DollarGeek Presents:
Best Private Student Loans - March 2023
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A private student loan can make sense for the right situation. When you pay for your college, you should first fill out a FAFSA (free application for federal student aid) and exhaust your federal student loan options. If you still need help paying your way through college that is when you might consider a private student loan. Check out who made our list of the best student loans.

Variable Rate
1.79% - 12.99%1
varies on creditFixed Rate
3.22% - 13.95% 1
varies on creditGeeky Insight
- Get a personalized rate without affecting your credit score.
- College Avenue will give you access to private student loans that can cover up to 100% of your cost of attendance, including tuition, fees, books, housing, and other college costs.
- Borrowers will have a rate that fits your needs and repayment options that fit your monthly budget.
- Co-signer release is available.
Perks
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No Origination Fees
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No Application Fees
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No Prepayment Penalty5
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Co-Signer Release Option
Lender Details
- Loan Amounts: $1,000 - Total cost of attendance
- Loan Terms: 5, 8, 10 and 15 years
- Origination Fee: None
- Application Fee: None
- Prepayment Penalty: None
- Late Fees: Yes. 5% of the unpaid monthly payment amount or $25 - whichever is less
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
(1)As certified by your school and less any other financial aid you might receive. Minimum $1,000.
(2)The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
(3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 08/18/2022. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
Geeky Insight
- Get a personalized rate without affecting your credit score.
- College Avenue will give you access to private student loans that can cover up to 100% of your cost of attendance, including tuition, fees, books, housing, and other college costs.
- Borrowers will have a rate that fits your needs and repayment options that fit your monthly budget.
- Co-signer release is available.
Perks
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No Origination Fees
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No Application Fees
-
No Prepayment Penalty
-
Co-Signer Release Option
Details
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Loan Amounts:$1K - Varies
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Loan Terms:5, 8, 10 and 15 years
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Origination Fee:None
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Application Fee:None
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Prepayment Penalty:None
-
Late Fees:Yes
Variable Rate
1.85% - 11.35%
varies on creditFixed Rate
3.24% - 12.94%
varies on creditGeeky Insight
- Ascent is a private student loan lender that stands out because of its consideration of the financial outcome of a college degree during the application process.
- Ascent offers co-signed loans, non-co-signed loans (credit-based), non-co-signed future income loans.
- The lender considers your school, GPA, major, and expected future income to check your eligibility. Ascent allows you to apply for independent student loans as well.
- No origination fees or prepayment penalties.
Perks
-
No Origination Fees
-
No Application Fees
-
No Prepayment Penalty5
Lender Details
- Loan Amounts: $1,000 minimum to $200,000 over the lifetime of a borrower for the co-signed option. The amount for each loan period cannot exceed the total cost of attendance. For non-co-signed option, $1,000 to $20,000
- Loan Terms: 5, 7, 10, 12 or 15 years for cosigned option. 10 or 15 years for non-co-signed option
- Origination Fee: None
- Application Fee: None
- Prepayment Penalty: None
- Late Fees: 5% of the amount past due (but no more than $25)
Geeky Insight
- Ascent is a private student loan lender that stands out because of its consideration of the financial outcome of a college degree during the application process.
- Ascent offers co-signed loans, non-co-signed loans (credit-based), non-co-signed future income loans.
- The lender considers your school, GPA, major, and expected future income to check your eligibility. Ascent allows you to apply for independent student loans as well.
- No origination fees or prepayment penalties.
Perks
-
No Origination Fees
-
No Application Fees
-
No Prepayment Penalty
Variable Rate
5.37% - 15.70%1
varies on creditFixed Rate
4.50% - 14.83%1
varies on creditGeeky Insight
- Sallie Mae provides competitive rates and loan terms from 10 to 15 years. 2. (It will vary based on cumulative amount of borrowers loans that are serviced by Sallie Mae)
- Sallie Mae is one of few lenders that serves less than half-time, half-time, as well as full-time students.
- You have the option of making interest only payments for 12 months after finishing school. 3
- Cosigner release available after 12 on-time payments. 4
Perks
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No Origination Fees
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No Application Fees
-
No Prepayment Penalty5
Lender Details
- Loan Amounts: $1,000 - Cost of attendance 6
- Loan Terms: 10 to 15 years 2
- Origination Fee: None
- Application Fee: None
- Prepayment Penalty 5: None
- Late Fees: Yes
- Lowest rates shown include the auto debit discount. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment.
- Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6- month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years.
- GRP allows interest-only payments for the initial 12-month period of repayment when the loan would normally begin requiring full principal and interest payments or during the 12-month period after GRP request is granted, whichever is later. At the time of GRP request, the loan must be current. The borrower may request GRP only during the six billing periods immediately preceding and the twelve billing periods immediately after the loan would normally begin requiring full principal and interest payments. GRP does not extend the loan term. If approved for GRP, the Current Amount Due that is required to be paid each month after the GRP ends will be higher than it otherwise would have been without GRP, and the total loan cost will increase
- Only the borrower may apply for cosigner release. To do so, they must first meet the age of majority in their state and provide proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if their status has changed since they applied). In the last 12 months, the borrower can’t have been past due on any loans serviced by Sallie Mae for 30 or more days or enrolled in any hardship forbearances or modified repayment programs. In addition, the borrower must have paid ahead or made 12 on-time principal and interest payments on each loan requested for release. The loan can’t be past due when the cosigner release application is processed. The borrower must also demonstrate the ability to assume full responsibility of the loan(s) individually and pass a credit review when the cosigner release application is processed that demonstrates a satisfactory credit history including but not limited to no: bankruptcy, foreclosure, student loan(s) in default or 90-day delinquencies in the last 24 months. Requirements are subject to change.
- Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note-first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.
- Loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount. Information advertised valid as of 01/25/2023
Geeky Insight
- Sallie Mae provides competitive rates and loan terms from 10 to 15 years. 2. (It will vary based on cumulative amount of borrowers loans that are serviced by Sallie Mae)
- Sallie Mae is one of few lenders that serves less than half-time, half-time, as well as full-time students.
- You have the option of making interest only payments for 12 months after finishing school. 3
- Cosigner release available after 12 on-time payments. 4
Perks
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No Origination Fees
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No Application Fees
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No Prepayment Penalty
Details
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Loan Amounts:$1,000 - Cost of attendance
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Loan Terms:5 to 15 years
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Origination Fee:None
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Application Fee:None
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Prepayment Penalty:None
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Late Fees:Yes
Variable Rate
1.25% - 11.10%
varies on creditFixed Rate
4.25% - 12.35%
varies on creditGeeky Insight
- LendKey offers borrowers the opportunity to work with a community bank or credit union for an undergraduate private student loan.
- Loan term of 10 years.
- LendKey offers a 6 month grace period for borrowers.
- You will not be able to get a personalized rate estimate before you apply.
- LendKey will let you borrow between $2,000 - $160,000.
Perks
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No Origination Fees
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No Application Fees
-
No Prepayment Penalty5
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Co-Signer Release Option
Lender Details
- Loan Amounts: $2,000 - $160,000
- Loan Terms: 10 years
- Origination Fee: None
- Application Fee: None
- Prepayment Penalty: None
- Late Fees: Yes. $5-$15 depending on the lender.
Geeky Insight
- LendKey offers borrowers the opportunity to work with a community bank or credit union for an undergraduate private student loan.
- Loan term of 10 years.
- LendKey offers a 6 month grace period for borrowers.
- You will not be able to get a personalized rate estimate before you apply.
- LendKey will let you borrow between $2,000 - $160,000.
Perks
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No Origination Fees
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No Application Fees
-
No Prepayment Penalty
-
Co-Signer Release Option
Details
-
Loan Amounts:$2K - $160K
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Loan Terms:10 years
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Origination Fee:None
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Application Fee:None
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Prepayment Penalty:None
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Late Fees:Yes
Variable Rate
1.22% - 11.25%1
varies on creditFixed Rate
4.23% - 10.66%1
varies on credit- Previous
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Best Private Student Loan Lenders and Interest Rates of March 2023
Variable Interest Rate
Fixed Interest Rate
Min. Credit Score
*rates are shown with autopay
Best for those who want the most flexible repayment options and a low interest rate
Overview
College Ave is an online private student loan and refinancing loan provider for undergrads and graduate students. Started in 2014, the online lender offers flexible repayment options, competitive interest rates, and quick loan processing.
