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Key Takeaways

The best student loan lenders include Earnest, Sallie Mae and SoFi. Several well-known lenders offer very similar products, so it’s critical to shop around. Some lenders excel at serving particular types of students or offer unique perks that may matter to you.
Undergraduate students should always max out federal student loans before turning to private options, which tend to be more expensive and offer fewer protections. Parents with strong credit can often qualify for better terms in the private market than those available through federal Parent PLUS loans.
Methodology: Money reviewed loan products from 14 lenders, evaluating interest rates, fees, repayment terms, borrower protections and more.

Private student loans can help you fill in the funding gap after you’ve tallied all your scholarships and grants and maxed out federal student loans. Private student loans are credit based, meaning not every student or parent will qualify. In fact, nearly 90% of undergraduate private student loans have a cosigner since undergraduates are often too young to have an established credit history.
Our top picks for best student loans
The following companies are listed in alphabetical order.

Abe – Best for Borrower Protections
Ascent – Best for Borrowers Without a Cosigner
College Ave – Best for Parents
Earnest – Best for Flexible Repayment
MPower Financing – Best for International Students
Sallie Mae – Best for Non-Degree Programs
SoFi® – Best for Member Perks

Pros

In-school default protection
Grace period of up to 12 months
Several forbearance options
2% principal reduction after graduation

Cons

Lacks the history of more established lenders so customer reviews are limited
Lower lifetime borrowing maximums than other lenders

HIGHLIGHTS

Loan amounts
$1,000 up to total school-certified cost of attendance

Loan terms
5, 7, 10, 15 or 20 years

Fixed APR
2.18% – 16.58%

Minimum credit score
Not disclosed

Minimum income
Not disclosed

Abe, which launched in the summer of 2024, is a new lender in the private student loan space. Like most lenders, Abe allows borrowers to choose whether they want to make in-school payments or defer payments until they graduate. But Abe stands out for its in-school default protection. If a borrower chooses to start repaying while enrolled and ends up falling behind, Abe will automatically switch them to the deferred payment program.
Abe has an option to extend its 6-month grace period up to a full year, and a shorter-than-normal 12-month period to apply for cosigner release. The company also offers some of the most robust — and transparent — hardship protections of any lender. Borrowers can get 12 months of forbearance for a job loss or other financial hardship, natural disaster or illness.
Aside from the autopay rate discount, borrowers can reduce their interest rate by an additional 0.05% for every six months of on-time payments (for a maximum discount of 0.25%). Plus, borrowers can shave 2% off their principal after they graduate through Abe’s Grad Reward.

Pros

Loans without cosigners or credit histories available

Bigger than normal discounts for setting up automatic payments
1% Cash Back Graduation Reward

Cons

First- and second-year students not eligible for outcomes-based loans

Lower loan maximums than some lenders

HIGHLIGHTS

Loan amounts
$2,001 to $200,000 lifetime maximum for undergraduate loans, $400,000 lifetime maximum for graduate loans.

Loan terms
Five terms for credit-based loans (5, 7, 10, 12 and 15 years) and two terms (10 and 15 years) for outcomes-based loans

Fixed APR
2.19% – 17.71% (lowest rate includes autopay discount)

Minimum credit score
Not disclosed

Minimum income
$30,000

Ascent is the best option for borrowers without a cosigner due to its specialized non-cosigned loan options for undergraduate, graduate and DACA students. It offers two options for non-cosigned loans — a credit-based option for those who do have a borrowing history and an Outcomes-Based Loan® for those without. These are unique products, but you should know that both options have significantly higher starting APRs than cosigned loans offered by Ascent (and other lenders). The lender no longer publicizes the different rate ranges for each loan types, but when it did earlier this year, the credit-based loans without a cosigner started at 6.75% for fixed-rate loans and outcomes-based loans with a fixed rate started at 13.47%. Ascent does have a larger-than-normal discount for setting up autopay, with a 0.50% discount for all credit-based loans and a 1% discount for outcomes-based loans.
For borrowers with cosigners, Ascent offers competitive rates and a quicker 12-month period before you can apply for cosigner release. Other highlights include a 9-month grace period and loan products for career training and bootcamps.

