17 Best Private Student Loans
Always borrow federal student loans before private loans. Once you've exhausted federal options, compare offers from multiple private lenders to find the lowest interest rate.
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Private student loans are used to pay for college costs, but they originate with a bank, credit union or online lender rather than the federal government.
Private student loans can 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, work-study and federal loans.
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. Most private student loan borrowers have a co-signer.
You borrow only what you need.
Below, you can get personalized rates and find NerdWallet's top-ranked private student loans for students, parents, independent students, international students, part-time students and graduate school.
Private student loans are used to pay for college costs, but they originate with a bank, credit union or online lender rather than the federal government.
Private student loans can 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, work-study and federal loans.
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. Most private student loan borrowers have a co-signer.
You borrow only what you need.
Below, you can get personalized rates and find NerdWallet's top-ranked private student loans for students, parents, independent students, international students, part-time students and graduate school.
Best Private Student Loans
Lender | NerdWallet rating | Min. credit score | Fixed APR | Variable APR | Learn more |
---|---|---|---|---|---|
![]() Sallie Mae Private Student Loan Check rate on Sallie Mae's website | Best for Private student loan | Mid- | 4.50- | 5.37- | Check rate on Sallie Mae's website |
Ascent Credit-based Student Loan Check rate on Ascent's website | Best for Private student loan + International students | Varies | 4.62- | 5.74- | Check rate on Ascent's website |
College Ave Private Student Loan Check rate on College Ave's website | Best for Private student loan + Part-time students | Mid- | 4.49- | 4.49- | Check rate on College Ave's website |
Earnest Private Student Loan Check rate on Earnest's website | Best for Private student loan | 650 | 4.45- | 4.79- | Check rate on Earnest's website |
![]() SoFi Private Student Loan Check rate on SoFi's website | Best for Private student loan | Mid- | 4.49- | 5.49- | Check rate on SoFi's website |
![]() Discover Undergraduate and Graduate Student Loans Check rate on Discover's website | Best for Private student loans | Does not disclose | 5.49- | 5.87- | Check rate on Discover's website |
Our pick for
Private student loan
![Sallie Mae Private Student Loan](https://www.nerdwallet.com/cdn-cgi/image/quality=85/cdn/loans/edu/SallieMae_Blue_Alt.png)
on Sallie Mae's website
Sallie Mae Private Student Loan
![Sallie Mae Private Student Loan](https://www.nerdwallet.com/cdn-cgi/image/quality=85/cdn/loans/edu/SallieMae_Blue_Alt.png)
Min. credit score
Mid-Fixed APR
4.50-Variable APR
5.37-on Sallie Mae's website
on Ascent's website
Ascent Credit-based Student Loan
Min. credit score
VariesFixed APR
4.62-Variable APR
5.74-on Ascent's website
on College Ave's website
College Ave Private Student Loan
Min. credit score
Mid-Fixed APR
4.49-Variable APR
4.49-on College Ave's website
on Earnest's website
Earnest Private Student Loan
Min. credit score
650Fixed APR
4.45-Variable APR
4.79-on Earnest's website
![SoFi Private Student Loan](https://www.nerdwallet.com/cdn-cgi/image/quality=85/cdn/loans/edu/sofi.png)
on SoFi's website
SoFi Private Student Loan
![SoFi Private Student Loan](https://www.nerdwallet.com/cdn-cgi/image/quality=85/cdn/loans/edu/sofi.png)
Min. credit score
Mid-Fixed APR
4.49-Variable APR
5.49-on SoFi's website
![Custom Choice Loan, Powered by Cognition](https://www.nerdwallet.com/cdn-cgi/image/quality=85/cdn/loans/edu/custom_choice.png)
on Cognition's website
Custom Choice Loan, Powered by Cognition
![Custom Choice Loan, Powered by Cognition](https://www.nerdwallet.com/cdn-cgi/image/quality=85/cdn/loans/edu/custom_choice.png)
Min. credit score
VariesFixed APR
3.65-Variable APR
5.46-on Cognition's website
on Education Loan Finance's website
Education Loan Finance Private Student Loan
Min. credit score
680Fixed APR
3.98-Variable APR
3.98-on Education Loan Finance's website
on Funding U's website
Funding U Private Student Loan
Min. credit score
NoneFixed APR
7.49-Variable APR
N/Aon Funding U's website
on LendKey's website
LendKey Private Student Loan
Min. credit score
660Fixed APR
4.89-Variable APR
5.36-on LendKey's website
Our pick for
Private student loans
![Discover Undergraduate and Graduate Student Loans](https://www.nerdwallet.com/cdn-cgi/image/quality=85/cdn/loans/edu/DiscoverEdu.png)
on Discover's website
Discover Undergraduate and Graduate Student Loans
![Discover Undergraduate and Graduate Student Loans](https://www.nerdwallet.com/cdn-cgi/image/quality=85/cdn/loans/edu/DiscoverEdu.png)
Min. credit score
Does not discloseFixed APR
5.49-Variable APR
5.87-on Discover's website
Our pick for
No co-signer
Federal student loans don't require a co-signer; neither do these lenders.
