Written by
Rebecca Betterton
Rebecca Betterton, a Certified Financial Education Instructor℠, is a writer for Bankrate who has been reporting on auto loans since 2021.
Edited by
Pippin Wilbers
Pippin Wilbers is a Bankrate editor specializing in personal and auto loans. Pippin is passionate about demystifying complex topics, such as car financing, and helping borrowers stay up-to-date in a changing and challenging borrower environment.
Reviewed by
Mark Hamrick
Mark Hamrick is Washington Bureau Chief for Bankrate. He is a national award-winning business and financial news journalist.
Edited by
Pippin Wilbers
Pippin Wilbers is a Bankrate editor specializing in personal and auto loans. Pippin is passionate about demystifying complex topics, such as car financing, and helping borrowers stay up-to-date in a changing and challenging borrower environment.
Reviewed by
Mark Hamrick
Mark Hamrick is Washington Bureau Chief for Bankrate. He is a national award-winning business and financial news journalist.
Checkmark Expert verified
Bankrate logoHow is this page expert verified?
At Bankrate, we take the accuracy of our content seriously.
“Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced.
Their reviews hold us accountable for publishing high-quality and trustworthy content.
Updated Aug 22, 2024What to know first: A student loan is a type of funding designed to cover college costs such as tuition, fees, books, supplies and housing. In the United States, 42 million borrowers currently hold more than $1.7 trillion in student debt. Even though it’s a common form of debt, choosing the right loan for your needs is a big decision. Read more
Bankrate’s ranking of the best student loan lenders analyzes interest rates, terms and features to help you start your search. It’s also a resource for what to know before applying. Our methodology factors three main categories: availability, affordability and customer experience.
Table of contents
The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here’s an explanation for how we make money. Learn more about who we are and our promise to guide you through life’s financial journey.
Advertiser DisclosureThe listings that appear on this page are from companies from which this website receives compensation, which may impact how, where and in what order products appear. This table does not include all companies or all available products. Bankrate does not endorse or recommend any companies.
Definition of terms Filter & SortWhen shopping for a student loan, look for a competitive interest rate, flexible repayment terms that meet your needs, generous hardship options and minimal fees. Lender details presented here are current as of July 2, 2024. Check the lenders’ websites for updates.
| LENDER | VARIABLE APR | FIXED APR | LOAN TERM | LOAN AMOUNT | MIN. CREDIT SCORE |
|---|---|---|---|---|---|
| Ascent | 5.99%-15.95% (with autopay) | 3.69%-15.21% (with autopay) | 5 - 15 years | $2,001-$400,000 | Not Specified |
| College Ave | 5.59%-17.99% (with Autopay) | 3.74%-17.99% (with Autopay) | 5 - 15 years | $1,000-100% total cost of attendance (maximum $150,000 for some degrees) | Not Specified |
| Sallie Mae | 5.37%-15.70% (with autopay) | 3.69%-15.49% (with autopay) | 10 - 15 years | $1,000 to 100% cost of attendance | Not Specified |
| Education Loan Finance | 6.00%-14.22% | 3.69%-14.22% | 5 - 15 years | $1,000-100% total cost of attendance | Not Specified |
| Citizens Bank | 5.99%-16.59% (with autopay) | 3.99%-15.59% (with autopay) | 5 - 15 years | $1,000-$150,000 for most degrees | Not Specified |
| SoFi | 5.74%-15.86% (with autopay) | 3.74%-14.83% (with autopay) | 5 - 15 years | $1,000- 100% total cost of attendance | 640 |
| Earnest | 5.62%-18.51% (with autopay) | 3.74%-16.74% (with autopay) | 5 - 15 years | $1,000-$1,000 to 100% cost of attendance | 650 |
| Custom Choice | 5.46%-14.92% | 4.24%-14.02% | 7 - 15 years | $1,000-$180,000 | Not Specified |
| INvestED | 7.99%-12.45% (with autopay) | 5.04%-9.19% (with autopay) | 5 - 15 years | $1,001- 100% total cost of attendance | 670 |
| MEFA | N/A | 5.75%-8.95% | 10 - 15 years | $1,500- 100% total cost of attendance | 670 |
| Federal Direct Subsidized and Unsubsidized Loans | N/A | 6.53%-8.08% Fixed | 10 - 25 years | $5,500 to $12,500 per year (up to $57,500 aggregate) | None |
For more information on private student loan rates, check out our page on private student loans .
