Best Private Student Loans | October 2021

DollarGeek Presents:

Best Private Student Loans - October 2021

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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.

Showing 1-6 of 6 accounts

OVERALL RATING:

(5.0)

Learn More

on College Avenue's website

Variable Rate

1.04% - 11.98%

varies on credit

Fixed Rate

3.34% - 12.99%

varies on credit

Variable Rate

1.04% - 11.98%

Fixed Rate

3.34% - 12.99%

+ Show More Details

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

No Origination Fees
No Application Fees
No Prepayment Penalty⁵
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

View Details

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

No Origination Fees
No Application Fees
No Prepayment Penalty
Co-Signer Release Option

Details

Loan Amounts:
$1K - Varies
Loan Terms:
5, 8, 10 and 15 years
Origination Fee:
None
Application Fee:
None
Prepayment Penalty:
None
Late Fees:
Yes

OVERALL RATING:

(5.0)

Learn More

on Ascent's website

Variable Rate

1.85% - 11.35%

varies on credit

Fixed Rate

3.24% - 12.94%

varies on credit

Variable Rate

1.85% - 11.35%

Fixed Rate

3.24% - 12.94%

+ Show More Details

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 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)

View Details

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

OVERALL RATING:

(4)

Learn More

on Sallie Mae's website

Variable Rate

1.13% - 11.23%¹

varies on credit

Fixed Rate

3.50% - 12.60%¹

varies on credit

Variable Rate

1.13% - 11.23%

Fixed Rate

3.50% - 12.60%

+ Show More Details

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

No Origination Fees
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

1 Lowest rates shown include the auto debit discount. Interest is charged starting when the 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. Payments may be required during the grace/separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a freshman with no other Sallie Mae loans.
Borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit 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 and may be suspended during periods of forbearance or deferment, if available for the loan.
2 Examples of typical transactions for a $10,000 Smart Option Student Loan with the most common variable 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 6.88%APR, 51 payments of $25.00, 119 payments of $136.17 and one payment of $112.58, for a Total Loan Cost of $17,591.81. For a borrower with $20,000in prior loans and a 2-year-in-school period, it works out to a 7.06% APR, 27 payments of $25.00, 179 payments of $98.17 and one payment of $98.17 and one payment of $66.85 for a loan cost of $18,314.28. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. Variable rates may increase over the life of the loan.
3 Available for loans used to pay qualified higher education expenses at a degree-granting institution. The Graduated Repayment Period (GRP) allows interest-only payments for 12 billing periods after principal and interest repayment begins. At the time of the GRP request, the loan cannot be past due. Customers can request the GRP during the six billing periods before and the 12 billing periods immediately after the loan first enters principal and interest repayment. The GRP does not extend the loan term but does increase the Total Loan Cost. Monthly payments after the GRP will be higher than they would have been without it.
4 Only the borrower may apply for cosigner release. Borrowers who meet the age of majority in their state may apply for cosigner release by providing proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if your status has changed since you applied). In the last 12 months, the borrower must be current on all Sallie Mae-serviced loans (including no hardship forbearances or modified repayment programs) and have paid ahead or made 12 on-time principal and interest payments on each loan requested for release. When the cosigner release application is processed, the borrower must demonstrate the ability to assume full responsibility of the loan(s) individually and pass a credit review 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.
5 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.
6 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 7/22/2021.

View Details

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

No Origination Fees
No Application Fees
No Prepayment Penalty

Details

Loan Amounts:
$1,000 - Cost of attendance
Loan Terms:
5 to 15 years
Origination Fee:
None
Application Fee:
None
Prepayment Penalty:
None
Late Fees:
Yes

OVERALL RATING:

(4.5)

Learn More

on CommonBond's website

Variable Rate

6.59% - 9.39%

varies on credit

Fixed Rate

6.98% - 10.74%

varies on credit

Variable Rate

6.59% - 9.39%

Fixed Rate

6.98% - 10.74%

+ Show More Details

Geeky Insight

Get a personalized rate without affecting your credit score.
CommonBond requires a co-signer.
Borrowers are eligible for 12 months of forbearance in 3 month increments over the life of the loan.
Keep in mind that there is an origination fee of 2%
Choose from a fixed, variable or hybrid rate (fixed rate for the first 5 years and variable rate for the next 5 years).

Perks

No Application Fees
No Prepayment Penalty⁵
Co-Signer Release Option
Refinance Private Loans

Lender Details

Loan Amounts: $5K - $500K
Loan Terms: 5, 10 and 15 years
Origination Fee: Yes, 2% of the loan balance
Application Fee: None
Prepayment Penalty: None
Late Fees: Yes, the lesser of $10 or 5% of the monthly payment. Charged 15 days after missed payment.

View Details

Geeky Insight

Get a personalized rate without affecting your credit score.
CommonBond requires a co-signer.
Borrowers are eligible for 12 months of forbearance in 3 month increments over the life of the loan.
Keep in mind that there is an origination fee of 2%
Choose from a fixed, variable or hybrid rate (fixed rate for the first 5 years and variable rate for the next 5 years).

