Best Private Student Loans - Lenders, Interest Rates and More

Private Student Loans are non-federal or private education student loans used to cover education-related expenditures. It may be advised to take these loans, once individuals have already exhausted other forms of free and federal financial aid. These loans are typically based on good credit history and verified proof of income or employment history.

The loans are given based on credit and are usually easier to get if applied with a co-signer as most students don't have a good credit score. They have better loan limits when compared to standard federal loans hence they are the go-to option after exhausting all other federal loans, grants, and scholarships.

12 Best Private Student Loans 

Here is a list of the 12 top private student loans lender. The values of the factors such as interest rates and repayment terms may change every year.  The best private student loan interest rates range from 3.82% APR to over 13.22% APR for fixed-rate loans and in the range of 3.83% to 12.59% for variable-rate loans, depending on various factors such as your household income, credit score, cosigner, and more. 

 

Lender	Interest (Fixed or Variable)	Loan Term (Years)
Sallie Mae	Fixed - 3.50% - 12.60% APR¹, Variable - 1.13% - 11.23% APR¹ (with autopay)	10 - 15²
College Ave	Fixed: 2.99% - 12.99%, Variable: 1.24- 11.98%	5,8,10,15
Citizens Bank	Fixed: 5.25% - 12.09%, Variable: 4.47 - 12.34%	5,10,15,20
Ascent	Fixed: 3.34% - 13.57%, Variable: 2.46% - 12.40%	5,7,10,12,15
Common Bond	Fixed: 3.67% - 7.25%, Variable : 2.7 - 7.44%	5,7,10,15
SunTrust	Fixed: 5.35% - 14.05%, Variable: 4.38 - 13.38%	7,10,15
LendKey	Fixed: 3.49% - 8.93%, Variable: 2.70 - 8.96%	5,7,10,15,20
Discover	Fixed: 5.99% - 13.99%, Variable: 4.49 - 13.49%	15,20
Earnest	Fixed: 3.89%, Variable: 2.53%	5,20
Laurel Road	Fixed: 3.50% - 7.02%, Variable: 3.23 - 6.65%	5,7,10,15,20
SoFi	Fixed: 3.90%-8.02%,  Variable: 2.56% - 7.30%	5,7,10,15,20
PNC	Fixed: 5.58% - 11.79%, Variable: 4.94% - 10.10%	Up to 15 years

1. Sallie Mae

Sallie Mae offers private student loan options for undergraduate, graduate students, and parents.

Fixed APR - 3.50% to 12.60%¹ (with autopay)

Variable APR - 1.13% to 11.23%¹ (with autopay)

Loan Terms - 10 to 15 years which will vary based on cumulative Sallie Mae balance.²

Repayment while in school¹ - Interest-only, fixed monthly payments², or full deferment until graduation.

Co-signer release - Yes, student borrowers may apply to release their cosigner form the loan after they graduate, make 12 on-time, principal and interest payments, and meet certain credit requirements.⁴

2. College Avenue

College Ave is one of the student loan lenders that offer student loan options for undergraduates, graduate students, and parents, and offer student loan refinancing.

They have a short and easy application form.

• Undergrad, graduate, and Parent loans are available

• There is a 0.25% interest rate reduction for auto-debit plans while in school

• No application, origination fee, or prepayment fees are required

• Minimum loan amount of $1,000 and a maximum loan amount equal to the cost of attendance certified by the school of attendance.

Fixed APR - 2.99% - 12.99%

Variable APR - 1.24% to 11.98%

Loan terms - 5, 8, 10, or 15 years

Repayment while in school - Full payments, interest-only, fixed monthly, full deferment until graduation

Co-signer release - N/A.

Official Website - Link

3. Citizens Bank

Citizens One is the student loan division of the well-established Citizens Bank. It offers undergraduate & graduate student loans, plus refinancing of already existing student loans.

It has great customer service. They have the availability of undergraduate, graduate, and Parent loans.

• Up to 0.5% reduction in interest rates for making automatic payments and having a citizen's bank account.

• No application, origination, or prepayment fees.

• Minimum loan to refinance - $10,000

• Up to $90,000 for undergraduate student loans and up to $295,000 for graduate student loans.

• Refinancing and consolidation of federal and private student loans with an Education Refinance Loan from Citizens Bank.

• Fixed-rate student loan refinancing featuring an interest rate as low as 3.90% to 9.99% APR with automatic repayments for eligible candidates.

