Best Private Student Loan Lenders of 2023

When it comes to private student loan lenders, there are a lot of options out there. It can be tough to know where to start – but don’t worry, we’re here to help. In this blog post, we’ll share our top picks for the best private student loan lenders of 2023. We’ll also provide an overview of what to look for when shopping for a private student loan, so you can make the best decision for your unique circumstances.

Sallie Mae

Sallie Mae is one of the most well-known private student loan lenders out there. They offer competitive rates and terms, and have a history of helping students finance their higher education. With Sallie Mae, you can get loan amounts up to $250,000 or 100% of your school’s cost of attendance (whichever is less).

Initially established as a government entity providing federal loans, Sallie Mae transitioned to a private bank between 1997 and 2004. Today, it is the largest provider of private student loans, with additional products including credit cards and savings accounts.

Borrowers can benefit from features such as Multi-Year Advantage and no origination or application fees, with 96% of undergraduate students approved with a cosigner being approved for further loans the following year.

Pros

• Multi-Year Advantage
• A short cosigner release period
• Covers up to the total cost of attendance
• A+ rating from the BBB

Cons

• Can’t prequalify with a soft credit check

CommonBond

CommonBond is another popular private student loan lender. They provide fixed and variable rate loans with no origination fees for both undergraduates and graduates, plus career development resources to help you succeed in your future job search. In addition, they also offer a 0.25% interest rate reduction when you enroll in autopay – which can help you save money over time.

CommonBond also offers multiple repayment options, including immediate full repayment or deferment depending on your individual needs and circumstances. They also have a cosigner release program that can be completed after 24 on-time payments, making it easier to transition out of student loan debt.

Pros

• No origination fees
• Interest rate reduction for autopay enrollment
• Cosigner release program

Cons

• Higher minimum loan amount ($2,000)

Citizens Bank

Citizens Bank is another well-known private student loan lender, with competitive rates and terms. Their undergraduate loans range from $1,000 up to the total cost of attendance (minus other aid received), while their graduate/professional loans range from $5,000 up to $125,000.

Citizens Bank also offers multiple repayment options including interest-only obligations, immediate payment of all principal and accrued interest or deferment until after graduation. Plus, they offer a 0.25% rate reduction when you enroll in autopay and have an appointed cosigner.

Pros

• Existing Citizens Bank customers qualify for up to 0.50% interest rate discount 
• International students can qualify with a co-signer who is a U.S. citizen or a permanent resident
• No origination fees
• Interest rate reduction for autopay enrollment
• Multiple repayment options

Cons

• No interest rate estimate is available without a hard inquiry

Ascent Student Loans

Ascent Student Loans is another great option for private student loans. They offer competitive rates with no origination fees, plus features such as a cosigner release option, which can help you transition out of student loan debt more easily. Plus, they also offer a 0.25% interest rate reduction when you enroll in autopay.

Ascent Student Loans also offers undergraduate and graduate/professional loans with loan amounts ranging from $1,000 up to the total cost of attendance (minus other aid received). They also offer multiple repayment options including immediate full payment or deferment until after graduation. Pros

• Graduation reward
• Forbearance flexibility
• Job loss and natural disaster protection
• Prequalify with no impact on your credit
• A+ rating from the BBB
• Covers up to the total cost of attendance

Cons

• Limits to the amount you can borrow

A.M. Money

A.M. Money is a great lender for those who don’t have a credit history or cosigner. They offer undergraduate loans ranging from $2,000 up to the total cost of attendance (minus other aid received), while their graduate/professional loans range from $5,000 up to $175,000.

In addition to having no origination fees or prepayment penalties, A.M. Money also offers multiple repayment options including deferred payments until after graduation and interest-only payments during school. Plus they provide a 0.25% rate reduction when you enroll in autopay and have an appointed cosigner.

Overall, A.M. Money is a great option for borrowers who don’t have a credit history or cosigner. They offer competitive rates and features that make it easier for borrowers to manage their student loan debt more effectively over time.

Pros

• No credit check required
• No origination fees
• No prepayment penalties
• Multiple repayment options
• Interest rate reduction for autopay enrollment

Cons

• Not available in all states 
• Limited loan amount limits 

SoFi

SoFi is another well-known private student loan lender with competitive rates and terms. They offer undergraduate loans ranging from $5,000 up to the total cost of attendance (minus other aid received), while their graduate/professional loans range from $10,000 up to $300,000.

SoFi also offers multiple repayment options including interest-only obligations, immediate payment of all principal and accrued interest or deferment until after graduation. Plus they offer a 0.25% rate reduction when you enroll in autopay and have an appointed cosigner.

SoFi offers competitive interest rates, flexible repayment terms and a range of benefits for borrowers. With SoFi, borrowers can consolidate multiple student loans into one loan with a lower interest rate and save money on their monthly payments.

In addition, SoFi also offers an array of career development tools, such as job-hunting resources, networking events and mentorship programs to help borrowers make the most out of their loan.

