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5 Best Private Student Loans of June 2022

After hours of research, we found the five best private student loans amongst our partners — including what each is the best for.

Many or all of the companies featured provide compensation to LendEDU. These commissions are how we maintain our free service for consumers. Compensation, along with hours of in-depth editorial research, determines where & how companies appear on our site.

If you've exhausted all your scholarship, grant, work-study, and federal student loan options and still need money for school, private student loans can be a good option. Full Introduction Since most private student loan lenders require good credit, we recommend adding a creditworthy cosigner to your application to improve your chances of approval. A cosigner can also help you receive a lower interest rate, which will reduce the overall cost of your loan. In the table and reviews below, you'll find the best private student loans amongst our partners, based on hours of research into rates, repayment terms, unique benefits, and more.

Compare the best private student loan lenders Lender Best for Rates (APR) Our Rating 5.0 Rates (APR) % – % Best Overall % – % 5.0 Best Overall View Rates 4.8 Rates (APR) % – % Best for Cosigners % – % 4.8 Best for Cosigners View Rates 4.3 Rates (APR) – Best for No Fees – 4.3 Best for No Fees View Rates 4.7 Rates (APR) – Best for

Forebearance Flexibility – 4.7 Best for

Forebearance Flexibility View Rates 4.1 Rates (APR) – Best for Member Benefits – 4.1 Best for Customer Benefits View Rates

Reviews of the five best private student loans

Check out the reviews below for an in-depth explanation as to why we selected each lender as one of the best private student loans. If you’re interested in learning more about a specific lender, you can jump to that review by clicking on its name in the list below.

Best overall: College Ave

Best for cosigners: Sallie Mae

Best for forebearance flexibility: Ascent

Best for member benefits: SoFi

Best for no fees: Earnest

College Ave

Our Pick: Best Overall

5.0 LendEDU Rating View Rates Disclosures × Disclosures College Ave Student Loans 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. As certified by your school and less any other financial aid you might receive. Minimum $1,000. Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation. This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. 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 . Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term. Why It’s One of the Best College Ave is our choice as the best overall lender for the second year in a row because it has competitive rates, lets you choose your repayment term, and can cover up to 100% of your school-certified cost of attendance. Variable Rates

% – % APR Fixed Rates

% – % APR Loan Amounts

– 100% of school-certified cost of attendance Pros & Cons Eligibility Requirements Repayment Details Pros & Cons Pros You choose your repayment term

Offers all four in-school repayment options

Multi-Year Peace of Mind™

Option to apply for a six-month grace period extension

Covers up to the total cost of attendance

A+ rating from the BBB Cons Cosigner release isn’t available until you are at least halfway through your repayment term Eligibility Requirements College Ave student loans are available to undergraduates, graduates, parents, and for career training. According to the lender, 98% of all undergraduate loans are cosigned. By adding a cosigner, you can improve your chances of meeting the following eligibility requirements: Financial Requirements Minimum credit score: Not disclosed

Not disclosed Minimum income: $35,000 per year

$35,000 per year Approval after prior bankruptcy: No Educational Requirements School eligibility: Must be enrolled in a degree-granting program at an eligible school

Must be enrolled in a degree-granting program at an eligible school Enrolled half-time or more: Yes Other Requirements Citizenship: U.S. citizen or permanent resident or international students with a cosigner who is a U.S. citizen or permanent resident

U.S. citizen or permanent resident or international students with a cosigner who is a U.S. citizen or permanent resident State: Available in all 50 states Repayment Details College Ave allows you to choose your repayment term (between ) and select amongst four in-school repayment options. In-School Repayment Options Full: Pay principal and interest

Pay principal and interest Interest-only: Pay interest every month

Pay interest every month Fixed: Pay $25 every month

Pay $25 every month Deferred: No payment Post-School Repayment Options Repayment terms:

Grace period: 6 months for undergraduates & 9 months for graduate students

6 months for undergraduates & 9 months for graduate students Grace period extension: Apply for an additional 6 months

Apply for an additional 6 months Deferment options: In-school & military

In-school & military Forbearance: Up to 12 months, in increments of 3 or 6 months Other Repayment Options Cosigner release: Yes, after finishing more than half of the scheduled repayment period and meeting additional criteria

