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Best private student loan rates in December 2024

Updated Dec 04, 2024

What to know first: Federal student loans are almost always a better first choice than private student loans, but they have borrowing limits and qualification requirements. When federal loans aren't enough, private student loans can cover tuition, room and board, fees and other costs of higher education once you've reached your federal limit.

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STUDENT LOAN

College Ave: Best for international students

4.4

Fixed APR from
3.47- 17.99%
Loan term
5-15 yrs
Loan amount
$1,000– $500,000
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STUDENT LOAN

Sallie Mae: Best for part-time students

4.6

Fixed APR from
3.49- 15.49%
Loan term
10-15 yrs
Loan amount
$1,000-$500,000
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STUDENT LOAN

SoFi: Best for online borrower resources

4.7

Fixed APR from
3.54- 15.99%
Loan term
5-20 yrs
Loan amount
$1k- $500K
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STUDENT LOAN

ELFI: Best for customer service

4.2

Fixed APR from
3.69- 14.22%
Loan term
5-15 yrs
Loan amount
$1k- $500K
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STUDENT LOAN

Ascent: Best for borrower incentives

4.5

Fixed APR from
3.69- 15.28%
Loan term
5-20 yrs
Loan amount
$2k- $400K
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STUDENT LOAN

Earnest: Best for flexible repayment terms

4.5

Fixed APR from
3.94- 16.74%
Loan term
5-15 yrs
Loan amount
$1,000 - 100% total cost of attendance
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STUDENT LOAN

Citizens Bank: Best for existing Citizens Bank customers

4.0

Fixed APR from
3.99- 15.61%
Loan term
5-15 yrs
Loan amount
$1k- $225K
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STUDENT LOAN

Custom Choice: Best for graduation rewards

4.1

Fixed APR from
4.24- 14.02%
Loan term
7-15 yrs
Loan amount
$1,000 to $99,999
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STUDENT LOAN

INvested: Best for Indiana residents

Fixed APR from
4.80- 9.19%
Loan term
5-15 yrs
Loan amount
$1k- $500K
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STUDENT LOAN

Mefa: Best for low rates

Fixed APR from
5.75- 8.95%
Loan term
10-15 yrs
Loan amount
$1,500-100% cost of attendance
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STUDENT LOAN

3.5

Fixed APR from
8.49- 25.96%
Loan term
5-7 yrs
Loan amount
$5,000-$15,000
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Compare top private student loan lenders

Use this table to easily compare the best student loan lenders. Pay specific attention to the maximum loan amount, APR range and minimum credit score to find the best loan for your needs. 

LENDER BEST FOR MIN. CREDIT SCORE APR MIN. LOAN AMOUNT MAX LOAN AMOUNT
College Ave International students Not Specified 4.99%-17.99% variable; 3.47%-17.99% fixed $1,000 100% total cost of attendance
Sallie Mae Part-time students Not Specified 5.04%-15.21% variable; 3.49%-15.49% fixed $1,000 $1,000 to 100% cost of attendance
Ascent Borrower incentives Not Specified 5.50%-15.04% variable; 3.69%-15.28% fixed $2,001 $400,000
Education Loan Finance Customer service 680 5.00%-14.22% variable; 3.69%-14.22% fixed $1,000 100% total cost of attendance
Citizens Bank Existing Citizens Bank customers Not Specified 5.34%-15.96% variable; 3.99%-15.61% fixed $1,000 $225,000
Earnest Flexible repayment terms 650 5.87%-17.10% variable; 3.94%-16.74% fixed $1,000 $1,000 to 100% cost of attendance
SoFi Online borrower resources 640 5.54%-15.99% variable; 3.54%-15.99% fixed $1,000 100% total cost of attendance
Custom Choice Graduation rewards Not Specified 4.97%-14.52% variable; 4.24%-14.02% fixed $1,000 $99,999 annually; $180,000 aggregate
INvestEd Indiana residents 670 8.00%-12.46% variable; 5.04%-9.19% fixed $1,001 100% total cost of attendance
MEFA Low maximum APR 670 5.75%-8.95% fixed $1,500 100% total cost of attendance

Loan details presented in the table above are current as of June 15, 2024. Check the lenders’ websites for more current information. The student loan lenders listed here are selected based on factors such as APR, loan amounts, fees, credit requirements and more.

A closer look at our top private student loans

Use each lender's deep-dive to help you better understand the loan product, who it's best for and how to qualify.

College Ave: Best for international students

College Ave
Rating: 4.4 stars out of 5
4.4

Overview: College Ave offers private loans for students seeking undergraduate, graduate, dental, law, medical and business degrees. Parents can also take out loans on behalf of their college-bound kids, and students interested in attending community college or receiving career training may also apply.

Fixed APR
3.47%–17.99%
Loan amount
$1,000– $500,000
Loan term
5-15 yrs

Sallie Mae: Best for part-time students

Sallie Mae
Rating: 4.6 stars out of 5
4.6

Overview: Sallie Mae is among the most well-known student loan lenders on our list and was originally founded in 1973. Unlike other lenders, Sallie Mae doesn't require its applicants to be full-time students, regardless of the degree program or loan type.