Perks

No Application Fees
No Prepayment Penalty
Co-Signer Release Option
Refinance Private Loans

Details

Loan Amounts:
$5K - $500K
Loan Terms:
5, 10 and 15 years
Origination Fee:
Yes, 2% of loan balance
Application Fee:
None
Prepayment Penalty:
None
Late Fees:
Yes

OVERALL RATING:

(4.5)

Learn More

on LendKey's website

Variable Rate

1.25% - 11.10%

varies on credit

Fixed Rate

4.25% - 12.35%

varies on credit

Variable Rate

1.25% - 11.10%

Fixed Rate

4.25% - 12.35%

+ Show More Details

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

No Origination Fees
No Application Fees
No Prepayment Penalty⁵
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.

View Details

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

No Origination Fees
No Application Fees
No Prepayment Penalty
Co-Signer Release Option

Details

Loan Amounts:
$2K - $160K
Loan Terms:
10 years
Origination Fee:
None
Application Fee:
None
Prepayment Penalty:
None
Late Fees:
Yes

OVERALL RATING:

(4.5)

Learn More

on SoFi's website

Variable Rate

1.22% - 11.25%¹

varies on credit

Fixed Rate

4.23% - 10.66%¹

varies on credit

Variable Rate

1.22% - 11.25%

Fixed Rate

4.23% - 10.66%

View Details

Best Private Student Loan Lenders and Interest Rates of October 2021

Variable Interest Rate

Fixed Interest Rate

Min. Credit Score

College Ave

1.04% - 11.98%

3.34% - 12.99%

Mid 600's

CHECK RATE

Ascent

1.85% - 11.35%

3.24% - 12.94%

650 CHECK RATE

Sallie Mae

1.13% - 11.23%

3.50% - 12.60%

N/A

CHECK RATE

CommonBond

6.59% - 9.39%

6.98% - 10.74%

660 CHECK RATE

LendKey

1.25% - 11.10%

4.25% - 12.35%

660 CHECK RATE

SoFi

1.22% - 11.25%

4.23% - 10.66%

N/A

CHECK RATE

*rates are shown with autopay

Best for those who want the most flexible repayment options and a low interest rate

College Ave Private Student Loan

(5.0)

Min. Credit Score

Mid 600's

VARIABLE RATE

1.04% - 11.98%

Fixed Rate

3.34% - 12.99%

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.

Best for those who don't have a co-signer

Ascent Private Student Loan

(5.0)

Min. Credit Score

650 VARIABLE RATE

1.85% - 11.35%

Fixed Rate

3.24% - 12.94%

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.

Best for competitive interest rates and part-time students

Sallie Mae Private Student Loan

(4.0)

Min. Credit Score

N/A

VARIABLE RATE

1.13% - 11.23%

Fixed Rate

3.50% - 12.60%

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 flexible forbearance options

CommonBond Private Student Loan

(4.5)

Min. Credit Score

Mid 600's

VARIABLE RATE

6.59% - 9.39%

Fixed Rate

6.98% - 10.74%

Overview

CommonBond is a new age lender that offers both student loan refinancing and private student loans. Its private student loans are available to borrowers pursuing undergraduate, graduate, MBA, dental, or medical programs.

Unlike most lenders, CommonBond makes it necessary to have a cosigner for private student loans. On the flip side, it has a comparatively shorter cosigner release period, 24 months. CommonBond provides a free money mentor to every borrower, advising on budgeting, financial management, and career guidance.

CommonBond provides a forbearance period of 12 months, in increments of three months at a time. It offers multiple repayment options, such as deferred payments, fixed payments ($25), interest-only payments, and immediate payments.

CommonBond doesn’t charge a loan origination fee or prepayment penalty, but it does have a late payment penalty.Sign up for automatic payments and receive a 0.25% discount on your interest rate. CommonBond doesn’t operate in Nevada and Mississippi.

What We Like

CommonBond has a short cosigner release period, 24 months.
There are no origination or prepayment penalties.
Each borrower gets access to a free money mentor.

Areas to Watch Out for

Borrowers must have a cosigner to qualify for a loan.

Best for those who want to work with a smaller bank and competitive interest rates

LendKey Private Student Loan

(4.5)

Min. Credit Score

Mid 600's

VARIABLE RATE

1.25% - 11.10%

Fixed Rate

4.25% - 12.35%

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.

Best for those who want member benefits

SoFi Private Student Loan

(4.5)

Min. Credit Score

Mid 600's

VARIABLE RATE

1.22% - 11.25%

Fixed Rate

4.23% - 10.66%

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

What is a private student loan?

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).

Which private student loan is the best?

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.

What is the easiest private student loan to get?

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)

Are private student loans good?

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.

Is there any loan forgiveness for private student loans?

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.

Do private student loans go directly to the school?

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).

Are private student loans bad?

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).

Which is better: federal or private student loans?

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.

How much money can you get from a private student loan?

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)

What happens if you never pay off your student loans?

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.

What are the advantages of applying for a private student loan with a cosigner?

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.

Is it better to do a fixed rate or variable rate student loan?

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.

What is the average student loan debt per student?

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)

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