The interest rate on your student loan(s) will drastically impact how much you pay over the life of the loan. Even a small increase in the interest rate could result in thousands of dollars more over your repayment term.
Finding a low interest student loan should be of utmost priority when selecting the best option for you. Here are the best student loan rates of September 2024.
Jump Ahead > Best Student Loan Rates • What is a Good Interest Rate? • Other Factors to Consider • How to Find the Best Student Loan Rate
Best Student Loan Rates of September 2024
Arkansas Student Loan Authority (ASLA) – Both undergraduate and graduate degrees
Fixed Interest Rate: 3.20% to 6.34%
Variable Interest Rate: 6.06% to 10.61%
Maximum Borrowing Limit: Cost of attendance minus other aid; $100,000 lifetime maximum
Minimum Credit Score: 670
Best for: Residents of, or students in, Arkansas.
Learn more about ASLA.
Ascent – Both undergraduate and graduate degrees
Fixed Interest Rate: 4.83% to 16.16% (cosigned, undergraduate); 5.61% to 16.16% (graduate)
Variable Interest Rate: 6.15% to 16.08% (cosigned, undergraduate); 6.68% to 16.08% (graduate)
Maximum Borrowing Limit: $200,000
Minimum Credit Score: 540
Best for: International and DACA students who have a lower credit score.
Learn more about Ascent.
Brazos – Both undergraduate and graduate degrees
Fixed Interest Rate: 2.71% to 6.86%
Variable Interest Rate: 5.32% to 9.47%
Maximum Borrowing Limit: Cost of attendance minus other aid
Minimum Credit Score: 700
Best for: Residents of, or student in, Texas.
Learn more about Brazos.
College Ave – Both undergraduate and graduate degrees
Fixed Interest Rate: 5.05% to 16.99% (undergrad); 5.05% to 14.49% (grad)
Variable Interest Rate: 5.49% to 16.99% (undergrad); 5.49% to 14.49% (grad)
Maximum Borrowing Limit: Cost of attendance minus other aid
Minimum Credit Score: Mid 600s
Best for: Borrowers looking for a repayment term that matches their budget.
Learn more about College Ave.
Custom Choice – Both undergraduate and graduate degrees
Fixed Interest Rate: 4.43% to 14.65%
Variable Interest Rate: 5.38% to 15.19%
Maximum Borrowing Limit: Cost of attendance minus other aid; cannot exceed $99,999 annually or $180,000 cumulatively
Minimum Credit Score: 660 for non-cosigned loans
Best for: Borrowers who want a competitive interest rate and strong borrower benefits.
Learn more about the Custom Choice Loan.
Earnest – Both undergraduate and graduate degrees
Fixed Interest Rate: 4.42% to 15.90% (undergrad); 4.42% to 14.30% (grad)*
Variable Interest Rate: 5.62% to 16.20% (undergrad); 5.89% to 15.97% (grad)*
Maximum Borrowing Limit: Cost of attendance mins other aid
Minimum Credit Score: 650
Best for: Borrowers who want a competitive interest rate and flexible repayment options.
Learn more about Earnest.
*Rates include autopay discount.
Edly – Both undergraduate and graduate degrees
Fixed Interest Rate: 0.25% to 23.00%
Variable Interest Rate: N/A
Maximum Borrowing Limit: $15,000 per academic year (plus $10,000 for summer) and $25,000 lifetime.
Minimum Credit Score: N/A
Best for: Borrowers who want an income-based repayment (IBR) loan.
Learn more about Edly.
EdvestinU – Both undergraduate and graduate degrees
Fixed Interest Rate: 7.00% to 10.57%
Variable Interest Rate: 8.12% to 11.02%
Maximum Borrowing Limit: $1,000 to the total cost of attendance
Minimum Credit Score: 675
Best for: Borrowers who want to work with a nonprofit that offers flexible repayment plans.
Learn more about EdvestinU.
Funding U – Undergraduate degrees only
Fixed Interest Rate: 7.49% to 12.99%
Variable Interest Rate: N/A
Maximum Borrowing Limit: $20,000 per school year
Minimum Credit Score: N/A
Best for: Borrowers that were high-achieving undergraduate students.
Learn more about Funding U.
INvestED – Both undergraduate and graduate degrees
Fixed Interest Rate: 4.61% to 8.67%
Variable Interest Rate: 7.88% to 12.34%
Maximum Borrowing Limit: Cost of attendance minus other aid
Minimum Credit Score: 670
Best for: Borrowers who are residents of or students in Indiana.
Learn more about INvestED.
LendKey – Both undergraduate and graduate degrees
Fixed Interest Rate: 4.39% to 11.11%
Variable Interest Rate: 5.84% to 11.11%
Maximum Borrowing Limit: Cost of attendance minus other aid
Minimum Credit Score: 660
Best for: Borrowers that want to work with a credit union or community bank.
