Best Private Student Loans and Interest Rates for May 2026

How do private student loans work?

Private student loans can be a valuable resource for funding your education when federal student aid isn't enough. Here's how private student loans work:

Credit-based: Private lenders assess your credit history and score to determine your eligibility for a loan and at what interest rate. Generally speaking, the higher your credit score is, the lower the interest rate will be.
Fixed and variable interest rates: Private student loans come with the option of fixed or variable rates. Fixed rates stay the same over the life of the loan, while variable rates can fluctuate over time based on market conditions.
High borrowing limits: Unlike most federal student loans that have strict borrowing limits, private lenders usually let you borrow up to the total cost of attendance at your school. This is especially beneficial for students attending colleges with higher tuition rates.
Cosigner-friendly: Because many undergraduate students have limited or nonexistent credit profiles, most private lenders let you add a cosigner to your loan. A cosigner is someone with good credit who agrees to repay the loan if you are unable to.
Repayment terms vary: Repayment options for private student loans vary significantly between lenders. Some lenders may require you to start making payments while you're in school, and others may let you postpone payments until after graduation.

Private vs. federal student loans

Federal student loans are different from private student loans in that they're more accessible, affordable, and generally don't require a credit check. Before exploring private student loans, make sure you've fully maximized your federal student aid options first.

	Private student loans	Federal student loans
Issue by	Banks, credit unions, and financial instituions	U.S. Department of Education
FAFSA required?	No	Yes
Interest rates	Fixed or variable; generally higher than federal loans	Fixed; generally lower than private loans
Borrowing limits	Higher borrowing limits	Lower borrowing limits
Credit check required?	Yes	No (except for PLUS loans)
Repayment options	Limited	Flexible
Consigner allowed?	Yes	No

Student loan FAQs

Can I borrow just a small amount of money with a student loan?

If your financial aid package falls short, you might consider small loans for students to cover immediate costs like textbooks or emergency repairs. Many private lenders offer student loans starting at $1,000. Federal student loans do not have specified minimum amounts.

How can I compare private student loan rates and federal student loan rates?

To compare private student loan rates, start by prequalifying with multiple lenders so you can see personalized APR estimates without affecting your credit score. Then compare those offers against current federal student loan rates, which are fixed by the government each school year. Review APRs, repayment terms, rate type (fixed vs. variable), and borrower benefits to determine which option may cost less over time.

Which student loan should I accept?

Start with federal student loans, which offer fixed rates, income-driven repayment options, and no credit requirements. If you still need additional funding, explore the best private student loans and compare interest rates, repayment terms, and borrower features.

What student loan rates are available in 2026?

Student loan rates currently available through the Finaid.org platform for qualified borrowers include fixed APRs starting at 2.65% and variable-rate APRs from 3.5%.

How much do student loans for college cost per month?

Your monthly student loan payment depends on your loan amount, interest rate, and repayment term. Loans with lower interest rates and smaller balances typically cost less each month. A longer repayment term lowers your payment but increases total interest, while a shorter term raises your payment but helps you save overall.

How do I compare private student loan interest rates?

Using a resource like Finaid.org to compare private student loan interest rates, make a student loans comparison, consider insights from student loans reviews, and find low-interest options from top lenders without affecting your credit. Look at both fixed and variable APRs, as well as repayment terms and borrower perks.

What affects current private student loan interest rates?

Your student loan rates are determined by several factors, including credit score, income, debt-to-income ratio, and whether you apply with a cosigner. Lenders also consider your school or program, and whether you choose fixed-rate college loans or variable-rate options.

Can I get a private student loan with bad credit or no credit?

You can get a student loan with bad credit from a private lender, but it's difficult. Lenders usually require good credit, with most looking for a credit score of 670 or better. Applying with a cosigner who has strong credit can improve your chances of approval and help you get a better rate.

Do I need a cosigner for a private student loan?

