This is a complete guide on the best private college loans for students.
It’s not every private student loan you should apply to, you need to thoroughly make your findings to choose the one that is best for you.
It is pertinent to research every private college loan for students you are introduced to, to avoid making terrible mistakes.
Research the interest rate, repayment policy, deferment options, qualification requirements, and other important things to ensure you are on the right track.
Sadly, some students find it difficult to carry out this research and so they end up choosing the wrong private college loans for students.
We do not want you to make such a mistake so we have carefully researched the best private college loans for students that offer students a wide range of funding options.
These private college loans for students we have come up with offer competitive interest rates, different repayment terms, and discounts.
Keep reading to learn more about the best private college loans for students.
What Is Private College Loan
A private college loan is a loan from private organizations created to help college students pay for college expenses such as tuition, books, room, and board.
It is a substitute for Federal student loans offered by the United State government and it is offered by private establishments such as banks, online finance companies, and credit unions.
How Private College Loans Work
Private college loans for students are not very different from other types of loans; you go through the same process of application.
Initially, like other types of loans, you have to check the lender’s requirement for eligibility before you apply.
If your application is approved, you will receive the loan and pay for your studies and other necessary things.
Moreover, Private college loans come with interest, so at the agreed time, you will pay back your loan with interest.
Some private loan institutions offer full tuition fees to undergraduate students and sometimes the maximum loan amount to cater to their needs too.
Depending on your qualification, private college loans offer varieties of interest rates and you have to choose the one within your capability.
However, the repayment length of some private loans ranges from five to fifteen years and they do not offer any forgiveness programs like the federal student loans.
Just like other types of loans, to qualify for private college loans, you have to meet the necessary requirements which include you enrolling in a degree program in an acceptable institution.
Additionally, only apply for private college loans when you have run out of grants, scholarships, federal loan options and need more funding to fulfill your financial needs.
Twenty Best Private College Loans For Students
Below are the twenty best private college loans for students you can apply to when you are in dire need of money for academic purposes.
1. Ascent Independent Student Loan
Ascent is one of the best private college loans for students, it covers up to a hundred percent tuition fees and other college-related expenses.
Ascent private school loan is for students from all fields of study attending a qualified institution.
Ascent loans do not request application, disbursement, or origination fees, they ensure you have smooth access to the loan.
Ascent offers three loan options for students which are the Cosigned Credit-Based Loan for undergraduates, the Non-Cosigned Credit-Based Loan for undergraduates, and the Non-Cosigned Outcomes-Based Loan for undergraduates.
To apply for the Cosigned Credit-Based Loan, you and your consigner must have a minimum credit score.
This loan option is only for U.S. citizens, DACA & International students. It comes with a Variable Annual Percentage rate of 1.47% – 9.05% and a fixed annual percentage rate of 3.28% – 11.26%.
To apply for the non-consigned credit-based loan, you must have a maximum of two years of credit history with at least a minimum credit score, and you must be a U.S. citizen, permanent resident, or DACA student.
This loan option has a variable Annual Percentage rate of 4.05% – 10.80% and a fixed annual percentage rate of 5.95% – 13.02%.
The Non-Cosigned Outcomes-Based Loan option is for eligible undergraduates with or without a credit score and two years of credit history.
Moreover, a non-U.S. citizen, U.S. permanent resident, or DACA student can apply for this loan. Non-U.S. citizens are required to upload their Permanent Resident Card, Non-Permanent Resident Aliens, unexpired passport from their home country, etc.
Learn more about Ascent here
2. Sallie Mae Private Student Loan
Sallie Mae is one of the best private college loans for students in qualified higher institutions. it offers loans to qualified students with three repayment options.
You can decide to start paying while in school with monthly interest payments, make monthly $25 payments while in school, or make no payments until you finish school.
Despite the repayment option you choose, you would be given a six-month grace period after you leave school to start paying your loan.
Non-U.S. citizens are required to apply for this private college loan with a creditworthy cosigner who is either a U.S citizen or permanent resident and they shall both provide an authentic government-issued photo ID to verify their identity.
Sallie Mae loans offer variable annual percentage rates of 1.13% – 11.23% and fixed annual percentage rates of 3.50% – 12.60%.
Learn more about Sallie Mae private student loan here
3. College Ave Private Student Loan
This best private school loan for students offers loans with variable annual percentage rates of 0.94% – 11.98% and fixed annual percentage rates of 2.94% – 12.99%.
Undergraduate students applying for this loan must be U.S citizens or permanent residents schooling in an accredited higher institution with good academic performance.