*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.
| LENDER | VARIABLE APR | FIXED APR | LOAN TERM | LOAN AMOUNT |
|---|---|---|---|---|
| Education Loan Finance | 5.28%-8.99% | 4.84%-8.69% | 5 - 15 years | $10,000-100% total cost of attendance |
| LendKey | N/A | 5.24%-9.60% (with autopay) | 5 - 20 years | $5,000 to 100% cost of attendance |
| INvestED | 7.99%-12.45% (with autopay) | 5.04%-9.19% (with autopay) | 5 - 20 years | $1,000-$250,000 |
| EdvestinU | 8.07%-9.82% (with autopay) | 6.00%-10.37% (with autopay) | 5 - 20 years | $7,500-100% total cost of attendance |
| MEFA | N/A | 6.20%-8.99% | 7 - 15 years | $1,000-$500,000 |
| RISLA | N/A | 6.34%-8.54% (with autopay) | 5 - 15 years | Up to $180,000 |
| Citizens Bank | 8.27%-11.82% (with autopay) | 6.49%-9.84% (with autopay) | 5 - 20 years | $10,000-$750,000 |
| SoFi | 6.24%-9.99% (with autopay) | 4.99%-9.99% (with autopay) | 5 - 15 years | $1,000- 100% total cost of attendance |
| Earnest | 5.89%-8.94% (with autopay) | 4.89%-8.99% (with autopay) | 5 - 20 years | $5,000-$500,000 |
| Laurel Road | 5.34%-9.25% (with autopay) | 5.24%-9.15% (with autopay) | 5 - 20 years | $5,000- 100% total cost of attendance |
| College Ave | 6.99%-13.99% | 6.99%-13.99% | 5 - 15 years | $1,000- 100% total cost of attendance (maximum $150,000 for some degrees) |
| Splash Financial | 5.28%-9.99% (with autopay) | 4.89%-9.99% (with autopay) | 5 - 15 years | Starting at $5,000 |
For more information on student loan refinancing rates, check out our page on student loan refinancing .
| LENDER | CURRENT APR RANGE | LOAN TERMS | MIN. LOAN AMOUNT | MAX. LOAN AMOUNT |
|---|---|---|---|---|
| Federal student loans | 6.53%-9.08% fixed | 10 - 25 years | Not specified | $7,500 annually for dependent undergraduates, $12,500 annually for independent undergraduates and 100% total cost of attendance for graduate students |
| Ascent | 5.99%-15.95% Variable; 3.69%-15.21% Fixed (with autopay) | 5 - 15 years | $2,001 | $400,000 |
| Funding U | 8.49%-13.99% Fixed | 10 years | $3,001 | $20,000 |
| MPower | Starting at 13.72% fixed with autopay | 10 years | $2,001 | $100,000 |
| Edly | 8.49%-25.96% Fixed | 7 years | $5,000 | $15,000 |
For more information on bad-credit student loan rates, check out our page on bad-credit student loans.
