What Is a Private Student Loan?
Choosing to go to college is a big step toward your future, but it often comes with significant costs. While scholarships, grants, and federal student loans can cover much of the expense, they might not be enough. In such cases, private student loans can offer the additional funds needed to keep your education on track.
Private student loans provide personalized support to meet your educational needs. Since each financial situation is different, it's important to find a loan that fits your specific circumstances. Whether facing unexpected costs or needing extra money for tuition, books, or living expenses, private loans can be tailored to suit your personal requirements.
To simplify comparing your options, we've teamed up with several private student loan providers. This partnership lets you view different loan options in one place. By assessing the features and benefits of various loans, you can make the decision-making process easier and confidently select the best loan for your needs.
When exploring private student loans, pay attention to key factors like interest rates, repayment terms, and any additional borrower perks. Some lenders might offer lower interest rates for students with strong credit or the possibility for co-signer release after a series of on-time payments. Understanding these elements can significantly affect the total cost and manageability of your loan.
We encourage you to explore the range of private loan options, taking the time to find one that aligns with your financial needs and educational goals. With the right information and resources, you can make informed decisions that support both your academic success and financial health.
Of course, you should always first submit the FAFSA® (Free Application for Federal Student Aid) to determine how much you could be eligible for in federal or state-based aid before looking into private loans. However, we do note that there may be instances where the need arises when comparing private loans to federal loans is advisable, as private loans might (in some cases) offer some benefits that are of interest, especially to parents.
Best Private Student Loans
We work with some of the nation’s best private student loan companies to help meet your needs. Our website allows you to easily compare and shop for the loan features and benefits that matter most in the short-term and the long run.
Some websites may attempt to give a star rating or ‘reviews’ to compare lenders. But beware. Not only are some of these so-called reviews fake, but lenders reserve the right to change their product offerings and loan terms in order to remain competitive. That could happen more frequently than you think. Our site is constantly updated and our participating lenders’ features and benefits are expressed in their own words. So you can hear what they believe matters most to you as a potential customer.
To find the best private student loan, here’s how to read our lender comparison page:
What to Look for In a Student Loan
- Low interest rate
- Zero (or low) origination fees
- Low or no fees during repayment (example: late fees)
- Favorable repayment terms
- Competitive benefits (example: 0.25% interest rate reduction for auto pay, or cosigner release)
The Best Student Loan Rates
Below is a comparison of competitive rates offered by our top, participating student loan lenders. The rates advertised are expressed as Annual Percentage Rates (APRs) which could be either fixed or variable, and are subject to change.
It is important to understand that sometimes the lowest advertised rate comes with conditions, such as agreeing to have your loan payments automatically debited from your checking or savings account. So be sure to read the fine print. Additionally, the rates advertised are usually the starting rates and could be higher. The actual rate you may qualify for depends on your creditworthiness, or the creditworthiness of your cosigner.
Where Can I Get a Private Student Loan?
Private student loans can be obtained from various sources such as banks (i.e., Sallie Mae), fintech companies (like College Ave), or credit unions with membership requirements.
Most lenders offer a convenient online application process, with some even providing mobile-friendly applications for easy access through phones or tablets. To find the right lender for your situation, it's crucial to compare product offerings, features and benefits, as these can vary significantly.
Institutional Loans
Institutional loans also fall under the category of private student loans, excluding federal loans. Some schools have enough resources to offer campus-based loans, which may be targeted for specific groups of students based on criteria such as regional backgrounds. In many cases, institutional loans can have lower interest rates and more favorable terms compared to traditional lenders.
While not all schools provide institutional loans, it's worth inquiring whether this option is available to you, as some schools may have endowments or donors that enable this opportunity.
When to Apply for Student Loans
The ideal time to apply for any student loan is no later than 60 days prior to the start of the academic term. The FAFSA filing period begins annually on October 1st, before the start of your next academic year starting after July 1. This means if you file as early as possible, you may find out well in advance just how much federal, state-based, or institutional aid you can expect to receive. This gives you you plenty of time to react and determine how much you may need to borrow in private loans. Your financial aid package letter will help outline this.