• Variable interest rates range from 3.00% - 9.74% APR with automatic repayments and will fluctuate over the term of your loan with changes in the LIBOR rate.

• Loyalty discount - 0.25 percent point interest rate reduction on a new Education Refinance Loan if you or your co-signer (if applicable) has a qualifying account in existence in our system at the time of application.

• Automatic payment discount - 0.25 percent interest rate reduction by authorizing our loan servicer to automatically deduct your payments each month from any bank account of yours.

• Co-signer release - Co-signer may be released from loan responsibility right after making 36 consecutive, on-time principal and interest payments.

• No application, origination or disbursement fees

Fixed APR - 5.25% - 12.09%

Variable APR - 4.47% - 12.34%

Loan terms - 5, 10, 15, 20-year repayment term plans

Repayment while in school - Full payments, interest-only, full deferment until graduation.

Official Website - Link

4. Ascent

Ascent student loans are one of the only private student loan lenders who offer a Non-Cosigned Future Income Based Loan option for students who do not have a cosigner or lack sufficient credit history.

They offer Undergraduate and Graduate student loans.

• 1% Cash Back Reward upon graduation.

• 0.25% to 2.00% discount automatic repayments

• No application, origination or prepayment fees

• Loans amounts between $1,000 and $20,000

Fixed APR - 3.34% - 13.57%

Variable APR - 2.46% - 12.40%

Loan terms - 10 or 15 years

Repayment while in school - Interest-only, fixed monthly payments, or full deferment until graduation

Co-signer release - Yes, after 24 on-time monthly payments.

Official Website - Link

5. CommonBond

CommonBond offers student loan options for undergraduates and graduates. Refinancing and consolidation of private and federal student loans are also done here.

The refinancing options are available for undergraduate, graduate, and Parent PLUS student loans.

• 0.25% interest rate reduction with the use of automatic payments through the ACH

• Unemployment protection loan payments are paused and it helps able graduates find new jobs and also hire them for short-term consulting projects

• Access to CommonBond Community Borrowers comes with perks such as access to events in their cities, networking opportunities, and lifestyle perks

• Social good for every fully funded degree through CommonBond's loan program, it also funds the education of a student in need abroad for a year through the Pencils of Promise Division.

• No application, origination, or disbursement charges.

Fixed APR - 3.67% – 7.25% APR refinancing with automatic repayments.

Variable APR - 2.70% – 7.44% APR refinancing with automatic repayments.

Mixed APR - 4.35% – 6.30% APR hybrid rate refinancing with automatic repayments.

Loan term - 5, 7, 10, 15, 20 year repayment terms.

Official Website - Link

6. SunTrust

SunTrust offers private student loan options for undergraduate and graduate student loan borrowers with good credit or a co-signer with good credit and stands out for a wide variety of repayment choices.

• 2% principal reduction after graduation.

• Undergrad, Grad, and Grad Business loans available.

• No application, origination, or prepayment fees.

• Loans amounts range from a low amount of $1,001 to $65,000 per year (aggregate max of $150,000)

Fixed APR - 5.35% - 14.05%

Variable APR - 4.38% - 13.38%

Loan terms - 7, 10, or 15 years

Repayments while in school - Full payments, interest-only, fixed monthly, full deferment

Co-signer release - Yes, after 36 on-time monthly payments.

Official Website - Link

7. LendKey

There are greater chances of loan approval with LendKey’s network of not-for-profit lenders.

You get to check real refinancing rates in 2 minutes with one form with no impact on your credit score.

There are no handoffs – You will be with their fully trained customer service team from the point of your application to the point of your final payment.

• Refinancing and consolidation of private and federal student loans are possible.

• Available for both undergrad and graduate school student loans.

• 0.25% interest rate reduction is made available to all borrowers while making automatic payments.

• Unemployment protection – The longest period of 18 months available of paused loan payments while in-between jobs.

• Minimum balance to avail refinance - $5,000

• Minimum income requirement of $24,000/year

• No application or origination fees, and no prepayment fees

• Keep payments low with interest-only repayment available for the initial four years of some 15year term loans for payment during school terms.

Fixed APR - 3.49% to 8.93% APR with automatic payment options

Variable APR - 2.70% to 8.96% APR with automatic payments options

Loan term - 5, 7, 10, 15, 20-year repayment plans

Cosigner release - Yes, available after 12 on-time payments.