*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.
| LENDER | APR | LOAN TERMS | MIN. LOAN AMOUNT | MAX. LOAN AMOUNT |
|---|---|---|---|---|
| College Ave | 5.59%-14.49% Variable; 3.74%-14.49% Fixed (with autopay) | 5 - 15 years | $1,000 | ($150,000 maximum for some programs) |
| Sallie Mae | 5.37%-14.97% Variable; 3.69%-14.48% Fixed (with autopay) | 15 years | $1,000 | 100% total cost of attendance |
| Ascent | 7.84%-16.20% Variable; 4.69%-15.21% Fixed (with autopay) | 5 - 20 years | $2,001 | $400,000 |
| Citizens Bank | 5.99%-15.09% Variable; 4.24%-14.09% Fixed (with autopay) | 5 - 15 years | $1,000 | $225,000 |
| Custom Choice | 5.46%-14.92% Variable; 4.24%-14.02% Fixed | 7 - 15 years | $1,000 | $180,000 |
| Education Loan Finance | 6.00%-14.22% Variable; 3.69%-14.22% Fixed | 5 - 15 years | $1,000 | 100% total cost of attendance |
| INvestED | 7.99%-12.45% Variable; 5.04%-9.19% Fixed (with autopay) | 5 - 15 years | $1,001 | 100% total cost of attendance |
| MEFA | 5.75%-8.95% Fixed | 10 - 15 years | $1,500 | 100% total cost of attendance |
| Department of Education: Direct Unsubsidized Loan | 8.08% fixed | Standard repayment term is 10 years | Not specified | $20,500 per year (lifetime limit $138,500) |
| Department of Education: Grad PLUS loan | 9.08% fixed | Standard repayment term is 10 years | Not specified | 100% total cost of attendance |
| SoFi | 5.74%-15.86% Variable; 3.74%-14.83% Fixed (with autopay) | 5 - 15 years | $1,000 | 100% total cost of attendance |
For more information on graduate student loan rates, check out our page on graduate student loans.
*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.
| LENDER | CURRENT APR RANGE | LOAN TERMS | MIN. LOAN AMOUNT | MAX. LOAN AMOUNT |
|---|---|---|---|---|
| College Ave | 5.59%-14.49% Variable; 3.74%-14.49% Fixed | 5 - 15 years | $1,000 | 100% total cost of attendance |
| Ascent | 7.74%-15.95% Variable; 4.79%-15.21% Fixed (with autopay) | 5 - 20 years | $2,001 | $400,000 |
| Federal grad PLUS student loans | 9.08% fixed | Standard term is 10 years | Not specified | 100% total cost of attendance |
| Citizens Bank | 5.99%-15.09% Variable; 4.24%-14.09% Fixed (with autopay) | 5 - 15 years | $1,000 | $300,000 |
| Custom Choice | 5.46%-14.92% Variable; 4.24%-14.02% Fixed | 7 - 15 years | $1,000 | $180,000 |
| Nelnet Bank | 6.32%-15.54% Variable; 4.19%-14.47% Fixed | 10 years | $1,000 | $125,000 |
| Sallie Mae | 5.37%-14.97% Variable; 3.69%-14.48% Fixed (with autopay) | 15 years | $1,000 | 100% total cost of attendance |
| Education Loan Finance | 6.00%-14.22% Variable; sc code='loans_data' lender='education-loan-finance' product='mba' field='fixedAprMin']%-14.22% Fixed | 5 - 15 years | $1,000 | 100% total cost of attendance |
| INvestED | 7.99%-12.45% Variable; 5.04%-9.19% Fixed (with autopay) | 5 - 15 years | $1,001 | 100% total cost of attendance |
| MEFA | 5.75%-8.95% Fixed | 10 - 15 years | $1,500 | 100% total cost of attendance |
| SoFi | 5.74%-15.86% Variable; 3.74%-14.83% Fixed (with autopay) | 5 - 15 years | $1,000 | 100% total cost of attendance |
| Earnest | 5.62%-18.51% Variable; 3.74%-16.74% Fixed (with autopay) | 5 - 15 years | $1,000 | 100% total cost of attendance |
The top lenders listed below are selected based on factors such as APR, loan amounts, fees, credit requirements and broad availability.
Overview: Ascent offers undergraduate and graduate private student loans in all 50 states. Borrowers without a co-signer have their own loan option, which is a rarity in the private student loan space. If you don’t have a co-signer, you may be able to qualify for a loan based on your school, graduation date, major and cost of attendance.
