Will I need a co-signer for private student loans?

Whether or not you need a co-signer for private student loans depends on your financial health. If you have poor credit or little income, a creditworthy co-signer could help you get approved or receive a better interest rate. Some lenders also require co-signers for undergraduate borrowers, regardless of financial health.

Can you get a student loan with bad credit?

You can take out new student loans or refinance your existing loans with bad credit. Most federal student loans don't even check your credit, which makes them a great option for borrowers with little to no credit history. If you are applying for private loans, some lenders cater to borrowers with poor credit, although interest rates may be higher and loan amounts smaller. Before applying for any student loan, check for credit score requirements at each lender and get prequalified if possible.

What are the pros and cons of private student loans?

Private student loans appeal to many borrowers because of their high borrowing limits and low interest rates for good-credit borrowers. They also give you the option of fixed or variable rates, so you can choose the best plan for your budget. However, private student loans have fewer deferment and forbearance options than federal student loans, and borrowers with bad credit could see interest rates in the double digits.

When is refinancing student loans a good option?

Refinancing your student loans may be a good option if you'd like to consolidate multiple loans into a single loan or if interest rates have fallen significantly since you first took out your fixed-rate loan. However, refinancing can only be done through private lenders, so you'll lose options like income-driven repayment and COVID-19 relief programs if you refinance your federal loans.

How do I refinance my student loans?

To refinance your student loans, shop around and compare a few lenders to see which one offers the best rate and repayment terms for your situation, getting prequalified where possible. When you're ready to apply, you can typically apply online, over the phone or in person. Once you're approved and have submitted the necessary documentation, the lender will pay off your existing loans, and you'll begin making your new payments.

Do student loans expire?

In most cases, student loans will stick around until you pay them off in full; they will not disappear after a certain amount of time. The only exceptions are if you qualify for a forgiveness program, such as Public Service Loan Forgiveness, in which case you may not have to pay your full balance.

Can you use a personal loan to pay for college?

In general, you cannot use a personal loan to pay for college tuition — lenders strictly prohibit this. However, there are personal loans for students who need to pay for travel expenses, books or equipment, as long as the student has a good credit score. Keep in mind that student loans can cover all of these educational costs, and they're often a better choice than personal loans. However, if you only need to borrow a few hundred dollars, a personal loan is worth considering.

Best student loan rates in September 2023

Written by

Hanneh Bareham

Edited by

Aylea Wilkins

Reviewed by

Mark Hamrick

Sep 26, 2023

The Bankrate promise

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editoral integrity, this post may contain references to products from our partners. Here's an explanation for how we make money.

Bankrate's ranking of the best student loan lenders analyzes interest rates, terms and features to help you start your search. It's also a resource for how to decide which student loan is best for you and what to know before applying.

A student loan is a type of borrowed money designed to cover the costs of college tuition, fees, books, supplies, housing and more. There is currently more than $1.7 trillion in outstanding student loan debt in the United States, held by 42 million borrowers. Even though it's a common form of debt, choosing the right loan for your needs is a big decision.

Students can choose either federal or private student loans to help pay for school. It's usually best to start with federal student loans, which have an interest rate of 4.99 percent for undergraduate students for the 2022-23 school year. However, while private student loans have fewer borrower protections, they can fill in any funding gaps and typically have a wider range of repayment terms. Private student loan rates typically range anywhere from 3 percent to 15 percent.

If you are planning on taking out federal student loans, mark your calendar — the Free Application for Federal Student Aid (FAFSA) for 2023-24 opened on Oct. 1 and closes June 30, 2024. It's the only way to access federal aid, which is first-come, first-serve, so it's best to apply as soon as possible.

1

Fill out the FAFSA.

The Free Application for Federal Student Aid opens on Oct. 1 each year and will tell you your options for federal student loans.

2

Get prequalified with private lenders.

Prequalifying with private lenders lets you see your interest rate and terms without a hard credit pull.

3

Submit an application.

Once you've chosen a lender, you'll send in a formal application online, over the phone or in person. You'll need to provide income verification documents, and you'll go through a hard credit check.

4

Sign loan documents.

After being approved by a lender, you'll sign your loan documents to finalize the transaction. Your student loan funds will be sent directly to your school.
1

Look at federal student loan options.

With low rates and many options for payment assistance, federal loans are the best choice for most borrowers.

2

Compare offers from a few private lenders.

If you need funding from private loans, a good rule of thumb is to get prequalified with at least three lenders to compare rates.

3

Consider interest rates and terms.

With offers in hand, look at which interest rate and repayment term works best for your budget. Also consider any additional fees from the lenders.

4

Look into unique features.

If a lender offers a long grace period or deferment options while you return to school, it may be worth it to choose that lender over one with a slightly lower interest rate.