Every school may have its own application deadlines and other guidelines, so be sure to check with your financial aid office.
How to Apply for Student Loans
First, we strongly encourage you to exhaust all forms of free financial aid and federal student loans. Let’s start with a quick refresher on federal loans, then we’ll jump to private student loans. Starting with federal student loans means filing the FAFSA® which helps determine eligibility for grants and loans, both at the federal and state level.
For federal student loans, follow these steps:
For private student loans, follow these steps:
Certified Student Loans
Regardless of the loan type (federal or private), your school will need to certify your student loan. Basically this means they have to confirm your enrollment, verify your attendance meets at least half-time status, and validate the amount of money you are eligible to borrow based on all forms of aid they know you have coming in the door. In other words, they would not want to certify more money in loans than you need if you have grants or scholarships—which do not need to be repaid—coming your way.
Once you apply for a student loan and get credit approved, the lender will send information to your college or university’s financial aid office so they can confirm your eligibility and the amount you need. All loan disbursements will go directly to the school.
What Can Student Loans Be Used For?
You can use student loans for education-related expenses. But that is a broad statement, so let’s get more granular. Student loans should be used to cover things like:
- Tuition and fees
- Living expenses (i.e. room/board) which could be on-campus or off-campus housing
- Text books
- Computers and supplies; equipment needed for classes
- Meal plans
- Transportation to/from school (example: bus fare, gas)
- Child care expenses
What you should not use your student loans for are non-essentials and things that do not relate to your education. For example, buying airline tickets for spring break, or buying a new car. Sometimes, there may be questions related to qualifying educational expenses. When in doubt, refer to your school’s cost of attendance breakdown or talk to your school. Depending on your major or degree, or certain circumstances, some less obvious costs may be considered as qualifying educational expenses.
Compare Private Student Loans
- Competitive APRs starting at 3.59%1
- Coverage up to 100% of your school-certified cost of attendance ($1,000 minimum) 2
- Multiple repayment options including: full principal and interest, interest-only, deferred, and flat payment
- Flexible payment terms ranging from 5, 8, 10, and 15 years3
- No origination, application and processing fees, no fees for early repayment
- Apply online in 3 minutes and get an instant credit decision
- Applying with a cosigner can increase your chances of getting approved and could result in a lower interest rate
College Ave's student loan products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1All rates 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. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
2As certified by your school and less any other financial aid you might receive. Minimum $1,000.
3This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 11/01/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
- Choose the #1 Private Student Loan Lender in the Nation. Sallie Mae is trusted by more families than any other private student loan lender.
- Variable Rates: 5.04% APR - 15.21% APR. Fixed Rates: 3.49% APR - 15.49% APR. Lowest rates shown include 0.25 percentage point interest rate discount with auto debit payments.1
- Applying online is easy - you could receive a credit result in about 10 minutes.2
- Multiple repayment options from in-school payments to deferred.1 No origination fee or prepayment penalty2
- Last year, students were 4x more likely to be approved with a cosigner3 and it may help you get a better rate.
- Borrow up to 100% of school-certified expenses, whether you're online or on campus4
Borrow Responsibly
We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. 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.
1Advertised 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.
2Although 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.
3Based on a comparison of the percentage of students who were approved with a cosigner to the percentage of students who were approved without a cosigner from October 1, 2022 to September 30, 2023.
4For 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 will be subject 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.
Information advertised valid as of 10/25/2024.
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION.
Sallie Mae Loans are made by Sallie Mae Bank. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.
Edvisors is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.
© 2024 Sallie Mae Bank. All rights reserved. SLM Corporation and its subsidiaries, including Sallie Mae Bank are not sponsored by or agencies of the United States of America.
- AFFORDABLE fixed rates starting at 3.69% APR with Automatic Debit Discount*
- 1% CASH BACK Graduation Reward*
- NON-COSIGNED option may be available for eligible undergraduate juniors and seniors.
