’ll need a co-signer to qualify.
- Get pre-qualified. Many lenders let you get pre-qualified with only a soft credit check to see if you’re eligible for a loan. This doesn’t hurt your credit or go on your credit report. Getting pre-qualified will give you an idea of the rate and terms you could get approved for if you opt to submit a formal application.
- Pick a loan option and complete an application. After you’ve compared lenders, choose the loan option you like best. You’ll then need to complete a full application. This is when you’ll answer information about yourself, your school and how much you need to borrow. This is also when you’ll agree to a hard credit inquiry, which can stay on your credit report for a couple of years.
- Get your funds. It could take a few days or a few weeks for you to get fully approved for a student loan, based on your application and any corresponding information the school needs to provide to the lender. If you’re approved, the funds will typically be sent directly to your school. If there’s any left over, you’ll get a check that you can use toward school-related costs, like books, room and board, supplies or transportation.
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Frequently asked questions (FAQs)
The best private bank for getting student loans is the one that’s in line with your needs. In general, the best banks are those that offer the lowest interest rates, fewest fees and least stringent barriers to qualify.
Your first step to pay for college should be to exhaust all of your free money options, including scholarships and grants. These are awards that don’t need to be repaid, and they’re available at the institutional, local, state and federal levels as well as from private organizations.
After you’ve gotten as much free aid as possible, you can look at federal aid, including federal student loans. If you need to borrow for school, it’s usually best to rely on federal loans first as they come with federal benefits and protections — such as access to income-driven repayment (IDR) plans and student loan forgiveness programs. Federal loans can also be easier to qualify for compared to private loans as most don’t require a credit check.
After all your free and federal aid has been exhausted, private student loans can help to fill any financial gaps left over.
Private student loans come from private institutions, not the federal government. This means that these loans don’t come with the federal benefits and protections that federal loans offer. For example, while federal loans have federal deferment and forbearance options, these sorts of hardship options for private loans are only available at the discretion of the lender.
You’ll also typically need good to excellent credit as well as sufficient income to qualify, which can make private loans hard to qualify for without a co-signer. Interest rates on private student loans are also sometimes higher than rates on federal loans.
As of 2023, borrowers have an average student loan debt of $37,338 in federal loan debt and $54,921 in private loan debt. How much debt you might leave school with can vary widely based on your cost of attendance, whether you attend public or private school, and whether you’re an in- or out-of-state student.
When you complete a formal student loan application, the lender will perform a hard credit check as part of the approval process. This can cause a slight but temporary drop in your credit score.
Additionally, private student loans could help to improve your credit in the long run, such as if you make all your payments on time or can diversify your credit mix.
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Editor’s Note: This article contains updated information from previously published stories:
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
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