When you take out student loans, you're responsible for paying back the principal balance and the interest. The rate you qualify for will significantly affect the loan's overall cost, so finding the best low-interest student loans can help you save thousands of dollars.
Some student borrowers take out federal student loans, private loans, or a combination of both. Each type treats interest rates differently. To help with your research to determine the best fit for you, here's a look at the best student loan lenders with low interest rates and how they stack up to federal loans.
Current private student loan rates
Best low-interest private student loans
When comparing private student loans, look at interest rates, fees, repayment options, terms, deferment and forbearance options, loan amount requirements, and any borrower perks. Before applying, you may see the rates you prequalify for without affecting your credit.
These student loan lenders currently offer low fixed interest rates starting at 2.85% and variable rates starting at 4.13%.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
College Ave: Best for Extended Grace Periods
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
2.89 - 17.99%
Variable APR
4.24 - 17.99%
Loan Amount
$1,000 up to 100% of the school-certified cost of attendance
Term
5, 8, 10, 15 (20 for health professionals)
Expert Insights
College Ave offers a wide range of borrower-controlled features that makes it especially compelling for those who want predictability and planning power with their student loans. From 5 to 20-year terms and multiple in-school payment options to profession-specific grace periods, College Ave offers more structure and flexibility than many of its competitors.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
ELFI: Best for flexible repayment
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
680
Fixed APR
2.99 - 14.22%
Variable APR
5.00 - 13.97%
Loan Amount
$1,000 up to cost of attendance
Term
5, 7, 10, 15
Expert Insights
ELFI stands out for offering a broad range of repayment terms — 5, 7, 10, or 15 years — so you can tailor your loan to fit your budget and timeline. Whether you want to pay off your loan quickly or stretch payments over time, ELFI gives you the tools to choose. This flexibility makes it a strong option if you're seeking maximum control over your repayment plan.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Ascent: Best for No-Cosigner Loans
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
2.89 - 14.93%
Variable APR
4.34 - 15.00%
Loan Amount
$2,001 to $400,000
Term
5, 7, 10, 12, 15, 20
Expert Insights
Ascent stands out for offering private student loans to students without a cosigner and who have limited credit. Its outcomes-based loan uses factors such as academic performance and graduation timeline instead of credit to determine eligibility. Students can also qualify for a cash-back graduation reward and choose from a wide range of repayment plans.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Citizens: Best for Multiyear Approval
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
640
Fixed APR
3.24 - 14.99%
Variable APR
4.99 - 15.47%
Loan Amount
$1,000 to $400,000 (depending on degree)
Term
5, 10, 15
Expert Insights
Citizens could be a great fit for borrowers who already bank with the lender and want to save more on their student loans. Customers can lower their interest rate by 0.25 percentage points with a loyalty discount, and by another 0.25 percentage points for enrolling in autopay. Citizens also offers multiyear approval, making it easier to get additional loans without repeated hard credit checks.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Custom Choice: Best for Discounts and Rewards
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
3.24 - 15.71%
Variable APR
4.19 - 16.39%
Loan Amount
$1,000 to $99,999 annually $180,000 aggregate limit)
Term
7, 10, 15
Expert Insights
Custom Choice offers a compelling combination of rate discounts, graduation rewards, and zero fees. You can reduce your interest rate by 0.25 percentage points with autopay and earn a 2% principal reduction after graduating. With no fees, cosigner release after 36 payments, and hardship forbearance, it's a good option for students seeking both savings and support.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Sallie Mae: Best for Specialized Loans
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
2.89 - 17.49%
Variable APR
4.37 - 16.99%
Loan Amount
$1,000 up to 100% of school-certified cost of attendance
Term
10 - 20
Expert Insights
Sallie Mae stands out from the competition with one of the broadest selections of specialized private student loans on the market. Loans cover everything from undergraduate degrees to medical residencies, bar study, flight training, and trade schools. This makes Sallie Mae a good option for students pursuing specialized or less traditional educational paths.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Abe: Best for Payment Relief Options
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
660
Fixed APR
-
Variable APR
-
Loan Amount
$1,000 to $99,999 annually $180,000 aggregate limit)
Term
5, 7, 10, 15, 20
Expert Insights
Few private lenders match the borrower protections Abe offers. You'll find options like in-school default protection, extended grace periods, and multiple types of forbearance — including for job loss and illness. These features make Abe an especially good fit for students who want a safety net during unpredictable times.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
SoFi: Best for Member Perks
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
-
Variable APR
-
Loan Amount
$1,000 to $100,000
Term
5, 7, 10, 15
Expert Insights
SoFi offers borrower-friendly benefits rarely seen among student loan lenders. Perks include cash back for strong grades, a loyalty discount on future loans, and cosigner release after just 12 months. With flexible terms and competitive rates, SoFi is a standout option for students seeking long-term value.