Official Website - Link

8. Discover

Discover offers student loans and student loan refinancing for undergraduates and graduate students. Discover’s flexible payment options for borrowers experiencing financial hardship are exceptional and worth making a note of.

They offer undergraduate, graduate, and professional student loans.

• 0.25% interest rate reduction while enrolled in automatic payments.

• No application, origination, or prepayment fees.

• Cover up to 100% of your school-certified college expenditure.

Fixed APR - 5.99% - 13.99%

Variable APR - 4.49% - 13.49%

Loan terms - 15 or 20 years

Repayment while in school  - Interest-only, fixed monthly payments, or full deferment until graduation.

Co-signer release - No.

Official Website - Link

9. Earnest

Earnest is a good bank that is known to have great customer service and value its relationship with them very high.

Refinancing is available for undergraduate or graduate student loans from both private and federal lenders.

There are no specific income requirements as Earnest looks at thousands of data points to evaluate financial responsibility and then arrives at the lowest possible rate.

• Commitment-free 2 minute rate checkups

• Earnest will never pass you off to a third party. Their on-site team is your customer service partner for the entire life of your loan

• No origination fees, application fees, or prepayment fees

• Must have completed undergraduate or graduate degree or expected graduation within 6 months of application

• Must be currently employed or with an employment offer starting within 6 months of application

• Must be a U.S. citizen or permanent resident

Fixed APR - 3.89% APR fixed for automatic repayment plans

Variable APR - The rates start at 2.55% APR variable for an automatic repayment plan.

Loan term - Wide flexibility to pick any monthly payment and term between 5 and 20 years – saving you more than standard rates and terms comparatively.

Ability to change your loan as your life and needs change – refinance your loan for free, change payment dates, can even skip a payment once a year and make it up later. Unemployment protection to stop your monthly payments when in-between jobs.

Official Website - Link

10. Laurel Road

The refinancing and consolidation of private and federal student loans are done here, all under one roof. You must have completed an undergraduate or graduate degree program that qualifies.

It also allows parents of Bachelor's degree students the opportunity to refinance student loans they took out to help finance their children's education as long as their child has graduated and is currently working.

Parents can refinance their Parent PLUS loans in their name or their child's name.

• No origination fee or prepayment fees

• 0.25% Interest rate reduction with automatic payments via ACH

• Max variable rates capped at 9% for 5-10 year terms.

• For greater than 10 year term, the max rate cap is 10% APR

Fixed APR - 3.50% – 7.02% with automatic repayments in fixed rates

Variable APR - 3.23% – 6.65% with automatic repayments on variable rates

Loan term - 5, 7, 10, 15, 20, year repayment terms.

Official Website - Link

11. SoFi

SoFi offers to refinance and also consolidate your private and federal student loans.

A student must have completed an eligible undergraduate or graduate degree program.

It is available for both undergraduate and graduate students.

• No origination fees or prepayment penalties.

• Unemployment protection – Loan payments are paused and they help find a new job.

• Career support – Complimentary coaching for SoFi members.

• Entrepreneur program – Qualified applicants can avail loan deferrals and mentorship.

Fixed APR - 3.90% APR to 8.02% APR (with autopay) fixed rates.

Variable APR - 2.56% to 7.30% APR variable rates, capped at 8.95% / 9.95% APR depending on term of loan.

Loan term - 5, 7, 10, 15, 20, year repayment plans.

Official Website - Link

12. PNC Bank

A 0.50% interest rate reduction on automatic payments for the duration while you attend school.

Loans available for Undergraduate, Graduate, Health Professionals, Residency, and Bar Study.

• No application, origination, or prepayment fees.

• Borrow up to $40,000 for undergrads and up to $65,000 for grads per year.

Fixed APR - 5.58% - 11.79% APR

Variable APR - 4.94% - 10.10% APR

Loan terms - Up to 15 years

Repayment while in school - Full payments, interest-only, or full deferment

Co-signer release - Yes, after 48 on-time monthly payments.

Official Website - Link

Other Private Student Loan Lenders

Apart from the private student loans mentioned above, you can also explore other private lenders who offer loans if you don't qualify for the above lenders.