Our analysis reveals that College Ave is one of the best lenders when it comes to flexible loan terms and repayment options. Borrowers can choose a loan term between 5 years and 20 years, depending on the type of private student loan. The type of loan can be used for graduate school, mba, dental school, law school and med school. In terms of repayment options, College Ave provides four repayment options, including:
- Immediate payments while you’re in college.
- Fixed $25 monthly payments throughout college
- Interest-only payments
- Payment deferment until graduation or completion of course.
College Ave offers a grace period of up to 9 months. Some additional features of College Ave private student loans include the option to pay more than minimum payments and choose biweekly payments.
What We Like
- College Ave provides flexible repayment options.
- Borrowers can choose a loan term of 5 to 20 years.
- A grace period of up to 9 months is available with College Ave student loans.
- 0.25% interest rate discount with autopay.
Areas to Watch Out for
- As common with most private student loan lenders, cosigner release is possible only after half of the repayment term has passed successfully.
Overview
Ascent is an online lender that provides Private Student loans for college aspirants. The online lender offers three different types of loans, including Ascent cosigned credit-based loan, Ascent non-cosigned credit-based loan, and Ascent non-cosigned future income-based loan.
Amid an industry full of lenders seeking cosigners, Ascent carves a unique name with its future income-based private student loan. These loans do not require a cosigner or credit history, although applicants should be upperclassmen to boost their chances of approval.
As an online lender, the entire loan application process can be completed through the internet. Loan applicants can find their pre-qualified rates with a soft credit pull. Ascent disburses funds directly to the school or participating colleges.
What We Like
- Ascent offers a longer forbearance period (24 months).
- Its non-cosigned future income-based plan allows applicants with no cosigners, credit, or income access private student loans.
- Ascent distributes thousands of dollars in scholarships every year. There is a 1% cash back program for borrowers finishing their graduation.
- Autopay discount of 0.25%.
Areas to Watch Out for
- Only college juniors and seniors can apply for non-cosigner future-income based plans.
Overview
Sallie Mae is one of the most diversified lenders on our list. Sallie Mae started as a federal student loan provider, but since 2014, it has been offering private student loans. The student loan provider offers loans for undergraduate, graduate, medical, dental, law, MBA, and even for K-12 studies.
A key differentiator between Sallie Mae and other private student loan providers is the fact that the former is some of the very few lenders offering loans to part-time students. The private student loans from Sallie Mae come with zero origination charges and prepayment penalties.
Sallie Mae offers competitive interest rates. Borrowers can receive lower APRs by choosing in-school repayments. Additionally, there is a rate discount of 0.25% with auto-debit functionality. Adding a cosigner is another way to lower overall interest rates on a private student loan. As per Sallie Mae, 88% of its undergraduate borrowers apply with a cosigner.
What We Like
- Sallie Mae provides private student loans for part-time students.
- It has one of the most diversified student loan products.
- Sign up for automatic payments and receive a 0.25% autopay discount on your interest rate.
Areas to Watch Out for
- If you want to check your eligibility for a loan, you’ll have to allow a hard inquiry on your credit report.
Best for those who want to work with a smaller bank and competitive interest rates
Overview
LendKey, unlike other lenders in our list, is a lending marketplace that connects borrowers with the right lenders. The online loan marketplace has a partner network of over 13,000 lenders, community banks, and credit unions.
One of the primary benefits of LendKey is that it puts together quotations from multiple lenders, helping borrowers choose the best terms for their private student loans. The loan rates and terms may vary among different lenders, but LendKey keeps loan origination and servicing in-house.
All LendKey private student loans come with zero origination fees, prepayment charges, and application fees. Also, the online marketplace offers a forbearance period of 18 months, much longer than most private student loan providers.
LendKey lags other lenders in terms of repayment options and not having the ability to check rates upfront.
What We Like
- LendKey allows borrowers to compare private student loan terms from different lenders.
- It offers a forbearance period of 18 months, longer than most lenders.
- There are no application fees, loan origination fees, or prepayment penalties.
- Sign up for automatic payments and receive a 0.25% discount on your interest rate.
Areas to Watch Out for
- LendKey offers limited repayment options.
- Borrowers don’t have access to pre-qualification via a soft credit check.