Fixed APR from 4.41- 16.99%	Loan amount $1k- No Max	1 - College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or Nationwide Bank, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. 2 – All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation. 3 – Cover up to 100% of your cost of attendance as certified by your school and less any other financial aid you might receive. Minimum $1,000. Fixed APR from 4.41- 16.99% Loan amount $1k- No Max
Fixed APR from 4.43- 12.57%	Loan amount $1k- $350K	ELIGIBILITY DISCLOSURES Student Lending Eligibility Criteria: Applicants must be a U.S. citizen, permanent resident, or eligible non-citizen with a creditworthy U.S. citizen or permanent resident co-signer. For applicants who have not attained the age of majority in their state of residence, a co-signer is required. Citizens reserves the right to modify eligibility criteria at any time. Citizens private student loans are subject to credit qualification, completion of a loan application/Promissory Note, verification of application information, and if applicable, self-certification form, school certification of the loan amount, and student’s enrollment at a Citizens participating school. Education Refinance Loan Eligibility: Applicants must have attained a bachelor’s degree to refinance while enrolled in school. Applicants with an Associate’s degree or with no degree must have made at least 12 qualifying payments after leaving school. Qualifying payments are the most recent on time and consecutive payments of principal and interest on the loans being refinanced. Education Refinance Loan for Medical Residency Eligibility: Applicants must have graduated from medical school and be matched to a MD, DO, DDS, DMD, DPM, DVM, VMD, PharmD, OD residency or fellowship program at the time of application. Education Refinance Loan for Parents Eligibility: The primary applicant must be the primary borrower or co-signer on the loan to be refinanced. Student Loan Eligibility: Applicants must be enrolled at least half-time in a degree-granting program at an eligible institution. Student Loan for Parents Eligibility: The student whose education expenses will be paid for with the loan proceeds must be a U.S. citizen or permanent resident and must be enrolled at least half-time in a degree granting program at a Citizens-participating school. RATE DISCLOSURES Variable Rate Disclosure: Variable interest rates are based on the 30-day average Secured Overnight Financing Rate (“SOFR”) index, as published by the Federal Reserve Bank of New York. As of Sep 01, 2023, the 30-day average SOFR index is 5.3%. Variable interest rates will fluctuate over the term of the loan with changes in the SOFR index, and will vary based on applicable terms, level of degree and presence of a co-signer. The maximum variable interest rate is the greater of 21.00% or the prime rate plus 9.00%. Fixed Rate Disclosure: Fixed rate ranges are based on applicable terms, level of degree, and presence of a co-signer. Lowest Rate Disclosure: Lowest rates are only available for the most creditworthy applicants, require a 5-year repayment term, interest-only repayment, and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Rates are subject to additional terms and conditions, and are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Education Refinance Loan Rate Disclosure: Variable interest rates range from 7.05% - 12.39% (7.05% - 12.40% APR). Fixed interest rates range from 6.79% - 10.98% (6.79% - 10.99% APR). Medical Residency Refinance Loan Rate Disclosure: Variable interest rates range from 7.05% - 11.46% (7.05% - 11.47% APR). Fixed interest rates range from 6.79% - 10.05% (6.79%- 10.06% APR). Education Refinance Loan for Parents Rate Disclosure: Variable interest rates range from 7.05% - 11.35% (7.05% - 11.36% APR). Fixed interest rates range from 6.79% - 9.94% (6.79% - 9.95% APR). Student Loan Rate Disclosure: Variable interest rates range from 5.80% - 15.39% (5.80% - 13.95% APR). Fixed interest rates range from 4.43% - 13.72% (4.43% - 12.57% APR). Undergraduate Loan Rate Disclosure: Variable interest rates range from 5.80% - 15.39% (5.80% - 13.95% APR). Fixed interest rates range from 4.43% - 13.72% (4.43% - 12.57% APR). Graduate Loan Rate Disclosure: Variable interest rates range from 6.26% - 13.37% (6.27% - 12.99% APR). Fixed interest rates range from 4.99% - 11.70% (4.99% - 11.42% APR). Business/Law Loan Rate Disclosure: Variable interest rates range from 6.26% - 12.32% (6.27% - 12.00% APR). Fixed interest rates range from 4.99% - 10.66% (4.99% - 10.43% APR). Medical/Dental Loan Rate Disclosure: Variable interest rates range from 6.26% - 11.23% (6.27% - 10.46% APR). Fixed interest rates range from 4.99% - 9.35% (4.99% - 8.81% APR). Parent Loan Rate Disclosure: Variable interest rates range from 6.64% - 9.86% (6.65% - 9.87% APR). Fixed interest rates range from 6.34% - 9.55% (6.35% - 9.56% APR). STUDENT LENDING PROGRAM DISCLOSURES Wireless Charges: Wireless carrier, text, and/or data charges may apply. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DC, DE, FL, MA, MD, MI, NH, NJ, NY, OH, PA, RI, VA, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan. Investors Bancorp, Inc. Loyalty Discount: To receive the Loyalty Discount for having a qualifying account with Investors Bancorp, Inc., borrowers must contact Citizens by telephone prior to signing the promissory note. Student loan borrowers please call (877) 291-6385 and education refinance borrowers please call (888) 411-2413. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount. Get My Rate: Selecting “Get My Rate” only requires a “soft credit pull“ which does not affect your credit score. Submitting a full application will result in an inquiry on your credit report. Multi-Year Approval: Funds available for future use are subject to a soft credit inquiry at time of your next request to verify continued eligibility. After we make the initial Loan to you, we may refuse to allow you to take out additional loans under the Multi-Year Approval feature, terms and conditions will be outlined in your promissory note. Co-signer Release: Borrowers may apply for co-signer release after making 36 consecutive on-time payments of principal and interest. For the purpose of the application for co-signer release, on-time payments are defined as payments received within 15 days of the due date. Interest only payments do not qualify. The borrower must meet certain credit and eligibility guidelines when applying for the co-signer release. Borrowers must complete an application for release and provide income verification documents as part of the review. Borrowers who use deferment or forbearance will need to make 36 consecutive on-time payments after reentering repayment to qualify for release. The borrower applying for co-signer release must be a U.S. citizen or permanent resident. If an application for co-signer release is denied, the borrower may not reapply for co-signer release until at least one year from the date the application for co-signer release was received. Terms and conditions apply. Borrowers whose loans were funded prior to reaching the age of majority may not be eligible for co-signer release. Note: co-signer release is not available on the Student Loan for Parents or Education Refinance Loan for Parents. Student Loan Aggregate Limits: You may borrow up to the maximum qualified loan amount or the total cost of education, whichever is lower. Our student loan does have lifetime aggregate limits (including both federal and private loan debt) of: Undergraduate Degree: $150,000, Graduate Degrees: $150,000, MBA and Law: $225,000, Healthcare: $180,000 or $350,000 depending on your degree (Aggregate limits up to $350,000 for MD, DMD/DDS, OD, DO, DPM, PharmD, and DVM degrees. Aggregate limits up to $180,000 for cardiac perfusion, chiropractic, cytotechnology, nurse practitioner, occupational therapy, physical therapy, and physician assistant degree). Employer & Organizational Partnerships: To qualify for the principal balance reduction, the borrower or co-signer (if applicable) must have applied, be approved, and disburse a Citizens Education Refinance Loan, Education Refinance Loan for Parents, or a Medical Residency Refinance Loan through the employer’s dedicated Citizens website. The principal balance reduction will be calculated as 1% of the amount financed with a maximum of $1,000. The loan must be in good standing at the time the Principal Balance Reduction Benefit is applied. Only one Principal Balance Reduction Benefit is allowed per borrower. If you receive a Principal Balance Reduction Benefit on a Citizens Student Loan or Student Loan for Parents you will not be eligible for another Principal Balance Reduction Benefit on a Citizens Education Refinance Loan, Education Refinance Loan for Parents or a Medical Residency Refinance Loan. Principal balance reduction will be applied with an effective date equal to the loan’s first disbursement date. Principal balance reduction may take up to the second month following the loan’s final disbursement date to be applied and may be reduced if the loan amount is reduced or cancelled. The Principal Balance Reduction Benefit will be processed as a reduction of the loan’s principal balance and will not impact the required monthly payment. The borrower is solely responsible for any taxes that may be owed as a result of the principal balance reduction earned. A tax advisor should be consulted. Citizens Bank, N.A. does not provide tax advice. Offer cannot be combined with other promotions, discounts or offers – automatic payment and loyalty discounts excluded. Citizens reserves the right to modify these terms or cancel this offer at any point in the future for new applications. Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer. Borrowers should carefully review federal benefits, especially if they work in public service, are in the military, are considering possible loan forgiveness options, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans. For more information about federal student loan benefits and federal loan consolidation, visit https://studentaid.gov/. We also have several resources available to help the borrower make a decision on our website including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review. U.S. Dept. of Education Fee: The Federal Direct PLUS Loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. For Loans first disbursed between October 1, 2020 and September 30, 2023 the origination fee is 4.228%. Student Loan Repayment: Student borrowers can make full payments or pay interest only while in school or defer payments until after graduation (interest continues to accrue during deferment periods). Medical Residency Refinance Loan Repayment Example with $100 Monthly Payment: Based on a 48 month residency, a fixed rate 5 year loan for $10,000 at 5.00% APR results in 54 monthly payments of $100 (includes residency period and 6-month grace period), followed by 60 monthly payments of $123.61. $100 monthly payment begins immediately after loan disbursement for the duration of the residency or fellow program period up to 48 months, plus 6 month grace period. Citizens Scholarship: No purchase necessary. Void where prohibited. The Citizens Scholarship Sweepstakes is open to legal residents of the 50 United States, D.C., and U.S. Territories, who are 16 years of age or older, are students or prospective students, or parents/guardians of students intending to enroll or enrolled at least half-time in an accredited undergraduate/graduate post-secondary institution. To be eligible for a chance to win the Citizens Diversity, Equity & Inclusion Scholarship, entrants must also be an: American Indian or Alaskan Native, African American or Black, Hispanic or Latino/a, Asian, Native Hawaiian, or other Pacific Islander, women, member of the LGBTQ+ community, individual with disabilities, and/or a Veteran. Sweepstakes begins at 12:00 AM ET on 7/1/23 and ends at 11:59 p.m. ET on 