Introduction
Table of Contents
Best Private Student Loan Lenders in 2024. As if federal student loans and scholarships are not sufficient to meet tuition and fees, you might need a private student loan.
While federal loans are provided by the government, private loans are offered by banks, credit unions, and online institutions. But who has the best rates, repayment terms, and perks? In this guide, we’ll discuss the best private student loan lenders for 2024 and how to choose one.
Best Private Student Loan Lenders in 2024? and Why Use a Private Student Loan?
Private student loans are the way to go when:
Federal loans don’t meet all of your costs.
You have decent credit (or a co-signer) and can secure low-interest rates.
You require funding for housing, textbooks, or other education expenses.
Top Factors to Consider When Selecting a Lender
Interest Rates: Seek low fixed or variable rates.
Loan Limits: Minimum or maximum loan values may exist at some lenders.
Repayment Options: Ensure that they have grace periods, deferment, or flexible terms.
Co-Signer Requirements: Numerous students require a co-signer to become qualified.
Best Private Student Loan Lenders 2024
- Sallie Mae
Interest Rate: 4.50% – 14.00% (fixed or variable)
Loan Amounts: $1,000 up to 100% of school-certified costs
Co-Signer Release: After 12 months of timely payments
Repayment Terms: 5, 10, or 15 years
Why Choose Sallie Mae?
✅ Provides deferment and forbearance alternatives
✅ Applies to part-time students, not like most lenders - College Ave
Interest Rate: 3.99% – 13.95%
Loan Amounts: $1,000 to 100% of school expenses
Co-Signer Release: After 24 months
Repayment Terms: 5, 8, 10, 15 years
Why Choose College Ave?
✅ Repayment flexibility (deferred, interest-only, or full payments)
✅ Provides loan customization options - Discover Student Loans
Interest Rate: 4.25% – 12.99%
Loan Amounts: $1,000 to 100% of tuition
Co-Signer Release: After 36 months
Repayment Terms: 10 or 15 years
Why Choose Discover?
✅ No origination, application, or late fees
✅ Cash rewards for good grades - SoFi
Interest Rate: 4.50% – 11.99%
Loan Amounts: $5,000 – $100,000
Co-Signer Release: Yes, but strict requirements
Repayment Terms: 5, 7, 10, 15 years
Why Choose SoFi?
✅ Offers career coaching and financial advising
✅ No fees and rate discounts for autopay - Earnest
Interest Rate: 4.09% – 12.78%
Loan Amounts: $1,000 up to total cost of attendance
Co-Signer Release: Not available
Repayment Terms: 5, 7, 10, 15 years
Why Choose Earnest?
✅ Offers customized repayment plans
✅ No fees or penalties - Citizens Bank
Interest Rate: 4.19% – 12.80%
Loan Amounts: $1,000 – $350,000
Co-Signer Release: After 36 months
Repayment Terms: 5, 10, 15 years
Why Choose Citizens Bank?
✅ Multi-loan discount for existing customers
✅ Best for graduate students and medical students.
Comparison of Private Student Loan Lenders
Lender\tInterest Rate Range\tCo-Signer Release\tLoan Amounts
Sallie Mae\t4.50% – 14.00%\tAfter 12 months\tUp to 100% of costs
College Ave\t3.99% – 13.95%\tAfter 24 months\tUp to 100% of costs
Discover 4.25% – 12.99% After 36 months Up to 100% of costs
SoFi 4.50% – 11.99% Yes, strict $5,000 – $100,000
Earnest 4.09% – 12.78% No Up to total cost of attendance
Citizens Bank 4.19% – 12.80% After 36 months $1,000 – $350,000
How to Apply for a Private Student Loan
Compare lenders and select the best one.
Check your credit score (or have a co-signer assist you).
Fill out an online application with income and school data.
Carefully review the loan terms before accepting.
Sign the agreement and receive the funds.
Private Student Loan advantages and disadvantages
✅ Private Student Loan benefits:
Higher amounts than federal loans
May cover additional expenses (housing, texts, supplies)
Quicker process of approval
❌ Drawbacks:
higher interest rates compared to federal loans
No student loan forgiveness initiatives
Requires checking credit or cosigner
Replacement for Private Student Loans
Scholarships and grants (no money to be repaid) apply.
Apply for federal loans first (smallest rates, best perks).
Explore work-study programs to make money while in school.
Look into employer tuition assistance programs.
Conclusion
Private student loans can be used to make up the difference when federal loans are not sufficient. But it’s important to shop around among lenders, review interest rates, and know the terms of repayment before borrowing.
FAQs
- Are private student loans superior to federal loans?
No, federal loans have lower interest rates and more favorable repayment terms. - Do I need a co-signer for a private loan?
Most students require a co-signer unless they have excellent credit. - When should I apply for a private student loan?
Apply at least 1-2 months prior to the due date for tuition. - Can I refinance private student loans in the future?
Yes, refinancing can reduce interest rates if your credit score increases. - What if I am unable to repay my private student loan?
Private loans do not provide loan forgiveness, so you will have to negotiate with your lender.