Lender Name	Fixed interest	Variable interest
Prodigy Finance	6.12 % -8.13 %	4.62% - 7.62%
Raise	5.33%-15.73%	6.074% -15.075%
Wells Fargo	5.24% to 9.99%	4.74% to 9.99%
InvestEd	3.865% - 7.675%	5.570% - 9.420%
iHelp	4.00%–5.55%	2.50% - 7.50%
Bank of North Dakota	3.79%-4.53%	3.93%-   4.74%
EdvestinU	4.5%-8.75%	4.510% - 7.180%
WeFinance	3.510%-3.550%	2.99% - 6.24%
Brazos	3.50%+	2.38%+
MeFa	4.95% to 6.85%	3.28% to 6.18%
MPOWER	2.72% – 8.38%	9.99%
Education loan finance	2.39%-3.20%	3.50% -4.25%

Prodigy Finance

Prodigy Finance is a fintech platform especially known for its loans offering to international graduate students and refinancing to international graduates working in the United States or planning to do their studies in the postgraduate institution. The best part of it as they provide private loan to international students in the U.S without co-signers.

It refinances the international student loan without asking for credit or co-signer history, thus if you are an international student looking for a student loan you can have a look at it. This loan is available in 150 countries all over the world and for 285 eligible universities. Read more about Prodigy Finance Review

Raise 

Raise a private student lender to help students in financing their educational cost and consider one of the trustworthy lenders among all. Raise provide loans such as Custom Choice Loan, Graduate Business Loan, Union Federal Private Student Loan, and Kinecta as well as help in bearing other extra costs like a textbook, computers, housing, and more. Thus if you are looking for a student loan you can have look at this lender. Read more about Raise Reviews 

Wells Fargo

Wells Fargo student loan makes the cost affordable for the student who is looking for loans as they offer offers various interest-rate discounts to its banking customers plus they release the co-signer soon which means if you are looking for refinance then you should have look at Wells Fargo as well.

They provide an offer to their banking customer as well which make it more trustworthy and convenient to the borrowers. Not only do they focus students for a loan they also provide loans to their parents as well with minimum fees charging(especially late fees). Read more about  Wells Fargo Review

INvested

INvested are an Indiana company which help student and their families in reducing the loan debt and access a reasonable private loan solution when it’s not possible. With there offering the graduation becomes affordable to the students as you can get flexibility in payments.INvested you get an opportunity of deferment even when you are in school.

INvestEd loans are just one type of private student loan, but the company offers a ton of college cost planning solutions for free thus every borrower should check the lenders’ features and choose accordingly. For more insights about the lender, Read more about INvested Reviews

iHelp

iHelp all funds are sponsored by its parent company Reunion Student Loan Finance Corp and offer student loan refinancing if you attended schools in four states: Maryland, Pennsylvania, West Virginia, and Virginia.

It offers graduated and income-sensitive repayment plans which are unique under among the student loan refinance loans. For refinancing, you need a good credit history and also provide personalized rate estimates without affecting the credit score thus if you are thinking of the iHelp as an option then analyze all its feature before applying. For more information, read more about  iHelp Review

Bank of North Dakota

Bank of North Dakota is a state-run financial institution and offers both private student loans and student loan refinancing to those who qualify. It is partnered with the local institutions to better serve the state’s residents on a local level.

They offer DEAL One loan and Consolidation loan under the refinancing, which helps both residents and non-resident to refinance federal and private student loans from one or more lenders into one loan at a low-interest rate. Before applying to check the requirements of loan and explore all the options and choose appropriately. Read more about Bank of North Dakota Review

EDvestinU 

EDvestinU is a private student loan lender established by the New Hampshire Higher Education Assistance Foundation. They provide private student loans, refinancing, consolidation. If you have a good credit score and was unable to get a loan from other lenders, you can check the details and benefits that EDvestinU has to offer you. 

WeFinance

If you are left with fewer options because of bad credit or no credit at all. You can reach our finance. They also provide multiple alternatives to student loans. Do be aware of the interest rates they do provide. For more details for loan types, interest, and read more about the WeFinance student loan review.

Brazos

Brazos student loans are loan providers in Texas. Providing refinance and Parent loans at affordable rates to the borrowers. They customize the loans according to your financial status. And ideally has good reviews. For more information regarding their services take a look at Brazos review.

MEFA

MEFA is a Massachusetts Educational Financing Authority providing student loan that offers multiple repayment options for borrowers to manage their finances. Like other lenders, they also provide Undergraduate and graduate student loans. For more information, take a look at the MEFA student loan review.

