About 70% of college students rely on loans to finance their education, according to the Urban Institute. And while federal student loans offer lower rates and more hardship relief options, they're rarely large enough to cover all your educational expenses.
More borrowers are turning to private student loans to fill financing gaps, especially as federal lending limits tighten in 2026 under the One Big Beautiful Bill Act.
Here are the best lenders for low-interest private student loans across a variety of categories. See our methodology for more information on how we made this list.
Best low-interest student loans
Best for affordability: Earnest
Who's this for? Earnest guarantees it can match any competitor's rate and it will give you a $100 Amazon gift card once the match is finalized. In addition, borrowers aren't assessed application, origination, late or prepayment fees.
Standout benefits: Borrowers can take advantage of a nine-month grace period and skip one loan payment per year without penalty.
- Student loan refinancing available
- Offers the option to apply with a co-signer
- Nine-month grace period
- Borrowers can skip one payment per year without penalty
- No physical branches
- Student loan refinancing not available in Mississippi
Actual rate and available repayment terms will vary based on your financial profile. Our lowest rates are only available for the most credit qualified existing cosigned loan borrowers who receive the 0.25% Loyalty discount and requires selection of our shortest term offered, full principal and interest payment while in school, and enrollment in our 0.25% Auto Pay discount. Enrolling in Auto Pay is not required as a condition for approval. Interest rates are subject to change.
Residents of Hawaii must request a loan of at least $1,501.
You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. It is important to note that the 0.25% Auto Pay discount is not available when loan payments are deferred during the interim period as a result of selecting the deferred repayment option.
To be eligible for the Loyalty Discount, applicants must have previously obtained an Earnest Private Student Loan and apply using the same email address associated with that loan. Only one Loyalty Discount may be applied per eligible Earnest Private Student Loan. Not all applicants may qualify. This offer cannot be combined with Earnest's Rate Match program. Earnest may modify or discontinue this offer at any time and without notice, however, once a Loyalty Discount is earned, it will not be taken away.
Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.
Earnest clients may skip a payment through a single, one-month forbearance during a 12 month period. Your first request to skip a pay can be made once you've made at least 6 months of consecutive on-time full principal and interest payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Any unpaid accrued interest may capitalize (added to the principal balance) at the end of the forbearance period by adding unpaid accrued interest to the outstanding principal as permitted by law and the terms of the loan agreement. Please note that skipping a payment is not guaranteed and is at Earnest's discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.
Best for flexible repayment options: College Ave
Who's this for? College Ave lets borrowers select repayment terms of five to 20 years and choose full deferral until graduation or begin payments in school with full, interest-only or flat $25 monthly payments. It also offers hardship protections, including grace periods, deferment and forbearance.
Standout benefits: College Ave is praised for its superior customer service and streamlined application process, which can be completed online in minutes. Enrolling in autopay can earn you a 0.25-percentage-point rate discount.
- High loan amount
- Flexible repayment terms
- Hardship protections like deferment and forbearance
- No co-signer required for U.S. students
- Offers repayment terms of up to 20 years for graduate student loans (otherwise, up to 15 years for undergraduate loans)
- Co-signers can't be released until half of the repayment term has passed
- Charges late fees
College Ave's student loan products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or BTG Pactual Bank, N.A., member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
All 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. 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 the Flat Repayment Option with the shortest available loan term
Best for multi-year loans: Citizens
Who's this for? Citizens Bank's multi-year approval process allows borrowers to apply once and only undergo a soft credit inquiry in subsequent semesters.
Standout benefits: Borrowers with a Citizens deposit account can enjoy a 0.25% rate discount and an additional 0.25% off for setting up autopay. The borrowing limit for refinancing is a generous $750,000.
- No co-signer required
- International students can qualify with a U.S. co-signer
- 0.50% rate discount for autopay from a Citizens account
- Offers student loan refinancing
- Multi-year approval lets you apply once and then just have a soft credit inquiry when they need funds in the following semesters
- Co-signers can't be released until after 36 payments.
- Banking services not available in every state
Best for applying with a co-signer: Sallie Mae
Who's this for? Sallie Mae lets borrowers release their co-signer after just 12 consecutive on-time payments, far sooner than most competitors.
Standout benefits: Unlike many lenders, Sallie Mae has loans for part-time students, study abroad and trade certifications. It also offers a six-month grace period and a graduated repayment option for your first year out of school.
