Private Student Loans that Work for You

Compare private student loans and find competitive interest rates and repayment terms. Apply for the best private student loans for you.

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Considering private student loans? We can help.

Private student loans can be a great option when federal aid or scholarships aren't enough to cover your college costs. With private loans, you get to pick the lender and loan terms that work for your budget and needs, giving you more control over how you pay for your education. Read on to learn more — and discover how to choose the best private student loans for you.

How private student loans and federal student loans compare

Both private loans and federal student loans can provide funding for college, but their features differ significantly. Here's a quick comparison:

Federal student loans:

Fixed interest rates that are typically lower than private loans.
Flexible repayment options, including income-driven plans.
Loan forgiveness programs for qualifying borrowers.
No credit check required for most federal student loans.
Borrowing limits are determined by academic year and dependency status.

Private student loans:

Variable interest rates or fixed interest rates, depending on the lender.
Fewer repayment options compared to federal loans.
No loan forgiveness programs.
Credit check required, with eligibility and rates dependent on creditworthiness.
Typically, higher borrowing limits than federal, but vary by lender.

How do private student loans work?

Private student loans are offered by private lenders like banks, credit unions, or online lenders. These loans are designed to help you cover the cost of college when federal loans and other sources of aid fall short.

Variable or fixed interest rates: Private student loans offer both fixed and variable rates. A fixed rate remains the same throughout the loan term, while a variable rate can change based on market conditions.

Repayment terms: Typically, repayment terms for private student loans range from 5 to 15 years, depending on the lender.

Loan limits: Many private lenders allow you to borrow up to the full cost of attendance, minus any other financial aid you've received.

Deferment and forbearance options: Some private lenders offer deferment or forbearance, allowing you to pause payments temporarily, but these options are usually less generous than those offered with federal loans.

Default consequences: If you default on a private student loan, your credit score can be seriously affected, and lenders may take legal action to collect the debt.

Pros and cons of taking out private student loans for college:

PROS	CONS
More flexible repayment options compared to federal loans	Higher interest rates than federal student loans
Higher loan amounts to cover the full cost of attendance	Fewer borrower protections compared to federal loans
You can often choose between variable or fixed interest rates	Creditworthiness plays a significant role in loan eligibility and terms

To qualify for a private student loan, you'll need to meet certain criteria, which vary by lender:

Creditworthiness: Lenders typically require a good credit score. If you don't have a strong credit history, you may need a cosigner.

Enrollment status: You must be enrolled at least half-time at an accredited school.

Income levels: Lenders often evaluate your or your cosigner's income to ensure that you can afford to repay the loan.

Debt-to-income ratio: Some lenders will assess your current debt levels to determine if you can take on additional payments.

Cosigner requirements: Many students apply for private student loans with a cosigner who has a strong credit profile to increase approval chances and secure a better private student loan interest rate.

How to apply for a private student loan

Check your eligibility: Verify that you meet the lender's credit and income requirements before applying.
Complete the application: Provide personal, school, and financial information.
Review and accept your loan: Once approved, carefully review the terms of the loan, including the interest rate and repayment schedule, before accepting it.

Is it possible to find private student loans for bad credit?

Yes, it's possible to find student loan options for bad credit, but the terms may not be as favorable, and interest rates could be higher. In these cases, having a cosigner can significantly improve your chances of approval and help you secure better rates. Using an online comparison tool can help you find the best student loans for your situation.

3 factors to consider before taking out a private student loan

Cosigner responsibilities: If you require a cosigner, make sure they fully understand the obligations and risks involved.
Default consequences: Defaulting on a private student loan can have serious consequences, including damage to your credit score and potential legal action from the lender.
Explore scholarships and federal aid: Before opting for a private loan, make sure you've explored all options for scholarships, grants, and federal student loans, which often offer better terms and protections.

Alternatives to private student loans

If a private student loan doesn't feel right for your situation, consider these alternatives:

Federal student loans: Offer more protections and typically lower interest rates

Scholarships and grants: Free money that doesn't need to be repaid

Work-study programs: Allow you to earn money to help pay for college while you're in school.

Tuition payment plans: Offered by some schools to break up tuition payments into more manageable installments.

The bottom line

Private student loans can be a useful tool for covering the cost of education, but it's important to weigh all your options before making a decision on the best college loans for you. By comparing rates, terms, and lender offerings, you can make informed decisions that not only fund your education but also set you up for a secure financial future.