Navigating the student loan process can be overwhelming. With so many student lenders to choose from, deciding which one you’d like to work with can be quite the challenge.
Ultimately, the best student lender for you will be the one that suits you best. That said, it’s helpful to know a bit about each of your options to make an informed decision.
The following are our picks for the best private lenders for student loans.
Best Private Student Lenders of 2022
Arkansas Student Loan Authority
The Arkansas Student Loan Authority (ASLA) is an Arkansas state entity that provides educational funding for all Arkansas students attending higher education institutions.
ASLA offers three types of student loans: undergraduate and graduate loans, family loans, and student loan refinancing.
Best Features:
- Competitive interest rates
- A variety of loan options
- Flexible cosigner release policy
- A variety of repayment options
- Offers 0.25% interest rate reduction for opting into auto-debit payments
Drawbacks:
- Strict residency requirements (Borrowers must be residents of or students in Arkansas.)
- Inaccessible to international students
ASLA is the best private lender for borrowers who are located in Arkansas, have a qualified cosigner, and want competitive interest rates.
Learn more about ASLA.
Ascent
Ascent is an online student lender, named Best Private Student Loan for 2021 by Forbes Advisor, NerdWallet, and Money.com.
Ascent offers three types of student loans: a traditional cosigned loan, a non-cosigned credit-based loan, and a non-cosigned outcomes-based loan.
Best Features:
- Variety of loan options
- Competitive interest rates
- Accessible to international and DACA students
- Flexible cosigner release policy
Drawbacks:
- Unavailable to students enrolled less than half-time
- Cosigner release is not available to international students.
Ascent is the best private lender for borrowers who do not have a cosigner available, are international or DACA students, or have lower credit scores.
Learn more about Ascent.
Brazos
Brazos is a non-profit lender focused on bringing transparency and low-cost loans to Texas residents.
Brazos offers both private student loans and student loan refinancing to Texas residents.
Best Features:
- Competitive interest rates
- Variety of repayment options
Drawbacks:
- Strict eligibility criteria (Only available to Texas residents.)
Brazos is the best private lender for borrowers who are Texas residents with an established income and strong credit.
Learn more about Brazos.
College Ave
College Ave is an online student lender with the mission to make the student loan process more simple, clear, and personal.
College Ave offers both private student loans and student loan refinancing for undergraduates, graduate students, professional school students, career school students, and parents of students.
Best Features:
- Strong customer experience
- Competitive interest rates
- Ability to choose your own loan term
Drawbacks:
- Strict cosigner release policy
College Ave is the best private lender for borrowers who want a more flexible repayment term that allows them to find a loan that matches their budget.
Learn more about College Ave.
The Custom Choice Loan®
The Custom Choice Loan® is funded by Citizens. The loan option is designed to provide borrowers with greater flexibility and control when it comes to funding their college education.
The Custom Choice Loan is available for undergraduate and graduate students.
Best Features:
- Competitive interest rates
- Flexible repayment options
- Strong customer service
Drawbacks:
- Some Custom Choice Loans® are not accessible to students enrolled less than half-time.
- No repayment plan shorter than 7 years or longer than 15 years
The Custom Choice Loan® is the best private lender for borrowers that want competitive interest rates, are seeking a flexible repayment term, and want strong borrower benefits.
Learn more about the Custom Choice Loan®.
Earnest
Earnest is an online student lender that was founded in 2013 with the mission to make the student loan process simpler for students and graduates.
Earnest offers both private student loans and student loan refinancing to undergraduate, graduate, and professional students.
Best Features:
- Competitive interest rates
- Flexible repayment options
- Customizable payments and loan terms
- Allows biweekly payments via autopay
Drawbacks:
- No cosigner release option on traditional student loans; no option to add a cosigner on refinance loans
- Loan products are unavailable in certain states
Earnest is the best private lender for borrowers who want competitive interest rates, unique borrower perks, and flexible repayment options that allow them to find a loan that matches their budget.
Learn more about Earnest.
Edly
Edly offers Income-Based Repayment (IBR) loans through FinWise Bank, an FDIC-insured bank. IBR loans create an alternative loan option for students by setting post-graduation payments based on income.
Students who borrow an IBR loan from Edly will not have to make payments while in school. Instead, borrowers make payments after graduation based on their income.
Best Features:
- Loan payments are based on income.
- Repayment begins when the borrower has an income of at least $30,000.
- No cosigner required
Drawbacks:
- The borrowing limit is capped at $25,000 per semester, which may not cover all programs.
- Only available for a select group of schools
- Offers a 4-month grace period, which is shorter than the typical 6-month grace period offered by other private student lenders.
Edly is the best private lender for borrowers who want a loan option with no cosigner, competitive repayment terms, and flexible repayment options.
Learn more about Edly.
Funding U
Funding U is an online lender that focuses exclusively on undergraduate students with no cosigner. Rather than looking at the borrower’s credit score or income, Funding U looks at non-traditional metrics such as GPA and estimated future income to assess creditworthiness.
Best Features:
- No cosigner required
- No credit history required
- Variety of repayment options
- Available to DACA students with a work-eligible Social Security card
Drawbacks:
- Unavailable in 13 states
- Maximum funding amount is $20,000, which is less than most other private lenders.
- Unavailable to students enrolled less than half-time
- Loan payments are required while in school.
Funding U is the best private lender for borrowers who are high-achieving undergraduate students with limited credit history and no access to a creditworthy cosigner.
Learn more about Funding U.