6/30/24. Sponsored by Citizens. See Official Rules for details. Citizens Student Credit Builder: Citizens Student Credit Builder refers to loans with either an Immediate or Interest Only repayment option chosen at the time the loan is originated. Credit scores are based on established borrower payment behaviors. By choosing a loan repayment option that requires payment while the student is in school, the borrower begins their history of payments earlier than a corresponding borrower that chooses a deferred repayment option. Additionally, an equally qualified borrower and/or cosigner with similar loan terms will receive a lower interest rate with an Immediate or Interest Only repayment option. SAVINGS DISCLOSURES Education Refinance Loan Average Monthly Payment Savings: The average monthly and annual payment savings estimated amount is based on 8,906 Citizens Education Refinance Loan customers who refinanced their loans between March 1, 2022 and March 1, 2023 and who received a lower payment. The calculation is derived by averaging the monthly payments prior to refinancing minus the monthly payments after refinancing. Excluded are monthly savings reported from customers that exceeded $9,375 or were lower than $20 to minimize risk of data error skewing the savings amounts. Savings vary based on interest rates, balances and remaining repayment term of loans to be refinanced. Your overall repayment amount may be higher than the loans you are refinancing even if your monthly payments are lower. Education Refinance Loan Weighted Average Interest Rate Savings: Weighted average interest rate savings is based on 9,832 Citizens Education Refinance Loan customers who lowered their interest rate on loans between March 1, 2022 and March 1, 2023. The calculation is derived by averaging the rate savings across Citizens Education Refinance Loan customers whose interest rates decreased after refinancing, calculated by taking the weighted average interest rate prior to refinancing minus the interest rate after refinancing. We excluded rate savings from customers that exceeded 15.61% and were lower than 0.25% to minimize risk of data error skewing the rate savings amounts. Your interest rate savings might vary based on the interest rates you qualify for, chosen terms and previous interest rate of the loans you are seeking to refinance. Your overall interest rate may be higher than the interest rate on the loans you are refinancing even if your monthly payments are lower. Education Refinance Loan for Parents and Federal Loan Savings Comparison: Interest rate savings are calculated as the difference between the Citizens Education Refinance Loan for Parents’ lowest offered fixed rate of 6.79% (6.79% APR) and the Federal Parent PLUS Loan interest rate of 7.54% for loans first disbursed between July 1, 2022 and June 30, 2023. The Citizens Education Refinance Loan for Parents lowest rate includes the available Citizens loyalty and automatic payment discounts for eligible and creditworthy applicants. Parent Loan Savings: Origination fee savings of $737 are calculated using the Federal Direct Plus Loan origination fee of 4.228% (for loans first disbursed between 10/1/22 and 9/30/23) and an average amount financed of $17,429 as compared to the Citizens Student Loan for Parents, which has no origination fees. Graduate Loan Savings: Origination fee savings of $806 are calculated using the Federal Direct Plus Loan origination fee of 4.228% (for loans first disbursed between 10/1/22 and 9/30/23) and an average amount financed of $19,067 as compared to the Citizens Student Loan, which has no origination fees. APPLICATION & SOLICITATION DISCLOSURES The site for Application Solicitation Disclosures is under construction. For more information, please call the Customer Service Team at (866) 999-0120 and copies of the disclosures will be provided via email. Our hours are Monday through Friday, 8:00am - 9:00pm EST and Saturday, 8:30am - 5:00pm EST. Fixed APR from 4.43- 12.57% Loan amount $1k- $350K
Fixed APR from 4.43- 14.65%	Loan amount $1k- $100K	Custom Choice Student Loan Disclosures Before applying for a private student loan, Citizens and Monogram recommend comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans. The Custom Choice Loan® is made by Citizens (“Lender”). All loans are subject to individual approval and adherence to Lender’s underwriting guidelines. Program restrictions and other terms and conditions apply. LENDER AND MONOGRAM LLC EACH RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. TERMS, CONDITIONS AND RATES ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE. Interest rates and APRs (Annual Percentage Rates) depend upon (1) the student’s and cosigner’s (if applicable) credit histories, (2) the repayment option and repayment term selected, (3) the expected number of years in deferment, (4) the requested loan amount and (5) other information provided on the online loan application. If approved, applicants will be notified of the rate applicable to your loan. Rates and terms are effective as of 9/1/23. The variable interest rate for each calendar month is calculated by adding 30-Day Average Secured Overnight Financing Rate (“SOFR”) index, or a replacement index if the SOFR index is no longer available, plus a fixed margin assigned to each loan. The SOFR index is published on the website of the Federal Reserve Bank of New York. The current SOFR index is 5.30% as of 9/1/23. The applicable index or margin for variable rate loans may increase or decrease over time if the SOFR index changes or if a new index is chosen, and result in a different APR than shown. The fixed rate and APR assigned to a loan will never change except as required by law or if you request and qualify for the auto pay discount. The APR typically differs from the interest rate since it accounts for fees, the rate, length of the loan and the timing of all payments and reflects the cost as a yearly rate. APRs displayed as a range in the rate table assume a $10,000 loan with one disbursement. The high APRs assume a 7-year term with the Flat Payment Repayment option, a 2 month deferment period, and a six-month grace period before entering repayment. The low APRs assume a 7-year term, and the Immediate Repayment option with payments beginning 30-60 days after the disbursement via auto pay (see auto pay details in Discounts footnote below). Loan Terms: The 15-year term is only available for loan amounts of $5,000 or more. Certain repayment terms and/or options may not be available depending on the applicant’s enrollment status and/or debt-to-income ratio. Payment examples (all assume a 14-month deferment period, a six-month grace period before entering repayment, no rate reduction for auto pay and the Interest Only Repayment option): 7-year term: $10,000 loan, one disbursement, with a 7-year repayment term (84 months), and 8.91% APR would result in a monthly principal and interest payment of $160.43. 10-year term: $10,000 loan, one disbursement, with a 10-year repayment term (120 months) and 8.59% APR would result in a monthly principal and interest payment of $124.47. 15-year term: $10,000 loan, one disbursement, with a 15-year repayment term (180 months) and 8.54% APR would result in a monthly principal and interest payment of $98.71. Loan Amounts: The minimum loan amount is $1,000 except for student applicants who are permanent residents of Iowa in which case the minimum loan amount is $1,001. The maximum annual loan amount to cover in-school expenses for each academic year is determined by the school’s cost of attendance, minus other financial aid, such as federal student loans, scholarships, or grants, up to $99,999 annually. The loan amount must be certified by the school. The loan amount cannot cause the aggregate maximum student loan debt (which includes federal and private student loans) to exceed $180,000 per applicant (on cosigned applications, separate calculations are performed for the student and cosigner). Monthly Payment During School: This is the estimated monthly payment that will be made during the time you remain enrolled at the level of attendance your school certifies, subject to the initial deferment period maximum of 66 months from the first disbursement date. Immediate Repayment: Starting 30-60 days after your first disbursement date the first monthly payment of principal and interest will be due. The monthly payments of principal and interest will be generally stable for twelve months and will be recalculated once each year and reset annually on the anniversary of your most recent repayment start date so as to pay the loan in full over the remaining repayment period. Full Deferment: Principal and interest payments will be deferred from your first disbursement date through your initial deferment period end date. Starting 30-60 days after the initial deferment period, the first monthly payments of principal and interest will be due unless you qualify for and request an additional type of deferment. Interest Only Repayment: Principal payments will be deferred from your first disbursement date through your initial deferment period end date. Starting 30-60 days after your first disbursement date you will pay interest-only monthly payments that are equal to the accrued interest on the outstanding principal balance throughout the initial deferment period. Flat Payment Repayment during school: Principal payments will be deferred from your first disbursement date through your initial deferment period end date. Starting 30-60 days after your first disbursement date you will pay a minimum amount of $25 in interest per month through your initial deferment period end date. For all repayment options, any accrued and unpaid interest (interest that is in excess of the amount paid each month) will be added to the outstanding principal balance and may be capitalized at the beginning of your repayment period. Monthly Payment After Graduation: Immediate Repayment: This is the estimated combined monthly principal and interest payment amount following the final disbursement of your loan The monthly payment amount shown in the estimate will increase or decrease if the interest rate increases or decreases and will be computed based on the interest rate applicable at the time repayment begins. Your monthly payment amount may also be recalculated (a) after any deferment or forbearance period, (b) after you ask the servicer to change the monthly payment due date or (c) if the minimum monthly payment is not enough to cover the interest accrued during that month. Full Deferment, Interest Only Repayment and Flat Payment during school: The Estimated Monthly Payment after Graduation is the combined principal and interest payment amount following the initial deferment period. The first year of principal and interest repayment generally has the same monthly payment each month. After the first year of principal and interest payments, monthly payment amounts are recalculated once each year and reset annually on the anniversary of your most recent repayment start date so as to pay the loan in full over the remaining repayment period. The monthly payment amount shown in the estimate will increase or decrease if the interest rate increases or decreases and will be computed based on the interest rate applicable at the time repayment begins. Your monthly payment amount may also be recalculated (a) after any deferment or forbearance period, (b) after you ask the servicer to change the monthly payment due date, or (c) if the minimum monthly payment is not enough to cover the interest accrued during that month. For all repayment options, the minimum monthly payments of your loan’s combined principal and interest will be at least $50. Graduation Reward: The principal reduction is based on the total dollar amount of all disbursements made, excluding any amounts that are reduced, canceled, or returned. To receive this principal reduction, it must be requested from the Servicer, the student borrower