15 Best Private Student Loans for College – 2024

Best Private Student Loans for College/Best Student Loan Rates  – I have it on good authority that the world of private student loan acquisition is a doozy. I graduated from my four-year university with more than $100,000 in public and private student loan debt, the majority of which was private. Those loans started going into repayment six months after I walked off the stage at my graduation. After four years of prestigious internships, awards, and publications, I was hustling to find a job, but nothing was taking hold. My private loans would go into repayment in just six months, and the clock was ticking. 

For a lot of complicated reasons, I decided to go to an out-of-state university as an 18-year-old.  Despite maxing out on scholarships, Pell Grants, and federal student loans, I still needed money to cover my tuition payments every semester. So, I indiscriminately grabbed whatever private student loans I could that would give me money with an adult co-signer. 

I wish someone had told me then what I am about to tell you now: this is financially ill-advised. 

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I thought I was making a “good decision” because I was “investing in my future.” I thought I was making a “good decision” by staying at the same university instead of transferring somewhere less expensive when I realized the costs. Lastly, I thought that I would be able to work hard enough after graduation to pay all those loans off with a graduated payment plan and a legal number of months of forbearance. 

My friends, when I tell you that reality checked me so hard I’m still healing from the bruises nearly 15 years later: believe me. You do not want to tread into this stuff lightly. Especially if you’re going into an undergraduate program of study—but also, no matter who you are—you should search to first minimize the number of student loans you need to take out, regardless of whether they are private or federal. 

If your federal and university financial aid packages don’t cover the cover of your education, you can try a few things before you sign your name to a private student loan agreement: 

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1. Ask for an aid adjustment through FAFSA to more accurately reflect your specific family circumstances 
2. Absolutely seek out and max out scholarships 
3. Talk to your school’s financial aid office about potential payment plans or special circumstance financial assistance, which they may offer 
4. Make a request for more federal student loans, either subsidized or unsubsidized 
5. Consider the possibility of getting a part-time job while you study 
6. Consider living at home instead of on-campus, if you live close enough to a university 
7. Consider taking a gap year to work and save money, or finding an employer who provides a program that will help you to fund your education 

Still, if you absolutely must venture into the world of private student financial aid, you’re going to want to tread carefully. Why? Just check out this graphic from the Federal Student Aid office about the differences between public (or: federal) and private loans: 

In short, you need to be super careful about what you’re signing up for. Many private student loans require you to start paying back to the loan immediately after graduation, six months or a year after graduation, or—sometimes—while you’re still in school. Kind of defeats the purpose, right? 

The worst part is, the people who need the money the most are the least likely to have the capacity to start paying those loans back right away. But, that’s not what you’re here for, is it? You want to know the best private student loans and how hard they’re going to hit you, right? 

Well, if I still haven’t persuaded you to look elsewhere first, below is our list of 15 different private student loan companies and the details of their offerings. They all have different terms, interest rates, and payback requirements, so they’re in an order from “best” to “worst.” Use these 15 as a jumping-off point for your research, and never sign anything until you’ve read and understood all the fine print. 

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Just remember: these companies want to make money off of you—and they will. How much money they make off of the financing of your education is largely up to you—but that’s something you have to decide before you take out a loan. 

Take the lowest interest rate that you can with the most repayment benefits that will help to protect your future self from defaulting on your loans. You cannot declare bankruptcy on student loans, and while the Biden administration has expanded student loan debt cancellation to millions of federal borrowers, private loan debt cancellation has never been up for discussion at the federal level.

 In other words: you’re going to be paying these off for as long as you have the debt. 

Remember these steps: 

• Minimize the amount of money you need to borrow by getting scholarships, grants, and asking for more federal financial aid or adjusting your FAFSA.
• Do your research and find the lowest interest rate available to you, likely with a cosigner. 
• Know when you will need to start paying back your loans, and make a plan to do so, even if you need to take on a side hustle to get it done. 

Best Private Student Loans/Student Loan Rates

1) Sallie Mae

• Interest Rates: Variable: 5.62% – 16.95%, Fixed: 4.50% – 15.49% 
• Loan Types: Undergraduate, Graduate, MBA, Medical, Dental, Law, Parent

The name Sallie Mae is associated with controversy. The corporation faced multiple lawsuits in the early 2000s for predatory and unfair lending practices, eventually leading to a split in the company, creating two different entities: Sallie Mae and Navient. The Sallie Mae of today claims to be an entirely different entity. 

Sallie Mae does offer no origination fee and a co-signer release after 12 months of on-time payments, which can be helpful for some borrowers to take the weight off of their co-signers’ credit score. They claim to now be on the side of helping students succeed, and they offer multiple repayment options. Have they changed their tune? 

