Personal Finance Loans Student Loans
Written by Liz Knueven and Ryan Wangman, CEPF; edited by Richard Richtmyer; reviewed by Elias Shaya
Updated
- Our Top Picks for the Best Private Student Loan Companies
- Sofi
- Ascent
- Earnest
- College Ave
- Sallie Mae
- Custom Choice
- MPower
- FAQs
- Why You Should Trust Us
Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate student loans to write unbiased product reviews.
If you've already used your savings, federal student loans, and student aid to pay for college and still find that you're short on cash, a private student loan could be a good option.
Our Top Picks for the Best Private Student Loan Companies
The best student loans available are federal student loans. But if you need to turn to a private lender, here are a few of the best places to begin your search.
- SoFi Undergraduate Student Loans
- Sallie Mae Undergraduate Student Loans
- Ascent Undergraduate Student Loans
- Earnest Undergraduate Student Loans
- College Ave Undergraduate Student Loans
- Custom Choice Undergraduate Student Loans
- MPower Financing Undergraduate Student Loan
Compare the Top Private Student Loans
The best private student loans have competitive interest rates, a variety of repayment terms, and no origination fees. Our list of the best options includes picks for both undergraduate and graduate students.
Sofi Student Loans
SoFi Undergraduate Student Loans
On SoFi's website
Insider’s Rating
4/5
Perks The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi.
0.25% discount on regular rates with AutoPay
Regular Annual Percentage Rate (APR)
Interest Rates: Eligibility and Important Details. Fixed rates range from 4.19% APR to 14.30% APR with 0.25% autopay discount. Variable rates range from 5.74% APR to 14.30% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates are capped at 17.95%. SoFi rate ranges are current as of 5/30/24 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term and type of repayment option you select, evaluation of your creditworthiness, income, presence of a co-signer (if applicable) and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. Check out our eligibility criteria at https://www.sofi.com/eligibility-criteria/. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi.
5.74% - 14.30% variable and 4.19% - 14.30% fixed (with AutoPay discount)
Recommended Credit
Undisclosed
Loan Amount Range
Minimum of $5,000
Pros
- No origination fees, prepayment penalties, or late fees
- Solid APR
- Several options for repayment term length
- Quick application process
- Unemployment protection
Cons
- Credit check required
- $5,000 loan minimum
Insider’s Take
SoFi is an excellent lender for borrowers who want competitive APRs and a safety net in the case of a job loss. It's also a great lender for those who don't want to worry about fees.
SoFi Undergraduate Student Loans review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Apply through your computer or mobile device
- Customer service available via phone, mail, and social media
- Five, seven, 10, or 15 year repayment terms available
- Loan minimum of $5,000, maximum up to 100% cost of attendance
- Unemployment Protection provides up to 12 months of loan forbearance for eligible borrowers who lose their job through no fault of their own
- Loans are originated by SoFi Lending Corp. or an affiliate
- Repayment options available:
- Deferred: No payments until six months after leaving school
- Interest only: Only make payments on the loan's interest while in school
- Full repayment immediately: Start making full payments while still in school
SoFi private student loans are best for graduate students. SoFi is one of the few lenders offering lower interest rates for graduate school loans than undergraduate loans.
While SoFi's interest rates are competitive with others on the list, what makes SoFi unique are its other features. This lender offers some good protections for student loan borrowers, like career services and unemployment protection. Additionally, SoFi's student loans have no fees, including no late fees (though it's worth noting that interest will still accrue).
Watch out for: High maximum loan amount. SoFi's minimum loan amount is $5,000 — if you need a small student loan, it might be worth turning to a lender that makes smaller loans.
SoFi Student Loans Review
Ascent Student Loans
Ascent Undergraduate Student Loans
On Ascent's website
Insider’s Rating
4/5
Perks
0.25% discount on regular rates with AutoPay
Regular Annual Percentage Rate (APR)
Ascent's undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 6/3/2023 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.
6.23% - 16.09% variable and 4.29% - 15.96% fixed (with AutoPay discount, varies by plan)
Recommended Credit
Fair to Excellent
Loan Amount Range
$2,001 - $200,000 ($200,000 aggregate total)
Pros
- N/A
Cons
- N/A
Insider’s Take
Ascent provides a variety of repayment term lengths on its student loans and low minimum interest rates on fixed-rate loans. You may also qualify for a 1% cash-back reward that will be paid to you after graduation.
Ascent Undergraduate Student Loans review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Loan amounts available: $2,001* minimum, up to $200,000 for undergraduates, and $400,000 for graduates
- *The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.
- Repayment options available:
- Deferred: No payments for up to nine months after leaving school
- Interest only: Only make payments on the loan's interest while in school
- Partial payments: Pay $25 per month while in school
Ascent private student loans are a flexible option for almost any student loan borrowers. Interest rates are competitive, and terms range from five to 15 years.