Yes, after finishing more than half of the scheduled repayment period and meeting additional criteria Death discharge: Yes

Yes Disability discharge: Yes

College Ave is an online student loan lender based out of Wilmington, Delaware. The lender’s sole focus is to make a college degree more attainable by helping students and parents afford the rising cost of higher education. When you borrow with College Ave, you’ll get to take advantage of its Multi-Year Peace of Mind™. Thanks to this benefit, 90% of undergraduate borrowers are approved for additional loans for future years when applying with a cosigner. That’s not the only benefit of College Ave. It also allows you to select your repayment term and explains how the term and plan you choose impacts the long-term cost of your loan. Are you interested in applying for a loan with College Ave? You can get an instant credit decision in just three minutes by clicking here.

Sallie Mae

Our Pick: Best for Cosigners

4.8 LendEDU Rating View Rates Why It’s One of the Best Sallie Mae is our choice as the best for cosigners due to its short cosigner release period. Cosigners can be released from a Sallie Mae student loan after the borrower makes just 12 consecutive on-time monthly payments. Variable Rates

% – % APR Fixed Rates

% – % APR Loan Amounts

– 100% of school-certified cost of attendance Pros & Cons Eligibility Requirements Repayment Details Pros & Cons Pros A short cosigner release period

Four months of free Chegg® study help

Multi-Year Advantage

Students attending school less than half-time are eligible

Covers up to the total cost of attendance

A+ rating from the BBB Cons Can't prequalify with a soft credit check Eligibility Requirements Sallie Mae student loans are available to undergraduates, graduates, parents, and for career training. According to the lender, students are nearly four times more likely to be approved when a cosigner is added to the application. Here are some of the eligibility requirements for a Sallie Mae student loan: Financial Requirements Minimum credit score: Not disclosed

Not disclosed Minimum income: Not disclosed

Not disclosed Approval after prior bankruptcy: Yes, with no open bankruptcy Educational Requirements School eligibility: Must be enrolled in a degree-granting program at an eligible school

Must be enrolled in a degree-granting program at an eligible school Enrolled half-time or more: Yes Other Requirements Citizenship: U.S. citizen or permanent resident or non-U.S. citizen with a cosigner who is a U.S. citizen or permanent resident

U.S. citizen or permanent resident or non-U.S. citizen with a cosigner who is a U.S. citizen or permanent resident State: Available in all 50 states, plus Washington D.C. and Puerto Rico Repayment Details Sallie Mae offers a wide range of repayment terms that can be anywhere between . Borrowers also have access to several deferment options that allow for payments to be paused under certain conditions. In-School Repayment Options Interest-only: Pay interest every month

Pay interest every month Fixed: Pay $25 every month

Pay $25 every month Deferred: No payment Post-School Repayment Options Repayment terms:

Grace period: 6 months

6 months Deferment options: In-school, military, internship, residency, and fellowship

In-school, military, internship, residency, and fellowship Forbearance: Up to 12 months, in increments of 3 months Other Repayment Options Cosigner release: Yes, after 12 consecutive on-time payments

Yes, after 12 consecutive on-time payments Death discharge: Yes

Yes Disability discharge: Yes

Sallie Mae, the most widely known student loan lender, is based out of Newark, Delaware. When it was founded, it was a government entity in charge of servicing federal education loans. Then, between 1997 and 2004, Sallie Mae transitioned into a fully privatized bank and began offering private student loans. Today, Sallie Mae controls the largest share of the private student loan market. It’s also expanded its product offering to include credit cards, savings accounts, and more. Sallie Mae borrowers can enjoy benefits including four months of free Chegg® study help, Multi-Year Advantage, and no origination or application fees. With Multi-Year Advantage, returning undergraduate students with a cosigner have a 95% approval rate for a future loan. Are you interested in applying for a loan with Sallie Mae? You can apply and get a credit decision in about 15 minutes by clicking here.