- PAY AFTER LEAVING SCHOOL – Customize your loan with flexible repayment options – start payments after graduation.
- FORGET FEES – No application, origination or disbursement fees. No late fees and no prepayment penalty if you choose to pay your loan off early.
- COVER UP TO 100% of your tuition and eligible living expenses.
* 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, terms and conditions may apply for Ascent's Terms and Conditions please visit: AscentFunding.com/Ts&Cs. Rates displayed above are effective as of 11/1/2024 and reflect an Automatic Payment Discount of 0.25% for credit-based college student loans and 1.00% discount on outcomes-based loans when you enroll in automatic payments. The Full P&I (Immediate) Repayment option is only available for college loans (except for outcomes-based loans) originated on or after June 3, 2024. For more information, see repayment examples or review the Ascent Student Loans Terms and Conditions. The final amount approved depends on the borrower’s credit history, verifiable cost of attendance as certified by an eligible school, and is subject to credit approval and verification of application information. Lowest interest rates require full principal and interest (Immediate) payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. 1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/BorrowerBenefits. The AscentUP platform is only available to eligible Ascent borrowers and subject to terms and conditions.
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.
- Check your eligibility in just 2 minutes
- Flexible repayment options you can choose from
- No fees for origination, disbursement, prepayment, or late payment3
- Skip a payment once per year (once repayment period restarted)4
- Will cover up to 100% of the school's certified cost of attendance
- 9-month grace period (3 months more than most lenders)2
- Apply over the phone with the Client Happiness Team
- Call 866-492-1222, Monday through Friday, 5 A.M. - 5 P.M. PST
- Mention us when you call in to start your application
This information is for graduate and undergraduate students attending participating degree-granting schools. Borrowers must be U.S. citizens or U.S. permanent residents if the school is located outside of the United States. Non-U.S. citizen borrowers who reside in the U.S. are eligible with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident) and are required to provide an unexpired government-issued photo ID to verify identity. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 3.94% APR to 16.74% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.87% APR to 17.10% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
1You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.
2Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.
3Earnest does not charge fees for origination, late payments, or prepayments. Florida Stamp Tax: For Florida
residents, Florida documentary stamp tax is required by law, calculated as $0.35 for each $100 (or portion thereof) of the principal loan amount, the amount of which is provided in the Final Disclosure. Lender will add the stamp tax to the principal loan amount. The full amount will be paid directly to the Florida Department of Revenue. Certificate of Registration No. 78-8016373916-1.
4Earnest clients may skip one payment every 12 months. Your first request to skip a payment can be made once you’ve made at least 6 months of consecutive on-time payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Please be aware that a skipped payment does count toward the forbearance limits. Please note that skipping a payment is not guaranteed and is at Earnest’s discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.
The information provided on this page is updated as of 09/10/2024. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice.
Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107
Earnest loans are serviced by Earnest Operations LLC, 535 Mission St., Suite 1663 San Francisco, CA 94105, NMLS #1204917, with support from Higher Education Loan Authority of the State of Missouri (MOHELA) (NMLS# 1442770). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
© 2024 Earnest LLC. All rights reserved.
THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.
- Simple application process
- See your rate in minutes without affecting your credit score2
- Auto debit savings3
- Flexible repayment plans and multiple loan terms available
- No application fees and no origination fees
- Easy cosigning options
Nelnet Bank (Member FDIC)
Lowest rates shown already include an auto debit discount.