Learn more about LendKey.
MPOWER – Both undergraduate and graduate degrees
Fixed Interest Rate: 13.74% (undergrad); 12.74% (grad)
Variable Interest Rate: N/A
Maximum Borrowing Limit: $50,000 per semester; $100,000 per year
Minimum Credit Score: N/A
Best for: International and DACA borrowers without a cosigner.
Learn more about MPOWER.
Nelnet Bank – Both undergraduate and graduate degrees
Fixed Interest Rate: 4.49% to 15.47%*
Variable Interest Rate: 6.29% to 15.51%*
Maximum Borrowing Limit: $125,000 total for undergraduate students; $500,000 total for graduate students
Minimum Credit Score: 680 individually; 640 with a qualified cosigner
Best for: Borrowers who want competitive interest rates and a flexible forbearance policy.
Learn more about Nelnet Bank.
*Rates listed have an autopay discount only on the lower boundary
Prodigy Finance – Graduate degrees only
Fixed Interest Rate: N/A
Variable Interest Rate: 6.70%+
Maximum Borrowing Limit: $220,000
Minimum Credit Score: N/A
Best for: International student borrowers with no cosigner.
Learn more about Prodigy Finance.
Sallie Mae – Both undergraduate and graduate degrees
Fixed Interest Rate: 3.75% to 13.72%
Variable Interest Rate: 4.00% to 14.34%
Maximum Borrowing Limit: School-certified cost of attendance minus other aid
Minimum Credit Score: Mid 600s
Best for: Borrowers who want competitive interest rates and a flexible repayment plan.
Learn more about Sallie Mae.
SoFi – Both undergraduate and graduate degrees
Fixed Interest Rate: 4.44% to 14.70% (undergrad); 4.99% to 14.48% (grad)
Variable Interest Rate: 5.99% to 13.97% (undergrad); 5.99% to 13.97% (grad)
Maximum Borrowing Limit: Cost of attendance minus other aid
Minimum Credit Score: Does not disclose
Best for: Borrowers with a strong credit score or a creditworthy cosigner.
Learn more about SoFi.
What is a Good Interest Rate?
Interest rates will vary significantly based on the lender and type of loan. So, there really isn’t a specific threshold of what is considered a “good” interest rate. Generally speaking, however, an interest rate at or above 10% is considered very high, while interest rates less than 7% are on the lower end.
Across all student loans, 5.8% is the average interest rate. Use the average interest rate as a marker when determining if the interest rate offered to you is good.
Rates Are Just One Piece of the Puzzle
While the interest rate on your student loan is an incredibly important factor, it is only one piece of a much more complex puzzle. When selecting a student loan, you should also consider factors such as whether the interest rate is fixed or variable, the repayment period, and the projected monthly payment.
Fixed vs Variable Interest Rate
A fixed interest rate will remain the same throughout the life of the loan, while a variable interest rate is subject to change due to market conditions. So, if you borrowed a loan with a 5% fixed interest rate, it would remain at a 5% interest rate up until the day you pay it off. On the other hand, if you borrowed a loan with a variable interest rate starting at 5%, the rate could fluctuate up and down throughout the life of the loan.
There are pros and cons to both fixed and variable rate loans. Select the option you feel most comfortable with.
Repayment Period
Generally speaking, the longer the repayment period, the more you will pay over the life of the loan. Consider the repayment periods offered to you and how they will impact what you pay throughout repayment.
| Principal Balance | $30,000 | $30,000 |
| Interest Rate | 5% | 5% |
| Repayment Period | 10 years | 15 years |
| Monthly Payment | $318 | $237 |
| Total Paid | $38,184 | $42,703 |
With a shorter repayment period, you will have larger monthly payments. However, if you’re able to afford them, a shorter repayment period can save you quite a bit over the life of the loan.
Projected Monthly Payment
During repayment, you will be required to make at least the minimum monthly payment on your loan. As illustrated by the table above, the monthly payment will change based on the repayment period and interest rate you have.
Some private student lenders may only offer one or two repayment periods. Before agreeing to a student loan, consider the projected monthly payment amount. If the amount does not seem feasible for you given your projected monthly income after graduation, you may want to explore other student loan options.
How to Find the Best Student Loan Rate
Before agreeing to any loan, it’s important to do your research. To simplify the search process, we built Sparrow.
Rather than hopping from site to site comparing loans one by one, Sparrow allows you to compare personalized, pre-qualified student loan rates from 15+ lenders in one form. To find the best student loan rate for you, start the process with Sparrow.
Sparrow’s goal is to give you the tools and confidence you need to improve your finances. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.