- Loans available to part-time and continuing ed students
- Co-signer release after just 12 payments
- No origination fee
- Offers loans for a wide variety of educational needs including: bar study, medical school, residency and relocation costs, dental school, residency and relocation costs, nursing school/health professions, commercial flight school, coding boot camp and professional certifications
- No student loan refinancing
- Doesn't offer parent loans
- Hard credit check to prequalify
- Late payment fee
Best for applying without a co-signer: Ascent
Who's this for? If you're going it alone, Ascent has lower rates on non-cosigned student loans than most lenders. It also considers factors beyond your credit score, including GPA, expected graduation date and future earning potential. Depending on the loan, you may be entitled to a grace period of up to 36 months.
Standout benefits: Ascent offers rewards like 1% cash back on the principal at graduation. Borrowers can also apply for deferment and forbearance.
- Considers borrowers with no credit
- High loan limit
- Co-signer release available after just 12 payments
- Up to 1% interest rate discount for autopay*
- 1% cash back rewards*
- Considers alternative requirements like the borrower’s school, program, graduation date, major, GPA, cost of attendance and Satisfactory Academic Progress (SAP) to grant approval
- Maximum fixed APR is on the high side
- Doesn't offer student loan refinancing
Disclosure: *Ascent Funding, LLC products are made available through Bank of Lake Mills or DR Bank, each Member FDIC. Subject to credit approval. 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 7/15/2026 and reflect an Automatic Payment Discount (ACH). The ACH discount consists 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.
Best for student loan refinancing: SoFi® Private Student Loan Refinancing
Who's this for? If you're looking to lower your student loan rates, SoFi offers competitive fixed and variable rates on refinancing options for undergraduate, graduate, law, MBA and health professions students, with terms varying from 5 to 20 years.
Standout benefits: You can get prequalified online in minutes with no hard credit check. There are no application, origination or late fees and borrowers may qualify for forbearance if they become unemployed. Upgrading to a SoFi Plus subscription gives you a 0.125% interest rate reduction on student loan refinancing, plus a favorable APR on deposit accounts and other perks.
- 0.25% autopay interest rate discount
- 0.125% SoFi Plus discount
- No origination fees, no late fees and no insufficient fund fees
- Private loans, which means you lose federal loan benefits
- $5,000 minimum loan amount
Fixed rates range from 4.49% APR to 10.99% APR with 0.25% autopay discount and 0.125% SoFi Plus discount. Variable rates range from 5.74% APR to 10.99% APR with 0.25% autopay discount and 0.125% SoFi Plus discount. Unless required to be lower to comply with applicable law, Variable Interest rates will never exceed 13.95% (the maximum rate for these loans). SoFi rate ranges are current as of 9/23/26 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. You may pay more interest over the life of the loan if you refinance with an extended term.
Autopay Discount: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly payments as outlined in your loan agreement by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. When the autopay interest rate deduction is added or removed, the next time the loan is re-amortized (quarterly for fixed rate loans; monthly for variable rate loans),the principal balance of your loan will be spread over the remaining loan term, and your monthly payment amount will change. This benefit is suspended during periods of deferment, grace period, or forbearance. Autopay is not required to receive a loan from SoFi.
Once you become eligible during the initial period, the discount will be removed or reinstated depending on whether the criteria have been met. Each time your loan is re-amortized, your monthly payment amount will change based upon the interest rate that was in place. SoFi reserves the right to modify or terminate this offer at any time for unenrolled participants. You are not required to meet these criteria to be approved for a loan.
How to get a low-interest student loan
In June 2026, fixed-rate student loans on lender marketplace Credible ranged from 2.54% APR to 17.99% APR, depending on your creditworthiness, while variable-rate loans ranged from 3.53% to 17.99% APR.
To improve your odds of getting a lower rate, you can:
1. Raise your credit score: The easiest way to get a lower interest rate is to have excellent credit (FICO 780 or better). If your score isn't up to par, make sure you're making on-time payments in full each month and keep your credit usage below 30%. (For the best rates, experts suggest a rate below 10%). In addition, review your credit reports from all three credit bureaus for errors or signs of fraud that can be challenged.
2. Use a co-signer: If you're a young college student, your credit file is probably weak or nonexistent. If you can get a creditworthy parent or other adult to co-sign on your loan, the lender is more likely to approve a lower rate. After a set number of regular monthly payments, you should be able to release your co-signer and assume the debt fully yourself.
