Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."
If you’re looking for a student loan to help pay for the cost of college, federal Direct Loans usually offer the lowest interest rates.
Those with excellent credit, however, might be able to find lower rates with private student loans. Your financial information, including your credit history, can help you qualify for low interest student loans.
If you’ve already used up your federal student loans, here’s how to find low interest student loans:
- Have good credit
- Focus on debt to income
- Get a cosigner
- Choose a shorter repayment term
- Look for discounts
- Compare lenders
1. Have good credit
Once you use up subsidized and unsubsidized federal student loans, it’s a good idea to consider private student loans. There are several factors in the interest rate, but one of the biggest factors is your credit. A good credit score can be the difference between getting approved at all.

Current rates for fixed-rate private student loans start at
4.41%+
for those with excellent credit. If you have a low credit score, you could pay multiple times that. If you don’t know your credit score, you can get access for free through several popular apps.
Learn More: Compare Credit Score Ranges
2. Focus on debt to income
In addition to looking at your credit, lenders also consider your existing debt. They’ll add up all of your minimum monthly payments for existing debts compared to your income. A higher debt load compared to your income shows a risk that you might not be able to repay the new loan. A lower debt-to-income ratio shows you’re in a strong position to make regular payments. Typically, lenders look for a DTI of 50% or lower — the lower the better.
If you’re able to pay off any credit card balances or other loans at least a month before applying for your student loans, it will lower your minimum monthly payments on your credit report and improve your debt-to-income. This could help you qualify for lower student loan rates. Make sure you’re not closing these accounts, though; that could actually hurt your credit score.
How to calculate your DTI
(Total monthly payments ÷ monthly income) x 100 = DTI
Keep Reading: Debt-to-Income Ratio
3. Get a cosigner
If you have bad credit or no credit, it could take more time than you have to turn around your credit or establish a good credit score. In that case, you might do better with a cosigner. Cosigners can share their good credit score with you to qualify for a lower rate. However, they also take on full responsibility for repaying the loan.
Many students usually look to their parents to cosign — in fact, over 90% of private student loans are cosigned. Grandparents and other relatives might also consider cosigning.
What is a cosigner release?
A cosigner release occurs when a cosigner is removed from an existing loan, making the cosigner no longer responsible for the loan’s repayment. A borrower must meet certain eligibility requirements to prove to the lender that they’re financially stable to qualify for cosigner release, such as:
- On-time payments: Many private student loan lenders require a certain amount of consecutive, on-time monthly payments to qualify for cosigner release.
- Income and credit score requirements: Lenders usually require borrowers to meet certain credit score and income standards to qualify to repay a student loan without a cosigner. This may consist of undergoing a credit check and submitting pay stubs or tax returns to verify your income.
- Submit a cosigner release application: You can typically find a cosigner release application on a lender’s website, though some lenders may offer the option to submit a paper form. Follow the instructions provided and include all necessary documents to make sure your application is complete.
Using a cosigner could get you a lower interest rate, and potential cosigners may be more willing to help you out if they know they can later be released from the loan.
Here are Credible’s partner lenders that offer cosigner release:
Lender | Fixed rates from (APR) | Variable rates from (APR) | Min. credit score | Cosigner release offered |
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
4.48%+10
|
6.03%+10
| Does not disclose | After 12 months |
- Fixed APR:
4.48%+10
- Variable APR:
6.03%+10
- Min. credit score:
Does not disclose
- Loan amount:
$2,001* to $400,000
- Loan terms (years):
5, 7, 10, 12, 15, 20
- Repayment options:
Full deferral, fixed/flat repayment, interest only, academic deferment, military deferment, forbearance, loans discharged upon death or disability
- Fees:
None
- Discounts:
0.25% to 1.00% automatic payment discount, 1% cash back graduation reward
- Eligibility:
Must be a U.S. citizen or permanent resident or DACA student enrolled at least half-time in a degree-seeking program
- Customer service:
Email, phone
- Soft credit check:
Yes
- Cosigner release:
After 12 on-time principal and interest payments
- Loan servicer:
Launch Servicing, LLC
|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
4.43%+1
|
5.8%+
| Does not disclose | After 36 months |
- Fixed APR:
4.43%+1
- Variable APR:
5.8%+
- Min. credit score:
720
- Loan amount:
$1,000 to $350,000
- Loan terms (years):
5, 10, 15
- Loan types:
Any private or federal student loan
- Repayment options:
Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability
- Fees:
Late fee
- Discounts:
Autopay, loyalty
- Eligibility:
Available in all 50 states (international students can apply with a creditworthy U.S. citizen or permanent resident cosigner)
- Customer service:
Email, phone, chat
- Soft credit check:
Yes
- Cosigner release:
After 36 months
- Loan servicer:
Firstmark Services
|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
4.41%+2,3
|
5.49%+2,3
| Does not disclose | After 24 months |
- Fixed APR:
4.41%+2,3
- Variable APR:
5.49%+2,3
- Min. credit score:
Does not disclose
- Loan amount:
$1,000 up to cost of attendance
- Loan terms (years):
5, 8, 10, 15, 20
- Repayment options:
Full deferral, full monthly payment, fixed/flat repayment, interest only, immediate repayment, academic deferment, forbearance, loans discharged upon death or disability
- Fees:
Late fee
- Discounts:
Autopay
- Eligibility:
Must be a U.S. citizen or permanent resident and be making satisfactory academic progress.