Federal student loan rates for 2025-2026
You should start by applying for federal student loans through the Department of Education. Federal rates are the same for all student loan borrowers and, instead of basing your interest rate on your credit and financial situation, you must meet basic eligibility criteria like citizenship or permanent residency, age, and enrollment and institution requirements.
These are the current federal student loan interest rates for loans disbursed between July 1, 2025, and July 1, 2026:
Source: StudentAid.gov
Federal student loans come with unique borrower benefits and protections, like forgiveness programs and income-driven repayment plans to help you manage your debt.
Generally, you should maximize your federal loan options first because of their competitive interest rates, repayment options, and forgiveness benefits. Private student loans are a good choice if you’ve used up your federal loan aid and still have more college expenses.
Related: Can You Get a Student Loan With Bad Credit?
Why you can trust our Credible experts
The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.
Methodology
To determine the best student loan lenders, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.
- Repayment options: 30%
- Eligibility: 25%
- Interest rates: 20%
- Loan terms: 15%
- Customer support: 10%
While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.
Learn more about our methodology.
Average student loan interest rates
Private student loan rates fluctuate based on market conditions. These are the weekly average student loan rates for borrowers who prequalified for student loans through Credible:
Pros and cons of federal student loans
Pros
- Fixed interest rates
- Credit score doesn’t impact interest rate
- Income-driven repayment plans
- Forgiveness options
- Deferment and forbearance options
- Repayment grace period
Cons
- Residency and enrollment requirements
- Low borrowing limits
- Origination fees
- Less flexibility in use of funds
- PLUS loans require a credit check
Federal student loan rates are fixed, meaning once your loan is disbursed, your rate will never change. Most federal loans don't require a credit check. Instead of determining your interest rate based on your credit and financial history, you must meet basic eligibility criteria like citizenship or permanent residency, age, enrollment, and other institution requirements.
Federal student loans also come with unique borrower benefits and protections, such as forgiveness programs and income-driven repayment plans. You should usually maximize federal loan options first since they have competitive interest rates, repayment options, and forgiveness benefits. Private student loans may be a good option if you've exhausted your federal loan allowance because of borrowing limits and still need more funding.
Pros and cons of private student loans
Pros
- May offer lower interest rates (for creditworthy borrowers)
- Can apply with a qualified cosigner
- Higher borrowing limits
- Flexible use (housing, etc.)
- Customizable repayment terms
- Repayment grace period
Cons
- Credit-based approval
- Strict eligibility requirements
- Variable rates will change over time
- No access to federal protections
- Potential higher loan costs
- No income-driven repayment
Private student loans might have a fixed or variable rate and are offered through private financial institutions. Variable rates can change over time based on the rate market and the economy.
Unlike federal loans, your rate is tied to factors like your credit score, income, and debt-to-income ratio (DTI), among others. The stronger your credit, the more likely you are to access a lender's lowest rates. However, private lenders offer the option to apply with a cosigner, which can lower your interest rate.
How to get the lowest interest rate on student loans
If you plan on taking out private student loans, these are some tips to help you get approved for the lowest possible interest rate:
Raise your credit score
A strong credit score can help you secure lower interest rates and access the most competitive loan offers. For example, in March 2025, borrowers who looked into a 5-year student loan through the Credible marketplace with excellent credit (780+) prequalified for a 6.59% rate, while those with a score between 640 and 679 prequalified for a 14.5% rate.
To improve your credit, pay bills on time, reduce outstanding balances, and keep credit card usage to a minimum. Also, try to avoid applying for several loans or credit cards in a short timeframe.
Apply with a cosigner
If you have a parent, partner, or family member with strong credit, consider asking them to cosign your student loan. Having a cosigner can improve your chances of approval and may also help qualify you for a lower interest rate.
For example, data collected by Credible between February and April 2025 showed that borrowers who prequalified for 10-year fixed-rate student loans with a cosigner received lower rates by as much as 2.45 percentage points, depending on their credit score.
Sign up for autopay
Many private lenders offer an interest rate reduction for borrowers who sign up for automatic payments. Usually, the discount is 0.25 percentage points off your rate.
Choose the shortest loan repayment term
A shorter loan term reduces the lender's risk, which translates to a lower interest rate. However, choosing a shorter loan term means your monthly payments will be higher, but you'll pay less interest over time.
FAQ
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