must have earned a bachelor’s degree or higher and proof of such graduation must be provided to the Servicer. This reward is available once during the life of the loan, regardless of whether the student receives more than one degree. Cosigner Release: A cosigner may be released from the loan upon request to the Servicer, provided that the student borrower has met certain credit and other criteria, and 36 consecutive monthly principal and interest payments have been received by the Servicer within 10 calendar days after their due date. Late payment(s), or the use of a deferment or forbearance will reset the number of consecutive principal and interest payments to zero. Use of an approved alternative repayment plan will disqualify the loan from being eligible for this benefit. Discounts: Auto Pay yields a 0.25% interest rate reduction for making automatic payments of principal and interest from a bank account (“auto pay discount”) by completing the direct debit form provided by the Servicer. The auto pay discount will be applied after the Servicer validates your bank account information and will continue until (1) three automatic deductions are returned for insufficient funds during the life of the loan (after which the discount cannot be reinstated) or (2) automatic deduction of payments is canceled. The auto pay discount is not available when reduced payments are being made or when the loan is in a deferment or forbearance, even if payments are being made. Please note that if the discount filter in the Offer Dashboard is turned “on”, the interest rate and APR estimates quoted on the Offer Dashboard will include the auto pay discount. The auto pay discount will not be reflected in the contract or disclosures you receive from the Lender because you must request and qualify for the auto pay discount. Past Due Balances: Applications may be accepted up to the earlier of (a) twelve calendar months after the Applicant’s academic period end date or (b) twelve calendar months after the Applicant’s graduation date. Custom Choice Loan® is a registered trademark of Monogram LLC. Fixed APR from 4.43- 14.65% Loan amount $1k- $100K
Fixed APR from 4.48- 15.66%	Loan amount $2k- No Max	Ascent's undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 9/1/2023 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores. Fixed APR from 4.48- 15.66% Loan amount $2k- No Max
Fixed APR from 4.50- 15.49%	Loan amount $1k- No Max	The Private Student Loan comparison chart displays combined APRs and loan terms for our loan products. See below for APR ranges and the loan terms for each loan product. Lowest rates shown include the auto debit discount. Undergraduate loan: Variable rates: 6.37% - 16.70% APR and Fixed rates: 4.50% – 15.49% APR with the loan term of 10-15 years. Lowest rates shown include the auto debit discount. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Graduate and MBA loans: Variable rates: 6.87% - 16.47% APR and Fixed rates: 4.99% – 14.48% APR with the loan term of 15 years. Lowest rates shown include the auto debit discount. Advertised APRs for Graduate School Loan and MBA Loans assume a $10,000 loan with a 2-year in-school period. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Medical loan: Variable rates: 6.87% - 16.44% APR and Fixed rates: 4.99% - 14.46% APR with the loan term of 20 years. Lowest rates shown include the auto debit discount. Advertised APRs for Medical School Loan assume a $10,000 loan with a 4-year in-school period. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Law loan: Variable rates: 6.87% - 16.46% APR and Fixed rates: 4.99% - 14.47% APR with the loan term of 15 years. Lowest rates shown include the auto debit discount. Advertised APRs for Law School Loan assume a $10,000 loan with a 3-year in-school period. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note—first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal. Only the borrower may apply for cosigner release. To do so, they must first meet the age of majority in their state and provide proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if their status has changed since they applied). In the last 12 months, the borrower can’t have been past due on any loans serviced by Sallie Mae for 30 or more days or enrolled in any hardship forbearances or modified repayment programs. In addition, the borrower must have paid ahead or made 12 on-time principal and interest payments on each loan requested for release. The loan can’t be past due when the cosigner release application is processed. The borrower must also demonstrate the ability to assume full responsibility of the loan(s) individually and pass a credit review when the cosigner release application is processed that demonstrates a satisfactory credit history including but not limited to no: bankruptcy, foreclosure, student loan(s) in default or 90-day delinquencies in the last 24 months. Requirements are subject to change. For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website may be subjected to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. 3 repayment options: Deferred payment; $25 Fixed repayment; Interest repayment: Smart Option Student Loan: Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. Graduate Loan: Example of a typical transaction for a $10,000 Graduate School Loan with the most common fixed rate, Fixed Repayment Option, and two disbursements. For borrowers with a 27-month in-school and separation period, it works out to 14.30% fixed APR, 27 payments of $25.00, 178 payments of $172.22 and one payment of $115.59, for a total loan cost of $31,445.75. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 15 years. Medical Loan: Example of a typical transaction for a $10,000 Medical School Loan with the most common fixed rate, Fixed Repayment Option, and two disbursements. For borrowers with a 81-month in-school and separation period, it works out to 10.32% fixed APR, 81 payments of $25.00, 238 payments of $166.28 and one payment of $86.58, for a total loan cost of $41,686.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 20 years. Law Loan: Example of a typical transaction for a $10,000 Law School Loan with the most common fixed rate, Fixed Repayment Option, and two disbursements. For borrowers with a 42-month in-school and separation period, it works out to 10.99% fixed APR, 42 payments of $25.00, 179 payments of $149.82 and one payment of $62.59, for a total loan cost of $27,930.37. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 15 years. MBA Loan: Example of a typical transaction for a $10,000 MBA Loan with the most common fixed rate, Fixed Repayment Option, and two disbursements. For borrowers with a 27-month in-school and separation period, it works out to 14.30% fixed APR, 27 payments of $25.00, 178 payments of $172.22 and one payment of $115.59, for a total loan cost of $31,445.75. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 15 years. Borrow responsibly We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan. Loans for Undergraduate & Career Training Students are not intended for graduate students and are subject to credit approval, identity verification, signed loan documents, and school certification. Student must attend a participating school. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident), and provide an unexpired government-issued photo ID. Requested loan amount must be at least $1,000. Graduate School Loan and Graduate School Loan for Health Professions are for graduate students at participating degree-granting schools and are subject to credit approval, identity verification, signed loan documents, and school certification. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident), and provide an unexpired government-issued photo ID. Requested loan amount must be at least $1,000. Medical School Loans are for graduate students in an M.D., D.O., D.V.M., V.M.D., or D.P.M. program at participating degree-granting schools and are subject to credit approval, identity verification, signed loan documents, and school certification. Graduate Certificate/Continuing Education coursework is not eligible. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident), and provide an unexpired government-issued photo ID. Requested loan amount must be at least $1,000. Law School Loans are for graduate students in a J.D. or L.L.M. program at participating degree-granting schools and are subject to credit approval, identity verification, signed loan documents, and school certification. Graduate Certificate/Continuing Education coursework is not eligible. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident), and provide an unexpired government-issued photo ID. Requested loan amount must be at least $1,000. MBA Loans are for graduate students in an M.B.A. program at participating degree-granting schools and are subject to credit approval, identity verification, signed loan documents, and school certification. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident), and provide an unexpired government-issued photo ID. Requested loan amount must be at least $1,000. Information advertised valid as of 08/25/2023. SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America. SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks if Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners. Credible is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers. Fixed APR from 4.50- 15.49% Loan amount $1k- No Max
Fixed APR from 4.60- 8.23%	Loan amount $1k- No Max	These rates are expressed as APR. Rates shown are for eligible, creditworthy applicants and requires shortest length of repayment and our Automatic Payment discount of 0.25 percentage points. Automatic payments are not required. Annual percentage rates (APR) listed are based on borrowing $10,000 in a single disbursement. The Fixed rate will not change during the term. The variable rate is subject to increase after consummation. The maximum variable interest rate is 21.00%. The variable interest rate that is charged to the borrower is reset quarterly, may increase or decrease, and is based on an Index and Margin. That means that your rate could move lower or higher than the rates on this form. The variable rate is based upon an average of the 3-month London Interbank Offered Rate (LIBOR) as published in the Wall Street Journal. Fixed APR from 4.60- 8.23% Loan amount $1k- No Max
Fixed APR from 5.35- 7.95%	Loan amount $2k- No Max	MEFA Student Loan Disclosure These rates are expressed as APR. The Fixed interest rate will not change during the term. To be eligible for a MEFA Undergraduate Loan, the student must: Be enrolled at least half time in an accredited degree-granting undergraduate program at an eligible non-profit college or university in the United States. If the student is currently enrolled for the current academic year, a student may: Borrow a MEFA Loan for the summer session Borrow a MEFA Loan to cover a past due balance within the current academic year Maintain satisfactory academic progress as defined by the college or university. All borrowers must be citizens or permanent residents of the United States. MEFA's private student loans are subject to credit qualification, completion of a loan agreement, self-certification form, school certification of cost of attendance minus estimated financial aid, and student's enrollment at a MEFA's participating school. For Student Deferred Repayment with Co-borrower release option, the co-borrower, non-student may request for a release after 48 consecutive on-time monthly installments and must meet certain credit and eligibility requirements when applying for the release. For the purpose of the co-borrower release application, on-time payments are defined as payments received within 15 days of the due date. Co-borrower must complete an application for release and provide income verification documents as part of the review. Credit and eligibility requirements are subject to change. Fixed APR from 5.35- 7.95% Loan amount $2k- No Max