Moreover, a cosigner may be needed for students who do not meet financial, credit, or other requirements of applying for this private loan.
College Ave Private Student Loan has four repayment options for students.
You can start paying your loan with interest while in school, pay only the interest charges each month while still in school, make $25 payments each month to reduce the accumulated interest or start paying when you have graduated.
Moreover, this private student loan offers a repayment term of 5, 8, 10, and15 years you can choose from.
College Ave Private Student Loan is one of the best private college loans for students you can apply to.
4. Discover Undergraduate Student Loan
Discover Undergraduate Student Loan offers loans with Variable interest rates of 1.29% – 10.59% APR and Fixed interest rates of 3.99% – 11.59% APR.
To be eligible for this loan, you must be enrolled in a Bachelor’s or Associate’s degree program at a qualified school and also meet their required criteria.
Students applying for this loan are advised to apply with a credit-worthy cosigner to increase their chance of getting the loan with a lower interest rate.
Moreover, Discover Undergraduate Student Loan offers a repayment period of 15 years after the end of the deferment period.
Learn more about one of the best private college loans for students here
5. SoFi Private Student Loan
This is undoubtedly one of the best private college loans for students. This private loan does not require any application fee.
It offers fixed interest rates of 2.99% – 10.66% APR with autopay and variable interest rates of 0.95% – 11.18% APR with autopay.
Interested undergraduates are advised to apply for the loan with a cosigner that has a strong financial history and good credit to heighten their chances of getting the loan fast and even with a lower interest rate.
SoFi Private Student Loan offers four repayment options to undergraduate students to enable them to pay their loans conveniently.
Furthermore, international students and non-permanent residents can apply for this loan with a U.S citizen cosigner.
SoFi Private Student Loan offers a repayment period of 5, 7, 10, 15 years to undergraduate students.
Visit the SoFi Private Student Loan website to learn more.
6. Earnest Private Student Loan
If you meet the required criteria for this private student loan, you can apply and get approved in a twinkling of an eye.
This private loan offers a variable interest rate of 0.94% including a 0.25% autopay discount and a fixed interest rate of 2.94% including a 0.25% auto-pay discount.
Moreover, Earnest Private Student Loan grants students a 9 month grace period after graduation to start paying their loans.
To apply for this loan, you must be attending an approved institution, live in the district of Columbia or other states they operate, be of legal age, be a U.S. Citizen or Permanent Resident or have a cosigner who is a U.S. Citizen or Permanent Resident.
Learn more about this private college loan here
7. CommonBond Private Student Loan
CommonBond private student loan allows you to borrow up to 100% of your school’s tuition fee as decided by the financial aid office.
This private student loan offers fixed interest rates of 3.74-10.74 including a 0.25% autopay discount and variable interest rates of 3.79-9.35 including a 0.25% autopay discount.
Its offers four repayment options, you are at liberty to decide when and how to start remitting your loan.
Furthermore, it also offers a 6-month grace period after your graduation to start paying off your loan.
To be eligible for this loan, you must be a U.S. citizen or a permanent resident undergraduate who is attending one of the schools in their network.
Additionally, this private student loan encourages students to apply with a creditworthy cosigner to get approved for the loan fast.
CommonBond private student loan is one of the best private college loans for students, learn more about it here
8. Custom Choice Loan
Custom Choice Loan allows you to borrow up to 100% of your school-certified cost of attendance which incorporates your tuition, room and board, transportation, books and supplies, and personal expenses.
The variable interest rate for this loan is is1.03% – 9.67% APR and the fixed interest rate for this loan is 3.20% – 10.77% APR.
This private interest loan presents four repayment options, it’s up to you to choose the one that best suits your interest.
To be eligible for this loan, you must be attending an eligible institution, be of legal age at the time of application, be a U.S. citizen or permanent resident applying with an eligible cosigner who is a U.S. citizen or permanent resident.
Custom Choice Loan is one of the best private college loans for students you should consider, learn more about it here
9. Education Loan Finance Private Student Loan
This private loan does not request application fees, origination fees, or prepayment penalties from students.
The entire application process is done online within a short time, and it offers flexible repayment options to students.
Education loan finance private student loan offers loans with a variable interest rate of 1.20% APR and a fixed interest rate of 3.20% APR.
To apply for this loan you and your cosigner must be U.S. citizens or permanent residents and have a minimum credit score of 680.
10. LendKey Private Student Loan
LendKey private student Loan is one of the best private college loans for students, it disburses loans directly to your school to clear off your school debt.
