Updated on - Feb 18, 2022
To find the right private loan lender, you need to do research on some basic factors. The students can also contact their schools of preference to check if they have any preferred vendor for private student loans. Following factors should be kept in mind while choosing a private student loan
After calculating your credit score the lender will decide whether you need a cosigner or not. The following things are taken into consideration before stating the need of a cosigner.
Credible This loan is suited to the borrowers or cosigners with a very strong credit score. The fixed APR is between 2.94-13.02% and the variable cost is between 0.94-11.98%. These both values are after inclusion of an autopay discount. The students can check the interest rates within 3 minutes.
Ascent The credit score required is 540+. The fixed APR is between 3.44-11.41%. While the variable APR is between 1.47-9.05%. This is also best for the non-co-signed students and International students. This loan is provided by the Bank of Lake Mills, an FDIC member. Students get a discount of 0.25% or 1% for an automatic payment. The loan term is very variable such as 5, 7, 10, 12, 15, 20 years.
CollegeAve A credit score of mid-600 is required for this loan. The fixed APR is between 2.94-12.99% while the variable APR is 0.94-11.98%. This is the best loan for part-time students. This loan is provided by Firstrust Bank, First Citizens community bank, or MY Safra Bank. All three banks are members of FDIC. The application process is very fast as compared to others. This provides multiple repayment options such as auto pay, paying through check, payment through online bill pay, etc. If a student or co-signer opts for an auto-pay, they are entitled for a 0.25% discount.
Sallie Mae requires a credit score of mid-600s. The fixed APR is between 3.5-12.6% while the variable APR is between 1.13-11.23%. Sallie Mae has one of the lowest rates after including the auto debit discount. Repayments can be done during the school years or after the school years. Offers 4 months of Chegg study to the borrowers. This loan is also available for the students taking professional trainings, certificate courses, and online education from a non-degree granting school.
Earnest This requires a credit score of 650. The fixed APR ranges from 2.94-12.78% while the variable APR ranges from 0.99-11.44%. There are no prepayment penalties or any other fees like late payments, disbursements, or origination fees. If any borrower is able to pay all the payments in order, they can skip the payment for 1 month. This loan is preferable for those students who have a cosigner with them.
SoFi A credit score of mid-600s is required to avail this loan. The fixed APR is 3.22-11.16% while the variable APR is 1.1-11.68%. SoFi does not charge any fees such as late fees, insufficient fund fees, application fees, origination fees or any other fees. Students can get their credit decision within 3 minutes.
Commonbond This requires a credit score of at least 660. The fixed APR is 3.74-10.74% while the variable APR is 3.75-9.35%. These rates include an autopay discount of 0.5%. This loan is provided by the Commonbond Lending LLC and NMLS consumer access. There are no application fees, prepayment fees, or origination fees. Commonbond provides 4 different repayment options such as deferment, fixed monthly payment, interest only payment, full monthly payment.
Custom Choice A credit score of 660 is required to avail the custom choice loan. The fixed APR is 3.2-10.77% while the variable APR is 1.03-9.67%. There are no fees in a custom choice like late fees, prepayment fees, origination fees. There are 4 repayment options such as deferred, flat payment, interest only, and immediate option.
Union Federal The fixed APR is 3.2-10.77% while the variable APR is 1.03-9.67%. The union federal student loan has no origination fees, application fees, late payment fees. The students can customize their loan in 3 different loan terms i.e. 7 year, 10 year, 15 years. There are 4 types of repayment options available i.e. immediate, interest only, flat payment, full deferment.
Lendkey A credit score of 660 is required to avail LendKey private student loan. The variable APR is 1.13-11.23% while the fixed APR is 4.25-12.59%. LendKey provides a student from smaller community banks or credit unions instead of large banks. Over 300 credit unions are available as options which can provide a good interest rate.