Read full Ascent student loans review>>

Pros

Flexible repayment options for parents
Very competitive APRs for credit-worthy borrowers

Cons

Cosigner release only available after half the repayment term is completed
Late fee of up to $25 (several lenders have eliminated late fees)
Limited information about forbearance options or hardship protections online

HIGHLIGHTS

Loan amounts
$1,000 to total cost of attendance

Loan terms
5 to 15 years for most loans; up to 20 years for medical, dental and law school

Fixed APR
1.94% – 17.99%

Minimum credit score
Mid-600s

Minimum income
Not disclosed

Like most lenders, College Ave Student Loans offers a suite of undergraduate and graduate loans. But it also offers parent loans that have a customizable repayment term. Parents can choose a term anywhere between 5 and 15 years, which allows you to pick a term that best fits your budget. Many lenders that offer a distinct parent loan have higher starting APRs for the parent option as compared to the undergraduate loan option. But not at College Ave, which offers parent loans with the same rate range its undergrad loan. Overall, the lender regularly offers some of the lowest starting APRs in the industry. But if you have fair credit, you may find better deals elsewhere. College Ave’s maximum APR is among the highest on the market.
Read full College Ave student loan review>>

Pros

Longer-than-normal grace period1
Skip-a-payment program2
Rate match guarantee3
Cosigner release4

Cons

Student must pursue a bachelor’s or graduate degree

HIGHLIGHTS

Loan amounts
$1,0005 to total school-certified cost of attendance

Loan terms
5, 7, 10, 12 or 15 years6

Fixed APR
2.44% – 16.49%7 with autopay discount8

Minimum credit score
650

Minimum income
None

Earnest offers four in-school repayment options, five terms for all of its loans, and a longer-than-usual grace period. It has a unique skip-a-payment benefit, where borrowers have the option to skip one monthly payment a year without penalty, and it also boasts a rate match guarantee.
Earnest doesn’t charge any fees, and among the lenders we reviewed, it had the third highest customer review rating on Trustpilot, with a 4.6 (out of 5 stars) based on more than 7,500 borrower reviews. In May 2026, Earnest introduced a cosigner release program, and it now offers one of the more transparent cosigner release policies on the market. Borrowers can apply for cosigner release after making at least 12 consecutive, full payments, and they’ll have to meet Earnest’s eligibility and credit requirements to be approved. The lender also says it will also automatically review borrowers who paid off half of their principal balance to see whether they’re eligible for release.
Read full Earnest student Loans review>>

