Best Private Student Loan - TheQuick10

Best Private Student Loan Options 2022

Invest in your future

These private student loan companies will pay your college tuition and living
expenses, so you can focus on your education.

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see your funding options

1 Our Picks
9.7

Best Money score
College Ave
0.94% - 12.99% variable APR2

Easy Online Application

  • 0.94% – 12.99% variable APR2
  • Apply in as little as 3 minutes and get an instant credit decision
  • Multiple repayment options from deferred to immediate principal and interest
  • Multiple repayment options from deferred to immediate principal and interest
2
8.4

Best Money score
Earnest
0.94% - 11.44% variable APR (with 0.25% autopay discount)*
  • 2.99% – 12.78% fixed APR (with 0.25% autopay discount)*
  • Pay no prepayment penalties or any fees for origination, disbursement, and late payments
  • Skip a month of payment once a year if all of your other payments are in order
  • The program particularly favors borrowers signing up with a co-signer
3
8.6

Best Money score
Sallie Mae
2.62% - 12.97%* variable APR
  • 3.75% – 13.72%* fixed APR
  • Lowest rates shown include Auto Debit discount
  • Covers on campus and online learning, offers 4 months of Chegg Study homework help
  • Flexible repayment options – payments can be made during or after the school year
4
7.6

Best Money score
Ascent
0.98% - 11.90% variable APR*
  • 3.22% – 14.75% fixed APR*
  • View your rates in minutes without impacting your credit score
  • Flexible repayment- 5, 7, 10, 12 or 15-Years & start payments up to 9 months after graduation
  • 1% CASH BACK at graduation*
5
7.6

Best Money score
Discover
2.99% - 12.59% variable APR*
  • Rates displayed are for undergraduate loans only
  • 4.99% – 13.99% fixed APR*
  • Borrow up to 100% of school-certified costs, including tuition, housing, books and more. Aggregate loan limits apply.
  • Choice of fixed or variable interest rate.
6
7.8

Best Money score
Edly
Repayment is based on your post-graduation income
  • No cosigner required
  • Pre-qualify without impacting your credit score
  • Income-based repayment with built-in protections, like deferred payments if you lose your job
  • Available to college juniors, seniors, and graduate students
7
7.3

Best Money score
Credible
0.94% - 12.99% variable APR
  • 3.15% – 14.75% fixed APR
  • Cover up to 100% of your school-certified costs after financial aid
  • Actual prequalified rates from multiple lenders in 3 minutes
  • Checking rates on Credible is free and will not impact your credit score*
8 Powered By Credible
7.5

Best Money score
Mefa
3.75% - 5.75% fixed APR*
  • Variable APR: N/A
  • Striving to help students gain access to the education they want and need
  • Fully remote process – apply in minutes either online or with a phone representative
  • Some applicants can defer repayments or make interest-only payments for up to 60 months
9
7.3

Best Money score
SoFi
1.69% - 12.13% variable APR (with autopay)*
  • 3.75% – 13.60% fixed APR (with autopay)*
  • Flexible repayment options- pay off your student loan either during or after the school year
  • No hidden fees, no insufficient fund penalties, and no origination/late fees
  • Apply fully online in minutes- checking your rate will not affect your credit score
10
7.3

Best Money score
Lendkey
From 1.51% variable APR*
  • From 3.99% fixed APR*
  • Take out a student loan with a smaller community bank or a credit union instead of large banks
  • Choose from over 300 credit unions to sign up for and enjoy market-beating rates
    • Find out what rates you qualify for without a hard credit pull

Our Best Debt Resolution Providers 2022

Most Popular On This Website

9.8

Best Money score
College Ave
0.94% - 12.99% variable APR2

Easy Online Application

  • 3.24% – 13.95% fixed APR2
  • Apply in as little as 3 minutes and get an instant credit decision
  • Multiple repayment options from deferred to immediate principal and interest
  • Choice of how long you take to repay the loan – 5, 8, 10, or 15 years3

Already have your diploma?

Compare our top picks for student loan refinance

Most Popular On This Website

9.8

Best Money score
Credible
0.94% - 12.99% variable APR2

Get $200 if you find a better rate

  • Compare prequalified rates in minutes
  • Private, parent PLUS, and federal loan refinance
  • 100% free, no fees
  • Comparing rates will not affect your credit score
No matter what your college plans look like—whether you are earning your bachelor’s degree, PhD, or a specialized certificate—you are going to need the financial security to pay for it. Even if you receive financial aid to cover the costs of your books and classes, you might still need a student loan to cover living expenses while you advance your degree.
What are Private Student Loans?
Private loans are similar to federal loans in the fact that they can be used to pay for school expenses. Taking out a student loan means that you will be responsible for paying back the amount of money borrowed after your grace period—typically six months after graduation or dropping out of school.

Unlike a federal loan, a private student loan is not backed by the government. Instead, this type of college loan is backed by a bank, credit union, or online lender. Federal loans generally have better terms, repayment plans, and do not require a credit check, but there is a limit to how much money you can borrow towards your degree.

Private student loans help fill in the gap so that you aren’t stuck to foot the bill if your federal-issued financial package isn’t enough. Many students are able to secure financial aid and federal loans during their undergrad degree, but financing becomes harder to receive for advanced degrees. This is where private student loans really shine. They are the additional financing option available so you can finish your degree and advance your career.

