The best student loan will always be the one that meets your needs best. That said, it’s helpful to start the process with a list of strong options to make navigating the process easier.
Here are our top picks for the best places for private student loans.
The loan options shared are in no particular order. Rates listed may reflect the lender’s autopay discount. Interest rates are subject to change.
Best Places for Private Student Loans
Arkansas Student Loan Authority (ASLA) – Both undergraduate and graduate degrees
Best for: Residents of, or students in, Arkansas.
Ascent – Both undergraduate and graduate degrees
Best for: International and DACA students who have a lower credit score.
Brazos – Both undergraduate and graduate degrees
Best for: Residents of, or student in, Texas.
College Ave – Both undergraduate and graduate degrees
Best for: Borrowers looking for a repayment term that matches their budget.
Custom Choice – Both undergraduate and graduate degrees
Best for: Borrowers who want a competitive interest rate and strong borrower benefits.
Earnest – Both undergraduate and graduate degrees
Best for: Borrowers who want a competitive interest rate and flexible repayment options.
Edly – Both undergraduate and graduate degrees
Best for: Borrowers who want an income-based repayment (IBR) loan.
EdvestinU – Both undergraduate and graduate degrees
Best for: Borrowers who want to work with a nonprofit that offers flexible repayment plans.
Funding U – Undergraduate degrees only
Best for: Borrowers that were high-achieving undergraduate students.
INvestED – Both undergraduate and graduate degrees
Best for: Borrowers who are residents of or students in Indiana.
LendKey – Both undergraduate and graduate degrees
Best for: Borrowers that want to work with a credit union or community bank.
MPOWER – Both undergraduate and graduate degrees
Best for: International and DACA borrowers without a cosigner.
Nelnet Bank – Both undergraduate and graduate degrees
Best for: Borrowers who want competitive interest rates and a flexible forbearance policy.
Prodigy Finance – Graduate degrees only
Best for: International student borrowers with no cosigner.
Sallie Mae – Both undergraduate and graduate degrees
Best for: Borrowers who want competitive interest rates and a flexible repayment plan.
SoFi – Both undergraduate and graduate degrees
Best for: Borrowers with a strong credit score or a creditworthy cosigner.
The latest rates from Sparrow’s partners
If you want to skip pre-qualification and apply directly with a lender, you can do so by clicking Apply below.
Who is Eligible for a Private Student Loan?
Private student loans are provided by private entities such as banks, credit unions, and other financial institutions. Because each lender is its own unique entity, their eligibility requirements will vary. There are a couple of requirements, however, that are fairly standard:
Be Enrolled in an Eligible Program
Private student loans can only be used for educational purposes. So, in order to be considered for a private student loan, you’ll need to be enrolled in an eligible program.
Be a U.S. Citizen, Permanent Resident, or Eligible International Student
Most private student lenders will require you to meet certain residency requirements. If you are a U.S. citizen or permanent resident, you will be eligible with most student lenders.
If you are an international student, certain student lenders may require you to apply with an eligible U.S. citizen or permanent resident cosigner. If you do not have a cosigner available, you can explore loan options with companies such as MPOWER and Prodigy Finance, who work specifically with international students with no Social Security Number or cosigner.
How to Pick the Best Place for Private Student Loans
To pick the best private student loan lender, you will want to look for the following:
A Solid Annual Percentage Rate
The Annual Percentage Rate (APR) of a student loan is the annual interest rate you will incur, plus any additional fees or costs the lender tacks on. APR is typically one of the most important elements of a student loan because it’s essentially what you’ll be “charged” each year to borrow the loan.
The Type of Interest Rate You Prefer
Student loan interest rates are either fixed or variable. Fixed interest rates will remain the same throughout the life of the loan. Variable interest rates are subject to change in response to the market. If you prefer one over the other, make sure the loan you borrow has that type of interest rate.
A Repayment Plan That Suits You
Each student lender will offer a different set of repayment plans. Like other loan features, the best repayment plan will be the one that suits you best. For example, if you know you prefer a standard repayment plan, make sure the lender you choose offers it.
A Monthly Payment You Can Afford
Once the loan enters repayment, you will be responsible for making a minimum monthly payment. Your exact monthly payment will depend on your interest rate, repayment plan, and repayment term. Before agreeing to a loan, estimate your future monthly payment to make sure it’s affordable given your predicted post-graduate salary.
A Flexible Cosigner Release Policy
To borrow a student loan, you may need a cosigner to qualify. While some cosigners are comfortable remaining on the loan until it’s paid off in its entirety, others may prefer to be released from their responsibility. If you or your cosigner would like the option to release your cosigner later on, look for a lender with a flexible cosigner release policy.
Student loan rates from our partners
Ascent
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 11/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require full
principal and interest payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 11/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require full
principal and interest payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
LendKey
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
Earnest
Student Loan Origination (Private Student Loan) Interest Rate Disclosure:
Student Loan Origination (Private Student Loan) Interest Rate Disclosure:
College Ave
College Ave Student Loans products are made available through 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) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
(2) As certified by your school and less any other financial aid you might receive. Minimum $1,000.
(3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. 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 11/1/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
College Ave Student Loans products are made available through 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) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
(2) As certified by your school and less any other financial aid you might receive. Minimum $1,000.
(3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. 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 11/1/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
What is the Best Place for Private Student Loans?
There is no one-size-fits-all approach to student loans. The best student lender for you will be the one that offers you the interest rate and loan terms that meet your needs.
To find the student lender that suits you best, complete the Sparrow form. In as little as 3 minutes, we’ll show you what rates you pre-qualify for at our 15+ partner lenders. Then, you can compare the loan rates side-by-side to be sure you’re picking the best option for you.
Sparrow’s goal is to give you the tools and confidence you need to improve your finances. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.