What is a private student loan?
A private student loan is an education loan issued by a bank, credit union, or online lender — not the federal government — and is one of the main student loan options you can compare when federal aid isn’t enough. These loans can help you pay for tuition, housing, textbooks, and other school-related costs when federal aid isn't enough.
If you apply for a private student loan, your eligibility and typical student loan interest rate will depend on the lender as well as your credit score, income, debt-to-income ratio, and other factors. You do have the option to apply with a student loan cosigner, which could make it easier to get approved and qualify for a low interest rate.
Private student loans vs. federal loans: What’s the difference?
Federal loans are government-backed and offer standardized student loan rates and flexible repayment options. Private education loans offer more choice and may come with lower interest rates for creditworthy borrowers, but they typically provide fewer borrower protections. Be sure you've made use of all the federal student aid you can qualify for before exploring private loans for college.
Who qualifies for federal and private student loans?
Eligibility for private student loans depends on several factors, including your credit score, income, and enrollment status. Most lenders require a minimum credit score (often around 670) and may also assess your income, debt-to-income ratio, and the school or program you're attending. If you have little or no credit history, applying with a cosigner can improve your chances of approval and help secure a lower student loan interest rate.
To qualify for federal student loans, basic eligibility requirements include U.S. citizenship, a valid Social Security number, enrolling at least half-time in an eligible degree or certificate program, and maintaining satisfactory academic progress. Federal loans don't require a credit check, except for PLUS loans. Financial need is considered for subsidized federal student loans, while unsubsidized loans are available to most students regardless of income.
How much can you borrow with a private student loan?
Private student loan limits vary among lenders. They usually do not exceed your school's total cost of attendance, minus any other financial aid you receive.
Federal student loan borrowing limits vary based on how far along you are in your education and whether your parents support you financially. For many students, the maximum federal student loan amounts aren't enough to cover all their education costs.
How to compare and apply for a private student loan with Credible
1. Get prequalified rates
With Credible, you can compare private student loan rates from multiple lenders at once, without hurting your credit. Simply enter your personal information, then receive an overview of your estimated rates and terms from different lenders you qualify with.
2. Compare private student loan lenders
Research each lender to compare key features and choose the right loan for you. Consider student loan rates, repayment options, fees, member benefits, and student loan reviews.
3. Select your loan
After narrowing down your list of private lenders, choose the student loan option that best suits your needs. Also consider whether you'll add a cosigner to the loan. If so, you'll need to gather some information from your cosigner to complete the next step.
4. Submit an application
Gather the necessary documentation to apply. This may include a government-issued ID, pay stubs, tax records, and more. Fill out the private loan application, provide the requested documentation, sign, and submit.
Compare private student loan lenders and current rates
Review the lenders below to compare student loan rates, repayment options, and loan terms. This can help you determine the best lender for your needs.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Ascent: Best for No-Cosigner Loans
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
2.69 - 15.31%
Variable APR
3.99 - 15.65%
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
Minimum credit score
Does not disclose
Minimum income
$30,000 for most loans
Loan terms
5, 7, 10, 12, 15, or 20 years
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
Cosigner release
12 months
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.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
College Ave: Best for Extended Grace Periods
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
2.74 - 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
Minimum credit score
Does not disclose
Minimum income
Does not disclose
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
Available after more than half of the scheduled repayment period has elapsed and other requirements are met
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.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Custom Choice: Best for Discounts and Rewards
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
2.85 - 15.61%
Variable APR
3.66 - 16.06%
Loan Amount
$1,000 up to $225,000 (aggregate $225,000 limit)
Term
5, 7, 10, 15, 20
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
Cosigner release available upon entering principal and interest repayment
Offers parent student loans
Cons
No mobile app for managing student loans
Does not offer refinancing options for existing student loans
Expert Insights
Custom Choice offers a compelling combination of rate discounts, graduation rewards, and zero fees. You can reduce your interest rate by 0.25 percentage points with autopay and earn a 2% principal reduction after graduating. With no fees, cosigner release available as soon as you begin making principal and interest payments, and hardship forbearance, it's a good option for students seeking both savings and support.
More details
Overview
Custom Choice is a student loan lender that offers loans ranging from $1,000 to $225,000 per year. Undergraduates and grad students can borrow up to a lifetime limit of $225,000.