You don't always need a cosigner for a private student loan. But if you have limited or bad credit, a cosigner may be required. A creditworthy cosigner can help you get approved for a student loan and may qualify you for a lower student loan interest rate than you'd get on your own.

How do I compare private student loan options?

Compare lenders by looking at interest rates (fixed vs. variable), repayment terms, fees, borrower protections, and student loan reviews. Using a resource like Finaid.org lets you view multiple prequalified offers at once without affecting your credit score.

What credit score do I need to get a private student loan?

Most private student loan providers look for a credit score of at least 670. The higher your credit score, the lower your interest rate is likely to be. If you have a limited credit history, or none at all, applying for a student loan with a creditworthy cosigner can boost your chances of approval and help secure better terms.

Can I use private student loans for non-tuition expenses?

You can use private student loans for more than just tuition. As long as the total amount doesn't exceed your school's certified cost of attendance, you can use the funds for books, supplies, housing, meals, transportation, and other education-related expenses.

Is it possible to refinance private student loans later?

Many borrowers refinance student loans after graduation to qualify for a lower interest rate, better repayment terms, or both, especially if their credit or income has improved. Refinancing student loans may also allow you to combine multiple loans into one. Just be aware that refinancing federal loans into a private loan eliminates federal protections like income-driven repayment or loan forgiveness.

What is private student loan debt?

Private student loan debt is money borrowed from a non-government lender to pay for college. Unlike federal student loans, approval and interest rates for most private loans depend on your credit, and these loans come with fewer borrower protections.

How much is a student loan?

The cost of a student loan depends on factors including the amount borrowed, interest rate, and repayment term — all factors you can review when you compare student loans. Lower rates and smaller balances generally mean more affordable monthly payments. Choosing a longer repayment term can reduce your monthly bill but increase your total interest paid, while a shorter term raises your monthly payments but lowers your overall interest cost.

A closer look at the best private student loan lenders

College Ave: Best for Extended Grace Periods

4.8

Check rates on Credible's website

Min credit score Does not disclose

Fixed APR 2.84% - 17.99%

Variable APR 3.89% - 17.99%

Loan amount $1,000 up to 100% of the school-certified cost of attendance

Term 5, 8, 10, 15 (20 for health professionals)

Pros and cons

Pros

Rate discount of one-quarter of a percentage point for using autopay
Does not charge origination or application fees
Grace periods between 9 and 36 months for graduate, MBA, law, dental, and medical school loans

Cons

Parent borrowers are required to pay at least the interest while the student is in school
Cosigners not eligible for release until at least half the repayment term of the loan is completed

Expert insights

College Ave offers a wide range of borrower-controlled features that makes it especially compelling for those who want predictability and planning power with their student loans. From 5 to 20-year terms and multiple in-school payment options to profession-specific grace periods, College Ave offers more structure and flexibility than many of its competitors.

More details

Overview: College Ave offers student loans for almost every type of degree program, with a range of repayment options, including a unique 8-year repayment term. Additionally, you can get extended grace periods of as long as 36 months on graduate, dental, and medical student loans. About 90% of undergraduates applying with a cosigner are approved for additional student loans. However, you must complete at least half of your repayment term before you can remove a cosigner for your loan. Some lenders allow cosigners to be released much sooner, after as few as 1 to 2 years of payments.
Interest rates: Fixed or variable
Loan amounts: $1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Minimum credit score: Does not disclose
Cosigner release: Available after more than half of the scheduled repayment period has elapsed and other requirements are met
Minimum income: Does not disclose
Eligibility: Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Loan terms: 5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)

Sallie Mae: Best for Specialized Loans

4.4

Check rates on Credible's website

Min credit score Does not disclose

Fixed APR 2.89% - 17.49%

Variable APR 3.75% - 16.37%

Loan amount $1,000 up to 100% of school-certified cost of attendance

Term 10 - 20

Pros and cons

Pros

Can borrow up to school-certified cost of attendance
No prepayment or origination fees
Loans available to noncitizens with an eligible cosigner
Cosigner release after 12 on-time payments

Cons

No parent loan options
Does not offer student loan refinancing
Loan terms not disclosed until after you apply

Expert insights

Sallie Mae stands out from the competition with one of the broadest selections of specialized private student loans on the market. Loans cover everything from undergraduate degrees to medical residencies, bar study, flight training, and trade schools. This makes Sallie Mae a good option for students pursuing specialized or less traditional educational paths.