on Funding U's website
Funding U Private Student Loan
Min. credit score
NoneFixed APR
7.49-Variable APR
N/Aon Funding U's website
on Ascent's website
Ascent Non-Cosigned Student Loan
Min. credit score
VariesFixed APR
9.63-Variable APR
9.39-on Ascent's website
Our pick for
International students
Ascent requires a co-signer; MPOWER does not.
![MPOWER Private Student Loan](https://www.nerdwallet.com/cdn-cgi/image/quality=85/cdn/loans/edu/mpower.png)
on MPOWER's website
MPOWER Private Student Loan
![MPOWER Private Student Loan](https://www.nerdwallet.com/cdn-cgi/image/quality=85/cdn/loans/edu/mpower.png)
Min. credit score
N/AFixed APR
13.72-Variable APR
N/Aon MPOWER's website
on Ascent's website
Ascent Credit-based Student Loan
Min. credit score
VariesFixed APR
4.62-Variable APR
5.74-on Ascent's website
Our pick for
Parent loan
ISL Private Student Loan
![ISL Private Student Loan](https://www.nerdwallet.com/cdn/loans/edu/ISL-2.jpg)
Min. credit score
670Fixed APR
3.85-Variable APR
4.44-Our pick for
Part-time students
Not all lenders consider students enrolled less than half-time.
RISLA Private Student Loan
![RISLA Private Student Loan](https://www.nerdwallet.com/cdn-cgi/image/quality=85/cdn/loans/edu/risla.png)
Min. credit score
680Fixed APR
4.99-Variable APR
N/Aon College Ave's website
College Ave Private Student Loan
Min. credit score
Mid-Fixed APR
4.49-Variable APR
4.49-on College Ave's website
Our pick for
Income share agreement
Income share agreement student loans give you money to finish school in return for part of your pay later.
Edly Private Student Loan
![Edly Private Student Loan](https://www.nerdwallet.com/cdn/loans/edu/Edly.png)
Min. credit score
NoneFixed APR
N/AVariable APR
N/AOur pick for
Graduate school
on Ascent's website
Ascent Graduate and Health Professions Student Loan
Min. credit score
VariesFixed APR
5.62-Variable APR
6.75-on Ascent's website
on College Ave's website
College Ave Graduate Student Loan
Min. credit score
Mid-Fixed APR
4.49-Variable APR
4.49-on College Ave's website
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?
How do private student loans and federal student loans differ?
You apply for a federal student loan by submitting a 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 also have flat interest rates set by Congress, while the interest rate on a private student loan depends on your or your co-signer’s credit. Federal loans charge origination fees; private loans typically do not.
Federal student loans offer borrowers protections and alternative repayment options that private loans usually don't, such as income-based repayment and forgiveness programs. The current interest-free loan forbearance does not include private student loans; any future forgiveness offer is unlikely to include them.
