There are two main types of student loans: federal student loans — issued by the U.S. Department of Education — and private student loans. Both differ in interest rates, eligibility requirements, loan modification options and forgiveness programs.
Although federal loans offer more flexible repayment terms and borrower protections, a private student loan can help cover your school’s total cost of attendance after you’ve hit the federal borrowing limit and exhausted all other options. We researched available loan options and identified the eight best private student loans for 2024.
Our Top Picks For Best Student Loans
Note: Experts recommend taking out federal student loans before taking on private student loan debt. Jump straight to that section. See how we chose our winners.
Best Private Student Loans:
- College Ave – Best Overall
- Sallie Mae – Best for Healthcare Professions
- Earnest – Best for Parents
- SoFi – Best for No Fees and Discounts
- Ascent – Best for Borrowers Without a Cosigner
- LendKey – Best Marketplace
- Credible – Runner-up for Best Marketplace
- MPower Financing – Best for International Students
Best Private Student Loans Reviews
College Ave’s private student loan rates
Loan Type |
Interest Rates |
---|---|
Undergrad rates — Variable |
5.59% – 16.65% with autopay discount |
Undergrad rates — Fixed |
4.11% – 15.44% with autopay discount |
Graduate rates — Variable |
5.59% – 14.49% with autopay discount |
Graduate rates — Fixed |
4.11% – 14.49% with autopay discount |
Basic eligibility requirements
To apply for a private student loan with College Ave, student borrowers must:
- Be at least 16 years of age
- Be enrolled in an eligible school in the USA
- Have a Social Security number
- Meet the school’s satisfactory academic progress guidelines
Although College Ave doesn’t have a minimum credit score for students with cosigners, the cosigner must have a credit score in the mid-600s. College Ave doesn’t disclose its exact credit requirements, citing that its criteria is proprietary.
Students interested in applying for a private student loan with College Ave can obtain pre-approval with a soft credit check that won’t impact their credit score.
Repayment options and fees
While in school, College Ave offers borrowers several repayment options. Depending on the type of loan you’re applying for, you may be able to choose from the following options:
- Interest-only payments
- Flat $25 monthly payments
- Deferred payments
- Full interest and principal payments
You can select a loan term of five, eight, 10 or 15 years for most loans. If you are attending medical school, loan terms can be as long as 20 years.
This online lender doesn’t charge application fees, origination fees or prepayment penalties. Its late payment fee is 5% or $25.
Why we chose College Ave as Best Overall
College Ave ranks as best overall due to its variety of loan options, in-school payment plans and lengthy grace periods for graduate students.
Pros
- Loan terms as long as 15 years
- Nine-month grace periods for graduate students
- Borrow up to total cost of attendance
Cons
- International students must have a valid Social Security number and cosigner that is a U.S. citizen or permanent resident to qualify for a loan
- Cosigner release only available after half the repayment term is completed
- International students aren’t eligible for cosigner release
More on College Ave’s student loan options
College Ave Student Loans offers private loans for students, international students and parents. Borrowers can receive a College Ave loan if they’re enrolled at least part time, as long as they’re registered at a qualifying, degree-granting institution and show satisfactory academic progress.
College Ave finances up to the total cost of attendance and disburses the loan directly to the institution. The lender offers loans for undergraduate, graduate, MBA, medical school, graduate health professions, dental school, law school and career training programs. College Ave also allows borrowers to refinance their loans.
For those experiencing financial hardships, College Ave offers up to 12 months of forbearance for the life of the loan. It’s usually provided in three- or six-month increments, but varies based on your situation.
Finally, College Ave partnered with Payce Rewards, a free service where students earn cash back for online and in-store purchases to help them pay down their education loans. Payce Rewards is linked to around 61,000 stores and restaurants across the United States, including CVS, Walmart and DoorDash.
Read full College Ave student loan review>>
See rates on College Ave’s Secure Website>>
Sallie Mae’s private student loan rates
Loan Type |
Interest Rates |
---|---|
Undergrad rates — Variable |
6.37% – 16.70% with autopay discount |
Undergrad rates — Fixed |
4.50% – 15.49% with autopay discount |
Graduate rates — Variable |
6.87%-16.47 with autopay discount |
Graduate rates — Fixed |