More details

Overview: Sallie Mae offers the Smart Option Student Loan for undergraduate students and a suite of loans for graduate students. You can borrow up to your school-certified cost of attendance and apply just once annually to get the funds you need for the entire academic year. Plus, applying for a Smart Option Student Loan with a cosigner may help you get a better rate. Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for MBA programs, law school, medical school, and health profession programs.
Interest rates: Fixed or variable
Loan amounts: $1,000 up to school-certified cost of attendance. Student must be listed as the borrower, and a parent may cosign.
Minimum credit score: Does not disclose
Cosigner release: After you graduate, make 12 one-time principal and interest payments, and meet certain credit requirements
Minimum income: Does not disclose
Eligibility: Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens residing and attending school in the U.S. may qualify by applying with a creditworthy cosigner, who must be a U.S. citizen or permanent resident, and providing an unexpired government-issued photo ID.
Loan terms: 10 to 15 years for the Smart Option Student Loan; 15 years for law school, MBA, and graduate school loans; 20 years for medical school loans

SoFi: Best for Member Perks

4.3

Check rates on Credible's website

Min credit score Does not disclose

Fixed APR 3.23% - 15.99%

Variable APR 5.14% - 16.49%

Loan amount $1,000 to $100,000

Term 5, 7, 10, 15

Pros and cons

Pros

Top customer service ratings
Valuable member benefits
No fees
Cosigner release after 12 months of on-time payments

Cons

No disclosed credit or income requirements
Shorter repayment terms than some lenders

Expert insights

SoFi offers borrower-friendly benefits rarely seen among student loan lenders. Perks include cash back for strong grades, a loyalty discount on future loans, and cosigner release after just 12 months. With flexible terms and competitive rates, SoFi is a standout option for students seeking long-term value.

More details

Overview: SoFi offers fixed- and variable-rate student loans to help undergraduate, graduate, and professional students and parents of students finance their education. These loans can cover up to the total cost of attendance, with a minimum loan of $1,000. Students must be enrolled at least half-time in a degree-seeking or graduate-certificate program at an eligible school and a U.S. citizen, permanent resident, or non-permanent resident alien. SoFi has multiple repayment plans, allowing students to pick terms that best fit their financial situations, with cosigner release after 12 months of consecutive on-time payments. Borrowers have the option to reduce rates by 0.25% when enrolling in automatic payments. They can also qualify for a 0.125% interest rate discount on subsequent loans with SoFi's Continuing Scholar Discount. Plus, a $250 cash bonus with a 3.0 GPA or higher for full-year loans or $100 cash back for single-semester loans.
Interest rates: Variable or fixed
Loan amounts: $1,000 minimum up to your school’s annual cost of attendance
Minimum credit score: Does not disclose
Cosigner release: After 12 months
Minimum income: Does not disclose
Eligibility: Must be a U.S. citizen or DACA student enrolled at least half-time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may be eligible with a cosigner.
Loan terms: 5, 7, 10, or 15 years

Earnest: Best for Fair Credit

4.5

Check rates on Credible's website

Min credit score 665

Fixed APR 2.79% - 16.49%

Variable APR 4.99% - 16.85%

Loan amount $5,000 to $550,000

Term 5, 7, 10, 12, 15

Pros and cons

Pros

Low minimum credit score requirement
Flexible options for structuring your loan payments
Option to skip a payment once every 12 months, if needed
No origination or late payment fees

Cons

Loans aren’t available to Mississippi residents
Can’t refinance parent PLUS loan in student’s name

Expert insights

Unlike many student loan refinance lenders, Earnest considers applicants with fair credit, provided other aspects of their financial profile, such as savings, employment status, and rent or mortgage payments, are strong. Earnest's approach may benefit those who don't meet traditional credit standards but show overall financial stability. This makes it a potential option for borrowers with thinner credit histories.

