What is the best private student loan?

The best private student loan depends on your credit score and needs. Earnest offers competitive rates and flexible payments. SoFi has no fees and career services. College Ave has many repayment options. Compare rates with multiple lenders—rates vary significantly.

What credit score do you need for a private student loan?

Most private lenders require a credit score of 670+ for approval without a co-signer. With a creditworthy co-signer, students with little or no credit can qualify. The best rates typically require 750+ credit scores.

Should I get federal or private student loans?

Always exhaust federal loans first. Federal loans offer income-driven repayment, forgiveness programs, and don't require a credit check (for most). Private loans may have lower rates for excellent credit, but lack these protections. Only use private loans after maxing federal aid.

Best Private Student Loans of 2026: Compare Rates & Lenders

Best Private Student Loan Lenders

Top Lenders Comparison

Lender	Fixed Rate Range	Variable Rate Range	Best For
Earnest	4.89-16.49%	5.89-16.84%	Flexible payments
SoFi	4.49-14.70%	5.48-14.70%	No fees, career support
College Ave	4.44-17.99%	5.09-17.99%	Repayment options
Discover	4.99-16.99%	6.24-17.99%	Cash rewards
Citizens	4.55-14.98%	5.50-15.25%	Multi-year approval
Sallie Mae	5.50-16.70%	6.37-16.70%	Wide availability
Laurel Road	5.24-13.75%	5.99-13.75%	Graduate/professional
ISL Education	4.99-13.98%	5.06-14.49%	Lower loan amounts

Rates include autopay discount; subject to change.

Interest Rates by Credit Score

Estimated Rates

Credit Score	Fixed Rate	Variable Rate
760+	4.5-7%	5-8%
720-759	6-9%	7-10%
680-719	8-12%	9-13%
640-679	10-15%	11-16%
Below 640	13-18%+	14-18%+

Co-Signer Impact

Without Co-Signer	With Strong Co-Signer
Higher rates	Lower rates (often 2-4% less)
May be denied	Higher approval odds
Lower loan amounts	Higher loan amounts
Limited options	More lender choices

Federal vs Private Loans

Quick Comparison

Factor	Federal Loans	Private Loans
Credit check	No (most loans)	Yes
Interest rates	Fixed (5-8%)	Variable or fixed (4-18%)
Income-driven plans	Yes	No
Forgiveness programs	Yes (PSLF, etc.)	No
Deferment options	Generous	Limited
Origination fees	1-4%	Usually none
Borrower protections	Strong	Limited

When to Use Private Loans

Situation	Consider Private
Maxed federal aid	Gap funding needed
Excellent credit	May get lower rate
Short-term need	Refinancing later
Parent refuses PLUS	Alternative funding
Graduate/professional school	Some programs favorable

When to Stick with Federal

Situation	Stay Federal
Uncertain career	Need repayment flexibility
Public service plans	PSLF eligibility
Average/poor credit	Better federal rates
Need deferment	More generous policies
Economic uncertainty	Better protections

Loan Amount Limits

Typical Limits by Lender

Lender	Minimum	Maximum	School Certification
Earnest	$1,000	$250,000	Required
SoFi	$1,000	School COA	Required
College Ave	$1,000	School COA	Required
Discover	$1,000	$150,000	Required
Citizens	$1,000	$200,000	Required
Sallie Mae	$1,000	School COA	Required

COA = Cost of Attendance determined by school

What Loans Can Cover

Covered	Not Covered
Tuition	Living expenses (beyond COA)
Fees	Previous loans
Room and board	Credit card debt
Books and supplies	Non-education expenses
Computer	Family expenses
Transportation	Business startup costs

Repayment Options

During School

Option	What It Means	Best For
Full deferment	No payments until after school	Maximum budget
Interest-only	Pay interest monthly	Reduce total cost
Partial payment	Pay fixed amount	Balance budget/savings
Full payment	Pay principal + interest	Lowest total cost

After School

Plan	Monthly Payment	Total Cost
Standard (10 years)	Highest	Lowest
Extended (15-20 years)	Lower	Higher
Graduated	Starts low, increases	Medium-high

Repayment Comparison ($30,000 at 7%)

Term	Monthly Payment	Total Paid	Interest Paid
5 years	$594	$35,640	$5,640
10 years	$348	$41,760	$11,760
15 years	$270	$48,600	$18,600
20 years	$233	$55,920	$25,920

Lender Features Compared

Key Features

Lender	Origination Fee	Autopay Discount	Co-Signer Release
Earnest	None	0.25%	After 24 months
SoFi	None	0.25%	After 24 months
College Ave	None	0.25%	After 24 months
Discover	None	0.25%	After 24 months
Citizens	None	0.25%	After 36 months
Sallie Mae	None	0.25%	After 12 payments

Extra Perks

Lender	Unique Benefits
SoFi	Career coaching, member events, unemployment protection
Discover	1% cash reward for good grades
Earnest	Skip-a-payment option
College Ave	4-in-school payment options
Citizens	Multi-year approval
Sallie Mae	Free Chegg membership

How to Apply

Application Process

Step	Action
1	Complete FAFSA first
2	Accept federal aid
3	Calculate remaining need
4	Compare private lenders (prequalify)
5	Choose lender and apply
6	School certifies enrollment
7	Funds disbursed to school