Earnest

Our Pick: Best for No Fees

4.3 LendEDU Rating View Rates Why It’s One of the Best When Earnest says it doesn't charge any fees, it means it. There are no origination, application, prepayment, or late payment fees. Variable Rates

– APR Fixed Rates

– APR Loan Amounts

– 100% of school-certified cost of attendance Pros & Cons Eligibility Requirements Repayment Details Pros & Cons Pros No fees

A long grace period

Skip a payment once per year

Check your eligibility without affecting your credit

Covers up to the total cost of attendance

A+ rating from the BBB Cons Cosigner release is not available Eligibility Requirements Earnest student loans are available to undergraduates, graduates, and parents. According to the lender, two-thirds of its borrowers have a cosigner, and students are four times more likely to get approved when applying with a cosigner. Here are some of the eligibility requirements for an Earnest student loan: Financial Requirements Minimum credit score: 650

650 Minimum income: $35,000 per year

$35,000 per year Approval after prior bankruptcy: No Educational Requirements School eligibility: Must be enrolled in a degree-granting program at an eligible school

U.S. citizen or permanent resident or non-U.S. citizen with a cosigner who is a U.S. citizen or permanent resident State: All states other than Nevada, plus Washington D.C. Repayment Details Earnest offers several repayment terms of . With a longer than average grace period, borrowers can take extra time, if needed, to set themselves up to comfortably meet future payments. In-School Repayment Options Full: Pay principal and interest

Pay principal and interest Interest-only: Pay interest every month

Pay interest every month Fixed: Pay $25 every month

Pay $25 every month Deferred: No payment Post-School Repayment Options Repayment terms:

Grace period: 9 months

9 months Deferment options: In-school, military, residency, and fellowship

In-school, military, residency, and fellowship Forbearance: Up to 12 months Other Repayment Options Cosigner release: No

No Death discharge: Yes

Yes Disability discharge: Yes

Earnest is an online lender based out of San Francisco, California. The lender was founded with the goal of making higher education accessible and affordable for everyone. One of the main benefits of taking out a loan with Earnest is that there are no fees. Many lenders market their student loans as having no fees to apply, but this only refers to origination and application fees. With Earnest, you won't be charged any fees to apply, plus you won't be charged for paying off your loan early or for any late payments. In addition to no fees, Earnest offers several other benefits, like a longer than average grace period and the ability to skip a payment once per year. Are you interested in applying with Earnest? You can find out if you're eligible in just two minutes by clicking here.

Ascent

Our Pick: Best for Forbearance Flexibility

4.7 LendEDU Rating View Rates Why It’s One of the Best Ascent allows borrowers experiencing financial difficulty to enter temporary hardship forbearance for up to 24 months. Other options include administrative and natural disaster forbearance. Variable Rates

– APR Fixed Rates

– APR Loan Amounts

– Pros & Cons Eligibility Requirements Repayment Details Pros & Cons Pros Forbearance flexibility

Graduation reward

Prequalify with no impact on your credit

Job loss and natural disaster protection

Covers up to the total cost of attendance

A+ rating from the BBB Cons Limits to the amount you can borrow Eligibility Requirements Ascent student loans come in the form of cosigned and non-cosigned loans for undergraduates and graduates. If you can’t meet the eligibility requirements for the cosigned loan listed below, you may be eligible for Ascent’s non-cosigned loan. Financial Requirements Minimum credit score: 540

540 Minimum income: $24,000 per year

$24,000 per year Approval after prior bankruptcy: Yes, but not in the last 5 years Educational Requirements School eligibility: Must be enrolled in a degree-granting program at an eligible school

Must be enrolled in a degree-granting program at an eligible school Enrolled half-time or more: Yes Other Requirements Citizenship: U.S. citizen or permanent resident, and international or DACA students with a U.S. citizen or permanent resident as a cosigner

U.S. citizen or permanent resident, and international or DACA students with a U.S. citizen or permanent resident as a cosigner State: Available in all 50 states Repayment Details Ascent offers several repayment terms of . The lender has some of the best repayment benefits for borrowers who may find themselves experiencing periods of financial difficulty. In-School Repayment Options Interest-only: Pay interest every month

Pay interest every month Fixed: Pay $25 every month

Pay $25 every month Deferred: No payment Post-School Repayment Options Repayment terms:

Grace period: 9 months

9 months Deferment options: In-school and military

In-school and military Forbearance: Up to 24 months, in up to 4 consecutive periods Other Repayment Options Cosigner release: Yes, after 24 consecutive on-time monthly payments