More details

Overview: Earnest student loan refinancing offers flexibility and accessibility, with loans available to student loan borrowers with credit scores as low as 650. Borrowers can customize their repayment terms by setting their exact monthly payment or choosing a specific loan term, down to the number of months. If you opt for higher monthly payments, you may qualify for Earnest's most competitive rates. For borrowers facing financial challenges, Earnest offers a skip-a-payment option. After six months of on-time payments, you can skip one payment every 12 months without penalty. Keep in mind, though, that the skipped principal and interest charges will be distributed across your remaining payments, slightly increasing your monthly payment.
Interest rates: Fixed or variable
Loan amounts: $5,000* minimum, up to $550,000
Minimum credit score: 665
Cosigner release: Yes, Release available after 12 months. Borrowers may also request cosigner release after 12 consecutive months of on-time monthly payments, or equivalent lump sum. Borrowers must pass a credit review.
Minimum income: No minimum income requirement, but borrower must be employed, have a written job offer that starts within six months, or demonstrate consistent income.
Eligibility: Must be a U.S. citizen, permanent resident, DACA recipient, asylee, or hold an H-1B visa with a U.S. citizen cosigner. Must have debt from a Title IV-accredited school and be current on rent or mortgage payments. Loans must also be in good standing. California residents must refinance at least $10,000, and New Mexico residents must refinance at least $10,001.
Loan terms: 5, 7, 10, 12, or 15 years

Citizens: Best for Multiyear Approval

4.3

Check rates on Credible's website

Min credit score 640

Fixed APR 3.24% - 14.03%

Variable APR 4.99% - 14.54%

Loan amount $1,000 up to 100% of the school-certified cost of attendance

Term 5, 10, 15

Pros and cons

Pros

Multiyear approval lets you secure funding for future school years
You can reduce your rate by 0.5 percentage points with autopay and loyalty discounts
International students can apply with a qualified cosigner
Cosigner release available after starting full principal and interest repayment

Cons

Fewer repayment terms to choose from than some other lenders
Parents can’t defer payments while student is in school
Must be enrolled at least half-time in a degree-granting program

Expert insights

Citizens could be a great fit for borrowers who already bank with the lender and want to save more on their student loans. Customers can lower their interest rate by 0.25 percentage points with a loyalty discount, and by another 0.25 percentage points for enrolling in autopay. Citizens also offers multiyear approval, making it easier to get additional loans without repeated hard credit checks.

More details

Overview: Citizens Bank offers private student loans for undergraduate and graduate students, as well as parents. With its multiyear approval option, you can apply for a loan once, and as long as you qualify, you won't need to reapply each year. This means you can secure loans for future academic years without multiple hard credit checks. Citizens borrowers can also take advantage of interest rate discounts. If you or your cosigner has an account with Citizens Bank, you can reduce your rate by 0.25 percentage points. Another 0.25 percentage points can be shaved off by enrolling in automatic payments, giving you the chance to lower your rate by up to 0.5 percentage points.
Interest rates: Fixed or variable
Loan amounts: Minimum $1,000, up to 100% of the school-certified cost of attendance
Minimum credit score: 640
Cosigner release: After starting full principal and interest repayment
Minimum income: Does not disclose
Eligibility: Must be a U.S. citizen or permanent resident enrolled at least half-time in a degree-granting program at an eligible institution. International students can apply with a cosigner who’s a U.S. citizen or permanent resident.
Loan terms: 5, 10, or 15 years for student loans; 5 or 10 years for parent loans