You can get a 0.25% autopay discount, a 0.25% on-time payment discount, plus a 2% principal reduction for graduating with at least a bachelor’s degree. You may apply with a cosigner if you can't qualify on your own, and you can release them after making 12 consecutive on-time principal and interest payments.
Custom Choice doesn't charge any fees whatsoever, even late fees. The lender also offers a forbearance program that lets you pause payments if you experience a natural disaster or unemployment.
Interest rates
Fixed or variable
Minimum credit score
Does not disclose
Minimum income
Does not disclose
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$1,000 to $225,000 per year (lifetime limit of $225,000)
Cosigner release
After making 12 consecutive on-time principal and interest payments
Eligibility
Available to borrowers in all states except West Virginia. The student must be a U.S. citizen or permanent resident alien, and must be the legal age of majority at the time of application or at least 17 years of age if applying with a cosigner who meets the age of majority requirements in the cosigner's state of residence. Eligible noncitizens, such as international students and DACA residents, can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Sallie Mae: Best for Specialized Loans
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
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
No option to check your rates through prequalification
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
Minimum credit score
Does not disclose
Minimum income
Does not disclose
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
Loan amounts
$1,000 up to school-certified cost of attendance. Student must be listed as the borrower, and a parent may cosign.
Cosigner release
After you graduate, make 12 one-time principal and interest payments, and meet certain credit requirements
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.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Abe: Best for Payment Relief Options
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
660
Fixed APR
2.75 - 15.61%
Variable APR
3.66 - 16.06%
Loan Amount
$1,000 up to school-certified cost of attendance (aggregate $225,000 limit)
Term
5, 7, 10, 15, 20
Pros and cons
Pros
Offers 2% loan 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 offer parent loans
Not available in all states
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 in certificate programs. The lender 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 on-time payments, up to a total of 0.50 percentage points. Borrowers can also extend their grace period up to an additional six months. 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 12 months.
Interest rates
Fixed or variable
Minimum credit score
660
Minimum income
$1 (must have positive income)
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$1,000 up to school-certified cost of attendance (for undergrad loans; $350,000 for graduate loans)
Cosigner release
Available after 12 monthly principal and interest payment
Eligibility
Must be a U.S. citizen or permanent resident. Available to non-U.S. citizen students (including DACA students) attending a school in the U.S. who apply with a cosigner who is a U.S. citizen or permanent resident alien. Loans not available to permanent residents of West Virginia.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
SoFi: Best for Member Perks
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
3.43 - 15.99%
Variable APR
4.64 - 15.99%
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
Minimum credit score
Does not disclose
Minimum income
Does not disclose
Loan terms
5, 7, 10, or 15 years
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance
Cosigner release
After 12 months
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.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Citizens: Best for Multiyear Approval
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
640
Fixed APR
3.24 - 13.37%
Variable APR
4.48 - 13.96%
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
Minimum credit score
640
Minimum income
Does not disclose
Loan terms
5, 10, or 15 years for student loans; 5 or 10 years for parent loans
Loan amounts
Minimum $1,000, up to 100% of the school-certified cost of attendance
Cosigner release
After starting full principal and interest repayment
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.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
ELFI: Best for flexible repayment
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
680
Fixed APR
2.99 - 12.85%
Variable APR
6.75 - 13.05%
Loan Amount
$1,000 up to cost of attendance
Term
5, 7, 10, 15
Pros and cons
Pros
Receive support from a dedicated Student Loan Advisor
Transparent credit and income requirements
Doesn't require full-time enrollment
Flexible repayment terms
Cons
Must be enrolled in a bachelor’s degree program or higher
Cosigners can’t be released from the loan
No autopay rate discounts available
Expert Insights
ELFI stands out for offering a broad range of repayment terms — 5, 7, 10, or 15 years — so you can tailor your loan to fit your budget and timeline. Whether you want to pay off your loan quickly or stretch payments over time, ELFI gives you the tools to choose. This flexibility makes it a strong option if you're seeking maximum control over your repayment plan.
More details
Overview
ELFI a division of Tennessee-based SouthEast Bank, offers private student loans and refinancing for undergraduates, graduates, and parents. Borrowers can take out loans starting at $1,000, with options up to the full cost of attendance at their school.