The Bankrate guide to choosing the best student loans

When shopping for a student loan, look for a competitive interest rate, flexible repayment terms that meet your needs, generous hardship options and minimal fees. Loan details presented here are current as of June 26, 2023. Check the lenders’ websites for any updates.

The top lenders listed below are selected based on factors such as APR, loan amounts, fees, credit requirements and broad availability. To learn more, read our methodology section at the bottom of the page. Below, you can also find information about when to choose federal or private loans, how to find a competitive interest rate and how to compare lenders to find the best deal for your circumstances. You can also prequalify with the private lenders recommended on this page.

What are current student loan interest rates?

Current interest rates on private student loans vary based on where the loan originates, the type of interest rate and the creditworthiness of the borrower. Federal student loans, aside from Perkins loans, disbursed after July 1, 2006 have fixed rates. The interest rates shown for these types of loans apply to those disbursed between July 1, 2023 and June 30, 2024.

LOAN TYPE	FIXED APR
Direct Subsidized and Unsubsidized Loans (undergraduate borrowers)	5.50%
Direct Unsubsidized Loans (graduate and professional borrowers)	7.05%
Direct PLUS Loans (parents and graduate and professional borrowers)	8.05%

What are interest rates for federal student loans?

Federal student loan rates change each year. Your rate depends on when you took out your loan.

LOAN FIRST DISBURSED	UNDERGRADUATE DIRECT SUBSIDIZED LOANS	UNDERGRADUATE DIRECT UNSUBSIDIZED LOANS	GRADUATE OR PROFESSIONAL DIRECT UNSUBSIDIZED LOANS	DIRECT PLUS LOANS
July 1, 2023 – June 30, 2024	5.50%	5.50%	7.05%	8.05%
July 1, 2022 – June 30, 2023	4.99%	4.99%	6.54%	7.54%
July 1, 2021 – June 30, 2022	3.73%	3.73%	5.28%	6.28%
July 1, 2020 – June 30, 2021	2.75%	2.75%	4.30%	5.30%
July 1, 2019 – June 30, 2020	4.53%	4.53%	6.08%	7.08%
July 1, 2018 – June 30, 2019	5.05%	5.05%	6.60%	7.60%
July 1, 2017 – June 30, 2018	4.45%	4.45%	6.00%	7.00%
July 1, 2016 – June 30, 2017	3.76%	3.76%	5.31%	6.31%
July 1, 2015 – June 30, 2016	4.29%	4.29%	5.84%	6.84%

Source: The Federal Register

Compare student loan interest rates in September 2023

LENDER	BEST FOR	VARIABLE APR	FIXED APR	LOAN TERM	LOAN AMOUNT	MIN. CREDIT SCORE
Ascent	Loans without a co-signer	6.03%-15.94% (with autopay)	4.48%-15.66% (with autopay)	5-20 years	$2,001*-$200,000	Not specified
Citizens Bank	Multiyear approval	5.80%-13.95% (with autopay)	4.43%-12.57% (with autopay)	5-15 years	$1,000-$350,000 depending on program	Not specified
College Ave	Quick application process	5.49%-16.99% (with Autopay)	4.41%-16.99% (with Autopay)	5-15 years	$1,000-100% total cost of attendance (maximum $150,000 for some degrees)	Not specified
Earnest	Flexible repayment terms	5.39%-16.20% (with autopay)	4.42%-15.90% (with autopay)	5-15 years	$1,000-100% total cost of attendance	650
Sallie Mae	Part-time students	6.37%-16.70% (with autopay)	4.50%-15.49% (with autopay)	10-15 years	$1,000-100% total cost of attendance	Not specified
SoFi	Loans without fees	5.99%-13.97% (with autopay)	4.44%-14.70% (with autopay)	5-15 years	$1,000-100% total cost of attendance	640

For more information on private student loan rates, check out our page on private student loans.

*The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.

