15 Best Private Student Loans

Are you looking for the perfect private student loan to help fund your education? Look no further In this blog post, we have compiled a list of the 15 best private student loans on the market. Whether you need help covering tuition costs, books, or living expenses, these loans offer competitive rates and flexible repayment options to suit your needs.

Private student loans are a type of financing option available to students who need additional funds to cover the cost of their education. Unlike federal student loans, which are funded by the government, private student loans are provided by banks, credit unions, and other financial institutions.

Why they may be necessary

Private student loans may be necessary for several reasons. Firstly, federal student loans have borrowing limits that may not cover the full cost of attendance for some students. This is especially true for those attending more expensive schools or pursuing advanced degrees.

Private student loans can be used to supplement any gaps in scholarship or grant funding. Scholarships and grants can help reduce the overall amount needed for education expenses, but they typically do not cover everything. Private student loans can bridge these gaps and ensure that students have enough money to cover all their educational costs.

It also offer flexibility in terms of repayment options. Unlike federal loans which have strict repayment plans and fixed interest rates, private lenders offer a variety of repayment plans with different interest rates based on individual credit scores and financial history. This allows borrowers to choose a plan that best fits their financial situation and potentially save them money in the long run.

Another important factor is timing private loan applications can be processed quickly compared to federal ones which require filling out lengthy forms and waiting periods before approval. For students who need immediate funding for educational expenses such as tuition fees or textbooks, private student loans can provide a faster solution.

Many students may not qualify for federal aid due to various reasons such as immigration status or income limitations. In these cases, private student loans may be the only option available to finance higher education.

Factors to consider when choosing a private student loan

1. Interest Rates and Repayment Terms: The interest rate is an important factor to consider when choosing a private student loan as it directly affects how much you will ultimately end up paying back. Private loans typically have variable or fixed interest rates, with variable rates being subject to change over time based on market conditions. Fixed rates offer more stability but may be initially higher than variable rates. It is important to also look at the repayment terms offered by different lenders, such as the length of the repayment period and if there are any options for deferment or forbearance.

2. Loan Fees: Some lenders charge origination fees or other fees that can significantly increase the cost of borrowing over time. Always make sure to read through all the details of a loan agreement and compare fees across different lenders before making your final decision.

3. Credit Requirements: Unlike federal student loans, which do not require a credit check, most private loans do take into account your credit history and score when determining eligibility and interest rates. If you have little or no credit history, you may need a co-signer with good credit to secure a private student loan.

4. Flexible Repayment Options: Look for lenders that offer flexible repayment options such as graduated repayment plans or income-driven plans that adjust payments based on your income level after graduation. These options can provide some relief if you encounter financial difficulties after finishing school.

5. Interest Rate Discounts: Many lenders offer discounts on their interest rates for meeting certain requirements such as enrolling in automatic payments or maintaining good grades throughout college. Make sure to inquire about potential discounts to see if you qualify.

6. Customer Service and Reputation: It is important to research the lender’s customer service reputation before making a decision. Look for reviews and ratings from other borrowers to get an idea of their experience with the lender. Additionally, consider reaching out to the lender directly with any questions or concerns before finalizing your loan agreement.

15 Best Private Student Loans

1. Sallie Mae

This lender offers fixed and variable interest rate options starting from 4.25% APR and flexible repayment terms ranging from 5 to 15 years. To be eligible for a Sallie Mae loan, you must be enrolled in a degree-granting program at least half-time.

2. Discover Student Loans

With Discover Student Loans, you can choose between fixed or variable interest rates starting from 4.24% APR and enjoy no application fees or origination fees. You must have good credit or apply with a cosigner to be eligible for this loan.

3. College Ave Student Loans

This lender offers both undergraduate and graduate loans with fixed and variable interest rates starting from 3.34% APR. They also offer flexible repayment plans including deferred payments while in school or immediate full payments to fit your financial needs.

4. Citizens Bank

With Citizens Bank, you can borrow up to $90,000 per year for undergraduate studies and $110,000 per year for graduate studies at competitive fixed or variable interest rates starting from 3.99% APR.

5 . Wells Fargo

This lender offers both undergraduate and graduate loans with competitive fixed and variable interest rates starting from 3.39% APR. They also offer various repayment options including deferred, immediate, and interest-only payments.

6. Sallie Mae Parent Loan

This loan is specifically designed for parents or other creditworthy individuals who want to help finance their child’s education. Interest rates start at 5.49% APR and repayment terms can range from 10 to 25 years.

7. Ascent Student Loans

Ascent offers loans for undergraduate, graduate, and health professions students with fixed and variable interest rates starting from 3.53% APR. They also have a unique “Income Share” option where you pay a percentage of your income instead of a fixed monthly payment.

8. CommonBond

This lender offers both undergraduate and graduate loans with competitive fixed and variable interest rates starting from 3.74% APR. You can also choose between immediate or deferred repayment options while in school.

9. Earnest

With Earnest, you can borrow up to the cost of attendance with no maximum limit at competitive fixed and variable interest rates starting from 1.05% APR (with autopay discount). They also offer flexible repayment plans and no application or origination fees.

10. Funding U

This lender specializes in loans for students with little to no credit history or a cosigner. Interest rates start at 7.99% APR and they offer flexible repayment terms of up to 10 years.

11. PNC Bank – PNC offers both undergraduate and graduate loans with competitive fixed and variable interest rates starting from 3.49% APR. They also offer cosigner release options after making consecutive on-time payments for two years.

12. SunTrust (now Truist)

With SunTrust, you can borrow up to $65,000 per year for undergraduate studies and $95,000 per year for graduate studies at competitive fixed and variable interest rates starting from 3.50% APR.

13. U-fi Student Loans

This lender offers both undergraduate and graduate loans with fixed and variable interest rates starting from 3.50% APR (with autopay discount). They also have a unique “personal payoff” option where you can apply extra payments towards specific loans to pay them off faster.

14. SoFi

SoFi offers both undergraduate and graduate loans with competitive fixed and variable interest rates starting from 2.74% APR (with autopay discount).
They also offer unique benefits such as career coaching and networking events for borrowers.

15. LendKey

This lender partners with over 300 community banks and credit unions to offer competitive fixed and variable interest rates starting from 1.13% APR (with autopay discount). They also have no application or origination fees and offer cosigner release options after making consecutive on-time payments for one year.