Finding the right private student loan should not require a finance degree. You have fintechs, banks, nonprofits, and specialist lenders all throwing around terms like autopay discounts, co-signer release timelines, and in-school repayment options, and half the time, the marketing is designed to make every lender look identical. But the difference between a good student loan and a bad one can be thousands of dollars over a 10 to 15-year repayment period.
The average low fixed APR across the 15 lenders we review is 4.53%, but that number hides a massive spread. Borrowers with excellent co-signers can lock in rates below 3%, while borrowers without co-signers or with limited credit may face 13% or higher. Some lenders charge zero fees of any kind; others quietly add a 5% origination fee to your balance before the money reaches your school. Co-signer release ranges from 12 months to never. And eligibility spans from no credit score required (Funding U) to a 750+ FICO threshold for solo applicants (EdvestinU).
Before borrowing privately, exhaust all federal student loan options. Federal Direct Loans carry fixed rates of 6.39% for undergrads and 7.94% for grad students (2025-2026), offer income-driven repayment, and qualify for Public Service Loan Forgiveness. No private lender matches those protections. Private loans should fill the gap after federal aid, grants, scholarships, and savings have been maximized.
We reviewed and ranked 15 private student loan lenders to help you find the right option. Here are our picks for the best private student loans in 2026.
RatesChaser’s 7 Best Private Student Loans of 2026
Abe Student Loans
Abe earns a 4.0 out of 5.0 and is our pick for best overall private student loan because it delivers the strongest combination of rate competitiveness, borrower-friendly terms, and zero fees in the market. The fixed APR floor of 2.75% is the lowest among our 4.0-rated lenders, and the 15.61% ceiling is below most fintech competitors. Combined with zero late fees, zero origination fees, and zero prepayment penalties, Abe minimizes total borrowing cost across the board.
The co-signer release timeline of 12 months (tied with Sallie Mae for the fastest) and the 12-month grace period (double the industry standard of six months) are the two features that push Abe ahead of the competition. That extra six months before payments begin gives graduates meaningfully more time to secure employment and stabilize their income. Abe also accepts DACA recipients with a qualifying co-signer, broadening eligibility beyond most competitors.
The primary limitations are brand recognition and product scope. Abe is a newer entrant (by Monogram/DR Bank) and does not have the established reputation of Sallie Mae or the brand ecosystem of SoFi. It does not offer refinancing, so borrowers who want a single-lender relationship from origination through post-graduation will need to look elsewhere. But on the merits of the loan product itself, Abe is the best overall package in this review series.
- Fixed APR: 2.75% – 15.61% | Variable APR: 3.53% – 15.91%
- 12-month co-signer release, tied for the fastest in the industry
- 12-month grace period, double the standard 6 months
- Zero fees: no origination, no late fee, no prepayment penalty, no returned payment fee
- DACA-eligible with a qualifying co-signer
College Ave
College Ave earns a 4.0 out of 5.0 and stands out for offering the widest range of customization in the private student loan market. Four repayment terms (5, 8, 10, or 15 years) and four in-school payment options (deferred, $25/month, interest-only, and full principal and interest) let families tailor the loan to their exact budget and cost tolerance. That level of flexibility is rare among competitors, most of which offer only two or three term lengths.
The application experience is strong. Soft-pull prequalification delivers personalized rate estimates in minutes, the process is fully digital, and College Ave serves students enrolled less than half-time, a feature few competitors match. Co-signer release is available after 24 consecutive on-time payments. The lender also offers parent loans and graduate products under the same brand, making it a one-stop option for multi-product families.
The trade-offs are a rate ceiling of 16.99% fixed (above nonprofit alternatives), the absence of refinancing, and no special features for non-traditional borrower profiles like international students or no-cosigner applicants. For undergraduates with a creditworthy co-signer who want maximum control over their loan structure, College Ave is the strongest option in this review series.
- Fixed APR: 4.44% – 16.99% | Variable APR: 5.09% – 16.85%
- Four repayment term lengths (5, 8, 10, or 15 years), the widest range among major lenders
- Four in-school repayment options including $25/month flat payment
- Soft-pull prequalification with no impact on credit score
- Co-signer release after 24 consecutive on-time payments
Earnest
Earnest earns a 4.0 out of 5.0 and is our pick for graduate students because of its 9-month grace period, the longest in our review series. That extra three months beyond the standard six gives new professional-degree graduates meaningful breathing room before payments begin, which is especially valuable for borrowers in residency, fellowship, or early-career transitions where income may be delayed.