Documents Needed

Document	Purpose
SSN	Identity verification
School enrollment proof	Eligibility
Cost of attendance	Loan limit
Income verification	Creditworthiness
Co-signer info (if needed)	Additional creditworthiness

Timeline

Event	Timing
Prequalification	2-5 minutes (soft pull)
Full application	15-30 minutes
School certification	1-2 weeks
Loan disbursement	Before or at term start

Co-Signer Details

When You Need a Co-Signer

Situation	Co-Signer Recommended
No credit history	Yes
Credit score under 670	Yes
Low income	Yes
High debt-to-income	Yes
Want better rates	Often yes

Co-Signer Requirements

Requirement	Typical Standard
Credit score	670+ (750+ for best rates)
Income	Stable, verifiable
Debt-to-income	Under 45%
Citizenship	US citizen or permanent resident
Relationship	Usually parent or grandparent

Co-Signer Release

Lender	Requirements for Release
Earnest	24 on-time payments, creditworthiness
SoFi	24 payments, meet credit requirements
College Ave	24 payments, credit check
Discover	24 payments, credit score 660+
Citizens	36 payments (consecutive)

Co-Signer Risks

Risk	Reality
Liable for full loan	If primary borrower defaults
Credit score impact	Late payments affect both
Debt-to-income increase	Affects co-signer’s borrowing
Relationship strain	Money issues can cause problems

Fixed vs Variable Rates

Comparison

Factor	Fixed Rate	Variable Rate
Rate changes	Never	Yes (quarterly/monthly)
Starting rate	Higher	Lower
Payment predictability	High	Low
Risk	Lower	Higher
Best for	Long-term, risk-averse	Short-term, rate-watchers

Variable Rate Indexes

Index	Description
SOFR	Secured Overnight Financing Rate
Prime	Prime rate (tied to Fed rate)

When to Choose Each

Choose Fixed If	Choose Variable If
Want predictable payments	Plan to pay off quickly
Long repayment term	Rates are high, expected to drop
Risk-averse	Can afford payment increases
Budgeting carefully	Short loan term

Refinancing Private Loans

When to Refinance

Situation	Consider Refinancing
Credit improved	Get lower rate
Rates dropped	Market opportunity
Want different term	Adjust payment
Multiple loans	Consolidate
Variable to fixed	Lock in rate

Refinancing Comparison

Lender	Min. Balance	Fixed Rates	Variable Rates
SoFi	$5,000	4.49-9.99%	5.48-9.99%
Earnest	$5,000	4.89-9.74%	5.89-9.74%
Laurel Road	$5,000	5.24-9.99%	5.99-9.99%
Splash Financial	$5,000	4.99-9.99%	5.28-9.99%

Avoiding Mistakes

Common Mistakes

Mistake	How to Avoid
Not exhausting federal first	Complete FAFSA, accept federal aid
Not comparing lenders	Get 3-5 quotes
Ignoring variable rate risk	Understand rate caps
Over-borrowing	Borrow only what’s needed
Skipping co-signer release	Track payments, meet requirements
Missing payments	Set up autopay

Questions to Ask Lenders

Question	Why It Matters
What’s the fully loaded rate?	Some hide fees in rate
What happens if I can’t pay?	Deferment/forbearance options
Is there a co-signer release?	Freedom for co-signer
How is variable rate calculated?	Understand potential increases
What autopay discount do you offer?	Save 0.25% typically

Student Loan Tax Benefits

Interest Deduction

Factor	Limit
Maximum deduction	$2,500
Income limit (single)	$90,000 MAGI
Income limit (married)	$185,000 MAGI
Filing status	Cannot be claimed as dependent

Tax Savings Example

Interest Paid	Tax Bracket	Tax Savings
$2,500	22%	$550
$2,500	24%	$600
$1,000	22%	$220

Frequently Asked Questions

Can I get a private student loan without a co-signer?

Yes, if you have good credit (670+), stable income, and meet the lender’s requirements. Some lenders specifically offer no-co-signer loans. However, rates will typically be higher than with a qualified co-signer.

What happens if I drop out?

You still owe the loan. Private loans don’t have the same discharge options as federal. Contact your lender immediately—some offer temporary reduced payment options. Get professional advice if you’re struggling.

Can I use private loans for living expenses?

Yes, up to your school’s Cost of Attendance (COA), which includes room, board, and living expenses. The school certifies the loan amount based on COA minus other financial aid.

Should I refinance federal loans into private?

Generally no. Refinancing federal to private means losing income-driven repayment, forgiveness programs, and pandemic protections. Only consider if you have stable, high income and won’t need federal protections.

Bottom Line

Lender	Best For
Earnest	Flexible payments, skip-a-pay
SoFi	No fees, career support
College Ave	Many repayment options
Discover	Cash rewards for grades
Citizens	Multi-year approval
Sallie Mae	Wide availability

Key takeaways:

Always exhaust federal loans before private
Compare at least 3-5 lenders (prequalify doesn’t hurt credit)
Strong co-signer significantly improves rates
Fixed rates offer predictability; variable may start lower
Set up autopay for 0.25% discount
Track payments toward co-signer release

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