What is a private student loan?
Private student loans are credit-based education loans offered by banks, credit unions, and online lenders to help pay for school expenses that federal financial aid doesn't cover.
When you need to bridge that remaining gap, Credible simplifies the process by allowing you to:
- Compare competitive fixed-rate APRs from 2.54% to 17.99%, and variable-rate APRs from 3.65% to [inschool.max.variable.apr]]%.
- Evaluate rates and terms from multiple lenders, side-by-side, at no cost and with no impact on your credit score.
- Select a tailored plan from a variety of top lenders, all within a single, transparent marketplace.
Calculate my student loan payment
Use our student loan calculator to take the guesswork out of your education costs. By adjusting for different student loan rates and terms, you can instantly estimate monthly payments and evaluate total interest costs.
Checking rates won’t affect your credit score
More details on the best private student loan lenders
Review the lenders below to compare student loan rates, repayment options, and loan terms. This can help you determine the best lender for your needs.
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
-
Variable APR
-
Loan Amount
$2,001 to $400,000
Term
5, 7, 10, 12, 15, 20
Our take
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.
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
-
Variable APR
-
Loan Amount
$1,000 up to 100% of the school-certified cost of attendance
Term
5, 8, 10, 15 (20 for health professionals)
Our take
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.
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
Mid-600s
Fixed APR
-
Variable APR
-
Loan Amount
$1,000 up to school-certified cost of attendance (aggregate $300,000 limit for an undergraduate loan, $350,000 limit for a graduate or graduate certificate loan)
Term
5, 7, 10, 15, 20
Our take
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 request a 2% principal reduction after graduating. With no fees, cosigner release available after 12 consecutive on-time monthly principal and interest 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
-
Variable APR
-
Loan Amount
$1,000 up to 100% of school-certified cost of attendance
Term
10 - 20
Our take
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
Mid-600s
Fixed APR
-
Variable APR
-
Loan Amount
$1,000 up to school-certified cost of attendance (aggregate $300,000 limit for an undergraduate loan, $350,000 limit for a graduate or graduate certificate loan)
Term
5, 7, 10, 15, 20
Our take
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.
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
-
Variable APR
-
Loan Amount
$1,000 up to 100% of the school-certified cost of attendance
Term
5, 10, 15
Our take
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.
Nelnet Bank: Best for Competitive Rates
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
Mid to high 600’s FICO
Fixed APR
-
Variable APR
-
Loan Amount
$1,000 to $500,000
Term
5, 10, 15
Our take
Nelnet Bank stands out among private student loan lenders for offering low starting rates and high loan limits across undergraduate, graduate, and health professional programs. You can qualify for a Nelnet Bank student loan with mid-600s credit or apply with a cosigner to improve your chances of approval and secure a better rate.
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.
INvested: Best for Indiana Students
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
670
Fixed APR
-
Variable APR
-
Loan Amount
$1,001 up to 100% of school certified cost of attendance
Term
5, 10, 15
Our take
INvestEd offers unique value for Indiana students, with eligibility limited to state residents or those attending school in the state. This includes competitive interest rates, cosigner release after just 12 on-time payments, and generous forbearance and deferment options. As a nonprofit, INvestEd combines affordability with a strong commitment to local borrowers.
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.
MEFA: Best for Borrowers With Good Credit
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
670
Fixed APR
-
Variable APR
-
Loan Amount
$1,500 up to school’s certified cost of attendance less aid
Term
10, 15
Our take
MEFA is best for borrowers with strong credit who want stable, low-cost college financing without the extras. It offers low, fixed-interest rates and zero fees. But there are no variable rates, autopay discounts, or short-term repayment options. If you meet its credit standards, MEFA's nonprofit model makes it a reliable, no-frills alternative to traditional private lenders.
Private vs. federal student loans
While federal and private student loans each provide funding to pay for your education costs, there are important distinctions between them:
- Federal student loans feature fixed rates set annually by Congress. They offer a baseline of universal interest rates and terms, as well as specific borrower protections, such as income-driven repayment plans.
- Private student loans, provided by banks, credit unions, and online lenders, are credit-based and may offer lower interest rates than federal loans to highly qualified borrowers. They allow for more choice in loan terms and providers to help meet your total school expenses.
When finalizing your college financing plan, it is essential to compare private student loan rates against current federal student loan rates. Unlike the universal rates set by the government, private lenders determine your rate based on market conditions and your credit, often allowing for a more personalized financial fit.
What’s changing with federal student loans in 2026?
New federal student aid rules taking effect in the 2026-27 school year include the elimination of grad PLUS loans for new borrowers, borrowing caps on parent PLUS loans, and a narrower selection of student loan repayment plans.
Grad PLUS loan elimination
For students enrolling in new programs on or after July 1, 2026, the grad PLUS loan program is no longer available.
- New borrowing limits: Graduate students will be limited to Direct Unsubsidized Loans. These are capped at $20,500 per year for most graduate degrees, with a lifetime limit of $100,000.
- Professional degree exception: Students in specific professional programs such as medicine, law, and dentistry, have higher caps of $50,000 per year and a $200,000 lifetime limit.
- Legacy provision: If you received a federal loan disbursement for your program before the July 1 cutoff date, you may be able to continue borrowing under the old rules (covering as much as the full cost of attendance) for up to 3 additional school years, if you qualify.
Parent PLUS loan changes
Parent PLUS loans will no longer allow parents to borrow up to the full cost of attendance. Instead, new borrowers face strict limits:
- Annual cap: Parents are limited to $20,000 per year, per dependent student.
