Private student loans can be a wise choice if you still need money for education even after you’ve used up your scholarship, grant, work-study, and federal student loan choices.
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See the following evaluations for the best private student loans and a detailed explanation of why they are the best private student loan providers.
1. Rhode Island Student Loan Authority (RISLA) – Best for Low Maximum APR
Overview
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The Rhode Island Student Loan Authority, or RISLA, is among the best private student loans. It is a non-profit organization headquartered in Rhode Island that provides the best personal student loans throughout the US. It provides two different loans with different fixed interest rates for undergraduate students. One loan requires immediate repayment, while the other permits deferral until six months after graduation.
Why did we choose it?
RISLA is one of the best private student loans because it offers an income-based repayment plan that caps payments at 15% of income for a 25-year term for borrowers who find it difficult to repay their loan after graduating.
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Loan term
10 or 15 years
Loan amounts available
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$1,500 to $45,000 per year ($150,000 aggregate per borrower)
Eligibility
Candidates must have a minimum credit score of 680 and an annual income of at least $40,000. To qualify, the majority of undergraduate students will need a cosigner.
Pros
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- Low-interest rates.
- Availability of an income-based repayment plan.
- Following graduation, nurses pay 0% interest for 48 months.
Cons
- International students have no options
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2. Ascent – Best for Flexible Repayment Terms
Overview
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Ascent is a San Diego, California-based online student loan provider. In contrast to other lenders, it offers three distinct options for its student loan program. Traditional cosigned loans, non-cosigned credit-based loans, and non-cosigned future income-based loans are among the possibilities available.
Why did we choose it?
Ascent is one of the best private student loans because it offers cosigned and unco-signed student loans. Borrowers without cosigners have additional options for financing their higher education. Ascent stands out among private lenders for offering various payment cancellation and postponement alternatives.
Loan term
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5, 7, 10, 12 or 15 years
Loan amounts available
$2,001 – $200,000
Eligibility
Student borrowers with no credit history may qualify with a cosigner who has good credit. The co-income signer for the current and preceding year must be at least $24,000.
Pros
- Cosigned and independent loans are available
- International students may be eligible with a cosigner who is a permanent resident of the United States
- An interest rate estimate is available without going through a hard credit check.
Cons
- Assesses late charges.
- The maximum APR exceeds 10%.
3. A.M. Money – Best for No-Cosigner Loans
Overview
A.M. Money stands apart because it provides borrowers who require it with an income-based repayment plan that lasts up to 36 months. Borrowers’ educational background and GPA determine their eligibility for A.M. Money loans, not their credit score. The business does not accept cosigners.
Why did we choose it?
The plan requires a $50 minimum payment each month. A.M. Money charges an origination fee of 4.5%, and default on unpaid loans happens 14 days sooner than it does with most other lenders unless state legislation provides otherwise.
Loan term
Ten years
Loan amounts available
$2,001 to the total cost of attendance, up to a $50,000 cap
Eligibility
The loan has no income or credit limitations because it is merit-based. Students must enrol in one of many Midwest-based eligible schools.
Pros
- No late fees.
- Possible income-based payback.
Cons
- 4.5% origination fee
- A short period before a default on delinquent loans.
4. Discover Student Loan – Best for No-Fee Loans
Overview
Discover does not impose late fees on its private student loans, and it offers students a discounted interest rate if they prefer to settle the loan’s interest when it becomes due while they are still enrolled in school.
Why did we choose it?
Discover is one of the best private student loans because you can repay the debt without penalties. If you have the resources, paying off a student loan earlier than 15 years could result in significant interest savings.
Loan term
15 years
Loan amounts available
$1,000 up to the total cost of attendance
Eligibility
In 2019, Discover said that 94% of all private loan clients had a FICO score of 660 or higher. However, the firm does not publicly publish its minimum credit score or income restrictions.
Pros
- Borrowers with a 3.0 GPA or above are eligible for a cash award equal to 1% of their loan balance.
- International students may qualify with a cosigner who is a permanent resident of the United States or a citizen.
- Various hardship repayment choices.
Cons
- No cosigner release program
5. Citizens Bank Student Loan – Best for Borrowers Who Have a Citizens Bank Account
Overview
If a student loan borrower or their cosigner already has an account with Citizens Bank, they are eligible for an additional 0.25% loyalty discount.
Why did we choose it?
Citizen Bank is one of the best private student loans because international students can apply. But compared to what many other lenders offer, cosigners have to wait longer to be released from the debt.