3. Look for discounts. Most lenders will take 0.25% off your rate if you set up monthly autopay and some offer loyalty discounts: Citizens borrowers with a linked deposit account can qualify for an additional 0.25% rate discount.
4. Refinance: Student loan refinancing lets you replace a private or federal loan with a new loan, ideally at a lower rate or different repayment terms. Refinancing federal loans requires turning them into private loans, which will cost you access to loan forgiveness, income-driven repayment plans and other benefits.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Undergraduate and graduate students, parents, students in MBA, law, health professional and dental programs
$5,000 (or state-mandated minimum) up to the cost of attendance
5, 7, 10, 15, years; up to 20 years for refinancing loans
Terms apply.
Undergraduate, graduate, Master's, PhD, MBA, law school, medical school, health professions, dental school, medical and dental residency loans, bar study loans.
$1,000 up to 100% of the cost of attendance
10 to 15 years
Federal vs. private student loans: what's the difference?
Educational loans are divided into federal student loans, which are provided by the Department of Education, and private student loans, which come from banks, credit unions, online lenders and other financial institutions.
Because they have more flexible credit and repayment requirements and more generous relief options, it's best to exhaust all your federal student loans before turning to private student loans. Differences between federal and private loans include:
1. The application process
For a federal loan, you'll need to submit a Free Application for Federal Student Aid (FAFSA) form by June 30. Your FAFSA will also indicate if you qualify for other aid, like Pell Grants and work-study programs.
Applying for a private student loan involves a bank or other lender reviewing your finances, including a hard credit inquiry. In more than 90% of cases, borrowers rely on a co-signer for approval.
2. Interest rates
Federal loans have a fixed interest rate, while private ones can be fixed or variable.
3. Borrowing limits
Depending on your year in school and dependency status, federal student loans are capped annually at between $5,500 and $12,500.
Private loans, however, can be for as much as 100% of the certified cost of attendance at an approved school. There are minimum loan amounts, as well, usually $1,000 to $5,000.
4. Repayment terms
Federal loans are set up with standard monthly payments over a 10-year term. You can enroll in an extended repayment plan, however, with payments that increase over time — or enroll in an income-driven repayment (IDR) program, which caps your monthly bill based on your salary, extends your term to up to 25 years and forgives any remaining balance.
Private student loans usually have terms of between 5 and 15 years and rarely offer non-standard repayment options.
5. When repayment starts
Borrowers don't have to start repaying federal loans until they graduate or their enrollment status drops to below half-time. With private loans, you may be expected to make full, interest-only or fixed-dollar payments while still enrolled.
6. Relief options
Federal student loans have a variety of protections for borrowers facing financial hardship, like income-driven repayment, deferment, forbearance and loan forgiveness. (If you suffer a total and permanent disability, you may even qualify for discharge of your federal loan.)
Private student loans come with far fewer protections. Some lenders allow deferment or forbearance, but for much shorter terms.
How to choose a student loan lender
If federal aid doesn't cover all your education expenses, a private student loan can fill the gap.Once you know how much you need in private loans, ask yourself these five questions:
1. What will it cost to borrow?
The annual percentage rate on your loan will depend on your credit and if you have a co-signer, but each lender will calculate your rate differently. Be sure to comparison shop to get the best offering.
2. How soon do I have to repay the loan?
Terms for private student loans usually range from 5 to 20 years, depending on the program. Find out what options a lender offers and decide what works for you. A longer repayment term will have smaller monthly payments, but you'll pay significantly more in interest .
3. When can I release my co-signer?
Over 90% of borrowers apply for private student loans with a co-signer. Most lenders will allow you to release your co-signer after a set number of on-time payments, but that can range from 12 to 36 installments, or even more. And some lenders won't release co-signers until the debt is paid in full.
4. What borrower assistance is available?
Some lenders offer special benefits, like interest rate discounts for using autopay or having deposit accounts. Earnest allows you to skip one payment a year without penalty.
Borrowers facing financial hardship may also be able to apply for deferment or forbearance, but on a much more limited scale than federal loans allow.
5. What other benefits does this lender provide?
Depending on the institution, borrowers may benefit from an interest rate reduction for setting up autopay or by making payments while still in school.
Some lenders, like Ascent, also offer cash back on your loan principal at graduation.