Loan amount $2,001-$400,000Ascent is one of the only lenders to give undergraduates the chance to qualify for a student loan based on future income rather than credit score, removing the need for a co-signer.
Overview: College Ave is an online lender that offers private student loans to undergraduate students, graduate students, parents and students attending community college and career programs.
Loan amount $1,000-100% cost of attendanceCollege Ave’s easy application process and flexible repayment options make it a good fit for many students. However, it especially stands out for its specialized graduate school loans, which feature generous grace periods.
Overview: Sallie Mae is one of the most recognized lenders on our list and serves borrowers at all stages of their academic experience. Most notably, borrowers who are only enrolled in part-time programs can secure funding.
Loan amount $1,000-100% cost of attendanceStudents that are interested in an undergraduate, graduate, or career training program — full or part-time.
Overview: Education Loan Finance functions as a not-for-profit organization that is built on creating deep relationships with its borrowers. It awards scholarships the country and connects families with assistance when it comes to the complexities of student loans.
Loan amount $1,000-VariesOverview: Citizens Bank offers private student loans to undergraduate students, graduate students and parents. Borrowers can get a 0.25 percent discount for signing up for automatic payment and existing Citzens Bank customers get a bonus 0.25 percent loyalty discount.
Loan amount $1,000-$225,000Borrowers with strong credit scores who qualify for multiyear approval and existing Citizens Bank customers who would benefit from the discounts.
Overview: SoFi is an online lender that offers private student loans for undergraduate students, graduate students and parents. Among its perks, SoFi doesn’t charge any fees, which cuts down on the overall cost of borrowing.
Loan amount $1,000-100% cost of attendanceSoFi loans’ low starting rates and customizability make them a great fit for many borrower circumstances, including undergraduate borrowers with and without a co-signer.
Overview: Online lender Earnest funds private student loans to undergraduate and graduate students and offers unique repayment options. Earnest's grace period is nine months long, which is three months longer than what most lenders offer. Borrowers are also allowed to skip one payment every 12 months.
Loan amount $1,000-100% cost of attendanceEarnest’s flexibility makes it a great option for those funding a pricey education. That includes those earning MBA degrees and parents covering one or more children’s educations.
Overview: Custom Choice has been in business for over 30 years and serves students in all 50 states. It lends up to $99,999 per school year or $180,000 in total.
Loan amount $1,000-$180,000
Overview: INvestEd is a student loan option tailored for students who reside or are attending school in Indiana. The lender is unusually engaged in bringing resources and information to students — it hosts FAFSA filing events and provides financial aid resources directly to school counselors in the state.
Loan amount $1,001 - 100% total cost of attendance
Overview: MEFA serves borrowers across the country with competitive rates and comprehensive support. It also allows borrowers to use funds to pay for summer sessions or repay past-due balances from other academic semesters.
Loan amountOverview: The federal government offers student loans with fixed rates to undergraduates, graduates and parents. Borrowers have access to income-driven payments, forgiveness programs and other perks you almost certainly won’t find with a private lender.
Loan amount $5,500- $12,500 per year (up to $57,500 in total)Student loans cover the cost of schooling if scholarships and federal loans are not enough. Students can choose federal or private student loans to help pay for school.
They can cover school-related expenses such as, tuition, fees, supplies, housing and books. It’s usually best to start with federal student loans, which have an interest rate of 6.53 percent for undergraduate students for the 2024-25 school year.
Private student loans have fewer borrower protections. However they can fill in any funding gaps and typically have a wider range of repayment terms. Private student loan rates typically range anywhere from around 4 percent to 18 percent.
Your lender sets the interest rate you pay to borrow the funds. You typically have between five and 20 years to repay student loans. If your lender offers the option to prequalify, take advantage — it will let you calculate your student loan interest and payments to understand how much you will spend.
