Navigating the student loan process can be overwhelming. With so many student lenders to choose from, deciding which one you’d like to work with can be quite the challenge.
Ultimately, the best student lender for you will be the one that suits you best. That said, it’s helpful to know a bit about each of your options to make an informed decision.
The following are our picks for the best private lenders for student loans.
Best Private Student Lenders of 2022
Arkansas Student Loan Authority
The Arkansas Student Loan Authority (ASLA) is an Arkansas state entity that provides educational funding for all Arkansas students attending higher education institutions.
ASLA offers three types of student loans: undergraduate and graduate loans, family loans, and student loan refinancing.
ASLA is the best private lender for borrowers who are located in Arkansas, have a qualified cosigner, and want competitive interest rates.
Pros
Competitive interest rates- A variety of loan options
- Flexible cosigner release policy
- A variety of repayment options
- Offers 0.25% interest rate reduction for opting into auto-debit payments
Cons
Strict residency requirements (Borrowers must be residents of or students in Arkansas.)- Inaccessible to international students
Ascent
Ascent is an online student lender, named Best Private Student Loan for 2021 by Forbes Advisor, NerdWallet, and Money.com.
Ascent offers three types of student loans: a traditional cosigned loan, a non-cosigned credit-based loan, and a non-cosigned outcomes-based loan.
Ascent is the best private lender for borrowers who do not have a cosigner available, are international or DACA students, or have lower credit scores.
Pros
- Variety of loan options
- Competitive interest rates
- Accessible to international and DACA students
- Flexible cosigner release policy
Cons
- Unavailable to students enrolled less than half-time
- Cosigner release is not available to international students.
Brazos
Brazos is a non-profit lender focused on bringing transparency and low-cost loans to Texas residents.
Brazos offers both private student loans and student loan refinancing to Texas residents.
Brazos is the best private lender for borrowers who are Texas residents with an established income and strong credit.
Pros
- Competitive interest rates
- Variety of repayment options
Cons
- Strict eligibility criteria
- Only available to Texas residents
College Ave
College Ave is an online student lender with the mission to make the student loan process more simple, clear, and personal.
College Ave offers both private student loans and student loan refinancing for undergraduates, graduate students, professional school students, career school students, and parents of students.
College Ave is the best private lender for borrowers who want a more flexible repayment term that allows them to find a loan that matches their budget.
Pros
- Strong customer experience
- Competitive interest rates
- Ability to choose your own loan term
Cons
- Strict cosigner release policy
The Custom Choice Loan®
The Custom Choice Loan® is funded by Citizens. The loan option is designed to provide borrowers with greater flexibility and control when it comes to funding their college education.
The Custom Choice Loan is available for undergraduate and graduate students.
The Custom Choice Loan® is the best private lender for borrowers that want competitive interest rates, are seeking a flexible repayment term, and want strong borrower benefits.
Pros
- Competitive interest rates
- Flexible repayment options
- Strong customer service
Cons
- Some Custom Choice Loans® are not accessible to students enrolled less than half-time.
- No repayment plan shorter than 7 years or longer than 15 years
Earnest
Earnest is an online student lender that was founded in 2013 with the mission to make the student loan process simpler for students and graduates.
Earnest offers both private student loans and student loan refinancing to undergraduate, graduate, and professional students.
Earnest is the best private lender for borrowers who want competitive interest rates, unique borrower perks, and flexible repayment options that allow them to find a loan that matches their budget.
Pros
- Competitive interest rates
- Flexible repayment options
- Customizable payments and loan terms
- Allows biweekly payments via autopay
Cons
- No cosigner release option on traditional student loans; no option to add a cosigner on refinance loans
- Loan products are unavailable in certain states
Edly
Edly offers Income-Based Repayment (IBR) loans through FinWise Bank, an FDIC-insured bank. IBR loans create an alternative loan option for students by setting post-graduation payments based on income.
Students who borrow an IBR loan from Edly will not have to make payments while in school. Instead, borrowers make payments after graduation based on their income.
Edly is the best private lender for borrowers who want a loan option with no cosigner, competitive repayment terms, and flexible repayment options.
Pros
- Loan payments are based on income.
- Repayment begins when the borrower has an income of at least $30,000.
- No cosigner required
Cons
- The borrowing limit is capped at $25,000 per semester, which may not cover all programs.
- Only available for a select group of schools
- Offers a 4-month grace period, which is shorter than the typical 6-month grace period offered by other private student lenders.
Funding U
Funding U is an online lender that focuses exclusively on undergraduate students with no cosigner. Rather than looking at the borrower’s credit score or income, Funding U looks at non-traditional metrics such as GPA and estimated future income to assess creditworthiness.
Funding U is the best private lender for borrowers who are high-achieving undergraduate students with limited credit history and no access to a creditworthy cosigner.
Pros
- No cosigner required
- No credit history required
- Variety of repayment options
- Available to DACA students with a work-eligible Social Security card
Cons
- Unavailable in 13 states
- Maximum funding amount is $20,000, which is less than most other private lenders.
- Unavailable to students enrolled less than half-time
- Loan payments are required while in school.
INvestED
INvestED has been providing students in Indiana with higher education solutions for over 40 years.
INvestED offers private student loans, parent loans, and student loan refinancing for residents of and students in Indiana.
INvestED is the best private lender for borrowers who are residents of or students in Indiana and want competitive interest rates and a variety of repayment options.