Pros and cons of private student loans
Pros
- Much higher borrowing limits than federal student loans
- Can choose between a fixed or variable interest rate
- Refinancing options available
- Open to international and non-citizen students
Cons
- Have credit score and income requirements
- May require a co-signer
- Limited relief options compared to federal loans
FAQs
What is a private student loan?
Private student loans are issued by banks, credit unions, and other private lenders and, unlike federal loans, come with credit score requirements. While they can fill the gap between federal loan limits and the cost of education, private loans usually come with higher interest rates and lack borrower protections, like income-based repayment plans and generous deferal and forbearance options.
Which bank has the lowest interest rate for student loans?
Student loan rates are always changing and vary depending on the borrower, so there's not one bank with the lowest rates. According to our analysis, College Ave, Citizens Bank, Ascent, SoFi and Sallie Mae offer some of the most competitive rates without sacrificing flexibility, financial strength or customer service.
Can you get a student loan with bad credit?
It's more difficult to get a student loan with bad credit, but you may be able to if you're willing to accept a higher interest rate or have a co-signer with excellent credit.
Can I lower the rate on my private student loans?
You can get a lower interest rate or change your repayment terms by refinancing with your existing student loan lender or working with a new one. The best student loan refinancers don't charge application or origination fees and can save you thousands of dollars in interest over the life of your loan.
Do student loans affect your credit score?
Yes, student loans can impact your credit score. They are a kind of installment loan and are reported to Experian, Equifax and TransUnion, the three major credit bureaus. Consistent, on-time payments can raise your credit score, while late or missed payments can lower it.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every student loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of student loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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Our methodology
CNBC Select compared private student loan funding options from banks, credit unions, online lenders and other financial institutions offering competitive rates.
We limited our search to institutions that offer variable and fixed interest rates and do not charge origination or application fees or repayment penalties.
We also compared companies on:
- Availability: All of the lenders we chose offer private student loans for undergraduate and graduate students and parents, with many providing unique options for health professions, law, MBA programs and other disciplines.
- Loan terms: Each company has a variety of repayment terms and allows borrowers to start repaying their student loans while still in school.
- Application process: We limited this list to lenders that offered a streamlined online application.
- Autopay discounts: All of the companies on our list offer an autopay interest rate discount.
- Private student loan protections: Each company on our list offers some form of financial hardship protection, ranging from grace periods and deferrals to forbearance.
- Loan sizes: The above companies offer private student loans in a range of sizes, up to the cost of college attendance. Each company advertises its loan sizes, and completing a preapproval process can give borrowers an idea of their interest rate and monthly payment.
- Co-signer release: We considered how long borrowers had to make consecutive on-time payments, before their co-signer could be released from the loan.
- Credit requirements: Lenders with more flexible credit score and income requirements were weighed more heavily.
- Customer support: We gave more weight to lenders with robust customer service phone hours, mobile apps and a website with an online chat feature and educational resources. We noted if a lender scored highly on J.D. Power's consumer lending satisfaction survey.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on that criteria, our picks for the best mortgage lenders are:
For affordability: Earnest
For flexible repayment options: College Ave
For multi-year loans: Citizens Bank
For applying with a co-signer: Sallie Mae
For applying without a co-signer: Ascent
For student loan refinancing: SoFi®
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*Fixed rates range from 4.49% APR to 10.99% APR with 0.25% autopay discount and 0.125% SoFi Plus discount. Variable rates range from 5.74% APR to 10.99% APR with 0.25% autopay discount and 0.125% SoFi Plus discount. Unless required to be lower to comply with applicable law, Variable Interest rates will never exceed 13.95% (the maximum rate for these loans). SoFi rate ranges are current as of 9/23/26 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. You may pay more interest over the life of the loan if you refinance with an extended term.
Autopay Discount: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly payments as outlined in your loan agreement by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. When the autopay interest rate deduction is added or removed, the next time the loan is re-amortized (quarterly for fixed rate loans; monthly for variable rate loans),the principal balance of your loan will be spread over the remaining loan term, and your monthly payment amount will change. This benefit is suspended during periods of deferment, grace period, or forbearance. Autopay is not required to receive a loan from SoFi.
Once you become eligible during the initial period, the discount will be removed or reinstated depending on whether the criteria have been met. Each time your loan is re-amortized, your monthly payment amount will change based upon the interest rate that was in place. SoFi reserves the right to modify or terminate this offer at any time for unenrolled participants. You are not required to meet these criteria to be approved for a loan.
