Private student loans become necessary after a student receives their financial aid package and learns that there is still a gap between what they’ve been given and what they can afford to pay. Students should not use private student loans until their federal loan options have been exhausted, as federal loans typically have lower interest rates.
There are a variety of private student loan options, and students must research which option is best for them. Key information to understand student loans includes being aware of the annual and cumulative loan limits, interest rates, fees, and loan term for the most popular private student loan programs. Additionally, Credible and other student loan comparison sites provide tools to help you find loans that match your criteria.
Featured Student Loan Providers
College Ave Student Loans – Undergraduate Student Loans
College Ave Student Loans offers loan options for undergrads, grad students and parents. Our loans are designed to give you great rates plus the most repayment options so you can create a loan that fits your monthly budget while paying as little interest as possible.
Our simple application process takes just 3 minutes to complete and get an instant credit decision. Not sure which repayment plan is right for you? Our student loan calculator and free credit pre-qualification tool can help.
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 1/9/2025. 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.
Loan
Undergraduate Student Loan Help cover tuition and other education costs for students in associates and bachelors degree programs.2
You decide whether to make loan payments during school:
• Full Principal and interest payments
• Interest only payments
• $25 payments each month during school3
• Defer payments while in school
Limits
COA-Aid ($1,000 minimum)2
Rates
Variable Rates: 4.69% – 17.99% APR (with auto-pay discount)1
Fixed Rates: 3.47% – 17.99% APR (with auto-pay discount)1
Fees and Terms
No application or origination fees and no penalties for paying early.
Choose between 5, 8, 10 or 15 year options.3
Credible
Credible offers borrowers a “kayak-style” experience while shopping for personalized prequalified rates. Similar to the “Common App,” users (and co-signers) complete a single, brief form and receive personalized prequalified rates from multiple lenders. Checking rates on Credible is free and does not impact a user’s credit score to compare offers.
Credible’s marketplace includes:
- Abe
- Ascent
- Citizens
- College Ave
- Custom Choice
- ELFI
- INvestEd
- MEFA
- Nelnet Bank
- Sallie Mae – UG
- Sofi
Please be advised that the operator of this site accepts advertising compensation from companies that appear on the site, and such compensation may impact the location and order in which the companies (and/or their products) are presented.
Disclosure: Personalized Prequalified Rates on Credible is free and doesn’t affect your credit score. However, applying for or closing a loan will involve a hard credit pull that impacts your credit score and closing a loan will result in costs to you. Prequalified rates are based on the information you provide and a soft credit inquiry. Receiving prequalified rates does not guarantee that the Lender will extend you an offer of credit. You are not yet approved for a loan or a specific rate. All credit decisions, including loan approval, if any, are determined by Lenders, in their sole discretion. Rates and terms are subject to change without notice. Rates from Lenders may differ from prequalified rates due to factors which may include, but are not limited to: (i) changes in your personal credit circumstances; (ii) additional information in your hard credit pull and/or additional information you provide (or are unable to provide) to the Lender during the underwriting process; and/or (iii) changes in APRs (e.g., an increase in the rate index between the time of prequalification and the time of application or loan closing. (Or, if the loan option is a variable rate loan, then the interest rate index used to set the APR is subject to increases or decreases at any time). Lenders reserve the right to change or withdraw the prequalified rates at any time.
Loan
Choose between personalized prequalified rates, as well as deferred and interest-only repayment options for your school loans.
Graduate and undergraduate loans for almost every degree type.
Repayment options range from immediate full repayment (principal and interest payments immediately after the loan is fully disbursed), interest only (interest-only payments while you are in school, and start making principal and interest payments after you leave school), full deferral while in school, flat payment while in-school, graduated repayment (payments increase over time).
Limits
COA-Aid (annual limit)
Borrow up to $170,000 through Credible’s marketplace.
Annual max (100% of school certified costs minus other financial aid received).
Lifetime aggregate loan amount 200K.
Rates
3.39% Fixed APR (with autopay)* and 4.75% Variable APR (with autopay) See Terms*
*Read rates and terms at Credible.com.
Fees and Terms
No fees.
5, 7, 8, 10, 12, 15 and 20 year terms available.
Student Loan Providers
College Ave Student Loans – Graduate Student Loans
College Ave Student Loans offers loan options for undergrads, grad students and parents. Our loans are designed to give you great rates plus the most repayment options so you can create a loan that fits your monthly budget while paying as little interest as possible.
Our simple application process takes just 3 minutes to complete and get an instant credit decision. Not sure which repayment plan is right for you? Our student loan calculator and free credit pre-qualification tool can help.
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 1/9/2025. 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.