Cosigners are allowed and encouraged. A relatively unique feature is Ascent's cosigner release. Make 12 consecutive on-time payments, and Ascent can release a cosigner from your student loan.
What to watch out for: Ascent isn't a great option if you want to repay your student loans while you're still in school, as this lender doesn't offer a repayment plan with full payments while borrowers are still enrolled. But there's no prepayment penalty on loans if you want to make partial payments in school. It's also worth noting that Ascent limits borrowers' total loans to $400,000, including any other federal or private student loans outside of Ascent.
Ascent Student Loans Review
Earnest Student Loans
Earnest Undergraduate Student Loans
On Earnest's website
Insider’s Rating
4.25/5
Perks
0.25% discount on regular rates with AutoPay
Regular Annual Percentage Rate (APR)
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.36% APR to 16.15% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.87% APR to 16.45% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination 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. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
5.62% - 16.20% variable and 4.11% - 15.90% fixed (with AutoPay discount)
Recommended Credit
Undisclosed
Pros
- No origination fees, prepayment penalties, or late fees
- Great APR
- Many options for repayment term length
- Quick application process
- Skip a payment option
- Low loan minimum
Cons
- Credit check
- May need a cosigner
Insider’s Take
Earnest is a strong lender with competitive rates and a variety of term lengths. If you fall on financial hardship, you can skip a payment once per year — though that payment will extend the length of your loan term later.
Earnest Undergraduate Student Loans review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Five, seven, 10, 12, 15, and 20-year repayment term lengths available
- Apply through your computer or mobile device
- Customer service available via phone, live chat, email, and standard mail
- Loan minimum of $1,000, maximum up to 100% cost of attendance
- Skip a payment feature allows you to forgo making one payment every year
- Loans are originated by Earnest Operations LLC
- Repayment options available:
- Deferred: No payments for up to nine months after leaving school
- Interest only: Only make payments on the loan's interest while in school
- Partial payments: Pay $25 per month while in school
- Full repayment immediately: Start making full payments while still in school
- This is an advertisem*nt. You are not required to make any payment or take any other action in response to this offer.
Earnest's private student loans offer low starting interest rates and very flexible repayment terms. Earnest has four options for repayment, including a nine-month deferral after school. Earnest doesn't charge any fees, including prepayment or origination fees on private student loans, which makes it a strong option.
Earnest also advertises the ability to skip a payment once per year. But that doesn't mean that you're off the hook for that payment, since interest will still add up and your payoff will be delayed. Your payments could be higher if you take full advantage of these features, and they could increase your total payoff time and loan amount.
But if used the right way, Earnest's private student loans could still beat the competition with such low starting interest rates.
What to watch out for: Some of Earnest's flexible features aren't the right fit for everyone. The ability to delay loans for nine months may not be as great as it sounds, since interest still accrues during this period, growing your loan's balance.
Earnest Student Loans Review
College Ave Student Loans
College Ave Undergraduate Student Loans
On College Ave's website
Insider’s Rating
4.5/5
Perks
0.25% discount on regular rates with AutoPay
Regular Annual Percentage Rate (APR)
5.59% - 16.85% variable and 4.29% - 16.39% fixed (with AutoPay discount)
Fees
late payment of 5% of the amount due, capped at $25
Recommended Credit
mid-600s
Pros
- No prepayment or origination fees
- International students eligible with an eligible cosigner
- Low APR
- Multiple options for repayment term length
- Many ways to contact customer support
Cons
- Credit check required
- Late payment fee
Insider’s Take
College Ave is a great lender for borrowers who want multiple options for repayment term lengths and are after a low APR. College Ave also offers many options for contacting customer support.
College Ave review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Apply through your computer or mobile device
- Customer service available via phone, text, email, and live chat
- Five, eight, 10, or 15 year repayment terms available
- Loan minimum of $1,000, maximum up to 100% cost of attendance
- Repayment options available:
- Deferred: No payments for up to six months after leaving school
- Interest only: Only make payments on the loan's interest while in school
- Partial payments: Pay $25 per month while in school
- Full repayment immediately: Start making full payments while still in school
- Loans made through Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC
College Ave ties has one of the lowest starting interest rates on private student loans, since undergraduate fixed-rate loans start with an interest rate of 4.29%. Interest rates for grad school students are also competitive with SoFi's lower interest rates for this group.
It's a good choice for both graduate and undergraduate students, and it offers four options for repayment. College Ave allows cosigners for loans and offers parent loans in addition to undergraduate and graduate loans, starting at the same interest rate as the undergraduate interest rate.
What to watch out for:Late payment penalty. You'll fork over a late payment of 5% of the amount due, capped at $25 if you fall behind on your payments.