- Customer service:
Email, phone
- Soft credit check:
Yes
- Cosigner release:
After 24 months
- Loan servicer:
College Ave Servicing LLC
|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
4.43%+
|
5.36%+
| Does not disclose | After 36 months |
- Fixed APR:
4.43%+
11
- Variable APR:
5.36%+
11
- Loan amount:
$1,000 to $99,999 annually
($180,000 aggregate limit)11
- Loan terms (years):
7, 10, 1511
- Repayment options:
Full deferral, immediate repayment, interest-only repayment, flat/full repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability
- Fees:
None
- Discounts:
Autopay11
- Eligibility:
Available to borrowers in all 50 states. Must be a U.S. citizen or permanent resident.
- Customer service:
Phone, email
- Soft credit check:
Yes
- Cosigner release:
After 36 months11
- Loan servicer:
American Education Services
- Min. income:
$1
|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
6.25%+7
|
8.11%+7
| 750 | After 36 months |
- Fixed APR:
6.25%+7
- Variable APR:
8.11%+7
- Min. credit score:
750
- Loan amount:
$1,000 to $200,000
- Loan terms (years):
7, 10, 15
- Repayment options:
Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, loans discharged upon death or disability
- Fees:
Late fee
- Discounts:
Autopay
- Eligibility:
Must be a U.S. citizen or permanent resident and have a minimum income of $30,000.
- Customer service:
Email, phone
- Soft credit check:
Yes
- Cosigner release:
After 36 months
- Loan servicer:
Granite State Management & Resources (GSM&R)
|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
4.6%+8
|
7.37%+8
| 670 | After 48 months |
- Fixed APR:
4.6%+8
- Variable APR:
7.37%+8
- Min. credit score:
670
- Loan amount:
$1,001 up to cost of attendance
- Loan terms (years):
5, 10, 15
- Repayment options:
Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, forbearance
- Fees:
Late fee
- Discounts:
Autopay, reward for on-time graduation
- Eligibility:
Must be an Indiana resident or a U.S. citizen attending an eligible Indiana school
- Customer service:
Email, phone, chat
- Soft credit check:
Yes
- Cosigner release:
After 12 months
- Loan servicer:
American Education Services
|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
5.35%+
| N/A | 670 | After 48 months |
- Fixed APR:
5.35%+
- Variable APR:
N/A
- Min. credit score:
670
- Loan amount:
$1,500 up to cost of attendance less aid
- Loan terms (years):
10, 15
- Repayment options:
Full deferral, interest only, immediate repayment, academic deferral, forbearance
- Fees:
None
- Discounts:
None
- Eligibility:
Must be a U.S. citizen or permanent resident and be making satisfactory academic progress.
- Customer service:
Email, phone
- Soft credit check:
Yes
- Cosigner release:
After 48 months
- Loan servicer:
American Education Services (AES)
|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
4.50%9
-
15.49%9
|
6.37%9
-
16.70%9
| Does not disclose | After 12 months |
- Fixed APR:
4.50%9
-
15.49%9
- Variable APR:
6.37%9
-
16.70%9
- Min. credit score:
Does not disclose
- Loan amount:
$1,000 up to 100% of school-certified cost of attendance
- Loan terms (years):
10 to 209
- Repayment options:
Full deferral, fixed/flat repayment, interest only, academic deferment, forbearance, loans discharged upon death or disability
- Fees:
Late fee, non-sufficient funds (NSF) fee
- Discounts:
Autopay
- Eligibility:
Must be a U.S. citizen or permanent resident. Also available to non-U.S. citizen students (including DACA students) attending a school located in the U.S. who apply with a qualifying cosigner.
- Customer service:
Phone, chat
- Soft credit check:
Yes
- Cosigner release:
Borrowers can apply after graduation, 12 consecutive on-time principal and interest payments, and meeting certain credit requirements.
- Loan servicer:
Sallie Mae
|
Compare rates without affecting your credit score. 100% free!
Compare Now
|
Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 10Ascent Disclosures | 1Citizens Disclosures | 2,3College Ave Disclosures | 11Custom Choice Disclosures | 6Discover Disclosures | 7EDvestinU Disclosures | 8INvestEd Disclosures | 9Sallie Mae Disclosures |
Find Out: How to Get a Cosigner
4. Choose a shorter repayment term
If you’re able to afford a higher monthly payment, a shorter repayment term saves you money in a couple of ways:
- Save money with a lower interest rate: Longer term loans are considered riskier by lenders, so typically the longer the term, the higher the rate. With a shorter term, you can get a lower rate and pay less over the life of your loan.
- Paying interest for a shorter period of time: With a shorter term, you’ll be paying off your loan sooner. When your loan is paid off sooner, you stop paying interest.