Yes, after 24 consecutive on-time monthly payments Death discharge: Yes

Yes Disability discharge: Yes

Ascent is an online student loan lender based out of San Diego, California. Its student loan offering is unique compared to other lenders in that it offers three different options. These options include its traditional cosigned loan, non-cosigned credit-based loan, and non-cosigned future income-based loan. Borrowers looking for repayment protection will be happy to know that Ascent offers several deferment and forbearance options. Ascent’s college loans include active-duty military deferment, in-school deferment, and residency or internship deferment. For those dealing with financial difficulty, loans include temporary hardship forbearance, administrative forbearance, and natural disaster or declared emergency forbearance. All three of these options will extend the repayment term on your loan. Are you interested in applying with Ascent? You can prequalify and check your rate with no impact on your credit by clicking here.

SoFi

Our Pick: Best for Member Benefits

4.1 LendEDU Rating View Rates Why It’s One of the Best SoFi members enjoy a wide range of benefits, including a 0.125% rate discount, career coaching, unemployment protection, and more. Variable Rates

– APR Fixed Rates

– APR Loan Amounts

– 100% of school-certified cost of attendance Pros & Cons Eligibility Requirements Repayment Details Pros & Cons Pros Rate discount if you or your cosigner are a SoFi member

No fees

Prequalify with no impact on your credit

Career coaching

Unemployment protection

Covers up to the total cost of attendance Cons High minimum loan amount Eligibility Requirements SoFi offers student loans for undergraduates, graduates, and parents. According to the lender, those with a creditworthy cosigner are seven times more likely to be approved. Here are some eligibility requirements for a SoFi student loan: Financial Requirements Minimum credit score: Not disclosed

Not disclosed Minimum income: None

None Approval after prior bankruptcy: Yes Educational Requirements School eligibility: Must be enrolled in a degree-granting program at an eligible school

Must be enrolled in a degree-granting program at an eligible school Enrolled half-time or more: Yes Other Requirements Citizenship: U.S. citizen, permanent resident, or visa holder (E-2, E-3, H-1B, J-1, L-1, or O-1), and international or DACA students with a U.S. citizen or permanent resident as a cosigner

U.S. citizen, permanent resident, or visa holder (E-2, E-3, H-1B, J-1, L-1, or O-1), and international or DACA students with a U.S. citizen or permanent resident as a cosigner State: Available in all 50 states Repayment Details SoFi offers several repayment terms of . Borrowers have the option to choose between all four in-school repayment options and can enjoy unemployment protection. In-School Repayment Options Full: Pay principal and interest

Pay principal and interest Interest-only: Pay interest every month

Pay interest every month Fixed: Pay $25 every month

Pay $25 every month Deferred: No payment Post-School Repayment Options Repayment terms:

Grace period: 6 months

6 months Deferment options: In-school and military

In-school and military Forbearance: Up to 12 months, for three months at a time Other Repayment Options Cosigner release: Yes, after 24 consecutive on-time monthly payments

Yes, after 24 consecutive on-time monthly payments Death discharge: Yes

Yes Disability discharge: Reviewed on a case-by-case basis

SoFi is a mobile-first online personal finance company based out of San Francisco, California. It made a name for itself in 2012 as the first company to refinance both federal and private student loans. Since then, it has expanded into nearly all consumer lending markets with over $50 billion in loans funded. Without a doubt, one of the biggest draws to borrowing from SoFi is the wide range of benefits available to its members. These benefits fall into three categories: money, community, and career. Money benefits include financial planning advice from credentialed advisors, referral bonuses, and member rate discounts. Community benefits include attending networking events, dinners, and happy hours. Career benefits include tools to help you earn a raise, personalized career advice, and an unemployment protection program. Are you interested in applying for a loan with SoFi? You can prequalify without impacting your credit in minutes by clicking here.

How we chose the best private student loans

Since 2014, LendEDU has been reviewing private student loan lenders to determine the best in the industry. Our most recent evaluation consisted of 12 of our partners, including several of the largest in market share.

Here are the seven categories that we reviewed to score each lender:

Interest rates: The rate on your loan is the most significant indicator of how much your loan will cost over time. We valued lenders that offered low rates and discounts.