The skip-a-payment feature, which allows one payment deferral per 12-month period during repayment, adds flexibility that no other lender in this series matches. Earnest also uses precision pricing that considers factors beyond credit score alone, potentially resulting in lower rates for borrowers with strong financial profiles. Five repayment terms (5, 7, 10, 12, or 15 years) provide granular control over monthly payment sizing.
Earnest also offers refinancing under the same brand, making it one of only a few lenders where borrowers can maintain a single lending relationship from enrollment through post-graduation rate optimization. The co-signer release timeline is 24 months, which is standard. The main limitations are a rate ceiling of 16.49% (higher than nonprofit alternatives) and no special products for international or no-cosigner borrowers.
- Fixed APR: 4.39% – 16.49% | Variable APR: 5.04% – 16.44%
- 9-month grace period, the longest in this review series
- Skip-a-payment feature: defer one payment per 12-month period
- Refinancing available under the same brand for post-graduation optimization
- Co-signer release after 24 consecutive on-time payments
Sallie Mae
Sallie Mae is the largest private student loan originator in the United States, with $7.4 billion in originations in 2025 and a 64% market share. Its Smart Option Student Loan is available at over 2,100 schools, appears on 98% of documented lender lists, and covers career training, trade/vocational programs, and part-time enrollment. For families navigating private student lending for the first time, Sallie Mae is the most widely recognized and widely accepted option.
The standout feature is co-signer release after just 12 on-time principal and interest payments, the fastest timeline in the industry. The fixed APR floor of 2.89% (with autopay) is among the lowest available, and the lender charges zero origination fees and no prepayment penalty. Three in-school repayment options (deferred, $25/month, and interest-only) let families balance monthly cash flow against total loan cost.
The weaknesses are meaningful. Sallie Mae does not offer soft-pull prequalification, does not disclose minimum credit or income requirements, does not offer refinancing, and carries a Trustpilot rating of 1.3 out of 5.0 with 369 CFPB complaints in 2024. The rate ceiling of 17.49% fixed is among the highest in the market. Borrowers without strong co-signers may find better pricing at nonprofit lenders like ISL Education Lending or EdvestinU.
- Fixed APR: 2.89% – 17.49% (with autopay discount)
- Co-signer release after 12 on-time payments, the fastest in the industry
- Available at 2,100+ schools including career training and trade/vocational programs
- Loans up to 100% of cost of attendance covering tuition, room, board, books, and approved expenses
- Zero origination fee and no prepayment penalty
SoFi Student Loans
SoFi earns a 4.0 out of 5.0 and delivers the most complete zero-fee package in the private student loan market. No origination fee, no late fee, no prepayment penalty, and no insufficient funds fee. That fee structure, combined with soft-pull prequalification, a fully digital application, and a credit decision in minutes, makes SoFi the most friction-free option for borrowers with good credit who want to minimize total borrowing cost.
Where SoFi distinguishes itself beyond rates is member benefits. Career coaching, financial planning tools, networking events, and unemployment protection extend the lender's value well beyond the loan itself. SoFi also offers refinancing, making it a single-lender solution from school through post-graduation optimization. The FDIC-insured bank charter (SoFi Bank, N.A.) provides institutional stability.
The most significant limitation is the absence of co-signer release. SoFi does not offer it under any circumstances, which is a deal-breaker for families who want the co-signer's liability to end after a set number of payments. The rate floor of 4.49% fixed is competitive but not the lowest (Abe offers 2.75%), and the 16.49% ceiling is above nonprofit alternatives. For borrowers who prioritize co-signer release, Sallie Mae (12 months) or Abe (12 months) are better options.
- Fixed APR: 4.49% – 16.49% | Variable APR: 5.09% – 16.49%
- Zero fees across the board: no origination, no late fee, no prepayment penalty
- Career services and member benefits including financial planning and unemployment protection
- Soft-pull prequalification with credit decision in minutes
- Refinancing available under the same brand
Ascent
Ascent earns a 3.5 out of 5.0 and is the only major lender offering a dedicated outcomes-based (non-cosigner) loan product for qualifying college juniors and seniors. The outcomes-based loan underwrites on GPA, major, graduation date, and school rather than credit history, filling a critical gap for students who lack family support or a creditworthy co-signer. No other lender at this scale provides this option.
The outcomes-based product comes with a 1.00% autopay discount, quadruple the standard 0.25%, which is the highest autopay discount in the market. Zero late fees, zero origination fees, and loan amounts up to $200,000 on credit-based products round out the borrower-friendly fee structure. Co-signer release on credit-based loans is available after 24 months. Ascent also accepts DACA recipients with a co-signer.
The trade-off is cost. Outcomes-based loan rates are higher than co-signed products because the lender assumes more risk. The credit-based rate ceiling of 16.99% is among the highest in the market. And the outcomes-based product is only available to juniors and seniors at eligible schools, not freshmen or sophomores. For borrowers who can find a co-signer, Abe, College Ave, or Earnest will offer better rates. But for students who genuinely cannot co-sign, Ascent is the best option available.
- Fixed APR: 4.49% – 16.99% | Variable APR: 5.29% – 16.49%
- Outcomes-based loan for juniors/seniors: no co-signer or credit history required
- 1.00% autopay discount on outcomes-based loans, the highest in the market
- Zero late fees, no origination fee, no prepayment penalty
- Loan amounts up to $200,000 on credit-based products
MPOWER Financing
MPOWER earns a 3.0 out of 5.0 and is the clear leader for international students studying in the United States. It serves borrowers from 200+ countries at 500+ U.S. and Canadian schools without requiring a U.S. co-signer, collateral, or credit history. No other lender at this scale offers comparable access to international students, DACA recipients, refugees, and asylum seekers. The Path2Success program provides visa support letters, career guidance, resume reviews, and help with OPT/H-1B job searches.
MPOWER is structured as a Public Benefit Corporation, legally required to consider student and societal impact alongside financial returns. Every borrower is assigned a dedicated relationship manager. The company has served students from over 200 countries and operates in all 50 U.S. states, with loan amounts from $2,001 to $100,000 and fixed rates that provide payment predictability for borrowers unfamiliar with U.S. interest rate dynamics.
The cost is high. A 5% origination fee (added to the loan balance, not deducted from proceeds) and effective APRs starting around 9.99% reflect the elevated risk profile of lending to borrowers with no U.S. credit history. These rates are significantly above what domestic borrowers with co-signers can obtain. But for eligible international students, MPOWER may be the only private loan option available, making the cost comparison moot: the alternative is often not attending at all.
- Effective APR: ~9.99% – 18.00% (includes 5% origination fee impact)
- No U.S. co-signer, collateral, or credit history required
- Serves 200+ countries at 500+ U.S. and Canadian schools
- Path2Success program: visa support, career services, OPT/H-1B guidance
- Dedicated relationship manager for every borrower
About Our Picks for the Best Student Loans
1. Abe Student Loans
Best Overall Private Student Loan
Abe earns a 4.0 out of 5.0 and is our pick for best overall because it delivers the strongest combination of rate competitiveness, borrower-friendly terms, and zero fees. The 12-month co-signer release (tied with Sallie Mae for the fastest), 12-month grace period (double the industry standard), zero late fees, and DACA eligibility make Abe the most complete package in the market. The rate floor of 2.75% fixed is among the lowest available, and the 15.61% ceiling is below most fintechs. The primary limitation is that Abe is newer and less widely recognized than Sallie Mae or Earnest, and it does not offer refinancing.
Abe Student Loans at a Glance
- Lowest rate floor among our 4.0-rated lenders (2.75% fixed). Competitive with ISL’s 2.70% floor but with broader accessibility.
- 12-month co-signer release, tied for the fastest in the industry. Most competitors require 24 to 48 months.
- 12-month grace period, double the standard 6 months, giving new graduates more time before payments begin.
- Zero fees across the board: no origination, no late fee, no prepayment penalty, no returned payment fee.
- DACA-eligible with a qualifying co-signer, expanding access beyond most competitors.
2. College Ave Student Loans
Best for Undergraduate Students
College Ave earns a 4.0 out of 5.0 and is our pick for undergraduates because it offers the widest range of customization options in the market. Four repayment terms (5, 8, 10, or 15 years), four in-school payment options (deferred, $25/month, interest-only, and full), and soft-pull prequalification let families tailor the loan to their exact budget. The 24-month co-signer release is standard. College Ave also offers loans to students enrolled less than half-time, a rarity in the market.
College Ave at a Glance
- Four repayment term lengths (5, 8, 10, or 15 years), the widest range among major lenders.
- Four in-school repayment options, including a $25/month flat payment that balances cash flow with cost savings.
- Soft-pull prequalification with personalized rate estimates in minutes, no impact on credit score.
- Less-than-half-time students are eligible, a feature few competitors offer.
- Parent loan and graduate loan products are available under the same brand for multi-product families.
College Ave Student Loans Review →
3. Earnest Student Loans
Best for Graduate Students
Earnest earns a 4.0 out of 5.0 and is our pick for graduate students because its 9-month grace period (the longest in our review) gives new professional-degree graduates more breathing room before payments begin. The skip-a-payment feature allows one payment deferral every 12 months during repayment, which is valuable for borrowers in residency, fellowship, or early-career transitions. Earnest also offers refinancing, making it a single-lender solution from grad school through post-graduation optimization.
Earnest at a Glance
- 9-month grace period, the longest in our review series, giving new graduates extra time.
- Skip-a-payment feature: defer one payment per 12-month period during repayment, useful for irregular income.
- Refinancing is available under the same brand, allowing a single lending relationship from school through repayment.
- Precision pricing that considers factors beyond credit score, potentially resulting in lower rates for strong profiles.
- Five repayment terms (5, 7, 10, 12, or 15 years) for flexible monthly payment sizing.
Earnest Student Loans Review →
4. Ascent Student Loans
Best for No Co-signer
Ascent earns a 3.5 out of 5.0 and is our pick for borrowers without a cosigner because it is the only major lender offering a dedicated non-cosigner (outcomes-based) loan product for qualifying juniors and seniors. The outcomes-based loan underwrites on GPA, major, graduation date, and school rather than credit history, filling a critical gap for students who lack family support. Rates are higher than co-signed products (reflecting the elevated risk), but for borrowers who cannot find a co-signer, Ascent provides a legitimate path to funding.
Ascent at a Glance
- Dedicated outcomes-based loan for juniors and seniors that does not require a co-signer or credit history.
- 1.00% autopay discount on outcomes-based loans, quadruple the standard 0.25%, the highest in the market.
- Credit-based loans are also available with competitive rates for borrowers who do have a co-signer.
- Loan amounts up to $200,000 for credit-based products, among the highest available.
- Zero late fees. Ascent charges no late fee, no origination fee, and no prepayment penalty.
5. MPOWER Financing Student Loans
Best for International Students
MPOWER earns a 3.0 out of 5.0 and is our pick for international students because it serves borrowers from 200+ countries studying at 500+ U.S. and Canadian schools without requiring a U.S. co-signer, collateral, or credit history. No other lender at this scale offers comparable access to this underserved population. The Path2Success program (visa support, career services, U.S. credit card, and bank account) adds value well beyond the loan itself. Rates are high (9.99%+ with a 5% origination fee) because the risk profile is elevated, but for eligible borrowers, MPOWER may be the only private loan option available.
MPOWER Financing at a Glance
- No U.S. co-signer, collateral, or credit history required. Serves international students, DACA recipients, refugees, and asylum seekers.
- Path2Success program: visa support letters, career guidance, resume reviews, and help with OPT/H-1B job search.
- Fixed rates provide payment predictability for borrowers unfamiliar with the U.S. rate environment.
- Public Benefit Corporation, legally required to consider student and societal impact alongside financial returns.
- Assigned a relationship manager for every borrower, providing personalized support through the process.
6. Sallie Mae Student Loans
Best for Parents
Sallie Mae earns a 3.5 out of 5.0 and is our pick for parents because its combination of the broadest school coverage (present on 98% of lender lists, 2,100+ university relationships), availability at career training and trade schools, part-time eligibility, and the fastest co-signer release in the industry (12 months) makes it the most straightforward choice for families navigating the private student loan process for the first time. The brand recognition and acceptance at virtually every school reduce friction for parents who want a well-known, widely accepted option.
Sallie Mae at a Glance
- Present on 98% of documented school lender lists, the broadest institutional coverage of any lender.
- 12-month co-signer release, the fastest timeline in the industry.
- Covers career training, trade/vocational, and part-time enrollment, not just traditional four-year programs.
- Three in-school repayment options let families choose between cash flow (deferred) and cost savings (interest-only).
- Loans up to 100% of the cost of attendance, covering tuition, room, board, books, and approved expenses.
Sallie Mae Student Loans Review →
7. SoFi Student Loans
Best for Fast Funding
SoFi earns a 4.0 out of 5.0 and is our pick for fast funding because it combines soft-pull prequalification, a credit decision in minutes, and a fully digital application with no origination fees and career services that extend beyond the loan. Once school certification is complete (a step outside the lender’s control), SoFi disburses quickly. The zero-fee structure and strong brand make SoFi especially appealing for borrowers with prime credit who want a fast, friction-free experience. The main limitation is the absence of a co-signer release.
SoFi at a Glance
- Soft-pull prequalification with a credit decision in minutes. Fully digital, no paper required.
- Zero fees: no origination, no late fee, no prepayment penalty.
- Career services and member benefits, including financial planning, networking events, and unemployment protection.
- Both fixed and variable rates are available. Fixed floor of 4.49% is competitive for prime borrowers.
- Refinancing is available under the same brand for post-graduation rate optimization.
Why Private Student Loans Exist (And When They Make Sense)
Federal student loans have annual and aggregate borrowing limits. For the 2025-2026 academic year, dependent undergraduates can borrow a maximum of $5,500 to $7,500 per year in Direct Loans (depending on year in school), with a $31,000 aggregate cap. Independent undergraduates can borrow up to $12,500 per year with a $57,500 aggregate cap. Graduate students can borrow up to the cost of attendance through Direct Unsubsidized and Grad PLUS Loans, but PLUS Loans carry an 8.94% rate and a 4.228% loan fee.
When the cost of attendance exceeds federal loan limits plus grants, scholarships, and savings, private student loans fill the gap. The average cost of attendance at a four-year private nonprofit institution exceeds $58,000 per year, and even public four-year in-state costs average over $28,000. For many families, the federal loan maximum covers only a fraction of the total bill. Private loans provide the additional funding, though at the cost of losing federal protections like income-driven repayment and forgiveness.
The Features That Actually Matter
Co-signer and co-signer release are the most important features for most undergraduate borrowers. Approximately 90% of undergraduate private student loans are co-signed. The co-signer’s credit profile drives the rate, and the co-signer release timeline determines how long the co-signer remains liable. Timelines range from 12 months (Sallie Mae, Abe) to 48 months (INvestEd, EdvestinU) to never (SoFi, ELFI, Funding U).
In-school repayment choice is a hidden cost driver. Deferring all payments is convenient but expensive: on a $30,000 loan at 6% over four years of school plus a six-month grace, capitalized interest adds roughly $8,500 to the balance. Interest-only payments prevent capitalization and can save 17% on total cost. Some lenders (Sallie Mae, Earnest) offer lower rates for borrowers who choose interest-only.
Rate ceiling (not just floor) determines worst-case pricing. The advertised floor rate (2.70% at ISL) is what the most qualified borrowers get. The ceiling (17.49% at Sallie Mae, 8.70% at ISL) is what less-qualified borrowers face. Nonprofit lenders consistently offer the lowest ceilings, protecting borrowers without perfect credit.
Soft-pull prequalification lets you compare rates across lenders without impacting your credit score. College Ave, Earnest, SoFi, Ascent, Custom Choice, Abe, ELFI, ISL, and EdvestinU all offer it. Sallie Mae does not: it performs a hard inquiry on the application. Always prequalify before applying.
How to Choose the Right Private Student Loan
Start by exhausting federal options. Complete the FAFSA and accept all federal Direct Loan offers before considering private loans. Federal loans offer fixed rates, income-driven repayment, and forgiveness programs that no private lender matches.
Next, consider your borrower profile. If you have a co-signer with a 750+ FICO, prequalify with Abe, ISL, ELFI, and Earnest for the lowest rates. If you need a no-cosigner option, Ascent (outcomes-based for juniors/seniors) and Funding U (merit-based) are the primary choices. If you are an international student, MPOWER and Prodigy are the main options.
Get at least three quotes. Private student loan rates are highly individualized. Two lenders with similar advertised ranges can offer very different rates to the same borrower. Use soft-pull prequalification at three or more lenders, compare the APR (not just the rate), and factor in any origination fees and your in-school repayment choice.
Methodology
Our evaluation scored 15 lenders across six weighted categories: Rates and Fees (25%), Loan Terms and Repayment Flexibility (20%), Eligibility and Accessibility (20%), Speed and Application Process (15%), Customer Experience (10%), and Transparency and Reputation (10%). Each category produces a raw score out of 5.0, which is multiplied by its weight to produce a weighted total. Final published ratings are rounded to the nearest 0.5. Editorial picks are selected based on the weighted scores, category strengths, and the specific borrower profile each pick is intended to serve. Data sources include lender websites, the CFPB Consumer Complaint Database, J.D. Power, MeasureOne, BBB, Trustpilot, app store ratings, and SEC filings. Learn more about our student loan reviews.
Compare Our Top Student Loan Picks for 2026
| Lender | Recommended For | Highlights | Next Steps |
|---|---|---|---|
| Abe Student Loans | Best Overall | 12-mo. co-signer release, 12-mo. grace period, zero fees | Check Rates |
| SoFi Student Loans | Best Online Lender | Zero fees, career services, fully digital | Check Rates |
| College Ave Student Loans | Best for Undergraduates | 4 terms, 4 in-school options, soft-pull prequal | Check Rates |
| Earnest Student Loans | Best for Graduate Students | 9-mo. grace, skip-a-payment, refinancing | Check Rates |
| Sallie Mae Student Loans | Best for Parents | 98% school coverage, 12-mo. co-signer release | Check Rates |
| Ascent Student Loans | Best for No Co-signer | Outcomes-based loan for juniors/seniors | Check Rates |
| ISL Education | Best for Rates | Lowest ceiling, zero fees, nonprofit | Check Rates |
| MPOWER Student Loans | Best for International Students | No U.S. co-signer required, 200+ countries | Check Rates |
Frequently asked questions
Answers to your questions about private student loans.
It depends on the lender and whether you have a co-signer. With a co-signer, most lenders accept scores in the 670 to 680 range. Funding U and MPOWER require no credit score at all (merit-based and future-income-based underwriting, respectively). Without a co-signer, EdvestinU requires 750+, while Ascent’s outcomes-based loan has no credit score minimum for qualifying juniors and seniors.
For a 10 or 15-year student loan, fixed rates are generally safer because they provide predictable payments. In early 2026, the gap between fixed and variable floors is narrow (about 0.5 percentage points), which reduces the incentive to take on variable rate risk. Variable rates may make sense if you plan to refinance within a few years.
At most lenders, yes, after meeting requirements. Sallie Mae and Abe offer release after 12 on-time principal and interest payments. Earnest, College Ave, Ascent, and Custom Choice require 24 months. Citizens require 36. EdvestinU and INvestEd require 24 to 48 months. SoFi and ELFI do not offer co-signer release at all.
Credit decisions are typically delivered in minutes. The bottleneck is school certification, where your financial aid office confirms enrollment and cost of attendance. This step can take a few days to several weeks, depending on the institution and time of year. Apply at least three to four weeks before tuition is due.
Federal loans carry fixed rates set by Congress, offer income-driven repayment plans, qualify for Public Service Loan Forgiveness, and provide deferment and forbearance protections. Private loans are issued by banks, fintechs, and nonprofits with rates based on creditworthiness; they do not offer income-driven repayment or forgiveness. Private loans may offer lower rates for the most creditworthy borrowers, but lack federal protections. Always borrow federal first.
Not if you use soft-pull prequalification, which most lenders offer. A hard credit inquiry only occurs when you submit a full application and accept an offer. The exception is Sallie Mae, which performs a hard pull at application.