Earnest Disclosure
Disclosure

1 Repayment terms and repayment options available vary based on loan type.
2 Earnest clients may skip a payment through a single, one-month forbearance during a 12 month period. Your first request to skip a pay can be made once you’ve made at least 6 months of consecutive on-time full principal and interest payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Any unpaid accrued interest may capitalize (added to the principal balance) at the end of the forbearance period by adding unpaid accrued interest to the outstanding principal as permitted by law and the terms of the loan agreement. Please note that skipping a payment is not guaranteed and is at Earnest’s discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.
3 Terms and conditions apply. To qualify for this Earnest Rate Match and Bonus offer: 1) you must submit a completed student loan application; 2) you must provide documentation of an eligible competitive rate offer exclusive of all discounts by calling Client Happiness at (888) 601-2801 or chat on Earnest.com and follow the instructions to send in your proof of lower rate; and 3) you must provide a valid email address during the application process. The bonus will be paid out in the form of a gift card. You will receive instructions on how to redeem the gift card via the email address you have provided. Limit one rate match bonus per application. A bonus cannot be issued to residents in MA. Bonuses that are not redeemed within 180 calendar days of the date they were made available to the recipient may be subject to forfeit. Bonus amounts of $600 or greater in a single calendar year may be reported to the Internal Revenue Service (IRS) as miscellaneous income to the recipient on Form 1099-MISC in the year received as required by applicable law. Recipient is responsible for any applicable federal, state or local taxes associated with receiving the bonus offer; consult your tax advisor to determine applicable tax consequences. Additional terms and conditions may apply. Earnest may discontinue this program at any time.
4 To qualify for automatic cosigner release, the outstanding principal balance of your loan must be paid down to 50% or less of the original principal balance. The primary borrower must have made 36 months of required payments after the end of the Interim Period. The primary borrower must meet our eligibility and minimum credit requirements. Additional terms and conditions may apply. To request cosigner release, the primary borrower must have made 12 consecutive, monthly on-time principal and interest payments (or an amount equal thereto) immediately preceding the cosigner release application. The primary borrower must satisfy certain eligibility and credit criteria at the time of application. Additional terms and conditions may apply.
5 Residents of Hawaii must request a loan of at least $1,501.
6 Available interest rates are subject to change. Interest rates as of 03/19/2026. Earnest’s Loan Cost Examples:
1.) These examples provide estimates based on principal and interest payments beginning immediately upon loan disbursement. Variable annual percentage rate (“APR”): A $10,000 loan with a 15-year term (180 monthly payments of $152.84) and a 16.85% interest rate without Auto Pay (16.85% APR) would result in a total estimated payment amount of $27,511.20. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $150.30) and a 16.49% interest rate without Auto Pay (16.49% APR) would result in a total estimated payment amount of $27,054.10.
2.) These examples provide estimates based on interest-only payments while in school. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $152.84) and a 16.85% interest rate without Auto Pay (16.85% APR) would result in a total estimated payment amount of $35,515.14. For a variable loan, after your starting rate is set, your rate will then vary with the market. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $140.42 for 57 months. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $150.30) and a 16.49% interest rate without Auto Pay (16.49% APR) would result in a total estimated payment amount of $34,886.94. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $137.42 for 57 months.
3.) These examples provide estimates based on fixed $25 payments while in school. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $253.39) and a 16.85% interest rate without Auto Pay (14.92% APR) would result in a total estimated payment amount of $47,035.20. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $246.61) and a 16.49% interest rate without Auto Pay (14.65% APR) would result in a total estimated payment amount of $45,814.80. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $25.00. 4.) These examples provide estimates based on deferred payments. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $275.17) and a 16.85% interest rate without Auto Pay (14.67% APR) would result in a total estimated payment amount of $49,530.60. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $268.03) and a 16.49% interest rate without Auto Pay (14.39% APR) would result in a total estimated payment amount of $48,245.40. Your actual repayment terms may vary. Other repayment options are available. It is important to note that the 0.25% Auto Pay discount is not available when the deferred repayment option has been selected and the loan is in the interim period. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $0.
4.) These examples provide estimates based on deferred payments. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $275.17) and a 16.85% interest rate without Auto Pay (14.67% APR) would result in a total estimated payment amount of $49,530.60. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $268.03) and a 16.49% interest rate without Auto Pay (14.39% APR) would result in a total estimated payment amount of $48,245.40. Your actual repayment terms may vary. Other repayment options are available. It is important to note that the 0.25% Auto Pay discount is not available when the deferred repayment option has been selected and the loan is in the interim period. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $0.
7 Actual rate and available repayment terms will vary based on your financial profile. Fixed annual percentage rates (APR) range from 2.79% to 16.74% (2.29% – 16.24% with Auto Pay and Loyalty discounts). Variable annual percentage rates (APR) range from 5.24% to 17.1% (4.74% – 16.6% with Auto Pay and Loyalty discounts). Earnest variable interest rate student loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent plus a margin and will change on the 1st of each month. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Our lowest rates are only available for our most credit qualified existing cosigned loan borrowers who receive the 0.25% Loyalty discount and requires selection of our shortest term offered, full principal and interest payment while in school, and enrollment in our 0.25% Auto Pay discount. Enrolling in Auto Pay is not required as a condition for approval. Interest rates are subject to change.
8 You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. It is important to note that the 0.25% Auto Pay discount is not available when loan payments are deferred during the interim period as a result of selecting the deferred repayment option.
9 Only applicants who have previously obtained a disbursed Earnest Private Student Loan are eligible for the Loyalty Discount. To obtain the discount you must also apply using the same email address associated with that loan. Only one Loyalty Discount may be applied per eligible Earnest Private Student Loan. Not all applicants may qualify. This offer cannot be combined with Earnest’s Rate Match program. Earnest Private Student Loans through Juno are excluded from Loyalty Discount eligibility. Earnest may modify or discontinue this offer at any time and without notice, however, once a Loyalty Discount is earned, it will not be taken away.
10 Earnest does not charge fees for origination, late payments, returned check, or prepayments. Florida Stamp Tax: For Florida residents, Florida documentary stamp tax is required by law, calculated as $0.35 for each $100 (or portion thereof) of the principal loan amount, the amount of which is provided in the Final Disclosure. Lender will add the stamp tax to the principal loan amount. The full amount will be paid directly to the Florida Department of Revenue. Certificate of Registration No.78-8016373916-
Earnest Private Student Loans are subject to credit approval.
Earnest Private Student Loans are made by FinWise Bank, Member FDIC. FinWise Bank, 756 East Winchester, Suite 100, Murray, UT 84107.
Earnest student loans are serviced by Earnest Operations LLC, 300 Frank H. Ogawa Plaza, Suite 340, Oakland, CA 94612. NMLS #1204917, with support from Higher Education Loan Authority of the State of Missouri (MOHELA) (NMLS# 1442770).
FinWise Bank and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.