MPOWER Financing

MPOWER was found by international students for helping with loans for international students and residents. Most of their interactions will be online. Their private loans are best for international students seeking to study abroad. Read more about  MPOWER Review.

Education Loan Finance

These loans are offered by SouthEast. They have good reviews from their customers providing student loan refinancing, undergraduate, and graduate student loans. They have apps supporting them to provide good service. For more details on this lender read more about the Education loan finance review

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Differences between a Federal and a Private Student Loan

Federal and private student loans differ in many ways such as the interest rates, student loan providers, lenders, the approval basis, the co-signer requirement, and much more. We shall discuss a few in the following lines - 

Factors	Federal student loans	Private student loans
Lenders	Federal Government	Private banks, Credit Unions, and others
Interest rates	Fixed	Fixed and Variable
Repayments options	Not until you graduate	While attending a school or sometimes after graduation
Approvals based on	FAFSA and expected family contribution	Credit scores, income, debt, school, the field of study, and other factors
Co-signer requirements	Not required	Mostly expected

Given below is a list of factors with the help of which we can better understand the difference between federal and private student loans.

1) Lender

Federal loans are lent out by the Federal government.

Private loans are lent out by Private banks, Credit unions, and other financial institutions. 

2) Interest rates

Federal loans usually have a fixed rate of interest.

Private loans have both fixed and variable rates of interest.

3) Repayment options

Federal Loans do not require repayment until after you graduate.

Private loans may be required to be paid while you attend a school or not until after graduation.

4) Approval

Federal loans are approved based on FAFSA and expected family contribution (EFC).

Private student loans are approved based on credit scores, income, debt, school, occasionally field of study, and other associated factors.

5) Co-signer requirements

Federal loans do not require a co-signer.

Private loans or most of them expect you to have a co-signer. A co-signer can be your friend, family member, or spouse. 

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How to get a Private student loan?

You can apply for a private student loan with minimum requirements. Most private student loan companies and lenders these days prefer that you apply online. Many are offering mobile-friendly applications for easy access for you on the go.

Typically, after choosing a lender, you will be asked to first fill out some basic personal and educational information. If you are electing to use a co-signer, they may have to provide some information about themselves as well.

In general, you will need to have at least an average credit score of close to 700 (on a scale of 300 to 850). Otherwise, you will likely need a co-signer to qualify for a private student loan.

If you are meeting the initial requirements, you will next most likely be required to upload documents to allow the student loan lender to determine your eligibility and interest rates.

Within a few days or sometimes within a few hours, the lender will inform you if you are eligible and, if so, what interest rates and repayment terms you can choose from for your loan.

The last step is to sign the Master Promissory Note. This is a legally binding contract that requires you to pay back the student loan, over time, with interest.

After signing this note, your student loan funds will be sent to your school for disbursement to you.

To search for the best private student loan lenders by finding the 10 largest.  Each lender receives a grade for its options or performance in these 8 categories:

• Interest rates - Various private lenders offer variable and fixed-rate student loans. Most of the lenders advertise an annual percentage rate, although with either type of loan the rate you receive can depend on your creditworthiness, co-signer, and current market rates. Each lender is graded with rates either its low or high-end rate for both variable and fixed-rate loans. Lenders got a grade based on how their rates compared with the average rates of all 10 companies, with the highest grade going to those offering below-average rates. 

• Interest rate reduction with autopay - All the 10 largest private lenders allow your interest rate by signing up for autopay. The discount rate can range from 0.25% to 0.50% to the borrowers who are signing for autopay and most points are also awarded to the lenders with the highest discounts.

• Fees - Some or like most of the private and federal student loans have origination and disbursement fees, a certain percentage of your loan amount that you have to pay when taking out the loan. But all those 10 largest private lenders charge no such fees.

• Online application - The application process with each of the lenders and assigned grades based on the clarity of the website and simplicity of the application process.

• Maximum repayment term - All the top lenders got top marks for offering a 15-year loan term option. A longer-term can result in lower monthly payments, and also increase your overall cost of borrowing. Some of the lenders do offer shorter term, which can increase the monthly payment but also lower the interest rate. 

• Cosigner release ability - Some lenders let you release a co-signer if you meet their credit and income requirements and make a consecutive series of on-time full interest and principal payments. The lenders that had the shortest time-period requirement (12 months) got the highest score, while lenders that didn’t allow for co-signer release got the lowest. 