INvestED
INvestED has been providing students in Indiana with higher education solutions for over 40 years.
INvestED offers private student loans, parent loans, and student loan refinancing for residents of and students in Indiana.
Best Features:
- Competitive interest rates
- Variety of repayment options
- Variety of loan options
Drawbacks:
- Strict residency requirements
INvestED is the best private lender for borrowers who are residents of or students in Indiana and want competitive interest rates and a variety of repayment options.
Learn more about INvestED.
ISL Education Lending
ISL Education Lending is a nonprofit student lender established in 1979 with the mission of supporting students and families who have exhausted other sources of aid.
ISL Education lending offers both private student loans and student loan refinancing.
Best Features:
- Competitive interest rates
- Zero fees
Drawbacks:
- Limited repayment options
ISL Education Lending is the best private lender for borrowers who want to work with a nonprofit lender and want competitive interest rates.
Learn more about ISL Education Lending.
LendKey
LendKey is an institution that connects borrowers with a network of 100+ lesser-known credit unions and community banks, allowing borrowers to work with smaller lenders with low rates and good customer service, rather than traditional lending institutions.
LendKey offers both private student loans and student loan refinancing.
Best Features:
- Allows borrowers to work with credit unions and community banks
- Competitive interest rates
- Variety of borrower benefits
Drawbacks:
- Unavailable to part-time students, parents, and non-U.S. citizens/permanent residents
- Unavailable in certain states
LendKey is the best private lender for borrowers who want to work with a credit union or community bank, have strong credit, and have stable income.
Learn more about LendKey.
MPOWER
MPOWER is an online lender that works with international and DACA students to provide affordable college financing.
MPOWER offers non-cosigned undergraduate and graduate student loans for international, domestic, and DACA students.
Best Features:
- Available to international, domestic, and DACA students
- Provides additional assistance such as scholarship opportunities
- Borrowers can receive up to 1-1.5% in rate discounts depending on the loan type.
Drawbacks:
- Only one repayment term of 10 years
- Higher interest rates and fees than other lenders
MPOWER is the best student loan company for borrowers who are international or DACA students, don’t have a credit history, and can’t access a qualified cosigner.
Learn more about MPOWER.
Nelnet Bank
Nelnet Bank is an online student lender founded over 40 years ago with the mission to make educational dreams possible.
Nelnet Bank offers both private student loans and student loan refinancing.
Best Features:
- Competitive interest rates
- Variety of repayment options
- Flexible cosigner release option
Drawbacks:
- Strict eligibility criteria
- Unavailable to international students or student visas
- No biweekly payment via autopay
Nelnet Bank is the best private lender for borrowers who want competitive interest rates, a variety of repayment options, and a flexible forbearance policy.
Learn more about Nelnet Bank.
Prodigy Finance
Prodigy Finance is an online student lender founded in 2007 to help international students in master’s degree programs find affordable college financing.
Best Features:
- No cosigner required
- No collateral required
- No credit history required
- Variety of repayment options
Drawbacks:
- Not available in all 50 U.S. states
- Limited interest and repayment options
- Higher interest rates and fees than other online lenders
Prodigy Finance is the best private lender for international student borrowers with no credit history.
Learn more about Prodigy Finance.
Sallie Mae
Sallie Mae is one of the largest online private student lenders and is committed to helping borrowers find affordable college financing.
Sallie Mae offers student loans for undergraduate, graduate, MBA, law, medical, dental, and career training programs.
Best Features:
- Competitive interest rates
- Strong customer experience
- Various repayment options
- Flexible cosigner release policy
Drawbacks:
- No biweekly student loan payments via autopay
- Unable to see what rate you qualify for before formally applying
Sallie Mae is the best private lender for borrowers who want a more flexible repayment plan and competitive interest rates.
Learn more about Sallie Mae.
SoFi
SoFi is an online student lender founded in 2019 and now one of the largest student loan companies in the industry.
SoFi offers both private student loans and student loan refinancing. SoFi’s student loan offering is available for undergraduates, graduates, law and MBA students, as well as parents of students.
Best Features:
- Competitive interest rates
- Variety of repayment options
- Variety of membership perks such as career coaching, job search assistance, and more
Drawbacks:
- Unclear credit requirements
- High loan minimum
SoFi is the best private lender for borrowers who have a high credit score and want competitive interest rates.
Learn more about SoFi.
How to Pick the Best Private Lender for Student Loans
The best student lender will always be the one that suits you best. That said, you should look for the following qualities in a student lender:
Offers Competitive Interest Rates
The interest rate on your student loan is essentially the cost to borrow with a lender. Generally speaking, the lower the interest rate, the better. Look for a lender that offers competitive interest rates.
Strong Customer Service
The lender you select will be the lender you work with for the entire duration of your repayment term (if you don’t refinance with another lender, that is), which can be up to 15-20 years. Make sure the lender has a record of strong customer service before you agree to work with them.
Offers Flexible Repayment Options
Each private student lender will offer a different set of repayment options. While you may initially prefer one, life changes such as a different job can quickly change your repayment preferences. Make sure the lender you select has an array of repayment options so that if you need to change in the future, you have the option to do so.
Where to Find the Best Private Lender for Student Loans
To find the best private student lender for you, complete the Sparrow form. Rather than searching for student lenders one-by-one, the Sparrow form will show you what rates you pre-qualify for at over 15 different student lenders. Then, you can compare the offers side-by-side to make sure you’re selecting the best lender 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.