LENDER	VARIABLE APR	FIXED APR	LOAN TERM	LOAN AMOUNT
SoFi	6.24%-9.99% (with autopay)	4.99%-9.99% (with autopay)	5-20 years	$1,000-full balance of education loans
Earnest	5.49%-8.94% (with autopay)	4.96%-8.99% (with autopay)	5-20 years	$5,000-$500,000
Laurel Road	4.99%-10.74% (with autopay)	4.74%-10.64% (with autopay)	5-20 years	$5,000-full balance of education loans
Citizens Bank	9.35%-11.26% (with autopay)	8.05%-9.90% (with autopay)	5-20 years	$10,000-$750,000
LendKey	5.27%-8.18% (with autopay)	5.24%-10.68% (with autopay)	5-20 years	$5,000-full balance of education loans
Splash Financial	4.99%-10.89% (with autopay)	4.96%-10.99% (with autopay)	5-20 years*	Starting at $5,000

For more information on student loan refinancing rates, check out our page on student loan refinancing.

LENDER	CURRENT APR RANGE	LOAN TERMS	MIN. LOAN AMOUNT	MAX. LOAN AMOUNT
Federal student loans	4.99-7.54%	10-25 years	None	$7,500 annually for dependent undergraduates, $12,500 annually for independent undergraduates and 100% total cost of attendance for graduate students
Earnest	5.39%-16.20% Variable; 4.42%-15.90% Fixed (with autopay)	5-15 years	$5,000	100% total cost of attendance
Ascent	6.03%-15.94% Variable; 4.48%-15.66% Fixed (with autopay)	5-20 years	$2,001*	$200,000
Sallie Mae	6.37%-16.70% Variable; 4.50%-15.49% Fixed (with autopay)	10-15 years	$1,000	100% total cost of attendance
Credible	5.13%-16.99% Variable; 4.42%-16.99% Fixed (with autopay)	5-20 years	Varies	Varies

For more information on bad-credit student loan rates, check out our page on bad-credit student loans.

*The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.

LENDER	APR	LOAN TERMS	MIN. LOAN AMOUNT	MAX. LOAN AMOUNT
Department of Education: Direct Unsubsidized Loan	6.54% fixed	Standard repayment term is 10 years	Not specified	$20,500 per year (lifetime limit $138,500)
Ascent	7.05%-15.94% Variable; 5.48%-15.66% Fixed (with autopay)	5-20 years	$2,001*	$400,000
Citizens Bank	6.26%-12.99% Variable; 4.99%-11.42% Fixed (with autopay)	5-15 years	$1,000	$150,000
College Ave	5.49%-14.49% Variable; 4.41%-14.49% Fixed	5-15 years	$1,000	100% total cost of attendance ($150,000 maximum for some programs)
Department of Education: Grad PLUS loan	7.54% fixed	Standard repayment term is 10 years	Not specified	100% total cost of attendance
Discover	See rates at Discover.com	20 years	$1,000	100% of school-certified costs. Aggregate loan limits apply.
Sallie Mae	5.99%-13.97% Variable; 4.99%-14.48% Fixed (with autopay)	15 years	$1,000	100% total cost of attendance
SoFi	5.99%-13.97% Variable; 4.99%-14.48% Fixed (with autopay)	5-15 years	$1,000	100% total cost of attendance

For more information on graduate student loan rates, check out our page on graduate student loans.

*The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.

LENDER	CURRENT APR RANGE	LOAN TERMS	MIN. LOAN AMOUNT	MAX. LOAN AMOUNT
Federal grad PLUS student loans	7.54% fixed	Standard term is 10 years	Not specified	100% total cost of attendance
College Ave	5.49%-14.49% Variable; 4.41%-14.49% Fixed	5-15 years	$1,000	$150,000
SoFi	5.99%-13.67% Variable; 4.99%-14.05% Fixed (with autopay)	5-15 years	$1,000	100% total cost of attendance
Sallie Mae	%-% Variable; %-% Fixed (with autopay)	15 years	$1,000	100% total cost of attendance
Citizens Bank	6.26%-12.99% Variable; 4.99%-11.42% Fixed (with autopay)	5-15 years	$1,000	$225,000
Discover	See rates at Discover.com	20 years	$1,000	100% of school-certified college costs. Aggregate loan limits apply.
Earnest	5.66%-13.52% Variable; 4.42%-12.62% Fixed (with autopay)	Not specified	$1,000	100% total cost of attendance

For more information on MBA student loan rates, check out our page on MBA student loans.

Best student loan without a co-signer

Ascent

4.3

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Check rate with Bankrate

Min. credit score:: Not disclosed
Fixed APR From:: 4.48% –15.66%
Loan amount:: $2,001– $200,000
Term lengths:: 5 to 15 years
Min. annual income:: Not disclosed

Overview: Ascent offers undergraduate and graduate private student loans in all 50 states. Borrowers without a co-signer have their own loan option, which is a rarity in the private student loan space. If you don’t have a co-signer, you may be able to qualify for a loan based on your school, graduation date, major and cost of attendance. The lender also offers a longer-than-average period of forbearance, which is a hardship program that allows you to temporarily stop making payments.

Why Ascent is best for students without a co-signer: Ascent is one of the only lenders to give undergraduates the chance to qualify for a student loan based on future income rather than credit score, removing the need for a co-signer.

Pros
Loan option based on future income instead of credit score.

Forbearance of up to 24 months over the life of the loan.

Grace period of nine to 36 months, depending on degree type.
Cons
High rate caps.

Undergraduate borrowers without a co-signer must have a GPA of at least 2.9.

Undisclosed credit requirements for credit-based loans.

Best student loan for multiyear approval

Citizens

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Check rate with Bankrate

Min. credit score:: 640
Fixed APR From:: 4.43% –12.57%
Loan amount:: $1,000– $225,000
Term lengths:: 5 to 15 years
Min. annual income:: $12,000

Overview: Citizens Bank offers private student loans to undergraduate students, graduate students and parents. Citizens Bank will run a hard credit inquiry when you apply and will let you know if you qualify for the multiyear loan program. If approved, you can request funds in subsequent years without supplying additional income documentation or going through hard credit checks, so the process is faster.

Why Citizens Bank is best for multiyear approval: Borrowers can get approved for multiple years of student loans without needing to go through a hard credit check every time, which is convenient if you know that you'll need funding every year.

Pros
Multiyear loan option.

0.25 percent APR discount for eligible Citizens Bank accounts.

Scholarship opportunities available.
Cons
$150,000 limit for undergraduate loans.

No firm deferment or forbearance policies.
Requirements: Borrowers must be a U.S. citizen or permanent resident. Eligible noncitizens must apply with a co-signer who is a U.S. citizen or permanent resident. Borrowers must also be enrolled at least half time, have no prior student loan defaults and be the age of majority; younger borrowers must apply with a co-signer. Citizens Bank states that applicants must have creditworthy, though it doesn't specify a minimum credit score.

Fees: Citizens Bank charges a late fee of 5 percent and a returned payment fee of $15.

Best student loan for quick application process

College Ave

4.3

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Check rate with Bankrate

Min. credit score:: 680
Fixed APR From:: 4.41% –16.99%
Loan amount:: $1,000– $500,000
Term lengths:: 5 to 20 years
Min. annual income:: $35,000

Overview: College Ave is an online lender that offers private student loans to undergraduate students, graduate students, parents and students attending community college and career programs.

Why College Ave is best for a quick application process: College Ave has a simple online application that only takes a few minutes to complete, and borrowers can accept terms and e-sign documents immediately after approval.

Pros
Three-minute application process.

Loans available for community college and career programs.

$150 reward upon graduation.
Cons
Loan cap of $150,000 for most graduate school loans.

Limited eligibility information.

Co-signer cannot be released until at least half of the repayment period has elapsed.

Best student loan for flexible repayment terms

Earnest

4.5

Read our review

on Bankrate

Min. credit score:: 680
Fixed APR From:: 4.42% –15.90%
Loan amount:: $1,000– $350,000
Term lengths:: 5 to 15 years
Min. annual income:: $35,000

Overview: Earnest is an online lender that funds private student loans to undergraduate and graduate students and offers unique repayment options. Earnest's grace period is nine months long, which is three months longer than what most lenders offer. Borrowers are also allowed to skip one payment every 12 months.

