The best student loan will always be the one that meets your needs best. That said, it’s helpful to start the process with a list of strong options to make navigating the process easier.

Here are our top picks for the best places for private student loans.

The loan options shared are in no particular order. Interest rates reflected in this article were last updated on 03/06/23. Rates listed may reflect the lender’s autopay discount. Interest rates are subject to change.

Best Places for Private Student Loans

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.

Apply with ASLA.

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.

Apply with Ascent.

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.

Apply with Brazos.

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.

Apply with College Ave.

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.

Apply with Custom Choice.

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.

Apply with Earnest.

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.

Apply with Edly.

Learn more about Edly.
View disclosure.

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.

Apply with EdvestinU.

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.

Apply with Funding U.

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.

Apply with INvestED.

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.

Apply with LendKey.

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.

Apply with MPOWER.

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.

Apply with Nelnet Bank.

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.

Apply with Prodigy Finance.

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.

Apply with Sallie Mae.

Learn more about Sallie Mae.

SoFi – Both undergraduate and graduate degrees

Fixed Interest Rate: 4.44 to 13.80% (undergrad); 4.99% to 13.60% (grad)
Variable Interest Rate: 5.99% to 14.30% (undergrad); 5.99% to 14.10% (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.

Apply with SoFi.

Learn more about SoFi.

Who is Eligible for a Private Student Loan?

Private student loans are provided by private entities such as banks, credit unions, and other financial institutions. Because each lender is its own unique entity, their eligibility requirements will vary. There are a couple of requirements, however, that are fairly standard:

Be Enrolled in an Eligible Program

Private student loans can only be used for educational purposes. So, in order to be considered for a private student loan, you’ll need to be enrolled in an eligible program.

Be a U.S. Citizen, Permanent Resident, or Eligible International Student

Most private student lenders will require you to meet certain residency requirements. If you are a U.S. citizen or permanent resident, you will be eligible with most student lenders. 

If you are an international student, certain student lenders may require you to apply with an eligible U.S. citizen or permanent resident cosigner. If you do not have a cosigner available, you can explore loan options with companies such as MPOWER and Prodigy Finance, who work specifically with international students with no Social Security Number or cosigner.

How to Pick the Best Place for Private Student Loans

To pick the best private student loan lender, you will want to look for the following:

A Solid Annual Percentage Rate

The Annual Percentage Rate (APR) of a student loan is the annual interest rate you will incur, plus any additional fees or costs the lender tacks on. APR is typically one of the most important elements of a student loan because it’s essentially what you’ll be “charged” each year to borrow the loan.

The Type of Interest Rate You Prefer

Student loan interest rates are either fixed or variable. Fixed interest rates will remain the same throughout the life of the loan. Variable interest rates are subject to change in response to the market. If you prefer one over the other, make sure the loan you borrow has that type of interest rate.

A Repayment Plan That Suits You

Each student lender will offer a different set of repayment plans. Like other loan features, the best repayment plan will be the one that suits you best. For example, if you know you prefer a standard repayment plan, make sure the lender you choose offers it. 

A Monthly Payment You Can Afford

Once the loan enters repayment, you will be responsible for making a minimum monthly payment. Your exact monthly payment will depend on your interest rate, repayment plan, and repayment term. Before agreeing to a loan, estimate your future monthly payment to make sure it’s affordable given your predicted post-graduate salary.

A Flexible Cosigner Release Policy

To borrow a student loan, you may need a cosigner to qualify. While some cosigners are comfortable remaining on the loan until it’s paid off in its entirety, others may prefer to be released from their responsibility. If you or your cosigner would like the option to release your cosigner later on, look for a lender with a flexible cosigner release policy.

What is the Best Place for Private Student Loans?

There is no one-size-fits-all approach to student loans. The best student lender for you will be the one that offers you the best interest rate and loan terms.

To find the student lender that suits you best, complete the Sparrow form. In as little as 3 minutes, we’ll show you what rates you pre-qualify for at our 15+ partner lenders. Then, you can compare the loan rates side-by-side to be sure you’re picking the best option for you.

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.

Leave a comment

Your email address will not be published. Required fields are marked *