Overview
SoFi is a leader in the student loan refinancing space. The online lender also provides private student loans, with exclusive member benefits, no-fee structure, and lower interest rates. Its private student loans include undergraduate, graduate, law and MBA, and parent loans.
Borrowers can receive a free quotation online in as little as three minutes through a soft credit inquiry. SoFi has a no-fee structure, which means there are no loan origination fees, no late fees, and no insufficient funds fee with SoFi private student loans.
We also found SoFi’s interest rates competitive and even lower than most online lenders. The online lender offers four repayment options, including immediate payments, fixed $25 payments, interest-only payments, and deferred repayments.
SoFi offers a 12-month forbearance period through the loan term in intervals of three months each. The online lender also has an unemployment protection policy in place.
What We Like
- SoFi doesn’t charge any fees for private student loan processing and maintenance.
- Borrowers receive exclusive membership benefits, including rate discounts, financial planning guides, and career coaching, among other services.
- SoFi has an unemployment protection policy, with a maximum forbearance of 12 months.
- Competitive rates for graduate student loans.
Areas to Watch Out for
- SoFi offers its private student loans to US citizens only.
Best Private Student Loans: Learn More
A private student loan is a credit-based loan for college. This loan can help students cover the gap between financial aid received and the full cost of attendance. It’s important to know that private student loans are issued by private lending institutions, like banks and credit unions – not the government. When you apply for a private student loan, you will fill out an application and the lender will confirm you meet their criteria (credit score, verification of school registration, etc).
A private student loan is suitable for candidates who have exhausted their federal aid options. If you’re searching for the best private student loans, here are some options for you.
Some individuals may find it difficult to qualify for a private student loan. Each lender has its own credit score requirements, interest rates, and even a co-signer.
- College Ave (low credit score requirements and interest rates)
- Ascent (No co-signer)
- Sallie Mae (part-time student loans)
Private student loans are a good option for individuals who have used their federal aid but need further financial assistance. It is critical to choose a private student loan provider with flexible payment terms, forbearance options, and competitive interest rates.
Unfortunately, private student loans do not qualify for loan forgiveness programs. However, there are other options to get relief, such as forbearance, refinancing, and loan restructuring. As a student, always use your federal aid before applying for a private student loan.
Yes, most private student loan providers will directly transfer your student loan to the institution. In order to qualify for a private student loan, you have to be enrolled in an eligible school, have a good credit/income profile, and a co-signer (helps in lowering interest rates).
Private student loans have certain limitations in comparison to federal education aid. You are likely to pay higher interest rates, lack loan forgiveness options, and have strict lending requirements. They are suitable to be used as a bridge financial option after exhausting federal aid.good credit/income profile, and a co-signer (helps in lowering interest rates).
Federal student loans are better than private student loans as they offer lower interest rates, have lower eligibility requirements, eligible for loan forgiveness programs, and forbearance. However, if you have already used your federal student loans, you can apply for private student loans.
Most private student loans cover the total amount of college education or the cost of attendance. Although, you may have to borrow at least $1,000 to $5,000 ($10,000 in some states) when applying for a private student loan. Here are some of the best private student loans:
- College Ave ($1,000 to cost of attendance)
- Ascent ($1,000 to $200,000)
- Sallie Mae ($1,000 to cost of attendance)
- LendKey ($2,000 to $160,000)
- CommondBond ($5k to $500k)
Not repaying your student loan isn’t an option for borrowers. If you do not pay your student loan, your loan goes into debt collection, which means day and night debt collection calls and unpleasant visits. The lender has the right to approach the court and file a case against you.
It is rare that a private student loan lender will let you apply on your own. Most students will need to apply with a creditworthy cosigner to meet the lenders eligibility requirements. These requirements usually include a strong credit profile and income. Having a cosigner with a healthy credit score can help you qualify for a lower interest rate. After you apply with a cosigner, the lender will then communicate with your school to confirm your enrollment and loan amount.
Student loans come with two interest rate options, fixed and variable rates. While fixed interest rates work better in a low-interest environment, variable interest rates provide the benefit of any movement in interest rates throughout the repayment period.
The net student loan debt in the US is over $1.52 trillion. Here are some interesting student loan debt figures.
- Average student loan debt per student: $32,731
- Number of student loan borrowers: 44.7 million
- State with the highest average student loan debt: Connecticut ($38,510 for the Class of 2017)