College Ave Student Loans Review
Sallie Mae Student Loans
Sallie Mae Undergraduate Student Loans
On Sallie Mae's website
Insider’s Rating
3.25/5
Perks
0.25% discount on regular rates with auto debit
Regular Annual Percentage Rate (APR)
5.37% - 15.70% variable and 4.50% - 15.49% fixed
Fees
late payment of 5% of the amount due, capped at $25
Recommended Credit
Undisclosed
Pros
- No prepayment or origination fees
- Part-time students eligible
- Four months of Chegg included with your loan
- International students eligible with an eligible cosigner
Cons
- Relatively high APR
- Sallie Mae sets repayment term length
- Credit check required
- Customer service unavailable on Saturday and Sunday
- Late payment fee
- No loan preapproval
Insider’s Take
Sallie Mae is a solid lender that includes four months of Chegg with its undergraduate loans. Sallie Mae charges late fees, though, and you can get better student loan interest rates elsewhere.
Sallie Mae Undergraduate Student Loans review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Apply through your computer or mobile device
- Customer service available via phone Monday through Thursday from 8 a.m. to 9 p.m. ET or on Friday from 8 a.m. to 8 p.m. ET
- Five, 10, or 15 year repayment term, which will be assigned by Sallie Mae
- Loan approval requires a hard credit pull
- Loan amounts available:$1,000 minimum, up to 100% cost of attendance
- Repayment options available:
- Deferred: No payments for up to six months after leaving school
- Interest only: Only make payments on the loan's interest while in school and during grace period
- Fixed payments: Pay $25 per month while in school and during grace period
Sallie Mae doesn't charge any origination and prepayment fees, and you also get four months of the study service Chegg for free. Chegg offers expert Q&A, and students can submit up to 20 questions per month.
What to watch out for: Sallie Mae sets your repayment term length, so if you want to choose your term length another lender is a better option.
Sallie Mae Student Loans Review
Custom Choice Student Loans
Custom Choice Undergraduate Student Loans
On Custom Choice's website
Insider’s Rating
4/5
Perks
0.25% discount on regular rates with auto pay
Regular Annual Percentage Rate (APR)
5.39% - 15.57% variable and 4.43% - 14.04% fixed
Recommended Credit
Undisclosed
Pros
- No origination fees, prepayment penalties, or late fees
- Competitive APR
- Get your rates within a few minutes
- Low loan minimum
- Graduation discount available
Cons
- Credit check
- May need a cosigner
Insider’s Take
Custom Choice has competitively low rates compared to similar student loan lenders. The lender also will knock off 2% of your loan balance after you graduate.
Custom Choice Undergraduate Student Loans review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- 2% principal reduction upon graduation
- 7, 10, or 15-year repayment terms available
- Customer service available by phone, email, or standard mail
- Loan amounts available:$1,000 loan minimum, up to $180,000 lifetime loan limit
- Repayment options available:
- Deferred: No payments for up to six months after leaving school
- Interest only: Only make payments on the loan's interest while in school and during six month grace period
- Flat payments: Pay $25 per month while in school and during grace period
- Immediate repayment: Start making full payments while still in school
- Loans are made by Citizens Bank, Member FDIC
Custom Choice offers loans of up to $99,999 annually that come without fees, and you can check your rates within a few minutes.
Custom Choice also offers a 2% reduction on your loan principal after you provide the lender with proof of graduation, as well as a .25% interest rate reduction when you sign up for AutoPay.
What to watch out for: No mobile app. If you want to manage your loans on the go, you won't be able to with Custom Choice.
Custom Choice Student Loans Review
MPower Financing Student Loans
MPower Financing Undergraduate Student Loan
Learn more
Compare loan options and get your rates today
Insider’s Rating
2.5/5
Perks
0.25% discount on regular rates with auto pay
Regular Annual Percentage Rate (APR)
13.74% to 14.75% fixed (with AutoPay discount)
Fees
5% origination fee and undisclosed late fee
Recommended Credit
Undisclosed
Loan Amount Range
$2,001 — $100,000 lifetime
Pros
- Lends to international students without a cosigner
- Interest rate discounts for hitting certain requirements
- No prepayment penalties
Cons
- Only fixed-rate loans available
- One repayment term available
- High APR range
- Origination and late fees
- Only lends to students within 2 years of graduation from college
Insider’s Take
You might like MPower Financing if you're an international student without a cosigner. Otherwise, you may prefer another lender for more repayment options and better rates.
MPower Financing Undergraduate Student Loan review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- 10-year repayment term
- 5% origination fee and undisclosed late fee
- Customer service available by filling out a form or phone
- $2,001 loan minimum, up to $100,000 lifetime loan limit
- 1.5% reduction in your interest rate with automatic payments, six on-time payments, and proof of graduation and employment
- Lends to students for 350 schools
- Loan amounts available: $2,001 minimum, up to $100,000 lifetime limit
- Repayment options available:
- Interest only: Only make payments on the loan's interest while in school, then full payments after a 6-month grace period
- Loans are made by Bank of Lake Mills or MPOWER Financing
MPower Financing offers fixed loans designed for international students. You can get a loan without a cosigner, collateral, or US credit history. Most other lenders that offer loans to international students require a US citizen or permanent resident to cosign on the loan.