The rate on your loan is the most significant indicator of how much your loan will cost over time. We valued lenders that offered low rates and discounts. Repayment: Most borrowers will spend years repaying their student loans, and because of this, offering flexible repayment options was an important factor in our evaluation. Lenders that had borrower-friendly terms scored the highest.

Most borrowers will spend years repaying their student loans, and because of this, offering flexible repayment options was an important factor in our evaluation. Lenders that had borrower-friendly terms scored the highest. Loan amount: When you take out a student loan, you want to make sure that the loan can cover all your expenses. Lenders that cover up to the total cost of education were scored highest. Important note: You should only take out what you need. Small student loans are available to avoid borrowing more than you need.

When you take out a student loan, you want to make sure that the loan can cover all your expenses. Lenders that cover up to the total cost of education were scored highest. Important note: You should only take out what you need. Small student loans are available to avoid borrowing more than you need. Cosigner benefits: Most estimates have over 90% of new private student loans including a cosigner. Lenders that allowed cosigners to be released from the loan were valued above those that didn't.

Most estimates have over 90% of new private student loans including a cosigner. Lenders that allowed cosigners to be released from the loan were valued above those that didn't. Fees: No private lender charging origination, application, or prepayment fees is eligible to be featured on this page. However, there are other fees that lenders may charge, such as late payment fees. The fewer fees charged by a lender, the better they scored.

No private lender charging origination, application, or prepayment fees is eligible to be featured on this page. However, there are other fees that lenders may charge, such as late payment fees. The fewer fees charged by a lender, the better they scored. Better Business Bureau (BBB) rating: The BBB rates businesses between an A+ and F on how likely it is to interact with its customers. For student loan borrowers who will likely have a question or two during the life of their loan, this is a valuable rating to reference. The higher the rating a lender received, the better they scored.

The BBB rates businesses between an A+ and F on how likely it is to interact with its customers. For student loan borrowers who will likely have a question or two during the life of their loan, this is a valuable rating to reference. The higher the rating a lender received, the better they scored. Benefits: To stand out amongst their competitors, most student loan lenders offer unique benefits and rewards. These benefits can include a free subscription, a graduation reward, unemployment assistance, and more. Lenders that provided benefits that helped borrowers better control the cost of their loan were scored highest.

Once we scored each lender, we then determined who was the best for different situations. If a lender wasn't the best for anything, or they didn't allow borrowers to choose between in-school or deferred payments, they were not included on this page.

Is a private student loan a good option for you?

Federal student loans are limited to a certain amount each year of undergraduate study. If you need to borrow more, your options might include federal Parent PLUS loans, private student loans, and some states have loan programs for residents or students in the state.

With all loans, you should understand your budget once you graduate. Once you pay for your basic necessities such as housing, food, and transportation, you should have enough left over to pay the monthly student loan payments from your expected starting salary. If it looks like this will be a problem, more student debt may not be the answer to pay for your college expenses.

Be sure you and your family compare all the costs and repayment options for the various student loan choices.

How to decide which private student loan is the best for you

While our evaluation of our private student loan partners was created as a starting point for students and their families to find the best private student loan, we recommend you do your own research as well.

When looking for a private student loan, comparing your options is the most important thing you can do. By doing this, you’ll be able to find an affordable loan that comes with borrower-friendly repayment terms. Here are the steps we recommend taking to find the best private student loan:

Compile a list of student loan lenders that you're interested in. Ideally, you’ll want to choose between reputable companies that have demonstrated an ability to support borrowers during repayment. Review the eligibility requirements for each lender. All private lenders have their own unique eligibility requirements. Make sure you're eligible with a lender before applying to limit unnecessary hard credit checks. Remember, we recommend adding a cosigner to your loan to improve your chances of approval, but that cosigner is on the hook to pay back your loan if you are unable to. If you and your cosigner don't meet the eligibility requirements, you should remove that lender from consideration. Review the loan terms. Make sure you understand what happens if you were to die or become disabled during the loan term. The lenders in our reviews all allow loan discharge for death or disability, but not all lenders have this feature. If you borrow from a lender that doesn’t allow for forgiveness due to death or disability, students should consider inexpensive life insurance to protect their cosigners. Although private student lenders do not have the same income-driven repayment plans as federal student loans, they might have forbearance programs if you lose your job during the repayment period. It can be helpful to understand those programs up-front. Get quotes from the lenders you're eligible with. While most lenders display an interest rate range on their website, the only way to know the rate you'll receive is by prequalifying or submitting a complete application. Make sure to utilize soft credit checks when possible to reduce the total number of hard credit inquiries on your credit report. Compare your quotes. Once you’ve received a rate estimate from each lender, compare your offers to see which lender offers you the lowest rate. Make sure to consider other factors like the repayment term, borrower protections, and unique benefits as well. Choose a lender. The lender you borrow from should offer you the most affordable loan, with borrower protections that help you in times of need during repayment. Once you select a lender, you can submit your application and wait for the lender to inform you of your next steps.