1 Fixed interest rates range from 3.69% APR (with auto debit discount) to 9.36% APR (without auto debit discount). Your interest rate will depend on your (and if applicable, your cosigner’s) credit qualifications. The fixed interest rate will remain the same for the life of the loan. Variable interest rates range from 5.83% APR (with auto debit discount) to 10.32% APR (without auto debit discount). Your interest rate will depend on your (and if applicable, your cosigner’s) credit qualifications. Variable rates may increase after consummation. Variable rates for Nelnet Bank Student Loans are calculated using either (a) the One-Month SOFR; (b) the 30-day Average SOFR; or (c) the forward-looking term rate based on SOFR as published by the Federal Reserve Bank of New York and/or The Wall Street Journal “Money Rates” table on the twenty-fifth day (or the next business day) of the immediately preceding calendar month. The variable rate may reprice and change on the first day of each month if the SOFR index changes. This may result in higher monthly payments. The current One-Month SOFR index is 4.86% as of November 1, 2024. The lowest interest rate for each loan type requires automatically withdrawn (“auto debit”) payments. The lowest rate is available only to the most creditworthy applicants. Not all borrowers will receive the lowest rate. The interest rate and Annual Percentage Rate (APR) may be higher depending upon (1) the credit history of the borrower and, if applicable, the cosigner, (2) the repayment option and loan term selected, and (3) the loan type selected. If approved, applicants will be notified of the rate qualified for within the stated range.
2 Credit Score: Checking your rate results in a soft credit pull, which will not affect your credit score. If you continue with your application, Nelnet Bank will request your permission to obtain your full credit report from one or more consumer reporting agencies. This is a hard credit pull and may affect your credit score.
3 Auto Debit: Interest rate reduction of .25% for automatically withdrawn payments from any designated bank account (“auto debit discount”). Auto debit discount applies when full payments (including both principal and interest), interest only and fixed pay are automatically drafted from a bank account. The auto debit discount will continue to apply during periods of approved forbearance or deferment if the auto debit discount was in effect at the time of receiving the forbearance or deferment. Auto debit discount will remain on the account unless (1) the automatic deduction of payments is canceled or (2) there are three consecutive automatic deductions returned for insufficient funds at any time during the term of the loan.
Student Loan Eligibility: You must be a U.S. citizen or permanent resident alien with a valid U.S. Social Security number. All applicants must be the legal age to enter into binding contracts in their state of residence or territory. Non-residents can apply with an eligible cosigner who is a U.S. citizen or permanent resident alien with a valid U.S. Social Security number. Student must be enrolled at least half-time at a Title IV program at an eligible school. You must not have defaulted on any student loan. Approval subject to credit review. Other credit criteria may apply.
Undergraduate Loan Amounts*:
Minimum loan amount: $1,000
Maximum loan amount: $125,000
Graduate Loan Amounts*:
Minimum loan amount: $1,000
Maximum Loan amount:
- Graduate or doctorate degree: $175,000
- MBA or graduate law degree: $175,000
- Graduate health professions degree: $500,000
*Maximum loan amounts are subject to limits on total student loan debt
This referral partner is not the creditor of Nelnet Bank loans and may receive compensation from Nelnet Bank for the referral of Nelnet Bank loan customers.
Before taking out a private student loan, make sure to take advantage of any federal student loans, grants, or scholarships you have access to. Federal student loans often include benefits and lower interest rates, so be sure to consider all of your options before applying for a private student loan.
- Prequalification: Prequalify to estimate your rate without affecting your credit score
- Online Application Process: Submit online application in minutes
- Flexible Repayment Options: ELFI offers immediate, interest only, partial payment, and fully deferred repayment options
- No Fees: No application fees, origination fees, or prepayment penalties
- Low Rates: Fixed rates from 3.69% to 14.22% and variable rates from 5.00% - 14.22%*
- Award winning Customer Service: Individually paired Student Loan Advisor to guide you through the application process
*ELFI is a nationwide student loan provider offered by Tennessee based SouthEast Bank. ELFI is designed to assist students financially with receiving their education. Subject to credit approval. See Terms & Conditions. Interest rates current as of 10-01-2024. Variable interest rates may increase after closing but will never exceed 18.00%. Interest rates may also differ from the rates shown above. The term of your loan, financial history, and other factors, including your cosigner’s (if any) financial history can affect the interest rate. For example, a 10-year loan with a fixed rate of 7% would have 120 payments of $11.61 per $1,000 borrowed. Rates are subject to change.