Pros

Loans available to international students without a cosigner

Interest-only payments while in school

Cons

Higher-than-average rates and fees

Only one repayment option

Must attend a partner school

Not available to first- or second-year undergraduate students

HIGHLIGHTS

Loan amounts
$2,001 to $100,000

Loan terms
10 years

Fixed APR
10.89%

Minimum credit score
Not required

Minimum income
Not disclosed

Although some private student loan lenders will issue loans to international students, they typically require the student to have a cosigner that is a U.S. citizen or permanent resident. If the student doesn’t have close friends or family in the country, it can be difficult to find loans for school.
MPower is one of the only lenders that offers private student loans to international students without a cosigner or collateral. The lender offers visa prep courses and a job search tool for international students, and repaying these loans helps international students build a credit-history in the U.S. MPower works with 500 schools in the U.S. and Canada. As of August 2026, MPower says it isn’t issuing any additional new loans for 2026 after reaching its current funding capacity. If this is a lender you’re interested in using in the future, you may want to apply early in the season to avoid a similar scenario.

Pros

Offers career training, medical residency and bar exam loans
Cosigner release available after just 12 monthly payments

Cons

Limited repayment terms
Late fee of up to $25 (other lenders have eliminated this)

HIGHLIGHTS

Loan amounts
$1,000 to total school-certified cost of attendance

Loan terms
10 or 15 years

Fixed APR
1.95% – 17.49% with autopay discount

Minimum credit score
Not disclosed

Minimum income
Not disclosed

Like other lenders, Sallie Mae has education loan options for undergraduate, graduate, professional and medical school programs. But it’s also one of the few lenders that has options for students enrolled in trade or certificate programs. Within the professional programs, it offers loans designed specifically to help borrowers navigate periods where they’re not earning much, like during medical residency periods or when studying for the bar exam. Another unique feature: Borrowers who are enrolled in college less than half-time are still eligible to apply. (Many lenders are open to part-time students, but still require at least half-time enrollment.)
Most top lenders today offer at least three or four different terms for repayment; Sallie Mae only offers two for undergraduate loans and one for graduate school loans. But it does allow borrowers to sign up for a graduated repayment period, where they can make interest-only payments for up to a year after the grace period ends.
Read full Sallie Mae student loan review>>