Private student loan FAQ

How do private student loans work?

Private student loans are a form of financial aid that students can use to cover the cost of their education. These loans are offered by banks, credit unions, and online lenders.

You’ll need to apply for a loan directly with a lender and meet certain eligibility requirements to be approved. If you can’t meet the eligibility requirements alone, you’ll need to add a creditworthy cosigner who can.

Most lenders allow you to borrow up to the total cost of attendance, minus any other financial aid you receive. Once your loan amount is finalized, the funds will be disbursed to your school to cover tuition and other expenses. Any remaining funds will be sent directly to you to use as needed.

When you start repaying your loan will depend on which in-school repayment plan you select. Your options include making full, interest-only, fixed, or deferred payments. If you choose full, interest-only, or fixed payments, you'll start making payments while attending school. If you defer your payments until after you graduate, repayment won't begin until your grace period is over. After your grace period, you’ll start making full payments for the duration of your loan term, typically from five to 20 years.

>> Read More: Pros and cons of private student loans

What are the eligibility requirements for a private student loan?

Each lender has its own eligibility requirements. Generally, you'll need to be a U.S. citizen or permanent resident, have good credit, attend a Title IV school at least half-time, and meet an income threshold.

If you can't meet those requirements independently, you'll likely need to add a cosigner to your loan application. Make sure your cosigner understands the risks of being added to the loan. If you’re unable to make your monthly payments, your cosigner will be responsible for continuing to pay back the loan.

If you can't meet the eligibility requirements and don't have a cosigner to add to your loan, there are student loan lenders that student loans without a cosigner and student loans for international students.

>> Read More: Private student loan eligibility requirements

How do student loan interest rates work?

Your interest rate is arguably the most important part of your student loan. For private loans, the interest rate you receive will depend on you or your cosigner’s credit and income, amongst other factors. If you have an excellent credit score and steady income, you are more likely to receive a lower interest rate.

Private student loans also come with either a fixed or variable interest rate. If you choose a fixed rate, your rate will remain the same for the duration of your loan. If you choose a variable rate, your rate will change throughout your loan term and increase or decrease depending on economic conditions.

With private student loans, interest accrues while you attend school. This means that your balance will be larger than your original loan amount when you begin repayment under a deferred repayment plan. However, lenders typically allow you to save on interest by selecting an in-school repayment plan where you make partial payments while still attending school.

>> Read More: Student loan interest rates

Do private student loans have fees?

Private student loans can come with fees; however, none of the lenders listed above charge an origination, application, or prepayment fee. We take this stance because we don't believe borrowers should be charged for taking out a loan or paying one off early.

That being said, let’s look at the different types of fees typically discussed with student loans.

Origination fee: This fee is charged when you take out a loan. It's usually calculated as a percentage of the total loan amount. For example, if you have a $10,000 loan with a 5% origination fee, the fee would come to $500. While federal student loans do come with an origination fee, none of the lenders in our list above charge one.

This fee is charged when you take out a loan. It's usually calculated as a percentage of the total loan amount. For example, if you have a $10,000 loan with a 5% origination fee, the fee would come to $500. While federal student loans do come with an origination fee, none of the lenders in our list above charge one. Application fee: This fee is charged to you when you fill out and submit an application for a loan. Like the origination fee, none of the lenders selected above charge this fee.

This fee is charged to you when you fill out and submit an application for a loan. Like the origination fee, none of the lenders selected above charge this fee. Late payment fee: This fee is charged to you if you don't make a payment on time. A lender may set this as a flat amount (e.g., $25) or a percentage of the missed payment (e.g., 5%). Some of the lenders in our list do charge this fee, so we recommend putting together a repayment plan that can help you ensure you stay on schedule with payments.