- All online, all easy.
- SoFi covers 100% of school-certified costs.
- No fees. Period.
- Repay your way with flexible repayment options (find the monthly student loan payment and rate that fits your budget).
- Applying with a cosigner may increase your chances of approval and getting a better rate.
- Over 1 million students have chosen SoFi.
Interest Rates: Eligibility and Important Details. Fixed rates range from 3.54% APR to 15.99% APR with 0.25% autopay discount. Variable rates range from 5.54% APR to 15.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates are capped at 17.95%. SoFi rate ranges are current as of 11/20/24 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term and type of repayment option you select, evaluation of your creditworthiness, income, presence of a co-signer (if applicable) and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. Check out our eligibility criteria at https://www.sofi.com/eligibility-criteria/. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi.
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 8/5/24 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org)
- Variable Rates: 6.87% APR – 10.68% APR; Fixed Rates: 7.37% APR – 10.68% APR (with auto debit discount).1
- Multiple repayment options available including deferred, interest-only, and immediate.
- Repayment terms of 5, 10, or 15 years available.
- Absolutely no fees – no origination fee, no late fee, and no prepayment penalty.
- 0.25% discount when you make payments via auto debit.
- Ability to borrow for prior loan periods (restrictions apply).
1The lowest Annual Percentage Rate (APR) is available to the most creditworthy applicants. Your actual APR will be based on your credit qualifications, loan program, interest rate option, repayment term, repayment option and whether you elect the auto debit feature.
- Variable Rates: 6.87% APR – 10.68% APR; Fixed Rates: 7.37% APR – 10.68% APR (with auto debit discount)1.
- Multiple repayment options available including deferred, interest-only, and immediate.
- Repayment terms of 5, 10, or 15 years available.
- Absolutely no fees – no origination fee, no late fee, and no prepayment penalty.
- 0.25% discount when you make payments via auto debit.
- Ability to borrow for prior loan periods (restrictions apply).
1The lowest Annual Percentage Rate (APR) is available to the most creditworthy applicants. Your actual APR will be based on your credit qualifications, loan program, interest rate option, repayment term, repayment option and whether you elect the auto debit feature.
- Fixed rates range from 2.71% to 7.38% APR (with Auto-Pay Discount)1
- Fixed or variable rate loans with terms of 5, 7, 10, 15 or 20 years
- Zero origination fees; zero application fees
- Flexible repayment options including Immediate, Interest-only and In-school deferred
- Available for undergraduate, graduate, MBA, medical, law, and professional degrees
- Available for Texas residents and students attending Texas accredited schools
1Rates as of 04/01/2024. Brazos Student Loan interest rate ranges are based upon the repayment term and options selected and the creditworthiness of the borrower or co-signer, and include the 0.25% Auto-Pay Discount. Not all borrowers receive the lowest rate. The lowest APR calculations assume the highest creditworthy borrower that selects the Immediate Repayment option and begins making payments after the loan is fully disbursed, with a 60 month repayment term. The highest APR calculation assumes the lowest creditworthy borrower that selects the Deferred Repayment option and makes no payment while in school for a period of 45 months (plus a 6 month grace period), with a 240 month repayment term.
Fixed Rates are set at the time the loan is made and will not change over the life of the loan. Variable Rates and corresponding APRs may increase over the life of the loan, but will never exceed 9.90%. The variable interest rate is based on an index of the 30-day Average SOFR plus a Margin. The lowest variable rate APR displayed is based on the current SOFR index of 5.34% plus a 0.25% margin, minus the Auto-Pay Discount. The Variable Rate will adjust monthly and the loan payment may increase or decrease monthly to provide for amortization over the selected term. The Variable Rate product is only available to Texas Residents.
