Before considering private student loans, it’s wise to maximize your federal student aid options, including federal loans. If there’s still a gap in covering your school expenses, private student loans can be a helpful addition to your plan. In some cases, borrowers may even qualify for lower interest rates and reduced fees with private loans.
Federal Student Loan vs. Private Student Loan Interest Rate
Federal student loan rates are the same fixed rate for all borrowers regardless of credit score. These rates for federal student loans are updated yearly on July 1st.
Private student loan interest rates are competitive and based on current market trends. When borrowing a private student loan, you will be offered a fixed or variable interest rate. If you choose a loan with a variable interest rate, that variable interest rate/variable APR is subject to change throughout the life of the loan.
The loan interest rate you receive for a private student loan with depends on your credit score or that of your creditworthy cosigner. While there is no minimum credit score needed to qualify for federal student loans, private student loan applicants can be denied if their credit score does not meet the minimum standards, indicating possible bad credit and a risk for the lender.
Quickly compare federal student loan interest rates and private student loan interest rates with the tables below.
Federal Student Loans for 2025 - 2026
| Student Loan Type | Rate (Fixed APR) |
|---|---|
| Subsidized Loan | 6.39% |
| Unsubsidized Loan | 6.39% |
| PLUS Loan | 8.94% |
Private Student Loans for 2025 - 2026
| Student Loan Type | Rate (Variable APR) |
|---|---|
| Lowest In-School Student Loan Rate | 5.09% * |
*Private student loan interest rates are updated monthly
Below are some of the most competitive student loan products available.
Compare Featured Lenders
Edvisors (Edvisors Network, Inc.
) provides independent advertising-supported platforms for consumers to search compare and apply for private student loans.
- Competitive APRs starting at 3.19%1
- Coverage up to 100% of your school-certified cost of attendance ($1,000 minimum) 2
- Apply online in 3 minutes and get an instant credit decision
College Ave's student loan 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.
1All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
2As certified by your school and less any other financial aid you might receive. Minimum $1,000.
3This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 06/30/2025. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
- Choose the #1 Private Student Loan Lender in the Nation. Sallie Mae is trusted by more families than any other private student loan lender.
- Applying online is easy - you could receive a credit result in about 10 minutes.2
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.
Explore federal loans and compare to make sure you understand the terms and features. Private student loans that have variable rates can go up over the life of the loan. Federal student loans are required by law to provide a range of flexible repayment options, including, but not limited to, income -based repayment and income-contingent repayment plans, and loan forgiveness and deferment benefits, which other student loans are not required to provide. Federal loans generally have origination fees, but are available to students regardless of income.
Loans for Undergraduate & Career Training Students are not intended for graduate students and are subject to credit approval, identity verification, signed loan documents, and school certification. Student must attend a participating school. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend 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. Requested loan amount must be at least $1,000.
1Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest 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. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount 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.
2Although 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.
3Based on a comparison of the percentage of students who were approved for any Sallie Mae loan with a cosigner to the percentage of students who were approved without a cosigner from October 1, 2023 to September 30, 2024.
4For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time.
Examples of typical transactions for a $10,000 Smart Option Student Loan with the most common fixed rate, Fixed Repayment Option, two disbursements, a 4-year in-school period, and a 6-month grace: For a borrower with the shortest loan term, it works out to 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a total loan cost of $23,134.44. For a borrower with the longest loan term, it works out to 10.38% fixed APR, 51 payments of $25.00, 179 payments of $150.72 and one payment of $45.51, for a total loan cost of $28,299.39. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.
Information advertised valid as of 06/23/2025.
Edvisors is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.
© 2025 Sallie Mae Bank. Sallie Mae 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.
SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America. W646400 0325
- AFFORDABLE fixed rates starting at 3.09% APR with Automatic Debit Discount*
- 1% CASH BACK Graduation Reward*
- COVER UP TO 100% of your tuition and eligible living expenses.
* Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations, terms and conditions may apply for Ascent's Terms and Conditions please visit: AscentFunding.com/Ts&Cs. Annual Percentage Rates (APRs) displayed above are effective as of 7/1/2025 and reflect an Automatic Payment Discount of 0.25% on credit-based college student loans submitted prior to 6/1/2025, a 0.5% discount for on credit-based college student loans submitted on or after 6/1/2025 and a 1.00% discount on outcomes-based loans when you enroll in automatic payments. Loans subject to individual approval, restrictions and conditions apply. Loan features and information advertised are intended for college student loans and are subject to change at any time. For more information, see repayment examples or review the Ascent Student Loans Terms and Conditions. The final amount approved depends on the borrower’s credit history, verifiable cost of attendance as certified by an eligible school and is subject to credit approval and verification of application information. Lowest interest rates require full principal and interest (Immediate) payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. Variable rates may increase after consummation. 1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/BorrowerBenefits. Ascent applicants and borrowers that agree to the AscentUP Terms of Service and Privacy Policy, as well as students associated with an Ascent parent loan application, have access to the AscentUP platform.
The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.
Student Loan Origination Fees
Federal Student Loan Origination Fee
Federal student loans are all charged an origination fee. This is a percentage of the total federal student loan that the lender (in this case the federal government) charges to fund the loan. This origination fee is deducted from the total student loan amount prior to disbursement. Federal student loan origination fees are set every year on October 1 for loans disbursed from October 1 through September 30. Origination fees depend on which type of federal student loan has been approved for the student, as outlined below.
For loans disbursed from Oct. 1, 2024 to Sept. 30, 2025
Direct Subsidized or Direct Unsubsidized Loans for undergraduate students: 1.057%
Direct Unsubsidized Loans for graduate students: 1.057%
Direct PLUS (for parents, graduate students or professional students): 4.228%
Private Student Loan Origination Fee
While some private lenders might apply an origination fee to private student loans, it's more common to find options without any origination fees. The lenders featured on our website, for instance, offer private student loans completely free of origination charges. Remember, it's crucial for students and parents to thoroughly examine the specifics of their chosen student loan program. This ensures a clear understanding of any potential additional costs, such as late payment fees, that could arise during the loan's tenure.
Average Private Student Loan Interest Rate
The average interest rate on private student loans is difficult to calculate as it depends on several factors such as the loan lender, minimum credit score, private loan terms, current market trends, and length of the loan. Even with these existing variables, the lowest advertised private student loan interest rate may be lower than the fixed rate student loans offered by the federal government. But the rate you receive could also be higher than federal student loans at any specific time, depending on the current market trends and your credit worthiness. Private student loan rates may be fixed or variable and fluctuating with modern market trends. To receive the best possible student loan interest rates, it is vital to apply for your loan with a cosigner that maintains a high credit score. For a historical view of average private student loan interest rates, we break down the numbers here.
How Does Student Loan Interest Work?
How Does Federal Student Loan Interest Work?
When looking at the interest on federal loans, remember that they are not credit-based loans, which means that your eligibility for approval is not based on any minimum credit score. Federal loans have a fixed interest rate and, depending on market conditions, are commonly higher than private loan interest rates. Fixed interest rates/fixed APR gives a borrower peace of mind knowing that as time passes, their interest rates will not increase student loan payments over time.
How Does Private Student Loan Interest Work?
One of the best benefits of private student loans is that the borrower can review different lenders before making a decision and review their fixed and variable interest rate offers. When considering for applying for private student loans, make sure that you fully understand the concept of interest rates, especially variable interest rates/variable APR and the potential for the rate to increase or decrease over the life of the loan. As the market shifts, private student loan interest rates will also shift. Many applicants choose private loans because interest rates can be much lower than the fixed interest rates/fixed APR attached to federal student loans.
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