What to watch out for: High interest rates. While the lender's starting interest rates are higher than many of the other lenders on this list, we included it because of its accessibility for international students.
MPower Financing Student Loans Review
Which Private Student Loan Lender Is the Most Trustworthy?
We've only selected private student loan lenders with no public controversies in the last three years. We've also compared each institution's Better Business Bureauscore.
The BBB, a non-profit organization focused on consumer protection and trust, evaluates companies by judging a business's responses to consumer complaints, honesty in advertising, and clarity about business practices. Here is each company's score:
| Lender | BBB grade |
| SoFi Student Loans | A+ |
Ascent Student Loans | A- |
Earnest Student Loans | A |
College Ave Student Loans | A+ |
Sallie Mae Student Loans | A+ |
Custom Choice Student Loans | N/A |
MPower Financing Student Loans | NR |
Of our top picks, only Custom Choice and MPower are not currently rated an A- or higher by the BBB. Custom Choice isn't rated by the BBB at all, and the BBB doesn't have sufficient information to rate MPower Financing. That said, this doesn't necessarily reflect Custom Choice or MPower's trustworthiness, and you should ask others about their experiences with the businesses before deciding against borrowing from the companies.
FAQs
Is it a good idea to take out a private student loan?
Whether or not it's a good idea to take out a private student loan depends on your unique financial situation. You may consider alternatives such as a less expensive school, scholarships, or a side job to earn more money. Whatever your decision is, make sure you understand the terms of your loan before making a choice.
Should I pay student loans while I'm still in school?
Interest will probably still accrue while you're in school, so it may be beneficial to make your payments and even perhaps put some money toward the principal each month if you can. When your loan goes into repayment, any unpaid interest will capitalize. This means it will become part of the principal balance of your loan. Interest is then determined using this new, higher loan balance.
Does interest accrue during the grace period on a student loan?
Yes, interest will accrue during the grace period, similarly to how it does while you are in school. Some private lenders may have suspended this practice during the pandemic, but they are under no obligation to do so.
What are student loan repayment term lengths?
You can have from 10 to 30 years to pay off student loans, depending on your repayment plan. You may want an extended length to spread your costs out, but be aware that you'll pay more in overall interest this way.
Why You Should Trust Us: Our Experts for the Best Private Student Loans
We consulted loan and financial experts to give their insights into finding the best low-interest student loans for your needs.
- Sean August, CEO at The August Wealth Management Group
- Ryan Wangman, former loans reporter at Personal Finance Insider
Methodology: How We Picked the Best Private Student Loans
We rate all student loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths (15% of rating)
- Repayment options while in school (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is determined based on its importance to your borrowing experience. Rates and fees have the most significant impact on the total cost of your loan, so we weigh those the most heavily. Customer support and ethics are still crucial parts of the borrowing experience, but do not directly tie to a student loan's terms, so they have less of an impact on the overall rating.
Read more about how we rate student loans >>
Our Experts' Advice on Choosing the Best Private Student Loan
How should I determine how much to borrow through a student loan?
Sean August:
"The loan amount should be high enough to cover your education expenses, but not so high that you borrow more than you can afford to repay."
Ryan Wangman:
"Look at the total cost of your education, and subtract any 'gift aid' you'll receive, like scholarships or grants. Then, consider how much of the remaining money you'll need to take out in loans to afford the cost of school."
How do the best private student loan rates compare with other loan rates?
Sean August:
"The best private student loans should have lower interest rates compared to credit cards and personal loans. Competitive interest rates will ensure that you don't pay more than you need to over the life of your loan."
Ryan Wangman:
"The best private student loans will have rates in the single digits, especially for borrowers with great credit. Rates on student loans are usually lower than the rates on credit cards or personal loans."
Personal Finance Reporter
Liz was a personal finance reporter at Insider. Before joining Insider, she wrote about financial and automotive topics as a freelancer for brands like LendingTree and Credit Karma. She earned her bachelor's degree in writing from The Savannah College of Art and Design. She lives and works in Cincinnati, Ohio. Find her on Twitter at @lizknueven.
Loans Reporter
Ryan Wangman was a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF).In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe.
Compliance Associate
Elias Shaya is a Compliance Associate on the Personal Finance Insider team based in New York City, whichensures content accuracy and editorial independence so readers are always getting up-to-date and objective financial advice.The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up-to-date and accurate.He joined Insider in February 2022 as a fellow on the compliance team.
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