AutoPay Discount. The interest rate in effect will be reduced by 0.25% if either the borrower or cosigner authorizes automated (ACH) payments from any bank account. The Auto-Pay Discount only applies when full principal and interest payments are automatically drafted from a bank account and does not apply during periods of approved forbearance or deferment. Certain other terms and conditions apply.
In addition to interest rates, there are other terms, features and benefits you should review when comparing private student loans. We’ve outlined these considerations below, but if you want to skip ahead to see this information by lender, click here to enter your school.
- Minimum and maximum loan limits – How much can you borrow? Is the lender’s annual loan limit enough to cover the financing you need? This is an important consideration.
- Loan terms – The loan terms basically amount to how long the loan will last and at what cost. In addition to interest rates, there could be upfront or back-end fees which may add to the expense of the loan. But there may also be perks and benefits that could help you save money over time, or could provide something else of value.
Here are some of the terms to investigate further with a lender before you sign for a loan.
- Interest rate – Most lenders offer a choice between a fixed rate (does not change) or variable rates (which may fluctuate but have a ceiling).
- Fees – This is something you definitely want to compare. Many lenders may offer zero origination fees up front, but beware of other fees that could be charged; including disbursement fees, processing fees, and late fees.
- Repayment options – Depending on what you borrow, the repayment term can be one of the biggest factors in how expensive your loan will be over time. Some lenders allow you to choose the number of years you’d like to repay (common repayment terms are 5, 10, and 15 years). Or your lender will simply outline your repayment term based on the total amount you owe. You will also be asked if you want to pay the interest while you are in school, or defer until you are out of school. And don’t forget to check on deferment options. While the options are limited compared to federal loans, a number of private lenders offer postponement of payments if you encounter a hardship. Lastly, you should look into whether or not the lender has pre-payment penalties. The lenders we work with do not charge a prepayment penalty.
- Borrower benefits – Some of the benefits offered by lenders have become the norm (like an interest rate discount for auto pay, or cosigner release), whereas other benefits will be quite unique. You could be offered anything from free credit monitoring to free access to tutoring services to help you with your educational endeavors.
Another thing to consider is the protections that come with the loan. For example, does the lender offer loan discharge in the event of death or permanent disability? This is a provision that comes with federal loans, but is not offered from all private lenders.
Private Student Loan Eligibility
Eligibility for private loans is based on the following:
- Citizenship status - Most private loans require that you be a U.S. Citizen or Permanent Resident. If not, your creditworthy cosigner must be. This requirement may vary by lender.
- Enrollment – You must be enrolled at an eligible college or university. Some lenders offer private student loans to part-time students, meaning you may not need to be classified as ‘at least half-time’ in order to qualify, unlike the federal student loan program, where being enrolled ‘at least half-time’ is required.
- Creditworthiness – The required minimum FICO® Score will vary by lender (and may change over time), but all lenders will want to see a strong credit profile that does not contain negative history, such as late payments (on items such as rent, utilities and medical bills), liens, foreclosures, bankruptcy or student loan defaults. You will also need to demonstrate proof of income and earnings history, which is why so many students (approx. 90%) need a cosigner.
- School Certification – Ultimately, your college or university will need to verify your attendance and confirm that the loan amount requested is needed (based on all other financial aid you may be receiving). There may be situations where the school certifies a different loan amount than what you requested, in which case you may be awarded the lower dollar amount.
Cosigner Release
A great feature with most private student loans is the ability to release the cosigner from being jointly—and legally—responsible for the debt. This could be a great birthday or holiday present for mom or dad!
So how do you make this happen? Contact your lender (call or go online) to obtain the necessary application form. The general rule is that you need to make a minimum number of qualifying, on-time payments (usually between 12 and 24 months) to be considered for cosigner release.
And in the spirit of cosigner release, we should also note that some lenders even have programs that allow parents to transfer their Parent PLUS Loans to the student via a refinanced loan. In this scenario, the student would need to demonstrate their own creditworthiness.
Note: Refinanced loans with a cosigner may also qualify for cosigner release.