Learn more: Bankrate student loan calculatorStudents have several options for student loan types depending on their degree program:
Federal student loans are offered by the U.S. Department of Education, while banks, credit unions and private lenders offer private student loans. It's almost always best to start your search with federal student loans.
The biggest difference between federal and private loans is in the rates and eligibility requirements. Private lenders base your rates on your credit score, with a poor credit score leading to higher rates.
Federal student loans, on the other hand, offer every borrower the same rate for each type of loan. The average interest rate on a private student loan can range from around 4 percent to 17 percent, while federal loans charge 6.53 percent, 8.08 percent or 9.08 percent, depending on the loan type.
Federal loans have borrowing limits, so borrowers will often turn to private lenders to finance their remaining academic costs. While private loans can often finance up to the total cost of attendance, they don't offer as many ways to customize your repayment plan.
Most private student loans also don't offer many opportunities for loan forgiveness. Any federal student loan forgiveness options don't apply to private debt.
| FEDERAL STUDENT LOANS | PRIVATE STUDENT LOANS | |
|---|---|---|
| Interest rates | 6.53%-9.08% for 2024-25 | 4.19%-17.99% fixed, 4.37%-17.99% variable |
| Fees | 1.057% for for Direct Subsidized Loans and Direct Unsubsidized Loans; 4.228% for Direct PLUS Loans | Varies by lender |
| Borrowing limits | $31,000 total for dependent undergraduates, $57,500 total for independent undergraduates, 100% total cost of attendance for graduates | 100% total cost of attendance with many lenders |
| Qualification requirements | Must be a U.S. citizen or eligible noncitizen and be enrolled at least half time | Varies by lender; often must have good credit and consistent income |
| Benefits | Income-driven repayment plans, robust deferment and forbearance, no minimum credit score | Low interest rates for good-credit borrowers, often zero fees, lender-specific perks |
| Drawbacks | Potentially higher interest rates than private loans offer for borrowers with good credit, loan amount caps for undergraduate borrowers | Credit check required, high rate caps, fewer borrower protections |
Current interest rates on private student loans vary based on where the loan originates, the type of interest rate and the creditworthiness of the borrower. Federal student loans, aside from Perkins loans, disbursed after July 1, 2006 have fixed rates. The interest rates shown for these types of loans apply to those disbursed between July 1, 2024 and June 30, 2025.
| LOAN TYPE | FIXED APR |
|---|---|
| Direct Subsidized and Unsubsidized Loans (undergraduate borrowers) | 6.53% |
| Direct Unsubsidized Loans (graduate and professional borrowers) | 8.08% |
| Direct PLUS Loans (parents and graduate and professional borrowers) | 9.08% |
Federal student loan rates change each year. Your rate depends on when you took out your loan.
| LOAN FIRST DISBURSED | UNDERGRADUATE DIRECT SUBSIDIZED LOANS | UNDERGRADUATE DIRECT UNSUBSIDIZED LOANS | GRADUATE OR PROFESSIONAL DIRECT UNSUBSIDIZED LOANS | DIRECT PLUS LOANS |
|---|---|---|---|---|
| July 1, 2024-June 30, 2025 | 6.53% | 6.53% | 8.08% | 9.08% |
| July 1, 2023-June 30, 2024 | 5.50% | 5.50% | 7.05% | 8.05% |
| July 1, 2022-June 30, 2023 | 4.99% | 4.99% | 6.54% | 7.54% |
| July 1, 2021-June 30, 2022 | 3.73% | 3.73% | 5.28% | 6.28% |
| July 1, 2020-June 30, 2021 | 2.75% | 2.75% | 4.30% | 5.30% |
| July 1, 2019-June 30, 2020 | 4.53% | 4.53% | 6.08% | 7.08% |
| July 1, 2018-June 30, 2019 | 5.05% | 5.05% | 6.60% | 7.60% |
| July 1, 2017-June 30, 2018 | 4.45% | 4.45% | 6.00% | 7.00% |
| July 1, 2016-June 30, 2017 | 3.76% | 3.76% | 5.31% | 6.31% |
| July 1, 2015-June 30, 2016 | 4.29% | 4.29% | 5.84% | 6.84% |
When you apply for a student loan, you'll be offered an interest rate. This interest rate is an extra percentage of your loan amount that you'll have to pay each month.