Pros
- Competitive interest rates
- Variety of repayment options
- Variety of loan options
Cons
- Strict residency requirements
ISL Education Lending
ISL Education Lending is a nonprofit student lender established in 1979 with the mission of supporting students and families who have exhausted other sources of aid.
ISL Education lending offers both private student loans and student loan refinancing.
ISL Education Lending is the best private lender for borrowers who want to work with a nonprofit lender and want competitive interest rates.
Pros
- Competitive interest rates
- Zero fees
Cons
- Limited repayment options
LendKey
LendKey is an institution that connects borrowers with a network of 100+ lesser-known credit unions and community banks, allowing borrowers to work with smaller lenders with low rates and good customer service, rather than traditional lending institutions.
LendKey offers both private student loans and student loan refinancing.
LendKey is the best private lender for borrowers who want to work with a credit union or community bank, have strong credit, and have stable income.
Pros
- Allows borrowers to work with credit unions and community banks
- Competitive interest rates
- Variety of borrower benefits
Cons
- Unavailable to part-time students, parents, and non-U.S. citizens/permanent residents
- Unavailable in certain states
MPOWER
MPOWER is an online lender that works with international and DACA students to provide affordable college financing.
MPOWER offers non-cosigned undergraduate and graduate student loans for international, domestic, and DACA students.
MPOWER is the best student loan company for borrowers who are international or DACA students, don’t have a credit history, and can’t access a qualified cosigner.
Pros
- Available to international, domestic, and DACA students
- Provides additional assistance such as scholarship opportunities
- Borrowers can receive up to 1-1.5% in rate discounts depending on the loan type.
Cons
- Only one repayment term of 10 years
- Higher interest rates and fees than other lenders
Nelnet Bank
Nelnet Bank is an online student lender founded over 40 years ago with the mission to make educational dreams possible.
Nelnet Bank offers both private student loans and student loan refinancing.
Nelnet Bank is the best private lender for borrowers who want competitive interest rates, a variety of repayment options, and a flexible forbearance policy.
Pros
- Competitive interest rates
- Variety of repayment options
- Flexible cosigner release option
Cons
- Strict eligibility criteria
- Unavailable to international students or student visas
- No biweekly payment via autopay
Prodigy Finance
Prodigy Finance is an online student lender founded in 2007 to help international students in master’s degree programs find affordable college financing.
Prodigy Finance is the best private lender for international student borrowers with no credit history.
Pros
- No cosigner required
- No collateral required
- No credit history required
- Variety of repayment options
Cons
- Not available in all 50 U.S. states
- Limited interest and repayment options
- Higher interest rates and fees than other online lenders
Sallie Mae
Sallie Mae is one of the largest online private student lenders and is committed to helping borrowers find affordable college financing.
Sallie Mae offers student loans for undergraduate, graduate, MBA, law, medical, dental, and career training programs.
Sallie Mae is the best private lender for borrowers who want a more flexible repayment plan and competitive interest rates.
Pros
- Competitive interest rates
- Strong customer experience
- Various repayment options
- Flexible cosigner release policy
Cons
- No biweekly student loan payments via autopay
- Unable to see what rate you qualify for before formally applying
SoFi
SoFi is an online student lender founded in 2019 and now one of the largest student loan companies in the industry.
SoFi offers both private student loans and student loan refinancing. SoFi’s student loan offering is available for undergraduates, graduates, law and MBA students, as well as parents of students.
SoFi is the best private lender for borrowers who have a high credit score and want competitive interest rates.
Pros
- Competitive interest rates
- Variety of repayment options
- Variety of membership perks such as career coaching, job search assistance, and more
Cons
- Unclear credit requirements
- High loan minimum
How to Pick the Best Private Lender for Student Loans
The best student lender will always be the one that suits you best. That said, you should look for the following qualities in a student lender:
Offers Competitive Interest Rates
The interest rate on your student loan is essentially the cost to borrow with a lender. Generally speaking, the lower the interest rate, the better. Look for a lender that offers competitive interest rates.
Strong Customer Service
The lender you select will be the lender you work with for the entire duration of your repayment term (if you don’t refinance with another lender, that is), which can be up to 15-20 years. Make sure the lender has a record of strong customer service before you agree to work with them.
Offers Flexible Repayment Options
Each private student lender will offer a different set of repayment options. While you may initially prefer one, life changes such as a different job can quickly change your repayment preferences. Make sure the lender you select has an array of repayment options so that if you need to change in the future, you have the option to do so.
Student loan rates from our partners
Ascent
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 7/8/2024 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 rates require full
principal and interest payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
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 7/8/2024 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 rates require full
principal and interest payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
LendKey
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
Earnest
Student Loan Origination (Private Student Loan) Interest Rate Disclosure:
Student Loan Origination (Private Student Loan) Interest Rate Disclosure:
College Ave
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.
*The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation. $5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees. Information advertised valid as of 08/25/2022. Variable interest rates may increase after consummation.
This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
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 7/10/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on 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.
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.
*The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation. $5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees. Information advertised valid as of 08/25/2022. Variable interest rates may increase after consummation.
This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
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 7/10/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on 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.
Where to Find the Best Private Lender for Student Loans
To find the best private student lender for you, complete the Sparrow form. Rather than searching for student lenders one-by-one, the Sparrow form will show you what rates you pre-qualify for at over 15 different student lenders. Then, you can compare the offers side-by-side to make sure you’re selecting the best lender for you.
Sparrow’s goal is to give you the tools and confidence you need to improve your finances. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.