- Lifetime cap: A maximum of $65,000 can be borrowed per dependent student.
- Repayment restriction: Loans disbursed after the cutoff date are generally ineligible for income-driven repayment (IDR) plans and must be repaid through fixed monthly payments.
- Legacy provision: Parents who borrow before the July 2026 deadline may be able to finish their child’s current degree under the old limits for up to 3 additional school years.
Federal student loan repayment plan changes
The wide selection of current federal repayment plans will be phased out and replaced by just two primary options for new borrowers:
- Standard Repayment Plan: A fixed payment plan where the term length (10 to 25 years) is based on the total amount borrowed.
- Repayment Assistance Plan (RAP): This is the new income-driven repayment plan that will replace SAVE, PAYE, ICR, and IBR. Payments are based on your adjusted gross income (AGI), ranging from 1% to 10% depending on how much you earn Any remaining balance is forgiven after 30 years of qualifying payments.
How student loans work
Navigating student debt requires a strategic approach to both federal and private funding. Generally, students should exhaust federal options first before turning to private lenders.
Types of student loans
- Federal Direct Subsidized Loans: Available to undergraduate students with financial need; the government pays the interest while you're in school and during your grace period.
- Federal Direct Unsubsidized Loans: Available to undergraduate and graduate students regardless of need; interest begins accruing immediately.
- Federal PLUS Loans: Designed for graduate students or parents to cover costs not met by other aid.
- Private student loans: Credit-based loans from banks or online lenders that offer additional funding and flexible terms.
Student loan borrowing limits
Federal loans have strict annual and aggregate caps based on your year in school and whether you are a dependent or independent student. These limits frequently fall short of your total expenses, and private lenders can be a good way to fill the gap as they often allow you to borrow the remaining amount you need to cover the full cost of attendance.
How student loan interest works
Student loan interest is the cost of borrowing, typically calculated as a daily percentage of your principal balance. While federal loans carry fixed rates set by the government, private loans offer a choice between fixed and variable rates. Most student loans use simple interest, meaning it's calculated only on the original principal. However, interest that is unpaid while you’re in school or during your grace period may be capitalized, or added to your total loan balance. This increases the total amount of interest you’ll pay over the life of the loan.
When to apply for student loans
Timing is vital for maximizing aid. You should complete the FAFSA as early as possible each year to qualify for federal grants and loans, as many schools award aid on a first-come, first-served basis. You can apply for private student loans any time, including mid-semester. Ideally, you should start the process several weeks before your tuition deadline.
Who qualifies for student loans?
Federal student loan eligibility is primarily based on U.S. citizenship and enrollment status rather than financial history. Most federal loans require no credit check and are accessible to any student in a qualifying program.
In contrast, private loan qualification is based on credit. Lenders typically look for a credit score of 670 or higher and stable income. Students with limited credit history can often qualify by applying with a creditworthy cosigner, which may also help secure a lower interest rate.
Student loan interest rate trends
Monitoring the average interest rate on student loans allows you to better evaluate your offers and capitalize on market dips to secure more affordable funding. Because even a fractional difference in your rate can save you thousands of dollars over the life of the loan, it is vital to understand how these figures fluctuate. While federal rates remain fixed for all borrowers, private lenders use these market averages as a baseline before adjusting their final offers based on your individual credit profile.
For the 2025-26 school year, current student loan interest rates for federal undergraduate Direct Loans are fixed at 6.39%, 7.94% for graduate Direct Unsubsidized Loans, and 8.94% for PLUS Loans. Private student loan rates on the Credible platform range from 2.54% to 17.99% APR for fixed-rate loans, and from 3.65% to 17.99% APR for variable-rate loans.
Pros and cons of private student loans
Pros
- Can help cover the full cost of attendance
- May offer lower interest rates for borrowers or cosigners with strong credit
- Fixed or variable interest rate options available
- Builds credit history with on-time payments
- Accessible when federal loans or aid aren’t enough
Cons
- Interest starts accruing immediately (no subsidized option)
- Few borrower protections (no forgiveness, limited deferment/forbearance)
- Risk of capitalization increasing total loan cost
- Payments may be unaffordable after graduation without flexible plans
- Higher default risk if you borrow more than you can repay
How to apply for a private student loan with Credible
1. Get prequalified rates
With Credible, you can compare the lowest interest rate student loans from multiple lenders at once, without hurting your credit. Simply enter your personal information, then receive an overview of your estimated rates and terms from different lenders you qualify with.
2. Compare private student loan lenders
Research each lender to compare private student loan rates, APR ranges, repayment terms, fees, member benefits, and student loan reviews. Comparing these features side by side can help you identify the best private student loans from top lenders that fit your financial profile.
3. Select your loan
After narrowing down your list of private lenders, choose the student loan option that best suits your needs. Also consider whether you'll add a cosigner to the loan. If so, you'll need to gather some information from your cosigner to complete the next step.
4. Submit an application
Gather the necessary documentation to apply. This may include a government-issued ID, pay stubs, tax records, and more. Fill out the private loan application, provide the requested documentation, sign, and submit.
FAQ
Are private student loans eligible for forgiveness?
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Which student loan should I accept?
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What student loan rates are available in 2026?
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How much do student loans for college cost per month?
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Do I need a cosigner for a private student loan?
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What credit score do I need to get a private student loan?
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Can I use private student loans for non-tuition expenses?
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Is it possible to refinance private student loans later?
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How do you calculate monthly interest on student loans?
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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.