Why Earnest is best for flexible repayment terms: Borrowers can pick their loan term, which ranges between five and 20 years. Plus, once every 12 months, borrowers can choose to postpone a payment.

Pros
Skip a payment once every 12 months.

Nine-month grace period.

Extremely low starting rates.
Cons
No student loans available in Nevada.

No co-signer release.

Credit score of 650 and $35,000 minimum income required.
Requirements: Borrowers must be attending or enrolled to attend an eligible four-year Title IV institution. Undergraduate borrowers must be enrolled at least half time. Borrowers must also be the age of majority in their state and be a U.S. citizen or permanent resident, or have a co-signer who is the age of majority and a U.S. citizen or permanent resident. Borrowers or co-signers must have at least three years of good credit history, no history of bankruptcy, a minimum annual income of $35,000 and a minimum credit score of 650.

Fees: Earnest charges a returned payment fee of up to $8. Florida residents may be charged a stamp tax of 0.35 percent.

Best student loan for part-time students

Sallie Mae

4.6

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Check rate with Bankrate

Min. credit score:: Not disclosed
Fixed APR From:: 4.50% –15.49%
Loan amount:: Cost of attendance minus aid
Term lengths:: 10 to 15 years
Min. annual income:: Not disclosed

Overview: Sallie Mae offers private student loans to undergraduate students, graduate students, parents and students enrolled in career-training programs.

Why Sallie Mae is best for part-time students: Sallie Mae is one of the only private student loan lenders that doesn’t require borrowers to attend school full- or half time, which makes it a standout option if you’re studying abroad, taking just one or two classes at a time or taking a professional certification course.

Pros
Free quarterly FICO credit score access.

Loans for part-time students, students attending online or summer classes and students studying abroad.

Wide range of loan amounts.
Cons
Few eligibility requirements disclosed.

Only 12 months of forbearance available.

Only one term option for graduate students.
Requirements: Borrowers must be U.S. citizens or permanent residents or have a co-signer who is. Sallie Mae doesn't list many of its eligibility requirements, but it says that it looks at borrowers' history of borrowing money and paying it back on time.

Fees: Sallie Mae charges a late fee of 5 percent or $25, whichever is less. If your payment is returned, you may also be charged up to $20.

Best student loan for no fees

SoFi

4.7

Read our review

on Bankrate

Min. credit score:: 640
Fixed APR From:: 4.44% –14.70%
Loan amount:: $1,000– $500,000
Term lengths:: 5 to 15 years
Min. annual income:: Not disclosed

Overview: SoFi is an online lender that offers private student loans for undergraduate students, graduate students and parents. Among its perks, SoFi says that it doesn’t charge any fees, which cuts down on the overall cost of borrowing.

Why SoFi is best for no fees: It's standard for lenders to charge late fees or nonsufficient funds fees, but SoFi does away with even these fees. Of course, it's still not a good idea to miss payments, but SoFi's no-fee policy provides a nice buffer.

Pros
Member rate discount of 0.125 percent.

Unemployment assistance.

No fees required.
Cons
Vague eligibility requirements.

Loans not available for associate degree programs.

Maximum term length of 15 years.

Types of student loans

Students have several options when it comes to student loans depending on their degree program:

Federal undergraduate loans: U.S. citizens and eligible noncitizens can qualify for federal student loans, regardless of credit score or whether they have a co-signer. Undergraduates may have the option of Direct Unsubsidized Loans or Direct Subsidized Loans, the latter of which is offered only to students with financial need.
Federal graduate loans: Graduate students can qualify for federal Direct Unsubsidized Loans or Direct PLUS Loans. Unsubsidized loans are cheaper, but PLUS Loans have higher loan amounts.
Private undergraduate loans: Borrowers who have taken out the maximum in federal student loans may choose to look for private student loans. In many cases, these loans may also be the only viable option for international students looking to study in the U.S., since these students don't qualify for federal aid.
Private graduate loans: Many private lenders offer loans for graduate study, including loans tailored to students attending law school, business school, medical school and more.
Student loan refinancing: If you took out a student loan in the past but want to change your repayment term or interest rate, you may choose to refinance. Refinancing pays off your old loans in exchange for a new loan.

Federal vs. private student loans

Federal student loans are offered by the U.S. Department of Education, while private student loans are offered by banks, credit unions and private lenders. It's almost always best to start your search with federal student loans, though private student loans also offer some unique perks.

The biggest difference between federal and private loans is in the rates and eligibility requirements. Private lenders base your rates on your credit score, with a poor credit score leading to higher rates. Federal student loans, on the other hand, offer every borrower the same rate for each type of loan. The average interest rate on a private student loan can range from around 2 percent to 15 percent, while federal loans charge 4.99 percent, 6.54 percent or 7.54 percent, depending on the loan type.

Some federal loans do have borrowing limits, so borrowers will often turn to private lenders to finance their remaining academic costs. However, while private loans can often finance up to the total cost of attendance, they don't offer as many ways to customize your repayment plan.

Most private student loans also don't offer many opportunities for loan forgiveness. Even Biden's now-stalled plan to forgive up to $20,000 in student loan debt only applies to federal debt.

	FEDERAL STUDENT LOANS	PRIVATE STUDENT LOANS
Interest rates	4.99% to 7.54% for 2022-23	2.99% to 14.96% fixed, 2.99% to 14.86% variable
Fees	1.057% to 4.228% origination fee	Varies by lender
Borrowing limits	$31,000 total for dependent undergraduates, $57,500 total for independent undergraduates, 100% total cost of attendance for graduates	100% total cost of attendance with many lenders
Qualification requirements	Must be a U.S. citizen or eligible noncitizen and be enrolled at least half time	Varies by lender; often must have good credit and consistent income
Benefits	Income-driven repayment plans, robust deferment and forbearance, no minimum credit score	Low interest rates for good-credit borrowers, often zero fees, lender-specific perks
Drawbacks	Potentially higher interest rates than private loans offer for borrowers with good credit, loan amount caps for undergraduate borrowers	Credit check required, high rate caps, fewer borrower protections

Student loan interest information

The amount you borrow with a student loan is not the only amount you'll have to pay back; interest charges can add significantly to the overall cost of your loan.

How student loan interest works

When you apply for a student loan, you'll be offered an interest rate. This interest rate is an extra percentage of your loan amount that you'll have to pay each month.

With federal loans, this rate is the same for all borrowers and is determined by the federal government each year. With private loans, this rate is determined by your credit score, income and more. The most affordable private student loans go to students in good financial health with high credit scores.

Learn more: How Fed rate changes impact student loans

Prospective borrowers can usually choose between a fixed and a variable interest rate. Fixed interest rates remain the same over the life of the loan, while variable rates change based on market trends. Federal student loans are always fixed, while private student loans can be either fixed or variable.

Learn more: Fixed vs. variable student loan rates

How student loan interest is calculated

While browsing interest rates, you can calculate your student loan interest to estimate how much you will pay each month. Here's how to do it:

1. Find your daily interest rate: Divide your annual interest rate by the number of days in a year (365).
2. Determine your daily interest accrual charge: Multiply your daily interest rate by your principal balance.
3. Calculate your monthly payment: Multiply your daily interest by the number of days in your billing cycle.

If you have $10,000 in student loans and a 6 percent interest rate, with a 30-day billing cycle, a little over $49 of your first month's payment would go toward interest.

