Best Private Student Loans in January 2024

A private student loan is a common way to finance college expenses. Applying for a student loan ahead of time can help you avoid rushing your application at the last minute.

While the student loan process can seem overwhelming, you can start by ensuring that you have good credit and a co-signer (if you need one). Making sure you’re enrolled in an eligible school and keeping your college tuition numbers handy is helpful.

MoneyGeek analyzed top lenders based on loan amounts, service quality and APR ranges to help you select your best option. Our research revealed that College Ave is the best overall private student loan lender.

Loan size, repayment terms, APR ranges and fees are some factors that MoneyGeek evaluated to rank the best private loans for students. College Ave emerged as our top pick since it charges minimal fees, doesn’t require co-signers and has flexible loan amounts.

MoneyGeek also highlights top-performing loan lenders based on their outstanding features. Citizens Bank, for example, offers fast approval.

If you’re looking for the best student loans, it’s smart to know the difference between private and federal student loans.

Banks, credit unions or state-affiliated organizations offer private student loans. The government provides federal student loans following terms set by law. Students who need to refinance a federal and private loan can consider private lenders such as SoFi.

Student loan eligibility varies based on the lender, regardless of loan type. For most loans, U.S. citizens and permanent residents can qualify. However, some private lenders allow international students to apply and others don’t. You may need to prove your financial need and provide proof of enrollment in an eligible certificate program from your school.

Federal student loans don’t charge prepayment penalty fees, while there’s a possibility of fees for early repayment with private student loans. Students with a federal student loan can defer payments until after graduation. Certain private student loans might require payments throughout your time in school.

Before you apply for a student loan, it’s smart to consider a few factors that could affect which option is best for you.

• Assess the product details: Each lender offers different features, loan limits and APR ranges. Read about the features of a private student loan to help you decide whether it’s a suitable option.
• See if you meet eligibility requirements: Eligibility can vary greatly between lenders, so it’s best to check if you tick all the boxes. For instance, some lenders don’t allow international students to apply for a private student loan.
• Look into the repayment terms: Certain lenders have a short grace period and require immediate repayment. Other lenders allow you to defer payments until you graduate or leave school.
• Know your financial profile: Take note of factors such as having a co-signer, your creditworthiness and your debt-to-income ratio. Lenders usually check these to assess your ability to repay.
• Wait a couple of days: It’s good practice to take a day or two to consider the pros and cons before applying for a loan. It could help you arrive at an objective decision.
• Get a funding estimate: Knowing how much you need to borrow beforehand is best to avoid overborrowing.
• Account for monthly payments: Loans are usually paid each month, so ensure that you can keep up with payments.
• Read the fine print: Avoid surprise costs by understanding your loan’s conditions.

Taking time to evaluate options can help you find the best private student loan that caters to your specific needs.

MoneyGeek answered the most commonly asked questions about private student loans so you can find an excellent fit. Consider your needs and weigh different lender options.