Fixed APR
3.49%–15.49%
Loan amount
$1,000-$500,000
Loan term
10-15 yrs

Ascent: Best for borrower incentives

Ascent
Rating: 4.5 stars out of 5
4.5

Overview: Ascent offers the most comprehensive incentive programs out of the lenders we reviewed. Borrowers who qualify can take advantage of the automatic payment discount, a one percent cash back graduation benefit, a reward of up to $525 per referral and one-on-one coaching through its student success program.

Fixed APR
3.69%–15.28%
Loan amount
$2k– $400k
Loan term
5-20 yrs

Education Loan Finance: Best for customer service

Education Loan Finance
Rating: 4.2 stars out of 5
4.2

Overview: Education Loan Finance, Inc. is a nonprofit organization that values a personal relationship with its borrowers, having provided over $20 million in scholarships. The company is known for its financial literacy high school program and recently awarded a customer $50,000 to help a customer and his family pay off their loans.

Fixed APR
3.69%–14.22%
Loan amount
$1k– $500k
Loan term
5-15 yrs

Citizens Bank: Best for existing Citizens Bank customers

Citizens
Rating: 4 stars out of 5
4

Overview: While most of the lenders we review only have an online presence, Citizens Bank has nearly 2,000 locations across the country. As the oldest institution on our list, Citizens Bank has garnered a solid reputation over the years as a reliable and staright-forward lending option.

Fixed APR
3.99%–15.61%
Loan amount
$1k– $225k
Loan term
5-15 yrs

Earnest: Best for flexible repayment options

Earnest
Rating: 4.5 stars out of 5
4.5

Overview: Earnest is a well-known online lender that offers a variety of repayment terms and programs, which isn't a given with every student loan lender. Among its options are an extended term program, a deferment or forbearance option, loan forgiveness and discharge and a hardship rate reduction program.

Fixed APR
3.94%–16.74%
Loan amount
$1,000 - 100% total cost of attendance
Loan term
5-15 yrs

SoFi: Best for online borrower resources

SoFi
Rating: 4.7 stars out of 5
4.7

Overview: SoFi is one of the most recognizable online lenders in the student loans space, and for a good reason. It's best known for its member benefits and perks, including exclusive access to the SoFi stadium, a personalized reward and redemption program and a SoFi PLUS membership.

Fixed APR
3.54%–15.99%
Loan amount
$1k– $500k
Loan term
5-20 yrs

Custom Choice: Best for graduation rewards

Custom Choice
Rating: 4.1 stars out of 5
4.1

Overview: While most lenders offer interest rate reductions, Custom Choice's Grad Reward takes 2 percent off your principal balance after you graduate. Plus, it's one of the only companies that doesn't require applicants to meet the SAP requirements set by their school.

Fixed APR
4.24%–14.02%
Loan amount
$1,000 to $99,999
Loan term
7-15 yrs

INvestEd: Best for Indiana residents

Invested

Overview: Functioning as a financial resource, INvestEd is an online lender that offers residents of Indiana — and those attending an in-state school — a competitive student loan option. It's also one of the most engaged lenders out of the ones we've reviewed. It has an events calendar and attends over 700 events annually across the state.

Fixed APR
4.80%–9.19%
Loan amount
$1k– $500k
Loan term
5-15 yrs

MEFA: Best for low maximum APR

mefa

Overview: While MEFA's fixed-rate APR rnaximum is technically the second lowest on our list, it is lowest for a lender that caters to borrowers across the country. Unlike some, MEFA doesn't have any state restrictions on its loans — borrowers just need to attend an eligible U.S. nonprofit college or university.

Fixed APR
5.75%–8.95%
Loan amount
$1,500-100% cost of attendance
Loan term
10-15 yrs

What is a private student loan?

A private student loan is a loan used to cover qualifying academic-related expenses. You can take out private student loans through banks, online lenders, credit unions and sometimes through colleges and state agencies. These usually have higher borrowing limits than federal student loans and may offer lower interest rates for borrowers with good credit, but they come with fewer borrower protections.

How private student loans work

To qualify, you’ll need to meet the lender’s eligibility requirements and go through a credit check. Applicants with good or excellent credit tend to get the lowest interest rates. Because undergraduates usually don’t have extensive credit histories, they typically need a co-signer to take out a private student loan. 

Some lenders specialize in student loans without a co-signer for undergraduates. To determine your eligibility and rate, they may evaluate your performance in school, earning potential, work history and more.

Unlike other types of loans, you likely won't receive the funds. Instead, they'll be sent to your school or college. From there, you can use the money for academic-related expenses, like technology, room and board and tuition. 

Pros and cons of private student loans 

Before applying for a private student loan, consider the benefits and drawbacks of this type of financing.