• Maximum deferment - All private student lenders offer different types of repayment plans, such as full interest and principal payment, interest-only payments, $25-per-month payments, and an option to fully defer your payments until after you graduate.

• Extra credit that set the lender apart from the pack -They give bonus points to lenders that offered borrowers extra benefits, such as a principal reduction upon graduation.

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Eligibility requirements to apply for private student loans

Having a private student loan, helps you cover the cost of not only your education-related expenditure but also living costs.

Your expenses related to tuition fees, meals, housing, books, childcare expenses, computer these requirements can be covered by private student loans.

To qualify for student loans :

1. Have a Social Security number or you qualify if you are a US citizen

2. Have a good credit score else, else you may need to find a cosigner

3. Enroll for your studies in a college, even half time enrollment is qualified to get private student loans

4. Each private lenders have a minimum qualifying income to satisfy the eligibility for applying for private loans

5. Must be above 18 years and have a high school degree

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What should a good private student loan offer?

Here is the list of few benefits to look for from a legit private loan lender: 

• No application, origination, prepayment, or late fees

• Provide highly competitive interest rates

• Supplement and help with other financial aids to meet the total cost of your education

• Help pay for your undergrad, grad school, and professional degrees as well as career training

• Cover any education-related expenses including books, computers, and more

• Also, aid in building your credit, especially with a credit-worthy co-signer

• Make a cosigner release available

• Provide a variety of repayment plans.

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How do I choose a private student loan?

Compare the offers from various lenders including banks, credit unions, and online lenders to find the lowest interest rate. Depending on the lender, you may be given the choice to choose a fixed or a variable interest rate.

A fixed-rate stays the same all through the life of a loan. A variable-rate may start lower than a fixed rate but could go up or down over time depending on economic conditions.

Consider any borrower protections your private lender give you, including deferment and forbearance, as well as repayment options.

You may also have the option to choose your loan term, which implies you could pay off your loan faster and with less interest by making more payments over shorter periods or make fewer payments with more interest over a longer period.

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What is co-signing a private student loan?

A co-signer is a person who signs a loan agreement in addition to the primary borrower. He/She agrees to continue paying the loan if the borrower cannot do so or ceases to do so, regardless of the reason. They must have a higher credit score than the borrower to ensure they have a positive impact on the application.

Some lenders do offer co-signer release programs after a certain number of on-time payments are made usually mentioned in terms of the number of consecutive timely monthly payments made.

Benefits of using a co-signer

• The loan becomes more likely to be approved

• The borrower receives a lower interest rate

• You have someone to motivate you to stay on top of loans

• The cosigner may be discharged later through refinancing the loan

Risks of using a co-signer

• The credit of the primary borrower and co-signer will both be affected if payments happen to miss deadlines.

• Co-signer's retirement could be delayed until released.

• They will be required to make payments if the primary borrower does not make them.

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Will I need a co-signer for a private student loan?

If you have no income and either bad or no credit, you’ll need a co-signer to get a private student loan. Without bills in your names, such as a credit card, car loan, or utility, you have no way to show that you can pay bills on time.

Your co-signer will need to have a steady income as well as good to excellent credit scores, typically at least above the 650. Signing with a co-signer means they’re responsible for your loan bill if you can’t pay.

Some lenders offer loans exclusively for student borrowers that don’t have credit to take into consideration. Instead, these lenders look at the school you’re attending and your income and career potential to deduce whether the amount you can borrow can be paid back and at what rate.

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How does repayment work?

Most private student loan borrowers are given a choice of a few repayment options. Popular options include -

• Full payments - Make full monthly payments while still in school. It saves the most money by paying off interest.

• Partial payments - Make a flat payment or fixed payment each month to help reduce the total cost of your loan. This does not save as much money as making full payments but saves more than full deferment where interest builds up.

• Interest-only payments - Pay only the accrued interest each month to keep the buildup fixed. When you graduate, your loan balance will be equal to what you originally took out and the principal amount to be paid will be added to your payments along with the interest already being paid.

• Full deferment - You do not make any payments while in school. Interest will continue to accumulate the entire time which makes this the most expensive option.

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What are the negatives of private student loans? 

While most students will require loans to cover the cost of college, there are some negatives to consider - 

• Generally higher interest rates when compared to federal loans

• Fewer repayment options in comparison to federal loans

• Cannot be discharged in bankruptcy which is important to note

• Credit will be damaged if payments are missed which can further hamper any future loan requests.

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