2) SoFi  

• Interest Rates: Variable: 5.09% – 15.95%, Fixed: 4.49% – 14.70% 
• Loan Types: Undergraduate, Graduate, Law, MBA, Parent

SoFi came on the student lending scene as a personal finance and technology company out of Stanford in 2011. For me, an elder millennial, they seemed like a kind of “Silicon Valley response” to the mess caused by Sallie Mae in the years prior. They have an app, they offer financial services to borrowers, and there are benefits like unemployment protection, career coaching, and a cosigner release. 

3) Earnest

• Interest Rates: Variable: 5.09% – 15.94%, Fixed: 4.45% – 14.65%
• Loan Types: Undergraduate, Graduate

Earnest was founded as a financial technology (fintech) company in 2013, after SoFi proved that it might be possible to put student lending and technology together under the same roof. I kind of think of them as SoFi’s younger sibling. They offer no fees, a “skip a payment option,” adjustable repayment terms, and various repayment options. 

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4) LendKey

• Interest Rates: Variable: 5.49% – 15.37%, Fixed: 4.25% – 13.68%
• Loan Types: Undergraduate, Graduate, Refinancing
• Benefits: Low-interest rates, community-based lenders, and no origination or pre-payment fees

5) Discover Student Loans

• Interest Rates: Variable: 5.87% – 15.62%, Fixed: 4.49% – 14.99%
• Loan Types: Undergraduate, Graduate, MBA, Law, Health Professions, Residency, Bar Exam
• Benefits: No origination or prepayment fees, cash reward for good grades, co-signer release after 24 months

6) Citizens Bank

• Interest Rates: Variable: 5.67% – 13.57%, Fixed: 4.34% – 12.56%
• Loan Types: Undergraduate, Graduate, Parent, Refinancing
• Benefits: Multi-year approval, loyalty discounts, co-signer release after 36 months

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7) College Ave Student Loans

• Interest Rates: Variable: 5.29% – 15.82%, Fixed: 4.44% – 14.94%
• Loan Types: Undergraduate, Graduate, Parent, Career Training
• Benefits: Customizable repayment plans, no origination or prepayment fees, multi-year approval

8) Ascent

• Interest Rates: Variable: 5.74% – 16.68%, Fixed: 4.62% – 15.97%
• Loan Types: Undergraduate, Graduate
• Benefits: No fees, non-co-signed loans, cashback rewards, co-signer release after 24 months

9) PNC Student Loans

• Interest Rates: Variable: 6.14% – 14.94%, Fixed: 4.44% – 12.99%
• Loan Types: Undergraduate, Graduate, Parent
• Benefits: No origination fees, auto-pay discount, flexible repayment terms

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10) MEFA (Massachusetts Educational Financing Authority)

• Interest Rates: Variable: 5.39% – 6.89%, Fixed: 4.59% – 6.89%
• Loan Types: Undergraduate, Graduate
• Benefits: Fixed rates with no prepayment fees, flexible repayment options

11) Sparrow Student Loans (Lender aggregator) 

• Interest Rates: Varies by lender, typically competitive
• Loan Types: Undergraduate, Graduate, Refinancing
• Benefits: Aggregates multiple loan options for easy comparison, no fees

12) CommonBond

• Interest Rates: Variable: 5.81% – 15.50%, Fixed: 4.54% – 14.67%
• Loan Types: Undergraduate, Graduate, MBA, Medical, Parent
• Benefits: No prepayment or origination fees, unemployment protection, forbearance, and social mission-driven lending

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13) RISLA (Rhode Island Student Loan Authority)

• Interest Rates: Variable: Not Available, Fixed: 4.99% – 6.29%
• Loan Types: Undergraduate, Graduate
• Benefits: Income-based repayment options, no origination fees, borrower protections

14) EDvestinU

• Interest Rates: Variable: 5.46% – 12.30%, Fixed: 4.89% – 9.25%
• Loan Types: Undergraduate, Graduate
• Benefits: No origination fees, fixed and variable rates, borrower and co-signer release

15) Credible (Lender aggregator) 

• Interest Rates: Varies by lender, typically competitive
• Loan Types: Undergraduate, Graduate, Refinancing
• Benefits: Compares multiple lenders in one place, no fees, soft credit check to view rates

Best Private Student Loans/Student Loan Rates – Final Thoughts

A final word: if you want to put in an application for a loan with one of these lenders, you should absolutely do more research to find out the terms and conditions. The financial tech companies, their apps, and their rhetoric can feel really persuasive at the outset—you might even be made to feel like you’re joining an elite club of borrowers who are making a positive investment in their future. 

But I’m always wary of anyone who wants me to think they’re really cool while they put me into debt, you know? There’s an old Italian saying that goes something like: when the devil caresses you, he wants your soul. Your mileage may vary, but just don’t be fooled by friendly marketing, read the fine print, and if it feels too good to be true: it is. If you need to take time and space to finance your college career, there is absolutely no shame in that. In fact, if you do take your time, your future self will be so much happier to not have a monthly debt payment.