How do I choose a private student 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 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. With most loans for students, credit score and income are taken into account. Higher scores and incomes tend to get the best rates or higher borrowing amounts. However, since undergraduate borrowers are less likely to have established credit or an income, lenders will usually require students to apply with a co-signer. Some lenders who have loans for borrowers without a co-signer will consider career 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’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 either 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, you have no way to demonstrate that you can pay bills on time. Your co-signer will need to have a steady income as well as good to excellent credit scores, typically at least in the high 600s. Signing with a co-signer means they’re on the hook for your loan bill if you can’t pay.
Some lenders offer loans exclusively for student borrowers that don't take credit into consideration. Instead, these lenders look at the school you’re attending as well as your income and career potential to determine the amount you can borrow and at what rate.
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 attendance and cost information or a 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.
Current student loan interest rates
The NerdWallet team of student loans experts analyzed reported rates from 24 lenders over a period of 39 months. We considered four variables — average maximum fixed rates, average minimum fixed rates, average maximum variable rates and average minimum variable rates — for each lender on a month-over-month basis.
The average rates as of Feb. 8, 2023, were:
Minimum fixed interest rate - 5.03%.
Maximum fixed interest rate - 14.85%.
Minimum variable interest rate - 5.49%.
Maximum variable interest rate - 14.75%.
Average rates in general have trended upward over the last 12 months, with lenders increasing the maximum interest rate considerably since the December 2022.
The reported rates represent lenders' advertised ranges. It's best to prequalify with multiple lenders to ensure you accept the best rate available to you.
Lenders typically offer the lowest rates to those with the strongest financial profiles. Based on our analysis, less than 30% of borrowers are offered the lowest rate. That percentage includes companies that offer all borrowers the same rate. Excluding those companies, less than 18% of borrowers are offered the lowest rate.
Use this chart and data to gauge how your student loan offers measure against typical interest rate ranges.
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.
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 |
Sallie Mae study: Less than half of families with college-bound students feel confident about paying for college.
Among families with college-bound students, 47% think they’ll need to borrow to finance a college education, according to Sallie Mae’s 2022 College Confidence study. Yet just under half of those families identified federal direct subsidized and unsubsidized loans as aid that needs to be repaid, underlining the importance of learning the obligations of the debt you’ve been offered before accepting it.
Additionally, those families with college-bound students aren’t clear on the purpose of the FAFSA; 34% don’t know why someone would submit the FAFSA, and 44% don’t know that it’s for everyone, regardless of income level. 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.
NerdWallet study: College-bound grads could exit with nearly $40K of student loan debt
A 2022 high school graduate who will depend on student loans to pay for college could expect to borrow $39,500 for their bachelor’s degree, according to a new NerdWallet analysis. The share of parents taking out federal parent PLUS loans to help cover the costs of their children's college education has also grown significantly.
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.
STUDENT LOAN RATINGS METHODOLOGY
Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.
We consider 40 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.
The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
Read more about our ratings methodologies for student loans and our editorial guidelines.
Last updated on February 8, 2023
To recap our selections...
NerdWallet's Best Private Student Loans
- Sallie Mae Private Student Loan: Best for Private student loan
- Ascent Credit-based Student Loan: Best for Private student loan + International students
- College Ave Private Student Loan: Best for Private student loan + Part-time students
- Earnest Private Student Loan: Best for Private student loan
- SoFi Private Student Loan: Best for Private student loan
- Discover Undergraduate and Graduate Student Loans: Best for Private student loans
- Custom Choice Loan, Powered by Cognition: Best for Private student loan
- Education Loan Finance Private Student Loan: Best for Private student loan
- Funding U Private Student Loan: Best for Private student loan + No co-signer
- LendKey Private Student Loan: Best for Private student loan
- Ascent Non-Cosigned Student Loan: Best for No co-signer
- MPOWER Private Student Loan: Best for International students
- ISL Private Student Loan: Best for Parent loan
- RISLA Private Student Loan: Best for Part-time students
- Edly Private Student Loan: Best for Income share agreement
- Ascent Graduate and Health Professions Student Loan: Best for Graduate school
- College Ave Graduate Student Loan: Best for Graduate school
Frequently asked questions
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.
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.
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.
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.