Pros

No late or insufficient fund fees

Multiple rate discounts available
Extra member benefits

Cons

Not available for associate degree programs
Must make 24 months of payments before applying for cosigner release

HIGHLIGHTS

Loan amounts
$1,000 to total school-certified cost of attendance

Loan terms
5-year, 7-year, 10-year, and 15-year terms

Fixed APR
2.99% – 15.99% (with 0.25% autopay discount)

Minimum credit score
Not disclosed

Minimum income
Not disclosed

For those looking for a private student loan without fees, SoFi® is a top lender. Like most student loan lenders, it doesn’t charge origination fees. But SoFi also doesn’t charge any late fees. In addition to the standard discount for setting up automatic payments, existing borrowers can earn a returning scholar discount. SoFi also offers a cash bonus of up to $250 for borrowers who have a 3.0 GPA or higher. And students and parents who borrow through SoFi have access to exclusive member benefits like financial coaching and estate planning, plus a rewards program where you can earn points for activities like checking your credit score and redeem them against your loan.
SoFi’s cosigner release policy — requiring 24 months of on-time payments before applying — is better than some lenders, but there are several lenders that offer shorter periods.
Read full SoFi student loans review>>

What you need to know about student loans
Student loans are issued by the federal government or private lenders to help students pay for undergraduate or graduate studies. The loan goes toward tuition, books, student housing and other education-related expenses.
Once a student loan application is approved, the funds are sent directly to the school to cover tuition, fees and on-campus student housing. Any remaining balance is then disbursed to the student.
All private loans accrue interest from when the loan is dispersed, while some federal loans don’t start accruing interest until you enter repayment. For private loans, in-school repayment options usually include deferment, interest-only or full payment, and repayment terms typically range from five to 20 years.
Federal vs. private student loans
Since private loans don’t offer the same protections that federal loans do, the general advice is to seek private student loans after you’ve exhausted every federal option.

Federal loans

Private loans

Credit Check

Not required for most loans

Required

Minimum income required

Not required

Required

Annual borrowing limits

Borrowing limits apply to most loans

Typically no annual limit

Payments while in schools

Payments deferred until student leaves school

Payments may be required

Eligible for loan forgiveness

Yes

No

Federal student loans
Federal student loans are the first choice for many due to their low rates, flexible repayment options and federal protections.
To apply for federal loans and additional financial aid, students must submit the Free Application for Federal Student Aid (FAFSA) once every school year. Your school will calculate how much you’re eligible to borrow based on the cost of attendance and your family’s financial information.
The federal government limits how much a student can borrow annually and over their lifetime based on the academic year, loan type and the borrowers’ dependency status.

Pros

Income-driven loan repayment plan options

Opportunities for student loan forgiveness

Fixed interest rates that apply to all borrowers

Eligible for forbearance if experiencing a financial hardship

No credit checks for most loans

Cons

Disbursement fees apply

Only available to U.S. citizens and permanent residents with Social Security numbers

Strict annual and aggregate limits

Private student loans
Private student loans are similar to personal loans, as they are issued by private banks or credit unions.
Private student loan lenders look at students’ credit scores and credit reports to determine interest rates and loan approval. Since most students don’t have enough credit history, lenders often require a qualifying cosigner.
Private loans don’t feature the same benefits as federal student loans, but they can help pay your school’s total cost of attendance if you’re no longer eligible for federal aid.
Most private lenders suggest borrowers start loan repayment while still in school, but most offer in-school deferment or grace periods, although interest will continue to accrue.