ELFI student loans are available to students nationwide who are enrolled in a bachelor's degree program or higher. Borrowers can choose from multiple repayment terms and benefit from competitive interest rates and support from a dedicated Student Loan Advisor. However, ELFI doesn't offer cosigner release or rate discounts, which may limit flexibility for some borrowers.
Interest rates
Fixed or variable
Minimum credit score
680
Minimum income
$35,000
Loan terms
5, 7, 10, or 15 years
Loan amounts
$1,000 - Cost of attendance
Cosigner release
A cosigner may not be taken off a loan, but the borrower can apply for a new loan without their cosigner.
Eligibility
All 50 states as well as Washington DC and Puerto Rico.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Nelnet Bank: Best for Competitive Rates
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Mid to high 600’s FICO
Fixed APR
3.47 - 9.99%
Variable APR
5.81 - 9.99%
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
Minimum credit score
Mid-to-high 600s
Minimum income
Does not disclose
Loan terms
5,10,15* (IO, Deferred, Immediate)
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
Cosigner release
After 24 months
Eligibility
All states and US Territories
*Loan Terms Details
See disclaimer
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
INvested: Best for Indiana Students
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
670
Fixed APR
4.34 - 8.43%
Variable APR
6.78 - 10.82%
Loan Amount
$1,001 up to 100% of school certified cost of attendance
Term
5, 10, 15
Pros and cons
Pros
Low minimum borrowing limits
Autopay discount of 0.25 percentage points
Short cosigner release requirements
Transparent qualification requirements
Cons
Loans are available only to Indiana residents
No prequalification option to view your rates
No loan options for international students
Expert Insights
INvestEd offers unique value for Indiana students, with eligibility limited to state residents or those attending school in the state. This includes competitive interest rates, cosigner release after just 12 on-time payments, and generous forbearance and deferment options. As a nonprofit, INvestEd combines affordability with a strong commitment to local borrowers.
More details
Overview
INvested is an Indiana company that offers affordable student loans exclusively to state residents. Loans are available to Indiana students and parents who can meet income and credit requirements, or who have an eligible cosigner. Borrowers can borrow as little as $1,001 or as much as the school-certified cost of attendance minus other aid.
INvested provides detailed information on eligibility so borrowers can quickly determine whether to apply for a loan — however, there’s no option to prequalify with a soft credit check. Cosigner release is also available after just 12 on-time payments, considerably shorter than many other lenders.
Interest rates
Fixed or variable
Minimum credit score
670
Minimum income
Does not disclose
Loan terms
5, 10, or 15 years
Loan amounts
$1,001 minimum, up to the school certified cost of attendance
Cosigner release
12 months
Eligibility
Loans are available to Indiana residents only. Borrowers must have a FICO score of 670 or higher, a 30% maximum debt-to-income ratio or minimum monthly income of $3,333, continuous employment over two years, and no major collections or defaults in recent years. Borrowers who do not meet income or credit requirements can apply with a cosigner.
Advertiser Disclosure
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MEFA: Best for Borrowers With Good Credit
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
670
Fixed APR
3.29 - 8.89%
Variable APR
-
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
Minimum credit score
Does not disclose
Minimum income
Does not disclose
Loan terms
10 or 15 years
Loan amounts
$1,500 minimum up to school-certified cost of attendance
Cosigner release
48 months
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.
Student loan calculator
Use our student loan calculator to compare private loans, evaluate insights found in student loan reviews, and find a low-interest student loan that fits your budget. You can estimate monthly payments and see how different student loan rates can affect your total costs.
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Advertiser DisclosureThe rates that appear are from companies that pay Credible compensation. This compensation does not impact how or where products appear within the table. The rates and information shown do not include all financial service providers or all of the displayed lender's available services and product offerings.
How student loan interest works
Student loan interest is the cost of borrowing money and is typically calculated as a percentage of your outstanding loan balance, expressed as an annual percentage rate (APR).
For most federal and private student loans, interest accrues daily based on simple interest — meaning it's calculated on the original loan amount, not on previously accrued interest. Each monthly payment first covers any accrued interest, with the remainder going toward the principal. Over time, as you pay down your loan, the daily interest charges decrease. However, if you miss payments, the unpaid interest may be capitalized, or added to your principal, increasing the total loan balance and future interest charges.
