5 Excellent Private Student Loans
Compare offers from multiple private lenders to find the lowest student loan interest rate — but only after you've exhausted all federal financial aid.
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Private student loans originate with a bank, credit union or online lender — unlike federal student loans that are handled by the federal government.
You can use both federal and private loans to pay for school, but federal loans are usually a better choice. They often come with more favorable terms — like lower interest rates, flexible repayment options and loan forgiveness.
Private student loans can still be a good option if:
You have already completed the Free Application for Federal Student Aid, known as the FAFSA, to see if you’re eligible for federal grants and work-study programs.
You have already borrowed the maximum in both subsidized and unsubsidized federal student loans.
You have good credit (a credit score of 690 or above) or a co-signer who does. It’s common for many private student loan borrowers to apply with a co-signer.
You borrow only what you can pay back.
Below, you can get personalized rates and find NerdWallet's top-ranked private student loan providers for students, parents, independent students, international students, part-time students and graduate school.
Excellent Private Student Loans
| Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
5.0 /5 | Mid-600s | 3.47-17.99% | 4.99-17.99% | get rateson College Ave's websiteon College Ave's website | |
4.5 /5 | Mid-600's | 3.49-15.49% | 4.92-15.08% | get rateson Sallie Mae's websiteon Sallie Mae's website | |
5.0 /5 | Mid-600s | 3.54-15.99% | 5.54-15.99% | get rateson SoFi's websiteon SoFi's website | |
4.0 /5 | Does not disclose | 4.99-14.29% | 5.17-14.83% | get rateson Citizens's websiteon Citizens's website | |
4.0 /5 | 680 | 3.69-14.22% | 5.00-14.22% | COMPARE RATESon Credible’s websiteon Credible’s website |
Private student loan
College Ave Private Student Loan
Mid-600s
3.47-17.99%
4.99-17.99%
College Ave Student Loans is an online lender that offers student loans for undergraduates, graduate students and parents, plus student loan refinancing.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- More flexible repayment options than other lenders.
- Six-month grace period extension is available.
- You must be at least halfway through your repayment term before you can request a co-signer release.
- Typical credit score of approved borrowers: Mid-700s.
- Minimum income: $35,000 per year.
- Loan amounts: $1,000 up to cost of attendance.
Sallie Mae Undergraduate Student Loan
Mid-600's
3.49-15.49%
4.92-15.08%
- One of the few lenders to provide loans to part-time students.
- Non-U.S. citizens, including DACA students, who live in the U.S. and attend school in the U.S. can apply with a qualified co-signer who is a U.S. citizen or permanent resident.
- You can't see if you’ll qualify and what rate you’ll get without a hard credit check.
- Typical credit score of approved borrowers or co-signers: Does not disclose.
- Minimum income: Did not disclose.
- Loan amounts: $1,000 up to 100% of the school-certified expenses.
SoFi Undergraduate Student Loan
Mid-600s
3.54-15.99%
5.54-15.99%
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Multiple in-school repayment options available, including interest-only and flat-fee, and deferred for undergrad and grad students.
- Does not offer bi-weekly payments via autopay.
- Typical credit score of approved borrowers or co-signers: 700+.
- Minimum income: No minimum.
- Loan amounts: $1,000 minimum.
Citizens Private Student Loan
Does not disclose
4.99-14.29%
5.17-14.83%
- Six-month grace period extension is available.
- Loyalty discount for existing Citizens Bank customers.
- Multiyear loan approval is available.
- You must be pursuing a bachelor’s degree or higher.
- You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
- Typical credit score of approved borrowers: Does not disclose.
- Minimum income: Did not disclose.
- Loan amounts: $1,000 to $100,000.
ELFI Private Student Loan
680
3.69-14.22%
5.00-14.22%
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- You are assigned a student loan advisor.
- No co-signer release available.
- Typical credit score of approved borrowers or co-signers: Not available.
- Minimum income: $35,000.
- Loan amounts: $1,000 up to your total cost of attendance.
Learn more about private student loans
Find a student loan: Compare private student loans, types and rates
Pros and cons: How federal and private student loans differ
How to apply: Wondering where to apply for student loans first?
Find the best student loan companies for:
Options for independent students | |
Remove parents from your student loans quickly | |
College loans in a parent's name | |
Lenders that don't require a full-time class load | |
Funding without a credit score requirement | |
Most lenders require a U.S. co-signer | |
PLUS loans, co-signer and other options |
Loans for students
How do private student loans and federal student loans differ?
You apply for a federal student loan by submitting the FAFSA. Taking on a federal loan means you’re borrowing from the government. You apply for a private student loan through a bank, credit union or online lender.
Federal student loans only come with fixed interest rates — rates that are locked in for the life of the loan — that are set by Congress annually. Private lenders can offer fixed or variable rates that are based on your creditworthiness — and your co-signer's if you have one. Federal loans also charge origination fees; private loans typically do not.