Pros

Available to U.S. citizens and qualifying international students
No financial need requirements
Fixed and variable rates
Higher loan limits for undergraduate loans

Cons

Not eligible for federal forgiveness programs
Limited repayment options and hardship assistance programs
Requires credit check
May have higher APRs
Will likely require a cosigner

Student loan interest rates
Current private student loan interest rates range from about 2% to 18%. The interest rate on your loans depends on the type of loans you have, your education level and the lender issuing the loan.
Rates can be fixed or variable. Fixed interest rates stay the same for the entire repayment period. By contrast, variable interest rates can change over time, so they are usually best for borrowers who want a shorter repayment term.
Average student loan interest rate
Federal student loans
Interest rates on federal student loans are established by federal law. The rates are fixed, so they stay the same for the duration of your loan term.
For federal student loans, we calculated the average interest rate using the rates for the current academic year. The overall average interest rate for federal student loans is 7.87%.
The rates you’ll pay depend on the loan and borrower type. These are the rates for loans issued for the 2026-2027 academic year:

Loan type

Borrowers

Interest rate

Direct subsized loans and Direct unsubsidized loans

Undergraduates

6.52%

Direct unsubsidized loans for graduate students

Graduate or professional students

8.07%

Direct PLUS loans

Parents and graduate students who’ve borrowed before June 30, 2026. (New graduate borrowers cannot take out PLUS loans.)

9.07%

Private student loans
Private student loans work differently. Lenders set their rate range based on an index, such as the Secured Overnight Financing Rate (SOFR). The rates can change over time as the market fluctuates, so you may find that current rates are higher or lower than when you took out your loan.
Other factors affect your private loan rates, including your credit history, income, debt-to-income ratio and whether you have a cosigner. Looking at the rate ranges advertised by 11 major lenders, we calculated the averages: The average fixed rate is 8.90% and the average variable rate is 10.19%. Note that these are only illustrative. They aren’t reflective of the actual average rates offered by lenders.
How to apply for student loans
The following are general tips to consider before applying for student loans, whether federal or private.
Calculate your financial needs
Consider your school’s cost of attendance (tuition, materials, room and board, etc.) and then factor in additional living expenses. Money’s Best Colleges in America contains information about admission, costs, financial aid and graduation rates of hundreds of public and private institutions around the United States.
We recommend you consider federal loans first, as they have several advantages over private loans and a variety of options to choose from.
Shop around for private loans
If you need to take out a private student loan, keep in mind that each lender offers different terms, rates and benefits. They also have different underwriting models, so you may qualify for a lower rate with one lender even if they have a higher starting APR than competitors. That’s why you need to shop around and compare fees and APRs from multiple lenders before making a decision. A good place to start is a marketplace like Credible or LendKey, where you can review rates from several lenders at once.
Tip: Most federal student loans are available without a credit check, so they’re a good option for those with poor credit or no credit history.
Choose the right lender for you
To choose the best student loan, you should have a clear understanding of what each lender requires and what they offer regarding interest rates and repayment options:

Check your lender’s credentials: Only do business with reputable lenders. To determine this, use reputable sources like Federal Deposit Insurance Corporation (FDIC), Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB).
Apply for prequalification: By prequalifying, you get to see what rates, terms and benefits each lender offers, while avoiding a hard credit inquiry. Be sure to understand how different interest rates and terms affect your payments.
Look for lenders with in-school repayment options: Starting loan repayment early will reduce the debt burden. Opt for private lenders with multiple options, a grace period, and no penalties for early loan repayment.
Opt for lenders with low or no fees: Application and origination fees are processing costs added to your principal, which means you’ll pay interest on them. All federal loans have origination fees; private loans typically do not. Note that student loan companies are legally prohibited from charging prepayment penalties. If you can, look for lenders that don’t charge late fees either.
Take advantage of discounts and perks: Many lenders offer autopay discounts and other perks such as free study or tutoring programs and bonuses for good grades or referring friends.