This fee is charged to you if you don't make a payment on time. A lender may set this as a flat amount (e.g., $25) or a percentage of the missed payment (e.g., 5%). Some of the lenders in our list do charge this fee, so we recommend putting together a repayment plan that can help you ensure you stay on schedule with payments. Prepayment fee: This fee is charged if you pay off your loan early. None of the lenders listed above charge this fee.

How do private student loans differ from federal student loans?

Federal student loans are offered by the Department of Education and require you to fill out the Free Application for Federal Student Aid (FAFSA) to determine eligibility. Federal student loans should always be considered before borrowing private student loans due to lower rates and friendlier repayment benefits, such as income-driven repayment plans and forgiveness programs.

Unfortunately, federal student loans come with borrowing limits that can limit students’ ability to cover their entire cost of attendance. Because of this, many turn to private student loans to bridge the gap.

Private student loans are offered by banks, credit unions, and online lenders. These loans typically allow you to borrow up to the total cost of attendance. Unlike federal student loans, you can’t fill out one application to determine your eligibility for all private student loans. Each lender sets its own eligibility requirements, typically including income and credit minimums.

Whether you borrow from the government or a private lender, always understand if your after-graduation budget will allow you to pay back your student loans before deciding to use them for your education.

>> Read More: Federal vs. private student loans

Recap of the best private student loan companies

Eligible for Public Service Loan Forgiveness? You May Need to Act Sooner Than You Think

The Public Service Loan Forgiveness program has now canceled a total of $7.3 billion in student loans for more than 127,000 borrowers. After rule changes in October 2021 and again in April of this year, loan forgiveness was extended to even more public servants -- such as teachers, government workers, first responders and firefighters -- who may have previously been ineligible for the PSLF program.

The initiative to expand debt relief to a greater number of eligible public service workers began last fall and continued into the spring, when the PSLF program improved tracking of borrowers in income-driven repayment plans and of those who were inappropriately placed in forbearance by lenders.

If you want to apply for forgiveness through the expanded PSLF waiver, you have until Oct. 31, 2022. But if you have Perkins or FFEL loans, you'll need to first consolidate them into Direct Loans before filing your application. According to Martin Lynch, director of education at the Cambridge Credit Counseling Corp., you should consolidate your loans "by the end of the first week of September, because the consolidation process can take 45 days to complete."

How do you know if you're eligible for loan relief through the expanded PSLF program? And how can you make sure to apply on time? Here's what to know about public service loan forgiveness. For more, here's how debt student loan forgiveness can affect your credit score.

What is the PSLF program?

The PSLF program, first launched in 2007, was designed to help public servants pay off their loans faster. The program works by offering loan forgiveness to eligible public servants who have made 120 qualifying student loan payments. Yet almost 99% of borrowers who have applied since 2008 were denied prior to the October expansion.

Who is eligible for PSLF?

To qualify for PSLF you must be employed full-time by a US federal, state, local or tribal government agency -- this includes the military -- or a nonprofit organization. You must have federal Direct Loans or other types of federally backed loans that have already been consolidated into Direct Loans and you must make 120 qualifying payments (10 years' worth of payments). Examples of borrowers who qualify for PSLF are workers like teachers, nurses and firefighters who serve their local communities.

Who qualifies for student loan forgiveness under the new PSLF terms?

Borrowers in public service jobs may be able to receive forgiveness for FFEL, federally backed loans made through private lenders, Perkins loans and other nonstandard or non-income-driven repayment plans for federal loans under the expanded waiver. (Note: The waiver only applies to federal loans, which make up the vast majority, or more than 90%, of total student loan debt.)

Borrowers can also receive credit for previous payments and periods of employment, such as active military duty, that they wouldn't have qualified for in the past.

The easiest way to figure out if you qualify is to apply for the limited waiver. Filling out the waiver will help you do things like consolidate different types of loans or certify previous periods of employment for credit.

How do I apply for PSLF forgiveness? Is there a deadline?