Nelnet Bank: Best for Competitive Rates

4.2

Check rates on Credible's website

Min credit score Mid to high 600’s FICO

Fixed APR 3.47% - 10.21%

Variable APR 5.81% - 10.21%

Loan amount $1,000 to $500,000

Term 5, 10, 15

Pros and cons

Pros

Rates are competitive for borrowers or cosigners with strong credit
Rate discount of 0.25 percentage points for autopay
Cosigners can be released after 24 on-time payments
Offers deferment and payment assistance programs

Cons

Charges fees for late payment and insufficient funds
Doesn’t guarantee deferment and forbearance options

Expert insights

Nelnet Bank stands out among private student loan lenders for offering low starting rates and high loan limits across undergraduate, graduate, and health professional programs. You can qualify for a Nelnet Bank student loan with mid-600s credit or apply with a cosigner to improve your chances of approval and secure a better rate.

More details

Overview: Nelnet Bank (Member FDIC) provides private student loans at competitive rates for undergraduate, graduate, and health professional degrees. You'll need a FICO credit score in the mid to high 600s to qualify. Borrowers with bad credit can apply with a cosigner, which may help them qualify and could reduce their interest rate. Cosigners on Nelnet student loans can be released after 24 consecutive on-time payments (see disclaimer). You can also get a 0.25% interest rate reduction when you sign up for automatic payments (see disclaimer). There are no loan origination or application fees, but Nelnet does charge fees for late payments of insufficient funds.
Interest rates: Fixed or variable
Loan amounts: $1,000 to $125,000 for undergraduate, $1,000 to $175,000 for graduate, $1,000 to $500,000 for graduate health professions
Minimum credit score: Mid-to-high 600s
Cosigner release: After 24 months
Minimum income: Does not disclose
Eligibility: All states and US Territories
Loan terms: 5, 10, 15 (IO, Deferred, Immediate)

Abe: Best for Payment Relief Options

4.3

Check rates on Credible's website

Min credit score Mid-600s

Fixed APR 2.65% - 16.36%

Variable APR 3.5% - 16.82%

Loan amount $1,000 up to school-certified cost of attendance (aggregate $225,000 limit, $350,000 limit for certain discipline specific graduate loans)

Term 5, 7, 10, 15, 20

Pros and cons

Pros

Offers 2% principal reduction after graduation
Doesn’t charge late fees
Can reduce interest rate by making on-time payments
Possible repayment term and grace period extension

Cons

Doesn't allow parents to borrow on behalf of their child
Student loan refinancing not available

Expert insights

Few private lenders match the borrower protections Abe offers. You'll find options like in-school default protection, extended grace periods, and multiple types of forbearance — including for job loss and illness. These features make Abe an especially good fit for students who want a safety net during unpredictable times.

More details

Overview: Abe's private student loans are available to undergraduates, graduate students, and students enrolled in graduate certificate programs. Abe is unique in allowing you to borrow even if you're enrolled less than half-time. Abe offers rate discounts and payment relief that other lenders don't, such as a reduction in your rate with autopay and for every six months of consecutive on-time principal and interest payments, up to a total of 0.50 percentage points. Borrowers can also extend their grace period up to an additional six months or up to nine months for Abe Law students. Plus, you can lengthen your repayment term by five years, which can be helpful if you need to lower your monthly payments or request a hardship forbearance for up to 12 months.
Interest rates: Fixed or variable
Loan amounts: $1,000 up to school-certified cost of attendance (for undergrad loans; $350,000 for graduate loans)
Minimum credit score: Mid-600s
Cosigner release: Available after making 12 consecutive on-time monthly principal and interest payments
Minimum income: $1 (must have positive income)
Eligibility: Must be a U.S. citizen or permanent resident. Available to international students and DACA recipients attending a Title IV-eligible school in the U.S. who apply with a cosigner who is a U.S. citizen or permanent resident alien.
Loan terms: 5, 7, 10, 15, or 20 years

MEFA: Best for Borrowers With Good Credit

Check rates on Credible's website

Min credit score 670

Fixed APR 3.29% - 8.89%

Variable APR n/a

Loan amount $1,500 up to school’s certified cost of attendance less aid

Term 10, 15

Pros and cons

Pros

Doesn’t charge any fees
Low maximum rate compared with some lenders
Can borrow up to the school-certified cost of attendance

Cons

No discounts for borrowers
Limited repayment terms
No prequalification available

Expert insights

MEFA is best for borrowers with strong credit who want stable, low-cost college financing without the extras. It offers low, fixed-interest rates and zero fees. But there are no variable rates, autopay discounts, or short-term repayment options. If you meet its credit standards, MEFA's nonprofit model makes it a reliable, no-frills alternative to traditional private lenders.

More details

Overview: Massachusetts Educational Financing Authority (MEFA) offers student loans to borrowers with good credit. However, you won't be able to see your potential rate before applying. The lender doesn't charge any fees and its rates are competitive, though MEFA only offers two repayment terms. You can add a cosigner to your loan if you're unable to qualify, but only one repayment plan allows you to release your cosigner.
Interest rates: Fixed
Loan amounts: $1,500 minimum up to school-certified cost of attendance
Minimum credit score: Does not disclose
Cosigner release: 48 months
Minimum income: Does not disclose
Eligibility: Must be a U.S. citizen or permanent resident, enrolled at least half time at a degree-granting, nonprofit institution, and must maintain satisfactory academic progress. Must have no history of default on an education loan and no history of bankruptcy or foreclosure in the past 60 months. Applicants who can’t meet the minimum credit and income requirements may apply with a cosigner.
Loan terms: 10 or 15 years

Ascent: Best for No-Cosigner Loans

4.9

Check rates on Credible's website

Min credit score Does not disclose

Fixed APR 2.69% - 15.86%

Variable APR 3.68% - 15.59%

Loan amount $2,001* to $400,000

Term 5, 7, 10, 12, 15, 20

Pros and cons

Pros

Doesn’t charge application fees or origination fees
Offers discounts of 0.50 to 1 percentage points when making automatic payments
Can get a 1% cash-back reward after you graduate
Grace periods from 9 to 36 months

Cons

May find lower interest rates with some competitors
International students don’t have option to release cosigners

Expert insights

Ascent stands out for offering private student loans to students without a cosigner and who have limited credit. Its Outcomes-Based Loan uses factors such as academic performance and graduation timeline instead of credit to determine eligibility. Students can also qualify for a cash-back graduation reward and choose from a wide range of repayment plans.

More details

Overview: While Ascent provides traditional student loans for undergraduate, graduate, and medical programs, it also stands out with some options that are uncommon among private student loan lenders. For example, its Outcomes-Based Loan, which doesn't require established credit or a cosigner, is available to juniors and seniors. When assessing your application, Ascent considers factors including your school, major, and GPA to determine if you're eligible. Ascent also offers its Progressive Repayment plan to qualified borrowers. It allows you to begin with smaller payments at the start of the repayment term and then gradually pay more each month over time. If you borrow with a cosigner, they can be released after you make as few as 12 monthly payments. However, cosigners on loans for international students do not qualify.
Interest rates: Fixed or variable
Loan amounts: $2,001 minimum up to your school’s annual cost of attendance; lifetime limits of $200,000 for undergrads and $400,000 for graduates
Minimum credit score: Does not disclose
Cosigner release: 12 months
Minimum income: $30,000 for most loans
Eligibility: Must be a U.S. citizen or DACA student enrolled at least half time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Loan terms: 5, 7, 10, 12, 15, or 20 years

Best Private Student Loans and Interest Rates for May 2026

Top private student loan lenders

How do private student loans work?

Private vs. federal student loans

Student loan FAQs

A closer look at the best private student loan lenders

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