Federal loans have fixed interest rates set by the government, which makes them predictable over time. Private loans may have either fixed interest rates or variable interest rates that can change based on market conditions and potentially increase your costs. Most student loans charge simple interest. In rare cases, private loans may use compound interest, which can further increase what you owe. Because interest can significantly raise your repayment costs, it's important to understand how it's calculated and explore ways to reduce it.
To minimize interest charges, consider making interest-only payments while in school, paying extra toward the principal when possible, refinancing for a lower education loan interest rate, or choosing a shorter repayment term. These strategies can help reduce the overall cost of your loan. On the flip side, ignoring interest payments — especially during school or deferment — can lead to capitalization and inflate your debt. Continued nonpayment after your loan enters repayment can lead to delinquency, default, and serious financial consequences like damaged credit and wage garnishment.
Editor insight: “To qualify for the best student loan rates, I suggest choosing one that you can pay off as quickly as you can comfortably manage. Lenders typically offer lower private student loan interest rates on shorter loan terms because there's less risk of default. You'll also repay your loan faster and reduce the total interest cost.”
— Renee Fleck, Student Loans Editor, Credible
Student loan interest rate trends
If you’re comparing private student loans, tracking average interest rate trends can help you understand the typical student loan interest rate and find a low-interest student loan when rates dip. Interest rates are the biggest factor determining the cost of student loans. Even small differences in student loan rates can translate into thousands of dollars over the life of a loan. While federal student loan rates are the same for all borrowers, private student loan rates vary widely depending on the borrower's credit profile.
For the 2025-26 school year, federal student loan rates are fixed at 6.39% for undergraduate Direct Loans, 7.94% for graduate Direct Unsubsidized Loans, and 8.94% for PLUS Loans. Private student loan rates on the Credible platform range from 2.69% to 17.99% APR for fixed-rate loans, and from 3.66% to 17.99% APR for variable-rate loans.
Choosing between fixed and variable rates, or adjusting your repayment term, can help align borrowing costs with your long-term goals. If you're looking to minimize your total repayment amount, a lower rate can make a substantial difference — even by just 1%.
If you're considering private loans, take time to understand how interest is calculated and how your rate might change over time. Keeping track of average student loan rate trends, like those published by Credible, can help you understand the market and compare loan offers with confidence.
Pros and cons of private student loans
Private student loans can be a valuable tool for covering college costs, especially after you've maxed out scholarships, grants, and federal aid. They offer quick access to funds and may come with competitive interest rates if you or your cosigner has strong credit. However, unlike federal loans, private student loans typically lack flexible repayment options, income-based plans, and forgiveness opportunities, making it crucial to understand the pros and cons before borrowing.
Here's a quick comparison of the advantages and drawbacks of private student loans:
Before taking out a private loan, use a student loan calculator to estimate your potential monthly payments and compare them to expected earnings after graduation. Borrow only what you need, and consider making interest-only payments while in school to help manage long-term costs.
When to apply for a private student loan
The timing of your student loan applications is crucial, especially when balancing both federal and private options. Federal student loans should be your starting point, and the application process begins with completing the Free Application for Federal Student, or FAFSA. Submitting the FAFSA early improves your chances of receiving grants and other aid awarded on a first-come, first-served basis. While the FAFSA has set federal deadlines, many states and schools have their own earlier cutoff dates. Check with your state and school financial aid office to stay on track.
Private loans offer more flexibility with timing. You can apply for private student loans anytime, including during the semester. However, you should always do so as early as possible to avoid delays in processing and disbursement. Private lenders often require school certification before releasing funds. This can take several weeks. While many private lenders provide fast approval, unexpected documentation requests or school-related delays can slow the timeline, so it's best to apply well in advance of your tuition due date.
There are many student loan options available, from federal loans to private lenders. Each has different rates, repayment terms, and borrower benefits. Using Credible, you can easily compare these options side by side to find the best fit for your needs.
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Methodology
To determine the best student loan lenders, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.
- Repayment options: 30%
- Eligibility: 25%
- Interest rates: 20%
- Loan terms: 15%
- Customer support: 10%
While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.
Learn more about our methodology.