What to Consider When Looking for a Private Student Loan

There are two questions to ask yourself when searching for the right private educational loan. First, how much do I need, and second, how much can I comfortably afford? These two numbers might not be the same, and that is when you will have to decide how much of a college loan you are willing to take out. Here are a few other things to take into consideration as you search:
  • Your credit score: If you don’t have an excellent credit score, you run the risk of getting a high APR or being denied the loan altogether. Find out what the ideal credit score for a lender’s lowest APR rate. Will you need to boost your credit score or have a good cosigner?
  • The APR rates: Not only do you want to compare APR rates among lenders, but you also want to figure out if a fixed or variable interest rate is better for your unique financial situation.
  • Loan terms: What terms and rates are the lenders offering? Can you adjust these terms easily in the future or are you locked in? Do the math of a longer loan term because even though it might mean lower monthly payments, it can also mean paying more in interest for the life of the loan.
  • Discounts offered: Does the lender offer any discounts for being a pre-existing member, setting up autopay, or by having more than one product through them? Even saving 0.25% APR can save you a few hundred dollars in the life of your loan.
  • Your current budget: It is easy to assume that once you graduate that you will secure a higher-paying job and be able to afford any student loans. This isn’t always the case. Can your current budget support your future monthly loan payments? While you aren’t required to pay on your student loan until after graduation, paying as much as you can while in school will help you out significantly later on.
  • Any fees: Lastly, you want to know if the lender charges any fees for the loan or if there is a prepayment penalty (a penalty for paying off the loan early).
If you are applying for a private student loan to see your eligibility and check rates, be sure to get all of your quotes within 30 days so your credit report shows only one hard inquiry.
How to Apply for a Private Student Loan
After you have done your research, it is time to fill out a private school loan application. Remember, if your credit score is below the excellent range, you will have a harder time getting a competitive APR rate. If you have the time to raise your credit score before applying for a private student loan, then do so. If your credit score is still too low or your credit history hasn’t been fully established, you will need to find a family member or trusted individual with an excellent credit history that doesn’t mind cosigning a loan with you. Being a cosigner is a big financial responsibility—if for some reason you fail to pay your loan, your cosigner will be responsible. Filling out a private school loan application is straightforward, but you and your co-signer will need a few important documents, including the following:
  • Your social security number
  • Your date of birth, address and identifying details
  • Pay stubs
  • Proof of assets
  • Monthly rent or mortgage receipts
  • Any other information that lays out your financial status.
You should also be prepared to share the following:
  • The name of the college you are attending
  • When you’ll be graduating
  • Total college costs
  • And how much you are requesting to borrow to cover those costs
You will also need to fill out the Private Education Loan Applicant Self-Certification form, which is provided by your school and will show the lender exactly what costs you face for your education.

Federal vs. Private Loans

Both federal and private loans come with their own set of benefits. Federal loans are accessed through filling out the FAFSA (Free Application for Federal Student Aid) while private loans must be applied for through a local bank, credit union, or private lender. Both types of loans must also be repaid, though federal loans have more flexible repayment options if you become unemployed or a low-income earner after graduation. Some private student loan lenders offer some grace when it comes to financial hardship, but this is very temporary if it is offered at all.

Private loans allow student borrowers to access more funds for schooling costs that surpass financial aid packages. Another benefit to private student loans is that there is no deadline to apply. If you miss your chance to file a FAFSA, private student loans are still available to help you afford your tuition.

Unlike private loans, federal loans do not require a credit check or a cosigner in order to qualify.

Subsidized vs. Unsubsidized

Federal loans are offered to students as subsidized and unsubsidized. Subsidized loans are available to only undergraduate students who demonstrate financial need. These loans do not collect interest while the student is in school or if the loan is deferred or in forbearance after graduation. The interest rate on subsidized loans is fixed, but borrowers are limited to how much money they can borrow. Similar to subsidized loans, the government sets a fixed interest rate for direct unsubsidized loans. However, the loan accrues interest while the student is in school or if the loan is in a state of deferment or forbearance.

Private vs. Public College

Both private and public colleges are great school choices and student loans work the same for each. Typically, private colleges are smaller and costlier. Public colleges are funded by the state government and donations and therefore less expensive.

Private and public college costs should be considered when you research student loans and financial aid options. Many private colleges will allow students to transfer credit as a junior, meaning you can complete two years at a cheaper, public college first.

Private vs. Public College

Both private and public colleges are great school choices and student loans work the same for each. Typically, private colleges are smaller and costlier. Public colleges are funded by the state government and donations and therefore less expensive. Private and public college costs should be considered when you research student loans and financial aid options. Many private colleges will allow students to transfer credit as a junior, meaning you can complete two years at a cheaper, public college first.

Parent/Cosign Loans

Along with the option to have parents or other family members cosign a loan, parents can take out a loan for your education too. This should be the last financial option considered when exploring different financial aid options, though. A parent student loan, or a Direct PLUS loan, is a federal loan that a parent or dependent student can take out for educational costs.

This puts the parent as the only person on the college loan, and it can be a risky financial move if the parent is set to retire in 10 years or less. Also, unlike other federal student loans, a parent student loan is not eligible for most repayment plans.

Conclusion

Don’t let money be the reason why you don’t accomplish your dream degree and advance your career. Along with financial aid, federal student loans, and private student loans, there are many options to help you afford your degree.