Pros

• Existing SoFi customers qualify for an additional 0.125% interest rate reduction 
• Multiple repayment options
• No origination fees
• Interest rate reduction for autopay enrollment
• No penalties for paying off your loan early

Cons

• International students are not eligible to apply 
• No interest rate estimate is available without a hard inquiry 

College Ave

College Ave Student Loans is another great option for private student loans. They offer competitive rates with no origination fees, plus features such as a cosigner release option, which can help you transition out of student loan debt more easily once your credit score improves. Plus, they also offer an additional 0.25% interest rate reduction when you enroll in autopay and have an appointed cosigner.

Undergraduate loans range from $2,000 up to the total cost of attendance (minus other aid received), while their graduate/professional loans range from $5,000 up to $175,000. College Ave also offers multiple repayment options including immediate full payment or deferment until after graduation.

Pros

• No origination fees
• Lifetime maximum of $175,000
• Cosigner release program
• Additional 0.25% interest rate reduction for autopay enrollment

Cons

• Not available to borrowers in all states 
• Limits on how much you can borrow 

Discover

Discover is a well-known lender with competitive rates and terms. They offer undergraduate loans ranging from $2,000 up to the total cost of attendance (minus other aid received), while their graduate/professional loans range from $5,000 up to $200,000.

In addition to having no origination fees or prepayment penalties, Discover also offers multiple repayment options including deferred payment until after graduation and interest-only payments during school. Plus they offer a 0.25% rate reduction when you enroll in autopay and have an appointed cosigner.

Discover offers competitive rates and features that make it easier for borrowers to manage their student loan debt more effectively over time.

Pros

• No origination fees
• No prepayment penalties
• Multiple repayment options
• Interest rate reduction for autopay enrollment

Cons

• International students are not eligible to apply 
• No interest rate estimate is available without a hard inquiry

PNC Bank

PNC Bank is another great lender for private student loans. They offer undergraduate loans from $1,000 up to the total cost of attendance (minus other aid received), while their graduate/professional loans range from $5,000 up to $200,000.

In addition to offering competitive rates with no origination fees or prepayment penalties, PNC also offers multiple repayment options including deferred payment until after graduation and interest-only payments during school. Plus they offer a 0.25% rate reduction when you enroll in autopay and have an appointed cosigner.

Overall, PNC Bank offers excellent rates and features that make it easier for borrowers to manage their student loan debt more effectively over time.

Pros

• No origination fees
• No prepayment penalties
• Multiple repayment options
• Interest rate reduction for autopay enrollment

Cons

• International students are not eligible to apply 
• No interest rate estimate is available without a hard inquiry

Funding U

Funding U is a great lender for students looking for flexible repayment options and competitive rates. They offer undergraduate loans ranging from $2,000 up to the total cost of attendance (minus other aid received), while their graduate/professional loans range from $5,000 up to $175,000.

In addition to having no origination fees or prepayment penalties, Funding U also offers multiple repayment options including deferred payments until after graduation and interest-only payments during school. Plus they offer an additional 0.125% rate reduction when you enroll in autopay and have an appointed cosigner.

Overall, Funding U offers excellent rates and features that make it easier for borrowers to manage their student loan debt more effectively over time.

Pros

• Co-signer not required
• No origination fees
• No prepayment penalties
• Multiple repayment options
• Interest rate reduction for autopay enrollment

Cons

• Not available to borrowers in all states 
• Limits on how much you can borrow 

Earnest

Earnest is another lender with competitive rates and terms. They offer undergraduate loans ranging from $2,000 up to the total cost of attendance (minus other aid received), while their graduate/professional loans range from $5,000 up to $200,000.

In addition to having no origination fees or prepayment penalties, Earnest also offers multiple repayment options including deferred payments until after graduation and interest-only payments during school. Plus they offer a 0.25% rate reduction when you enroll in autopay and have an appointed cosigner.

Pros

• A long grace period
• No fees
• Check your eligibility without affecting your credit
• Skip a payment once per year
• A+ rating from the BBB
• Covers up to the total cost of attendance

Cons

• Only available in select states 
• No interest rate estimate is available without a hard inquiry 

Factors to Consider when Searching for a Private Student Loan

When shopping for a private student loan, it’s important to consider all the factors that go into making a decision. Some of these include:

 Interest rate

This is the most important factor to consider when looking for a private student loan. Be sure to compare rates from different lenders and look for lenders who offer reduced interest rates for autopay enrollment or cosigners.

Repayment terms

Different lenders offer different repayment options so make sure you understand what each lender offers before deciding on one. Also be aware of any fees associated with late payments or prepayment penalties which could affect your ability to pay off the loan early.

Cosigner

Many private student loans require a cosigner in order to get the best terms and rates. Be sure to look at all the lenders who offer cosigner benefits as this can help you save money in the long run.

Eligibility Requirements

Different lenders have different eligibility requirements so make sure you understand what each lender requires before applying for a loan.

Fees

Be aware of any fees associated with your loan, such as origination or late payment fees, that could affect the overall cost of your loan.

Conclusion

When it comes to finding the best private student loan, there are many factors to consider. Be sure to compare rates and repayment options offered by different lenders, understand any fees associated with the loan, and look for cosigner benefits if available. With this information in hand, you can make an informed decision that will help you save money and manage your student loan debt more effectively over time.