Latest student loan news
Private student loan companies slashed their interest rates during the final few weeks of peak lending season ahead of the fall 2026 semester. Three major lenders now offer fixed rates starting below 2% for undergraduate loans. Just three months ago, not a single lender offered rates below 2.5%.
At the same time, lenders, who’ve primarily focused on undergraduate loans over the past several years, are trying to stake a claim in the graduate space. The One Big Beautiful Bill Act (OBBBA) eliminated the Grad PLUS loan program for new borrowers and imposed new federal borrowing caps: Graduate students can now borrow up to $20,500 a year and professional students up to $50,000 a year (Existing borrowers are grandfathered into the new rules.)
Private lenders are eager to fill the gaps for credit-worthy grad students. College Ave, for example, launched a new STEM Graduate Loan for students in science, tech, engineering and math fields. MEFA, a state-based loan authority in Massachusetts, has expanded its graduate school loan options to better serve students pursuing medical, dental and law degrees. Several universities, meanwhile, have announced partnerships with specific lenders, and a few law schools have even launched their own in-house loans to fill in funding gaps.

Best student loans FAQs
What is the best student loan to get?
Federal student loans are the best option for student borrowers (both undergraduate and graduate). Federal loans offer relatively low fixed rates, flexible repayment options and more expansive borrower protections.
Is SoFi or Sallie Mae better?
SoFi and Sallie Mae are both well-known private lenders; neither is universally better. Both companies offer competitive rates and loan terms, but Money named SoFi as the best for perks and Sallie Mae as the best for students borrowing for non-degree programs.
Can you get student loans with bad credit?
If you have bad credit, federal loans are an excellent starting point. Most loans are available without credit checks, and the federal government doesn’t require a minimum credit score.
Do you need a cosigner for student loans?
Yes, most students usually need a cosigner with good credit — such as a parent or relative — to qualify for a private student loan. Federal loans are available without a cosigner, even if you don’t have good credit.
Is Trump forgiving student loans?
No, the Trump administration has not announced any widespread student loan forgiveness. Borrowers are still getting their debts canceled through long-existing programs including Public Service Loan Forgiveness and Borrower Defense to Repayment.

Best student loans methodology: How we picked our winners
We reviewed 14 private student loan lenders, evaluating them on more than 20 factors. We prioritized private lenders that offered the following:
Flexible repayment options
Federal student loans have several different standardized payment plan models, whereas private lenders often offer less flexibility. We looked for lenders that offered multiple in-school payment options. We compared the variety of repayment term lengths, favoring lenders with four or more term options, as the length of your term influences your interest rate and monthly payment, we believe that more options for a more customizable loan is valuable. We also considered whether lenders offered cosigner releases and how long a borrower had to wait before applying.
Competitive interest rates and low fees
We preferred lenders that balanced low starting rates for the most credit-worthy borrowers with still reasonable rates for borrowers with fair credit. In this case, we primarily looked for lenders with rates starting at or below 4% and maxing out around 15%, though we did make some exceptions. Private student loan lenders rarely charge origination or application fees. But some do charge late fees or insufficient fund fees. We gave points to lenders that waived these.
Unique perks, discounts or specialized products
Lenders often specialize in products for specific programs or populations of students, or they offer unique perks and discounts. These helped us identify stand-out lenders that offered something beyond competitive rates and repayment terms.
Borrower protections
As an industry, private student loans lack the consumer protections offered via federal loans, so it’s critical for borrowers to understand their options to reduce or pause payments should they run into problems paying. Forbearance policies vary from lender to lender, and it can sometimes be hard to find clear information about them when shopping around. We favored lenders with transparent policies on their websites and options to defer payments for up to a year, at a minimum.
Summary of Money’s Best Student Loans of September 2026

Abe – Best for Borrower Protections
Ascent – Best for Borrowers Without a Cosigner
College Ave – Best for Parents
Earnest – Best for Flexible Repayment
MPower Financing – Best for International Students
Sallie Mae – Best for Non-Degree Programs
SoFi® – Best for Member Perks