This loan is credit-based and only students attending eligible schools are qualified to apply for a loan.
Moreover, this loan offers a variable interest rate of 1.49% and a fixed interest rate of 3.99%.
Learn more about this private loan here
11. Funding U Private Student Loan
Funding U private loan offers students a no cosigner student loan. The loan is based on students’ drive and potential.
Moreover, the only qualified students for this loan are residents of
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Florida
- Georgia
- Hawaii
- Illinois
- Indiana
- Iowa
- Kansas
- Maryland
- Massachusetts
- Michigan
- Missouri
- Nebraska
- New Jersey
- New Mexico
- New York
- North Carolina
- Ohio, Oregon
- Pennsylvania
- South Carolina
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
Learn more about this private loan here
12. MPOWER Private Student Loan
MPOWER private student loan charges a 5% origination fee and a small fee for late or invalid payments.
Currently, this private loan offers fixed interest rates of 7.99% (8.89% APR¹) and 13.99% (14.97% APR¹).
It offers flexible repayment options, a six-month grace after graduation to start paying off your loan, and a ten-year repayment period.
Learn more about this private loan here
13. ISL Private Student Loan
This partnership loan advises eligible students to apply for loans with a cosigner to quicken their chances of getting the loan.
It offers a fixed annual percentage rate of 3.19% –7.40% and a variable annual percentage rate of 1.24% –6.08%.
This private loan allows eligible students to borrow only their cost of attendance, and also decide when to start repaying their loans after graduation.
Learn more about this private loan here
14. Rhode Island Student Loan Authority
This is one of the best private college loans for students. It offers low fixed rates of 2.69% APR, zero origination fees, flexible terms, and income-based repayment.
This private loan offers students a grace period of six months after graduation to start remitting their loans and charges late payment fees, returned check fees, and default-related fees.
Learn more about this private loan here
15. A.M. Money
A.M. Money is one of the best private loans that offers financial aid to eligible students to allow them to complete their education with ease.
This loan offers flexible repayment options that suit students and allows eligible students to apply without a cosigner.
Currently, this private loan only lends to US Citizens And Legal Permanent Residents, and its current fixed interest rate is 7.08%.
Learn more about this private student loan here
16. PNC Bank
PNC bank is one of the recommended best private college loans for students. It allows them to apply for loans conveniently without a cosigner.
This loan offers a fixed annual percentage rate 0f 2.99% and a variable annual percentage rate of 1.09% including a 0.50% discount for automated payment.
Moreover, PNC bank allows students to decide when and how they want to repay their loans by providing flexible repayment options.
Learn more about this private student loan here
17. Prodigy Finance Students Loan
Prodigy is one of the best private college loans for students, it lends funds to eligible students from 118 different countries globally.
This private loan lends to eligible students enrolled in qualified schools to study Business, Engineering, Computer science, Law, Policy, Economics, Science, Math.
To be qualified for this loan, you must be enrolled in their preferred school and program, and you must study in one of the countries they operate.
Learn more about this private loan here
18. Citizen bank loan
The citizen bank loan is one of the well-known best private college loans for students. It supports students with funds every college year until graduation.
It ensures your interest rate and monthly payment amount remain the same until you are done paying your loan.
Applying for this loan with a cosigner is not compulsory but students are advised to do that to quicken their chances of getting the loan fast and in some cases get a lower interest rate.
Citizens Bank gives students the opportunity to choose how and when they want to pay their loans by offering flexible repayment options.
Learn more about this private student loan here
19. Massachusetts Educational Financing Authority
MEFA for 35 years has been offering low-cost fixed interest rate students loans to help average families pay for a college education.
Interestingly, this private loan does not charge an origination fee, application fee, or prepayment penalty and it grants students a repayment period of 10-15 years.
Moreover, eligible students are allowed not to only pay tuition fees with the loan, but off-campus housing, if their colleges consider it as part of their cost of attendance.
Learn more about this private loan here
20. INvestEd student loan
INvestEd student loan has numerous loan options for every student, it helps them access the loan that befits them.
It is an Indiana private loan company that offers competitive loans to students from Indiana and students attending Indiana colleges and universities.
This private loan company offers loans with a variable interest rate of 1.6% APR and a fixed interest rate of 3.33% APR with a repayment term of 5, 10, and 15 years.
INvestEd student loan is one of the best private college loans for students.
Learn more about this loan here
Also see: How To Get Microsoft Office Student Discount
That’s all on the best private college loans for students, I hope it helps.