Borrowers of federal student loans get extra protections — like income-driven repayment and Public Service Loan Forgiveness — that private loans lack.
How do I choose a private college loan online?
Compare offers from multiple lenders including banks, credit unions, online companies and state-based lenders to find the lowest interest rate. Depending on the lender, you may be able to choose a fixed or a variable interest rate. A fixed rate stays the same throughout the life of a loan. A variable rate may start out lower than a fixed rate, but could increase or decrease over time depending on economic conditions.
Consider any borrower protections your private lender offers, including deferment and forbearance, as well as other repayment options. You may also have the option to choose your loan term, which means you could pay off your loan faster and with less interest by making higher payments or pay lower amounts with more interest over a longer period of time.
» MORE: How to get a student loan
How do I qualify for a private student loan?
Each lender will have its own requirements for taking out a loan. Credit score and income are taken into account for most student loans. Higher credit scores and incomes tend to get the best rates and are more likely to be approved for higher borrowing amounts. Since undergraduate borrowers are less likely to have established credit or income, lenders will usually prompt students to apply with a co-signer. Some lenders who have loans for borrowers without a co-signer will consider academic performance and income potential.
Lenders will often require you to attend a Title IV school, which means your school processes federal student aid. Some lenders don't offer loans in certain states.
Can I get a private student loan with bad credit?
You’ll have a hard time finding a private student loan from a bank, credit union or online lender if you have bad credit. Federal student loans don’t require borrowers to demonstrate creditworthiness, so they’ll be your best option if you have bad credit. If you’ve already hit your limit on federal loans, you may be able to get a private student loan if you apply with a co-signer who has solid credit — typically scores in the high 600s or better.
Will I need a co-signer for a private student loan?
If you have no income and no credit or bad credit, you’ll need a co-signer to get a private student loan. Without bills in your name, such as a credit card, car loan or utility, it's hard to demonstrate that you can pay bills on time. Your co-signer will need a steady income and excellent credit scores, typically in the high 600s. Signing with a co-signer means they’re on the hook for your loan if you can no longer pay it.
Some private lenders will let students apply without a co-signer. Instead of basing your loan offer on your credit, they look at your academic performance and earning potential to determine your ability to pay back the debt.
How do I apply for a private student loan?
Each lender will have its own application requirements. You’ll usually need to provide documents that prove citizenship, identity and income along with school information, like cost of attendance or the financial aid award letter from your college.
As part of underwriting, you or your co-signer will need to show you have a credit score in the high 600s or higher, as well as cash flow to make loan payments. They’ll also look at your or your co-signer’s debt-to-income ratio to make sure you have the funds to pay a student loan bill in addition to any other bills in your name.
How exactly do student loan interest rates work?
Learn more about how student loan interest rates are determined, including a history of rate changes through the years. Private student loan interest rates can sometimes be lower than federal rates, but approval for the lowest rates requires excellent credit. If you have good credit, you may be able to refinance existing student loans to get a lower rate.
Recent studies on paying for college
NerdWallet study: College-bound grads could exit with $37K of student debt
A 2024 high school graduate who will depend on student loans to pay for college can expect to borrow about $37,000 for their bachelor’s degree, according to a recent NerdWallet analysis.
For more details, and to learn a number of ways to cut down on the amount borrowed for a bachelor's degree before, during and after college, see the full study here.
» MORE: 2024 student debt statistics
College Board study: More than half of college students take out student loans
Among 2021-22 bachelor's degree recipients from public and private four-year colleges, 51% graduated with student debt, according to College Board’s latest 2023 Trends in College Pricing and Student Aid study.
However, overall student borrowing is steadily falling. In 2022-23, borrowing decreased for the 12th year in a row, the study found. Families borrowed $98 billion in federal and private student loans, down from an inflation-adjusted peak of $153 billion in 2010-11.
If you or your child are considering going to college, familiarize yourself with all of the options available to you to fund that education — and submit the FAFSA to be considered for the most aid possible.
Frequently asked questions
- When should you get a private student loan?
Take out a private student loan only after you have exhausted your eligibility for federal student loans and you need additional financing to cover your remaining financial need. Borrow only what you need.
- Who qualifies for a private student loan?
To qualify for most private student loans, you (or your co-signer) will need good credit and income. Information on your citizenship and your education costs, among other criteria, is also required.
- How do you find the best private student loan?
Compare offers from multiple lenders to see which will offer you the lowest interest rate. Ensure that lender meets your other needs, like offering funding in your state or for your degree program.
- Will you need a co-signer for a private student loan?
You will almost certainly need a co-signer to meet a lender’s credit and income requirements. A few lenders consider borrowers without a co-signer, looking at career and income potential instead.