Green circle with a checkmark inside

Pros

  • Higher borrowing limits than federal loans
  • Low interest rates for good credit
  • More flexible enrollment options than federal loans allow
  • Fixed and variable rate options
Red circle with an X inside

Cons

  • No federal protections or benefits like standardized forbearance
  • Standard requirement for scores in the mid-600s compared to no minimum required by federal loans
  • High rates for bad credit borrowers
  • Income-driven repayment plans generally not available

Private vs. federal student loans 

While private and federal student loans are both viable ways to pay for college, there are some differences to keep in mind:

Federal student loans Private student loans
Where do they come from? The U.S. Department of Education Banks, credit unions, online lenders
How much can you borrow? Up to $31,000 for dependent undergraduates, up to $57,500 for independent undergraduates, up to the full cost of attendance for graduates Varies by lender; often up to the full cost of attendance
What are the interest rates? 5.50% for undergraduates, 7.05% or 8.05% for graduates; all fixed rates 4.49% to 16.99%; may be fixed or variable
What are the benefits? Income-driven repayment plans, loan forgiveness options, extensive deferment and forbearance Low interest rates for borrowers with good credit, potential discounts and rewards, larger loan amounts
What are the drawbacks? Limited loan amounts for undergraduates, only one interest rate option Credit check required, high interest rates for borrowers with poor credit

Ask the experts: When should you choose a private student loan over a federal one?


Nationally recognized student financial aid expert

"Students should borrow federal first, because federal student loans are cheaper, more available and have better repayment terms. Private student loans are an option when a borrower exhausts the federal loan limits, which range from $5,500 to $7,500 for dependent students, depending on the year in school (and $9,500 to $12,500 for independent students). If a borrower reaches these loan limits, their main options are private or parent loans. But, needing to borrow more than the federal student loan limits may be a sign that you are borrowing too much money. You should aim to borrow no more than your annual starting salary for your entire education. If total student debt is less than annual income, you should be able to repay your student loans in ten years or less. If you do need to borrow parent or private loans, compare the interest rates, fees and other benefits on both types of loans. Shop around for the lowest interest rate. If you have an excellent credit score, or a cosigner with excellent credit, you may be able to qualify for a lower rate on a private student loan than a Federal Parent PLUS loan."

Writer, Personal Loans and Debt Relief

"There are very few instances in which you would want to choose a private student loan over a federal loan right off the bat. Unlike private loans, federal student loans aren't credit-based and come with hardship repayment and forgiveness options. Plus, they have the same, fixed rates for every borrower. However, they do come with maximum borrowing amounts that often don't cover the entire cost for the semester. Borrowers often turn to private loans after maximizing their federal aid to fill any financing gaps — this is the recommended route for most individuals. The only time a private loan is recommended over a federal loan is for those who have excellent credit and qualify for a lower rate with a private loan."

How to get a private student loan

Here's what you can expect from most private student loan applications: 

  1. Look for loans specific to your program or needs: Some lenders offer loans that are specific to medical school, an apprenticeship, a business degree and more, and it may be best to start with lenders that specialize in your degree. If you don't have anyone willing to co-sign, you should also narrow your search to lenders that have no-co-signer options.
  2. Prequalify: Most lenders offer prequalification before officially applying. This allows you to see your predicted eligibility odds and potential loan terms, without impacting your credit score. It's recommended that you prequalify with at least two lenders to get an idea of what a competitive rate looks like for your credit situation before you choose a lender.
  3. Compare rates and terms: Once you have your rate offers, you'll be able to pick from a variety of interest rates and repayment terms. A low interest rate may be the deciding factor, but you should also use a calculator to compare the overall cost of your loan with each lender.
  4. Apply: Online lenders offer fully online applications, while some banks or credit unions offer in person assistance at a physical location. If you come across a question while filling out the application, look up the lender's customer service phone number or email to receive customized assistance.
  5. Accept the loan terms: Once you're approved, your lender will communicate with your school to verify the cost of attendance. This certification process may take a few weeks. At that point, funds will be disbursed to your school for tuition and fees and any remaining amount will be sent to you personally.

Alternatives to student loans 

Before jumping into a student loan to cover the costs associated with a degree, consider options that can help reduce the overall cost. Grants and scholarships are two of the most common alternatives, but unlike loans, they don't need to be repaid. 

Federal need-based financial aid should also be explored before looking at private loans. Borrowers can apply for government-sponsored grants and programs — like work-study — through the Free Application for Federal Student Aid (FAFSA). 

Repaying a private student loan 

Generally, you don't need to worry about repaying your student loan until after your grace period. A standard grace period is six months after you graduate or drop below half-time enrollment, but it may be longer with some private lenders. At that point, you'll be responsible for paying back the principal and interest.

With many private companies, you have the option of selecting a payment plan while you're in school to decrease how much interest accumulates. Once your funds are disbursed, you may have the option to make interest-only payments or a small flat monthly payment. You may also have the opportunity to refinance your private student loan to help manage your payments.

FAQs about private student loans

How we chose the best private student loan providers 

Bankrate's trusted personal loans industry expertise

48

years in business

25

lenders reviewed

14

loan features weighed

350

data points collected

To find the best private student loan lenders, Bankrate's team of experts evaluated over 20 lenders. Each lender was then rated on a 14-point scale. The scale is split into three main categories:

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.