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Best Private Student Loans –There are many private student loan providers in the market, and it can be overwhelming to determine which lender is the best fit for you. Here are some of the best private student loans available based on factors like interest rates, repayment options, fees, and customer service.
The Best Private Student Loans
Check out the reviews below for an in-depth explanation as to why we selected each lender as one of the best private student loans.
1. Sallie Mae
Sallie Mae is one of the largest private student loan providers in the country, offering undergraduate, graduate, and parent loans. Sallie Mae offers competitive interest rates, no origination fees, and flexible repayment options, including in-school deferment and forbearance. They also provide resources like scholarship and grant opportunities and tools to help students plan and pay for college.
Pros
- A short cosigner release period1
- Multi-Year Advantage
- Students attending school less than half-time are eligible
- Covers up to the total cost of attendance3
- A+ rating from the BBB
Cons
- Can’t prequalify with a soft credit check
2. Discover Student Loans
Discover Student Loans is another popular private student loan provider that offers undergraduate, graduate, and parent loans. Discover Student Loans offers competitive interest rates, no origination fees, and a range of repayment options, including fixed and variable interest rates, cash rewards for good grades, and in-school deferment. They also offer free resources and tools to help students plan and manage their finances during college and beyond.
Pro
- Borrowers with a 3.0 GPA or higher can receive 1% of their loan amount as a cash reward
- International students can qualify with a co-signer who has U.S. citizenship or permanent residency
- Multiple economic hardship repayment options
Cons
- No co-signer release program
3. College Ave Student Loans
College Ave Student Loans offers undergraduate and graduate student loans, as well as parent loans. College Ave Student Loans offers competitive interest rates, no origination fees, and a variety of repayment options, including deferred, interest-only, and full repayment. They also provide tools to help students and their families calculate the costs of attending college and plan their finances accordingly.
Pro
- Interest rate estimate available without undergoing a hard credit check
- International students can qualify with a co-signer who has U.S. citizenship or permanent residency
- Long time period (210 days) before unpaid loans go into default
Cons
- Relatively high APR
4. Citizens Bank
Citizens Bank offers private student loans for undergraduate and graduate students, as well as parent loans. Citizens Bank offers competitive interest rates, no application, origination, or disbursement fees, and a variety of repayment options, including deferred, interest-only, and full repayment. They also offer free resources and tools to help students plan and pay for college, including scholarship and grant opportunities.
Pro
- International students can qualify with a co-signer who has U.S. citizenship or permanent residency
- Up to 0.50% interest rate discount available for existing Citizens Bank customers
Cons
- Co-signer release after 36 months, about 12 months later than many other lenders’ policies
5. Ascent Student Loans
Ascent Student Loans offers private student loans for undergraduate and graduate students, as well as parent loans. Ascent Student Loans offers competitive interest rates, no application or origination fees, and a variety of repayment options, including deferred, interest-only, and full repayment. They also provide resources and tools to help students plan and pay for college, including a free scholarship search tool.
Pros
- Both co-signed and independent loans available
International students can qualify with a co-signer who has U.S. citizenship or permanent residency
Interest rate estimate available without undergoing a hard credit check
Cons
- Limits to the amount you can borrow
6. Earnest
Earnest offers private student loans for undergraduate and graduate students, as well as parent loans. Earnest offers competitive interest rates, no application, origination, or prepayment fees, and a variety of repayment options, including deferred, interest-only, and full repayment. They also provide resources and tools to help students plan and pay for college, including a free college cost calculator.
Pros
- No fees
- A long grace period
- Skip a payment once per year
- Check your eligibility without affecting your credit
- Covers up to the total cost of attendance
- A+ rating from the BBB
Cons
- Cosigner release is not available
How we chose the best private student loans
Our methodology involved a thorough analysis of each lender’s website, including their loan options, interest rates, repayment terms, fees, and customer service. We also reviewed customer reviews and ratings from reputable sources like the Better Business Bureau, Trustpilot, and Consumer Affairs to gain insight into the lender’s overall reputation and customer satisfaction.
Additionally, we considered the following criteria when evaluating the best private student loans:
- Interest rates: We looked at the interest rates offered by each lender, including both fixed and variable rates, to determine which lenders offered the most competitive rates.
- Repayment options: We evaluated the repayment options offered by each lender, including deferred, interest-only, and full repayment, to determine which lenders provided the most flexibility and support for borrowers.
- Fees: We considered any application, origination, or disbursement fees charged by each lender to determine which lenders offered the most transparent and affordable fee structures.
- Co-signer requirements: We evaluated each lender’s co-signer requirements, including co-signer release options, to determine which lenders were most supportive of borrowers who needed a co-signer to qualify for a loan.
- Customer service: We looked at each lender’s customer service options, including phone, email, and live chat support, as well as any additional resources or tools offered, to determine which lenders provided the best support for borrowers.
Conclusion
In conclusion, private student loans can be a valuable tool for students and their families to finance their education. When choosing a private student loan provider, it’s important to consider several factors, including interest rates, repayment options, fees, co-signer requirements, and customer service. By using our methodology to evaluate the best private student loans, borrowers can make an informed decision that meets their unique needs and circumstances.
It’s important to note that while private student loans can offer more flexibility and customization than federal loans, they also come with greater risk and responsibility. Borrowers should carefully consider their ability to repay the loan before taking on debt and explore all other options for financing their education, such as scholarships, grants, and federal loans.
Overall, by carefully evaluating the best private student loan providers and considering all options, borrowers can make a smart financial decision that sets them up for success in their education and future career.