Private Student Loans Without a Cosigner
Private student loans are primarily based on creditworthiness. For this reason, most undergraduate students (or those with a thin credit profile and little to no income or employment history) will find it difficult to qualify on their own. But some lenders have developed newer products that provide opportunities for students to qualify without a cosigner. See the list of options below:
- Ascent Student Loans – If you are a college junior, senior or graduate student, you may be eligible for a non-cosigned loan with Ascent.
- Stride Funding Income Share Agreements – If you’re a grad student or pursuing a second bachelor’s degree, Income Share Agreements may be worth checking out. ISAs are an alternative way to finance your education where you get the money up front to pay for school, then you give up a percentage of your salary after school.
- Compare all lenders – Of course, if you have good credit, a current income and can demonstrate employment history, you can always apply for a private student loan without a cosigner. A lot of graduate students may fall into this category, along with adult students returning to school. Many lenders today also offer a private parent loan as a more affordable alternative to the federal Parent PLUS Loan.
How Much Can I Borrow In Student Loans
You can borrow up to the total cost of attendance, minus any other financial aid you may be awarded, (your school will tell the lender how much you’re ultimately eligible for in private loans).
Here you can find loan limits for federal student loans. We have comprehensive information broken down by specific federal loan type, and by academic level.
Here’s how private student loan limits work. Lenders offer loan amounts up to the total cost of attendance, but lenders do have their own minimum loan amounts. They also have aggregate loan limits. While these will vary by lender, here are the ranges you can expect to see:
- Minimum, annual loan amount: $1,000
- Maximum, annual loan limit: Up to 100% of the certified cost of attendance minus other aid
Aggregate limits:
- For undergraduates the range is around $75,000 to $120,000, depending on the lender
- For graduate students and health professionals: Between $200,000 and $350,000 (higher-end limits are typically reserved for programs such as medical school, law school or business school). Again, this varies by lender.
Student Loan Tips
When it comes to taking out student loans, here are some good tips to follow.
- Borrow only what you need- It may be tempting to get more money based on loan amounts you’ve been told you could access. But do the hard work to determine your actual budget and borrow accordingly. Consider that you may end up borrowing for each year you remain in school, including any time you spend earning an advanced degree. So you’ll want to weigh the cost for all those years. Don’t forget to factor in the interest!
- Read the promissory note-Forgive us if this sounds patronizing, but you’d be surprised how many people sign contracts (which is what the promissory note is) without actually reading it. There are certain obligations you should be aware of as a borrower, and you want to minimize any surprises in the future.
- Shop smart -When it comes to private student loans, compare the features and benefits that lenders offer, not just the interest rates.
- Practice good record keeping-Whether it’s digital or physical, you want to be able to quickly put your fingers on all your student loan related documents when you need them. This article on how to locate your student loans can help.
- Beware of inflated student loans- If you end up borrowing unsubsidized federal loans and/or private student loans, interest accrues while you are in school that you are responsible for. You have the option to pay this interest while you are in school, but if you are unable to do so the unpaid interest will end up getting added (capitalized) on top of your principal balance (the amount you borrowed) when you enter repayment. Even if you cannot afford to pay all the interest that accrues, you can certainly chip away at it and pay a portion. Anything you pay toward your student loans while in school can help decrease the overall cost of your loan.
- Think about your future- Once you’ve finished your studies, consider refinancing your loans) to potentially qualify for a lower interest rate, or to make monthly payments more manageable, or to simplify your student loan repayment through a single lender…or all of the above.
- Enroll in auto pay- Auto pay is a great way to qualify for an interest rate reduction, and to protect your credit. If you are late on your payments, you run the risk of having a negative mark show up on your credit profile. Auto pay can not only help you save money, but it could preserve an otherwise solid credit score.
- Pay twice per month instead of once- If you split your monthly payment in half and pay biweekly, this strategy actually results in one additional payment per year towards your loan. Why? Because you get a jump start on the accrued interest and end up with more of your payments being directed to your principal balance over time.