With federal loans, this rate is the same for all borrowers and is determined by the federal government each year. With private loans, this rate is determined by your credit score, income and more. The most affordable private student loans go to students in good financial health with high credit scores.
Learn more: How the Fed rate changes impact student loansBorrowers can usually choose between a fixed and a variable interest rate. Fixed interest rates remain the same over the life of the loan, while variable rates change based on market trends. Federal student loans are always fixed, while private student loans can be either fixed or variable.
Learn more: Fixed vs. variable student loan ratesIf you are planning on taking out federal student loans, mark your calendar. The Free Application for Federal Student Aid (FAFSA) for 2024-25 opened on Oct. 1, 2023 and closes June 30, 2025. It's the only way to access federal aid, which is first-come, first-serve, so it's best to apply as soon as possible.
Following the pandemic-related pause, federal student loans began accumulating interest again on Sept. 1, 2023 and payments resumed in October.
Early in his presidency, Biden revealed a sweeping student loan forgiveness plan. This original student loan forgiveness plan was rejected by the Supreme Court, but the Biden administration continues to pursue forgiveness options.
Currently, the Biden administration is working with the U.S. Department of Education on a plan that would provide the following:
Additionally, the administration has worked to reform and improve federal programs such as PSLF to provide overdue relief to borrowers, as well as forgive the loans of borrowers whose schools have shuttered.
In late June, two federal judges placed temporary injunctions on forgiveness through the Saving on A Valuable Education (SAVE). However, a July 1 appeals court decision means planned payment reductions can proceed.
In an attempt to cool inflation, the Federal Reserve raised rates 11 times from early 2022 to late 2023. Observers say a final hike is unlikely. The Federal Open Market committee has kept rates steady at seven meetings since then, including the most recent June FOMC meeting.
While the Fed decisions won’t impact federal student loans for the 2023-24 school year — those are already set in stone — they could impact new private student loans and refinancing. They also impact the rates on Federal student loans for the 2024-25 school year.
The Fed rate has the biggest influence for borrowers with private student loans with a variable interest rate. If you have an existing loan, now might be the time to refinance into a fixed rate. If you’re taking out a new private student loan, it may be wise to choose a fixed rate from the start.
The FAFSA is the only way to get federal student loans, which is why all eligible students should fill out the form if they anticipate needing to borrow money for college.
Nationally recognized student financial aid expert
"There is a tradeoff. If you start paying off your student loans during the in-school and grace periods, you may reduce the loan balance at graduation and the interest that accrues before you enter repayment. However, the money you use to pay down your debt might have been available to pay for college costs, reducing the amount you need to borrow. You should not pay down subsidized loans while in school, since no interest accumulates on those loans until your loans enter repayment. There’s no difference between paying the loans during the in-school period and making a lump sum payment just before entering repayment. If you save the money in an interest-bearing account, you might earn a little interest during the in-school period. One benefit of paying the interest on unsubsidized loans during the in-school period is you can keep your loans from growing larger. Between the fees and capitalized interest, your loan balance might increase by as much as a fifth by the time you graduate."
Writer, Personal Loans and Debt Relief
"If you can, making payments on your student loans while enrolled can improve your credit and lower your interest accrual before graduating. However, when it comes down to it, whether you need to pay back your loans while enrolled depends on the type of loan you have. Both private and federal loans come with a grace period that lasts an average of six months after graduating or leaving the institution. Federal loans, regardless of the type, don't require payments while in school, but some private lenders require payments while in school. To avoid negative credit ramifications or increased interest accrual, read through your loan agreement before starting your semester to see if you're required to pay principal or interest payments before graduating."