The Department of Education has a dedicated tool to help guide your application for the limited waiver. The deadline to apply for the waiver is Oct. 31, 2022, but the sooner you apply, the better. Some borrowers may not have to take any action to have their loans canceled -- but it's a good idea to confirm your specific details.

If you hold FFEL or Perkins loans, you'll need to consolidate them into Direct Loans. This process can take several weeks, and Lynch recommends completing the process "at least 45 days before filing the PSLF application." That means you should take action to consolidate no later than the first week of September to ensure you have enough time to file.

How do I consolidate my non-Direct Loans?

You can consolidate qualifying federal student loans into a Direct Loan online at the Federal Student Aid website -- you can find the application for consolidation here. This will combine your existing federal loans into one Direct Loan with one interest rate and one monthly payment. By consolidating into one Direct Loan and then applying for the expanded PSLF waiver, your past payments can now count toward loan forgiveness, as long as you are in a qualifying public service job.

Does the current student loan payment pause affect my PSLF eligibility?

No. Federal student loan payments have been on pause for over two years, currently slotted to expire on Aug. 31. Under the PSLF, each of those paused payments counts as a qualifying loan payment during this time. So, if your payments were paused for 26 months, that counts as 26 on-time payments, bringing you closer to your goal of 120.

What if I didn't receive credit for past payments?

In the past, if you had been making payments but your loan servicer had incomplete or inaccurate records, you had almost no recourse to counter their claims. Now, with the limited waiver, you can apply for forgiveness and have your payments counted toward your debt and forgiveness.

Which loans qualify for PSLF?

Previously, only Direct Loans with a standard or income-driven repayment plan qualified for PSLF. However, for a limited time, you may be able to receive credit for past payments on federal loans that did not previously qualify for PSLF, regardless of your repayment plan. Borrowers with FFEL, Perkins and other federal non-Direct Loans must consolidate their loans through the Direct consolidation program before applying for the PSLF expanded waiver.

What other policy changes should I know about?

The Department of Education said in its statement that it will continue to roll out and update its policies in the coming months as it attempts to get the PSLF program back on track.

Correction, Jan. 25: This article previously stated that private loans would be eligible for student loan forgiveness under the new waiver. That was incorrect. In addition to Direct Loans, only FFEL loans -- which are federally backed, but often issued by private lenders -- Perkins Loans and other federal loans may qualify for the PSLF waiver.

Student Loan Debt Clock

This Student Loan Debt clock reports an estimate of current student loan debt outstanding, including both federal and private student loans. This student loan debt clock is intended for entertainment purposes only. The actual total debt outstanding demonstrates more volatility at the beginning of each semester, when most student loans are disbursed. (Most colleges are required to disburse federal education loans in two installments per period of enrollment.)

In June 2010, total student loan debt outstanding exceeded total credit card debt outstanding for the first time. The seasonally adjusted figure for revolving credit in the Federal Reserve’s G.19 current report was $826.5 billion in June 2010. (Credit card debt represents as much as 98% of revolving credit.) Revolving credit started declining in September 2008 when it reached a peak of $975.7 billion. The decrease is probably due a combination of higher minimum payments on credit cards, which were increased to 4% from 2%, lower credit card limits and tighter credit underwriting. Student loan debt, on the other hand, as been growing steadily because need-based grants have not been keeping pace with increases in college costs. Federal student loan debt outstanding reached approximately $665 billion and private student loan debt reached approximately $168 billion in June 2010, for a total student loan debt outstanding of $833 billion. Total student loan debt is increasing at a rate of about $2,853.88 per second.

Note that these figures do not include capitalized interest on the total outstanding for federal education loans. When federal agencies publish debt figures, those figures usually include only the portion of the original principal balance remaining. This might not matter much for credit cards, auto loans and mortgages, but it has a much greater impact on education loans. Students routinely defer repaying student loans during the in-school and grace periods by capitalizing the interest. This increases the total federal student loan debt outstanding by about 6% to 7%, or about $50 billion.

If one were to include capitalized interest, total federal and private student loan debt probably hit the $1 trillion milestone in late 2011. But since there is not a reliable source of data concerning capitalized interest, the student loan debt clock does not include it. The student loan debt clock reached the $1 trillion milestone on May 8, 2012 at about 6:40 am ET.

Practical tips for minimizing debt and reducing the cost of education financing include: