College is the key to a future with higher earnings, better jobs, and an improved quality of life. It’s a major accomplishment to get accepted to college and enroll, but most students are unable to afford their education paying with their own money. This problem is exacerbated by the fact the college tuition continues to rise year over year.
Student loans offer the opportunity to attend college. However, borrowing the money for tuition can be daunting as the weight of student loan debt can be a dark cloud over what should be an exciting time in a student’s life.
It is possible to find lenders that offer lower interest rates than others which will translate into lots of money saved, making it worthwhile for students to shop around and find the best loan offer before committing to borrowing. Read on to learn how to find private student loans with the lowest interest rates.
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Sallie Mae student loans
- Variable Rates: 1.87% APR - 11.97% APR. Fixed Rates: 3.75% APR - 12.85% APR. Lowest rates shown include 0.25% interest rate discount with auto debit payments.1
- Apply online in minutes and receive an instant credit result2
- Multiple repayment options from in-school payments to deferred.1 No origination fee or prepayment penalty3
- You may be 4X more like to be approved with a cosigner4 and it may help you get a better rate.
- Only undergraduate student loan that offers 4 months of free Chegg® study help5
- Borrow up to 100% of school-certified expenses, whether you're online or on campus6
Borrow Responsibly
We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.
This loan is for undergraduate students at participating degree-granting schools. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend a participating school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident) and provide an unexpired government-issued photo ID to verify their identity. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.
1Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment, if available for the loan.
2From January 1, 2021 to December 31, 2021, instant credit decisions were provided to 98% of applicants. Other applications received credit decisions in 3 to 5 business days.
3Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note-first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.
4Based on a comparison of approval rates for Sallie Mae Smart Option Student Loans for Undergraduate Students who applied with a cosigner versus without a cosigner from May 1, 2020 through April 30, 2021.
5This promotional benefit is provided at no cost to borrowers with undergraduate or parent loans with a first disbursement between May 1, 2021 and April 30, 2024. Borrowers who reside in, attend school in, or borrow for a student attending school in Maine are not eligible for this benefit. Chegg Study® offers expert Q&A where students can submit up to 20 questions per month. No cash value. Terms and Conditions apply. Please visit http://www.chegg.com/legal/smtermsandconditions for complete details. This offer expires one year after issuance.
6Loan amount cannot exceed the cost of attendance less financial aid received as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half time.
Information advertised valid as of 5/25/2022
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION.
Smart Option Student Loans® are made by Sallie Mae Bank. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.
Edvisors is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.
© 2022 Sallie Mae Bank. All rights reserved. SLM Corporation and its subsidiaries, including Sallie Mae Bank are not sponsored by or agencies of the United States of America.
Ascent student loans
- AFFORDABLE variable rates starting at 1.64% APR with Automatic Debit Discount*
- 1% CASH BACK Graduation Reward*
- NON-COSIGNED option may be available for undergraduate juniors and seniors.
- PAY AFTER LEAVING SCHOOL – Customize your loan with flexible repayment options – start payments after graduation.
- FORGET FEES – No application, origination or disbursement fees. No prepayment penalty if you choose to pay your loan off early.
- COVER UP TO 100% of your tuition and eligible living expenses.
* Ascent loans are funded by Bank of Lake Mills, Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs
Rates are effective as of 05/01/2022 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: www.AscentFunding.com/Rates
1% Cash Back Graduation Reward subject to terms and conditions. Click here for details. Cosigned Credit-Based Loan student borrowers must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs are available for the most creditworthy applicants and may require a cosigner.
College Ave student loans
- Competitive fixed and variable APRs starting at 1.19%1
- Multiple repayment options including: full principal and interest, interest-only, deferred, and flat payment
- Flexible payment terms ranging from 5, 8, 10, and 15 years2
- Coverage up to 100% of your school-certified cost of attendance ($1,000 minimum)3
- No origination, application and processing fees, no fees for early repayment
- Apply online in 3 minutes and get an instant credit decision
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
2This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
3As certified by your school and less any other financial aid you might receive. Minimum $1,000.
Information advertised valid as of 4/19/2022. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
Payments based on a fixed percentage of future income
Lower (or no) payments when you're unemployed or underemployed.
Payments based on a fixed percentage of future income for up to 60 months after graduation
Only pay when earning more than the minimum income threshold ($30k or $40k depending on program)
Payments stop early if you ever hit the payment cap (2.0x your initial funding amount)
Stride Income Share Agreements
- No accruing interest!1
- Payments based on a fixed percentage of future income
- Lower (or no) payments when you're unemployed or underemployed.
1Graduate programs or second Bachelor's only (Must have Bachelor's degree); Must meet minimal credit standards for approval; US Citizens and permanent residents only; School and program restrictions apply
Up to four repayment types (including no payments while in school) and multiple repayment terms help you find the loan that fits your budget
SoFi student loans
- Variable Rates: Starting variable rates range from 1.69% APR - 11.97% APR (with autopay)*, and will never exceed 13.95% (sometimes lower in certain states as required by law)
- Fixed Rates: Fixed rates range from 3.47% APR to 11.16% APR (with autopay)*
- Easy online application!
- No origination fees, late fees, and no insufficient fund fees. Period
- Up to four repayment types (including no payments while in school) and multiple repayment terms help you find the loan that fits your budget
- 0.25% discount when you set up autopay*
*Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
Fixed: 7.49% APR - 12.99% APR (not including 0.5% ACH discount)*
10 years
$20 minimum/month OR interest-only payments while in school
Funding U student loans
- Up to $15,000 per academic year with no cosigner required
- Fixed Rates (APR) from 7.99% to 12.49% (plus an additional 0.5% discount for ACH auto-payments)*
- No origination fee. No late payment fees. No prepayment penalties.
- Quick prequalification and rate check that won’t impact your credit
- Multiple repayment options
- Dedicated loan officer for every borrower
New student loans of $3,001 up to $15,000 per school year will be granted to residents of eligible states enrolled as undergraduates in bachelor’s degree or equivalent- granting programs at eligible schools.
Funding U offers fixed interest rate loans, without a cosigner, to students who are serious about their academic success and post-grad career. Eligibility is determined by several factors, including: school graduation rate, class hours completed, estimated graduation date, academic record, major; employment or internship experience; and, other academic and non-academic activities that demonstrate the borrower is working hard towards academic and professional goals and is on track to be able to repay debt accrued.
Eligibility is also limited by state of permanent residence. Terms and conditions vary by state. Not all loans are available in all states. Loan amounts available may vary by state.
DISBURSEMENT All Loan proceeds will be sent to the student borrower’s school around the time classes begin, on the date your school prefers. Funding U will require documentation to verify your registration and certify your loan need prior to disbursement. Your school must also certify your loan need. Your loan may be adjusted based upon the amount of need certified by your school.
REPAYMENT TERMS New Undergraduate loans for the 2021-2022 school year will have an Annual Percentage Rate (APR) of 7.49% to 12.99%. All loans have a fixed interest rate range of 7.49%* to 12.99% (before consideration of ACH discount). There is no origination fee. Interest accrues while students are in school.
In-school partial payments: Students may choose either $20 monthly as a “Fixed Payment” while enrolled in school or “Interest Only” payments. These payments will be reported to credit agencies like other student loans. All loans have a 10-year repayment term (paid monthly over 120 months starting 6 months after graduation). Both In-School payment options may not be available in all states. Student’s electing to make Interest-Only payments will receive a 0.5% interest rate discount.
PREPAYMENT PENALTIES There is no prepayment penalty on your loan.
Additional details, terms & conditions will be included in each loan offer.
*The lowest rate shown is available only to juniors & seniors with outstanding academic performance and is not typical of the rates offered to most borrowers. Your actual rate will depend on creditworthiness and other factors, such as your school year and GPA.
Variable: 0.00% APR - 23.00% APR1
5-10 years
Edly No Cosigner Required
- MUST BE a US citizen or permanent resident
- MUST BE a college junior, college senior, or grad student
- No co-signer required
- Get approved in minutes. Pre-qualify without affecting your credit score
- Income-based repayment with built-in protections, like deferred payments if you lose your job
Edly Student IBR Loans are unsecured personal student loans issued by FinWise Bank, a Utah chartered commercial bank, member FDIC. All loans are subject to eligibility criteria and review of creditworthiness and history. Terms and conditions apply.
Loans from $5,000 - $25,000 Example: $10,000 IBR Loan with a 7% gross income payment percentage for a Senior student making $65,000 annually throughout the life of the loan. Payments deferred for the first 12 months during final year of education. After which, $270 Monthly payment for 12 months. Then $379 Monthly payment for 44 months. Followed by one final payment of $137 for a total of $20,610 paid over the life of the loan.
About this example: The initial payment schedule is set upon receiving final terms and upon confirmation by your school of the loan amount. You may repay this loan at any time by paying an effective APR of 23%. The maximum amount you will pay is $22,500 (not including Late Fees and Returned Check Fees, if any). The maximum number of regularly scheduled payments you will make is 60. You will not pay more than 23% APR. No payment is required if your gross earned income is below $30,000 annually or if you lose your job and cannot find employment.
Understanding Student Loan Interest
Before you start researching lenders, you should first understand exactly how interest works on a student loan balance. Unlike traditional loans, student loans often offer a grace period for six months following your enrollment to allow you time to prepare for upcoming payments after graduation. All student loans will being accruing interest from the date of disbursement.
Unless you have a federal subsidized loan (federal subsidized loans, like the Direct Subsidized Loan, the government will be your interest while you’re enrolled at least half-time, during your grace period, and any time you are in an authorized deferment), you will be responsible to repay this on top of the amount you borrowed. Even during your grace period, and through repayment, your loan will accumulate interest based on the rate indicated in your promissory note.
But how exactly does this interest work? Like any other loan, you will borrow a principal amount — for example, the sum of your school’s tuition and fees— and then repay that principal plus the interest rate you have agreed to. For a $30,000 loan that carries the average student loan interest rate of 5.8%, then, you would pay $9,600 in interest over the course of ten years.
More>>>Calculate the amount of interest on your loan
Unlike other types of loans, some student loans often offer the opportunity to enter into a period of forbearance or deferment. In both cases, payments may not be required for an extended time. Many borrowers mistakenly believe that interest does not accrue during such periods, but in most cases, it will. The interest of your student loans will continue to be added to its principal, even when payments are not required.
How to Find Low Interest Student Loans
Before you decide on a student loan, it’s advantageous to consider all options and find the lender who offers the lowest interest rate. Different lenders will offer different loan terms, so it’s worth your time to do some research and find the lender who offers the most beneficial conditions. How do you find the lowest rates and best repayment terms? There are a few ways to find lenders who are likely to offer optimal rates.
You can start with an internet search for “low interest student loans” and see what results are available. You’ll likely find that there are many private lenders who offer low interest student loans that you can easily apply for. Look at the rates advertised by different lenders as well as the repayment terms and choose a few top contenders to submit applications to.
As you do your research, it’s important to understand that there are two types of interest rates that will be offered by the banks, fixed and variable interest. Fixed interest is exactly how it sounds, the rate is fixed (i.e. it doesn’t change) over the length of the repayment term. Variable rates will fluctuate with market conditions and can move up or down during the repayment period, causing monthly payments to change as rates change.
Variable rates are generally lower than fixed rates, so when comparing rates, naturally they will look more attractive. However, you will need to consider your financial needs and determine which is better for you in the long run – a fixed or a variable rate.
Some people prefer the stability of the fixed rate, while others are willing to contend with the risk of the rate moving up to get the lower rate in the beginning. If you are considering a variable rate loan, make sure you can afford the payments at the lower and higher interest rate.
Remember that interest rate isn’t the only factor you should pay attention to when you are shopping for a student loan lender. You should also pay attention to factors such as available repayment options — this will affect your monthly payment in addition to the interest rate.
Longer loan terms can offer lower payments but actually be more expensive in the end with the total amount paid higher than if you would have chosen a shorter term. It is possible though to find loans with a shorter repayment plan will come with a low interest rate, too. This is why it’s important to shop around.
Different Loan Repayment Options
What kind of repayment options are available on student loans? The answer to this question depends on the lender you select, but generally speaking, there are a few key differences between options that every borrower should be aware of — the first being the repayment term. Some loans will offer repayment terms of up to as much as 30 years, while others offer much shorter terms of ten years. This makes a major difference in how much you pay monthly, so it’s important to pay attention to.
You should also pay attention to whether the loans you are considering offer variable rates or fixed interest rates. As mentioned above, the variable rate is unique because it fluctuates based on the ups and downs of market interest rates — this means that your interest rate may be lower, but it also could be higher.
A fixed interest rate, on the other hand, offers a set interest rate that will not change throughout the duration of the loan. This may be preferable to people who would rather have a stable repayment plan instead of one that may fluctuate.
Qualifying for the Lowest Interest Rate
A big part of scoring the lowest interest rate on a private student loan is having a good credit score. Your credit score will determine the loan amounts you are offered, as well as the interest rate that a lender approves. The higher your credit score is, the lower your interest rate will be. Your score is based on multiple factors in your credit history such as:
- Percentage of payments made on time
- Amount of debt in borrower’s name
- Credit utilization ratio
- Accounts that may be in collections
of these elements can affect the interest rate that a lender offers you. If your credit history is less than perfect, you might be forced to accept a loan with a higher interest rate if you apply for the student loan on your own. It’s not uncommon for students to have cosigners to help them not only qualify for a loan but to also secure the lowest possible interest rate taking advantage of the cosigner’s strong credit score and credit history.
If you use a cosigner, it’s important to mention that the cosigner is just as responsible for the loan as you are. It is possible to release the cosigner (if the lender allows for this) with a minimum number of on-time, in-full, consecutive monthly payments, and meeting other criteria in your loan’s terms. This is generally for students with at least 24 on-time payments, but terms will vary by lender and can be more or less, as stated in the terms and conditions of the loan.
Private vs. Federal Student Loans
When discussing differences in interest rates and repayment plans, it’s important to note that many of options noted above are based on private student loans. Federal student loans have interest rates that are determined by the federal government and non-negotiable.
That said, most students will opt for federal student loans because of subsidized loan options (meaning the government will cover the cost of your interest while you are enrolled in school at least half-time, during your grace period, and during authorized periods of deferment), but this isn’t necessarily the best option for every student.
Federal loans are granted after a student completes the FAFSA® (Free Application for Federal Student Aid). A student’s credit history or income are not taken into account, meaning that it is much easier to get approved for federal funds than private funds.
In fact, students are typically only denied if they have been convicted of a specific felony or if they have maxed out their loan availability. Federal loans are also eligible for loan forgiveness in some cases, and may be further subsidized by additional financial aid if the borrower qualifies.
Private student loans can help pay expenses that are not covered by federal student loans but are needed to finance the remainder of your school’s cost of attendance, and they can offer competitive and sometimes interest rates depending on your credit.