Learn More: APR vs. Interest Rate: What’s the Difference?
5. Look for discounts
Some student lenders are willing to give you a discount for meeting certain criteria or requirements. For example, many popular lenders give a 0.25% discount when you enroll in automatic payments. But keep in mind that if you’re not paying your loan off when in school, this discount usually won’t apply and the higher interest rate will accrue.
For a 10-year, $10,000 loan with a 5% interest rate, you would pay a total of $2,728 in interest. With a 0.25% discount, you would pay $2,582 in total interest. That’s a savings of $146. Plug your own numbers into our
student loan interest calculator to estimate how much you could save on your own loans.
Some lenders might have other unique discount programs to further lower your rate — like loyalty or good-grade discounts. If you qualify, definitely take advantage of these as they can really add up.
See what your estimated monthly payment will be using our student loan calculator below.
Total Payment
$
Total Interest
$
Monthly Payment
$
With a
$
loan, you will pay
$
monthly and a total of
$
in interest over the life of your loan. You will pay a total of
$
over the life of the
loan, assuming you're making full payments while in school.
Need a student loan?
Compare rates without affecting your credit score. 100% free!
Check Personalized Rates
Checking rates won’t affect your credit score.
Read More: Student Loan Interest Rates
6. Compare lenders
Federal student loan rates are set by the government, but private lenders can set their own rates for student loans. Shopping around will help you find the right loan for your situation.
Credible helps you save time shopping around by letting you compare offers from multiple lenders by filling out just one simple form. The lenders in the table below are Credible’s approved partner lenders.
Lender | Fixed rates from (APR) | Variable rates from (APR) |
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
4.48%+10
|
6.03%+10
|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
4.43%+1
|
5.8%+
|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
4.41%+2,3
|
5.49%+2,3
|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
4.43%+
|
5.36%+
|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
6.25%+7
|
8.11%+7
|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
4.6%+8
|
7.37%+8
|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
5.35%+
| N/A |
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
4.50%9
-
15.49%9
|
6.37%9
-
16.70%9
|
Compare rates without affecting your credit score. 100% free!
Compare Now
|
Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 10Ascent Disclosures | 1Citizens Disclosures | 2,3College Ave Disclosures | 11Custom Choice Disclosures | 6Discover Disclosures | 7EDvestinU Disclosures | 8INvestEd Disclosures | 9Sallie Mae Disclosures |
Check out: 8 Best Small Student Loans
What is a decent student loan interest rate?
Average student loan interest rates vary depending on the type of student loan you borrow.
- Federal student loan interest rates are fixed rates set by Congress. Your federal student loan interest rate is determined by the type of federal loan you borrow, your dependency status, and your year in school.
- Private student loan interest rates can be either fixed or variable, depending on your selection, and will depend on your credit score and the repayment term you choose. You’re more likely to get a lower interest rate with a higher credit score.
Here’s how current federal student loan interest rates compare to private student loan interest rates for borrowers who took out a private loan through Credible in June 2023:
Borrower type | Loan | Loan type | APR |
Undergraduate students | - Direct Subsidized Loan
- Direct Unsubsidized Loan
| Federal | Fixed rate: 5.50% |
Graduate or professional students | Direct Unsubsidized Loan | Federal | Fixed rate: 7.05% |
- Parents
- Graduate or professional students
| Direct PLUS Loan | Federal | Fixed rate: 8.05% |
Borrowers with credit scores of 720 or higher | 5-year loan | Private | Variable rate: 7.16% average |
Borrowers with credit scores of 720 or higher | 10-year loan | Private | Fixed rate: 6.95% average |
You can use our loan score tool below to see how competitive your student loan is. Just enter your APR, credit score, monthly payment, and remaining balance to see how your loan compares.
Loading widget - loan-score-tool
Low interest student loans for parents
Parents looking to take on student loans to help finance their student’s education might consider Parent PLUS Loans first, but that isn’t your only loan option. Parents with good credit scores might be able to find cheaper loans through private lenders than the PLUS program.
Parents might also be able to save on existing PLUS loans by refinancing to a new loan with a lower interest rate. Be sure to note the origination fee on Parent PLUS loans that can significantly increase the loan’s APR, often by about a full percentage point.
Learn More: Parent PLUS Loans vs. Private Student Loans
Take charge of your student loan interest rates
It can feel like the government, banks, and other lenders are in charge of your student loan interest rates, but you have a lot of influence over whether you have low interest student loans or pay more.
With a focus on your credit and other aspects of your finances, you might be able to lower your existing loan rates or qualify for lower rates in the future.
Compare student loan rates from top lenders
- Multiple lenders compete to get you the best rate
- Get actual rates, not estimated ones
- Finance almost any degree
See Your Rates
Checking rates will not affect your credit
Keep Reading: How to Take Out a Student Loan
About the author
Eric Rosenberg
Eric Rosenberg is an expert on personal finance. His work has been featured at Business Insider, Investopedia, The Balance, The Huffington Post, MSN Money, Yahoo Finance, Mint.com and more.
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