Loan term
5, 10 and 15 years
Loan amounts available
$1,000 up to $150,000 total for your undergraduate education
Eligibility
Does not specify required income levels or credit scores
Pros
- Existing Citizens Bank clients are eligible for an interest rate discount of up to 0.50%
- International students may qualify with a cosigner who is a citizen or permanent resident of the United States.
Cons
- Cosigner release after 36 months, which is approximately 12 months later than many other lenders’ rules;
- No interest rate estimate is offered without a hard inquiry
6. Sallie Mae – Best for Cosigners
Overview
Based in Newark, Delaware, Sallie Mae is one of the best private student loans. It was established as a government organization servicing federal student loans. Sallie Mae then became a fully privatized bank between 1997 and 2004 and started dispensing private student loans.
Why did we choose it?
Due to its short cosigner release term, Sallie Mae is one of the best private student loans. After graduating, as long as the borrower makes 12 timely principal and interest payments and meets certain credit conditions, the cosigner may be released from the loan.
Loan term
10 – 15 years.
Loan amounts available
$1,000 – 100% of the school-certified cost of attendance
Eligibility
Undergraduates, graduates, and people pursuing career training can all apply for Sallie Mae’s student loans. The lender claims that including a cosigner increases students’ approval likelihood almost fourfold.
Pros
- A brief release time for cosigners.
- The multi-year benefits.
- Students who are not enrolled in school full-time are eligible.
- Pays for the total price of attendance.
Cons
- Soft credit check prequalification is not possible.
7. Sofi – Best for Graduate Students
Overview
Based in San Francisco, California, SoFi is an online personal finance company that prioritizes using mobile devices. As the first company to refinance federal and private student loans, it gained notoriety in 2012. Since then, it has grown across almost all consumer lending markets and funded more than $50 billion in loans.
Why did we choose it?
Although SoFi is most famous for being a lender for refinancing student loans, it also provides loans to parents, undergraduate and graduate students, and law and business students.
Loan term
5, 7, 10 and 15 years
Loan amounts available
$5,000 – 100% of the school-certified cost of attendance
Eligibility
For undergraduates, recent graduates, and parents, SoFi offers student loans. According to the lender, applicants who have a cosigner with good credit have a seven-fold increased chance of being accepted.
Pros
- Having access to SoFi member benefits, such as career coaching.
- A rate reduction if you or your cosigner is a SoFi member.
- Unemployment insurance.
- Prequalify without having your credit affected.
- No late charges.
- Estimates of interest rates are available without a formal credit inquiry.
Cons
- High minimum loan amount
8. College Ave – Best for Low-Interest Rates
Overview
College Ave is a Wilmington, Delaware-based online student loan provider. The lender’s only goal is to help students and parents pay for the escalating expense of higher education to increase access to a college education.
Why did we choose it?
With a few unique characteristics, College Ave provides a reliable all-around private loan solution. Along with the conventional durations of 5, 10, and 15, borrowers also have the option of an eight-year term, which several lenders offer. A six-month grace period added to the first six-month period after leaving school is available to borrowers.
Loan term
5, 8, 10 and 15 years.
Loan amounts available
$1,000 – 100% of the school-certified cost of attendance
Eligibility
A minimum credit score in the mid-600s is required for applicants.
Pros
- Interest rate estimates are available without going through a hard credit check.
- International students may be eligible with a cosigner who is a permanent resident of the United States or a citizen.
- Extended grace period (210 days) before unpaid loans enter default.
Cons
- A minimum credit score in the mid-600s is required for applicants.
9. Pnc Bank – Best for Autopay Discounts
Overview
For customers needing loan modifications, Pnc Bank offers a 12-month program (in addition to 12 months of forbearance). A loan modification reduces the interest rate and monthly amount levied.
Why did we choose it?
For automatic payments, PNC Bank provides an extraordinarily generous interest rate discount of 0.50%. Additionally, cosigner release is available, however, after a longer time frame than Citizens Bank’s policy: four years
Loan term
5, 10 and 15 years
Loan amounts available
Up to $50,000 per year ($225,000 aggregate, including federal student loans)
Eligibility
Does not specify income or credit conditions.
Pros
- For debtors in financial difficulty, there is a 12-month payment reduction option in addition to forbearance.
- There is a 0.50% interest rate discount.
Cons
- Cosigner release after 48 months, which is around 24 months later than the rules of many other lenders.
- No interest rate estimate is offered without a hard inquiry.
Conclusion
We advise including a creditworthy cosigner in your application, because most private student loan lenders demand excellent credit to increase your chances of approval. You can get a loan with a reduced interest rate if you have a cosigner, and it will lower the total cost of the loan.
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