Loan
Graduate Student Loan Cover the costs of school for students pursuing a masters, doctoral or professional degree.2
Graduate students should also check out our other graduate loan products…
• Dental Loan
• Medical Loan
• Law School Loan
• MBA Loan
• Graduate Health Professional Loan
You can also choose from 4 different repayment options
Limits
COA-Aid ($1,000 minimum)2
Rates
Variable Rates: 4.69% – 14.49% APR (with auto-pay discount)1
Fixed Rates: 3.47% – 14.49% APR (with auto-pay discount)1
Fees and Terms
No application or origination fees and no penalties for paying early.
Choose between 5, 8, 10 or 15 year options.3
College Ave Student Loans – Parent Loans
College Ave Student Loans offers loan options for undergrads, grad students and parents. Our loans are designed to give you great rates plus the most repayment options so you can create a loan that fits your monthly budget while paying as little interest as possible.
Our simple application process takes just 3 minutes to complete and get an instant credit decision. Not sure which repayment plan is right for you? Our student loan calculator and free credit pre-qualification tool can help.
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 1/9/2025. 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 full principal and interest payments with the shortest available loan term.
Loan
Help pay for your child’s education with a customized loan.
Choose how quickly to pay back the loan:
• Full Principal and interest payments
• Interest plus payment
• Interest only payments
Limits
COA-Aid ($1,000 minimum)2
Rates
Variable Rates: 4.69% – 17.99% APR (with auto-pay discount)1
Fixed Rates: 3.47% – 17.99% APR (with auto-pay discount)1
Fees and Terms
No application or origination fees and no penalties for paying early.
Choose to pay back the loan in as little as 5 years or take up to 12 years (or pick something in between).3
Sallie Mae® – Undergraduate Student Loans
Get the money you need to pay for undergraduate, career training or trade school costs—bigger ones like tuition and housing, and smaller ones like books and a laptop.3
You have options:
- Apply once to get money for the whole year.
- Choose from multiple repayment options, including no payments while in school.1
- Borrow up to 100% of your school-certified expenses, whether you’re studying online or on-campus.3
- Add a cosigner. Last year, students were 4X more likely to be approved with a cosigner9 and it may help you get a better rate.
Choose the #1 Private Student Loan Lender in the Nation. Applying online is easy – you could receive a credit result in about 10 minutes.
More Sallie Mae Loan & Disclosure Information
Sallie Mae reserves the right to modify or discontinue products, services, and benefits at any time without notice and provides compensation to Finaid for the referral of loan customers. Terms, conditions, and limitations apply.
Information advertised valid as of 12/26/2024.
Index is the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent.
Loan
For undergraduate and career training students. (School Certified)
Pay now or later – choose an in-school repayment option or deferment option1:
• Make monthly interest-only payments while in school
• Make monthly fixed $25 payment while in school8
• Defer payment until after you finish school
Limits
Borrow up to 100% of school-certified expenses ($1,000 minimum)3
Rates
• Variable Rates: 30-day SOFR + 5.05% (4.79% APR) to 30-day SOFR + 16.00% (14.96 APR)1
• Fixed Rates: 3.74% (3.49% APR) to 16.53% (15.49% APR)1
• Get a 0.25 percentage point interest rate reduction when you enroll and make monthly payments by auto debit. Lowest APRs shown include the auto debit discount.1
Fees and Terms
• 10-15 years based on cumulative Sallie Mae loan balance, repayment option and year in school.8
• No prepayment penalty or origination fees. You can pay off your undergraduate student loan as early as you’d like to reduce your total loan cost.5
We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.
Sallie Mae® – Graduate Student Loans
Get the money you need to pay for your graduate degree or post-graduate studies.
- Apply once to get money for the whole year.
- Choose from multiple repayment options, including no payments while in school.6
- Add a cosigner. Last year, students were 4X more likely to be approved with a cosigner0 and it may help you get a better rate.
Choose the #1 Private Student Loan Lender in the Nation. Applying online is easy – you could receive a credit result in about 10 minutes.
More Sallie Mae Loan & Disclosure Information
Sallie Mae reserves the right to modify or discontinue products, services, and benefits at any time without notice and provides compensation to Finaid for the referral of loan customers. Terms, conditions, and limitations apply.
Information advertised valid as of 12/26/2024.
Index is the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent.
0Based on a comparison of the percentage of students who were approved with a cosigner to the percentage of students who were approved without a cosigner from October 1, 2022 to September 30, 2023.
Loan
Sallie Mae® Graduate Student Loan Suite
For Graduate and Professional School Students attending degree-granting institutions only.