You can also calculate how much interest you'll pay over the life of your student loan by using a student loan calculator.

Learn more: How to calculate student loan interest

Student loan news updates

At the end of May 2023, part of the deal on the debt ceiling was that student loan payments would not resume. On June 12, the Department of Education clarified previous announcements by saying that interest would resume on Sept. 1, 2023, and payments would resume in October.

Before this most recent update, President Joe Biden announced on Nov. 22, 2022, that the federal student loan payment pause would be extended a final time through June 30, 2023 or until the ongoing student forgiveness litigation is resolved. Payments and interest charges on federal loans will resume 60 days following the end of the pause.

In a previous announcement, Biden revealed a sweeping student loan forgiveness plan that will cancel up to $10,000 in federal student loan debt for borrowers making less than $125,000 (or $250,000 if married and filing jointly) and $20,000 in federal student loan debt for borrowers who are below that income threshold and also received a Pell Grant for college. The plan is currently on hold due to ongoing litigation in the Supreme Court.

The administration is also proposing several changes to federal student loan programs:

A new income-driven repayment plan that will charge 5 percent of the borrower’s discretionary income. After 10 years, borrowers who originally took out less than $12,000 will have the remaining balance forgiven.
Permanent revisions to Public Service Loan Forgiveness that will broaden the definition of an eligible payment within the program.

There is a great deal of turmoil surrounding President Biden’s debt relief plan, with House Republicans recently proposing a complete block on the plan. However, there has also been significant support for student debt relief.

At least ten briefs have been filed with the Supreme Court in favor of student debt relief, including one submitted by over 20 state Attorney Generals who support the plan. The Department of Education has also released data showing that 26 million people applied for or were automatically eligible for one time student debt relief in the four weeks that the application was open. United States Undersecretary of Education James Kvaal has signaled that if Biden’s plan does not go through, we could see a “historic rise” in student loan delinquency and defaults.

How the Fed rate hikes impact student loans

After raising the federal funds rate seven times in 2022, the Federal Reserve raised rates again at the Federal Open Market Committee’s meetings in February and March. The federal funds target range is now 4.75-5 percent, which is the highest target since 2008. It is likely that the Fed will raise rates at least once more in 2023, likely two more times.

While the Fed decisions won’t impact federal student loans for the 2022-23 school year – those are already set in stone – they could impact new private student loans and refinancing. They also impact the rates on Federal student loans for the 2023-24 school year.

This is especially critical for borrowers who have a private student loan with a variable interest rate, whose loans could start to become more expensive. If you have an existing loan, now might be the time to refinance into a fixed rate. If you’re taking out a new private student loan, it may be wise to choose a fixed rate from the start.

What to know about the FAFSA

The FAFSA is the only way to get federal student loans, which is why all eligible students should fill out the form if they anticipate needing to borrow money for college.

When does the FAFSA open? The FAFSA opens on Oct. 1 every year. For the 2023-24 school year, the FAFSA opened on Oct. 1, 2022.
When is the FAFSA due? The federal deadline for the FAFSA is June 30 for the award year you need funding. For the 2023-24 school year, the FAFSA is due on June 30, 2024. However, some states and colleges have earlier deadlines.
Who is eligible to apply for the FAFSA? U.S. citizens, eligible noncitizens and DACA recipients can fill out the FAFSA. However, only U.S. citizens and eligible noncitizens can receive federal financial aid.

What happens if you make a mistake on your FAFSA? If you've experienced a serious financial event since submitting the FAFSA or your personal details have changed, you are able to update your FAFSA after the fact.

FAQ about student loans

Every lender has different eligibility requirements for student loans, but generally you’ll need to:
- Be enrolled at least half-time in an eligible school.
- Meet age, education and citizenship requirements.
- Use the loan for qualifying education expenses.
- Have a good credit score and consistent income (or have a co-signer who does).
- Maintain good grades while in school.
Whether or not you need a co-signer for private student loans depends on your financial health. If you have poor credit or little income, a creditworthy co-signer could help you get approved or receive a better interest rate. Some lenders also require co-signers for undergraduate borrowers, regardless of financial health.
You can take out new student loans or refinance your existing loans with bad credit. Most federal student loans don't even check your credit, which makes them a great option for borrowers with little to no credit history. If you are applying for a private student loan, some lenders cater to borrowers with poor credit, although interest rates may be higher and loan amounts smaller.

Before applying for any student loan, check for credit score requirements at each lender and get prequalified if possible.
Private student loans appeal to many borrowers because of their high borrowing limits and low starting interest rates. They also give you the option of fixed or variable rates, so you can choose the best plan for your budget. However, private student loans have fewer deferment and forbearance options than federal student loans, and borrowers with bad credit could see interest rates in the double digits.
Refinancing your student loans may be a good option if you'd like to consolidate multiple loans into a single loan or if interest rates have fallen significantly since you first took out your fixed-rate loan. However, refinancing can only be done through private lenders, so you'll lose options like income-driven repayment programs if you refinance your federal loans.
To refinance your student loans, shop around and compare a few lenders to see which one offers the best rate and repayment terms for your situation, getting prequalified where possible. When you're ready to apply, you can typically apply online, over the phone or in person. Once you're approved and have submitted the necessary documentation, the lender will pay off your existing loans, and you'll begin making your new payments.
In most cases, student loans will stick around until you pay them off in full; they will not disappear after a certain amount of time. The only exceptions are if you qualify for a forgiveness program, such as Public Service Loan Forgiveness, in which case you may not have to pay your full balance.
In general, you cannot use a personal loan to pay for college tuition — lenders strictly prohibit this. However, there are personal loans for students who need to pay for travel expenses, books or equipment, as long as the student has a good credit score. Keep in mind that student loans can cover all of these educational costs, and they're often a better choice than personal loans. However, if you only need to borrow a few hundred dollars, a personal loan is worth considering.

Methodology

To find the best student loans, Bankrate first looked at lenders that have a national reputation and serve borrowers across the U.S. We then narrowed down the field based on APR ranges, loan options and loan amounts to ensure that the lenders offered competitive loans for a variety of borrowers. Lenders that offered loans for undergraduates, MBA students, medical students and more, for example, scored higher than those offering just one type of loan.

To determine the final rankings, we then evaluated eligibility requirements and any standout features that make a loan uniquely suited to a variety of needs — for instance, the ability to apply for multiple years of school or receive cash rewards upon graduation.

Best student loan rates in September 2023

How to apply for a student loan

How to choose a student loan

On this page

The Bankrate guide to choosing the best student loans

What are current student loan interest rates?

What are interest rates for federal student loans?

Compare student loan interest rates in September 2023

Best student loan without a co-signer

Ascent

Pros & Cons

Eligibility & More

Best student loan for multiyear approval

Citizens

Pros & Cons

Eligibility & More

Best student loan for quick application process

College Ave

Pros & Cons

Eligibility & More

Best student loan for flexible repayment terms

Earnest

Pros & Cons

Eligibility & More

Best student loan for part-time students

Sallie Mae

Pros & Cons

Eligibility & More

Best student loan for no fees

SoFi

Pros & Cons

Eligibility & More

Types of student loans

Federal vs. private student loans

Student loan interest information

How student loan interest works

How student loan interest is calculated

Student loan news updates

How the Fed rate hikes impact student loans

What to know about the FAFSA

FAQ about student loans

How do I qualify for a student loan?

Will I need a co-signer for private student loans?

Can you get a student loan with bad credit?

What are the pros and cons of private student loans?

When is refinancing student loans a good option?

How do I refinance my student loans?

Do student loans expire?

Can you use a personal loan to pay for college?

Methodology