Depending on the professional field that you’re planning to enter, you may have different needs for a graduate student loan. That’s why Sallie Mae offers graduate student loans designed for specific degrees. Our suite of school-certified graduate loans include:
- MBA Loan
- Medical School Loan
- Law School Loan
- Dental School Loan
- Graduate School Loan
- Health Professions Graduate Loan
Choose from multiple repayment options.
Limits
Most of Sallie Mae’s graduate student loans let you borrow from $1,000 up to 100% of the school-certified expenses.
Visit SallieMae.com for details on individual graduate loans.
Rates
Rates vary by graduate loan type. Visit SallieMae.com for details on individual graduate loans.
Get a 0.25 percentage point interest rate reduction when you enroll in and make monthly payments by auto debit.6
Fees and Terms
No prepayment penalty or origination fee. You can pay off your graduate student loan as early as you’d like to reduce your total loan cost.*
*Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note – first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.
Please be advised that the operator of this site accepts advertising compensation from companies that appear on the site, and such compensation impacts the location and order in which the companies (and/or their products) are presented.
Additional Lenders listed below. Visit lender website for updated information.
- Connecticut Higher Education Supplemental Loan Authority (CHESLA)
- Credit Union Student Choice
- DEAL One Loan – Bank of North Dakota
- Higher Education Servicing Corp. (Texas)
- Maine Educational Loan Authority
- Massachusetts Educational Financing Authority (MEFA)
- Minnesota Office of Higher Education
- Navy Federal Credit Union
- PNC Education Lending
- Regions Bank
- Rhode Island Student Loan Authority (RISLA)
- SoFi, Inc.
- South Carolina Student Loan Corporation
How Do Private Student Loans Work?
Private student loans first require an application. If a student is approved for the loan, the money will typically be paid to their college and will cover tuition, fees, room and board, and any other necessary student expenses. If there is money left over, the student can use those funds to pay for personal expenses.
What is a Good Private Student Loan Interest Rate?
Private student loans have two types of interest rates: fixed and variable. Fixed rates will stay the same over the lifetime of the loan, whereas variable rates will start low and increase over time. It is not uncommon for lenders to advertise a lower rate for the in-school and grace period, with a higher rate in effect when the loan enters repayment.
Interest rates vary based on the economic climate. Generally, private student loan rates are higher than federal loan rates, but not by too much. Before borrowing, students should use Finaid’s Loan Payment Calculator to get a picture of what repayment will look like after graduation. This will help potential buyers make a more informed decision on how much to borrow and the impacts of different interest rates.
Borrowers with bad credit can expect interest rates that are as much as 6% higher, loan fees that are as much as 9% higher, and loan limits that are two- thirds lower than the advertised figures. The Annual Percentage Rates (APR) for variable rate loans, if listed, are only the current APRs and are likely to change over the term of the loan.
Borrowers should be careful about comparing loans based on the APR, as the APR may be calculated under different assumptions, such as a different number of years in repayment. A longer repayment term will have a lower APR even though the borrower will pay more in interest over time.
How Much are Student Loan Fees?
The fees charged by some lenders can significantly increase the cost of the loan. A loan with a relatively low interest rate but high fees can ultimately cost more than a loan with a somewhat higher interest rate and no fees.
A good rule of thumb is that 3% to 4% in fees is about the same as a 1% higher interest rate. Be wary of comparing loans with different repayment terms according to APR, as a longer loan term reduces the APR despite increasing the total amount of interest paid. Finaid’s Loan Comparison Calculator may be used to generate an apples-to-apples comparison of different loan programs.
How to Apply for Private Student Loans
Applying for a private student loan is typically a quick and easy process. Most students begin the process after they have received their financial aid packages during the spring of their senior year, while some wait until summer break to begin. Generally, the application process is as follows:
- Research and compare private student loan lenders.
- Prequalify for a student loan, if possible.
- Determine the necessary loan amount and gather financial information.
- Fill out applications for 3 – 5 lenders.
- Compare offers to determine which is best.
Who is Eligible for a Private Student Loan?
Just like any other loan, students must have a minimum credit score. In most circumstances, they must also have a co-signer with a good credit score. Before applying for the loan, lenders will help applicants determine their credit score.
There may also be other requirements to be eligible, like attending an accredited school, citizenship or permanent resident status, meeting enrollment and academic standards, and passing the debt-to-income ratio minimum. Before applying for the loan, a lender will work with students and parents to verify their eligibility.
How are Private Student Loans Paid Out?
Once a student loan has been approved, the lender will pay the amount loaned directly to the school. If the student has requested extra funds to help cover the cost of their personal expenses, like groceries and clothing, a check or direct deposit will be delivered to the student from the school.
Loans are usually dispersed at the start of each semester, but it’s important to clarify when those payments will be made throughout the application process.
