Private Student Loan Lenders Comparison 2026
Private student loans should only be used after exhausting federal loans (Direct Subsidized/Unsubsidized and Grad PLUS). Federal loans offer better borrower protections, income-driven repayment, and forgiveness options that private loans lack.
When to Consider Private Student Loans
Private student loans fill the gap between the cost of attendance and what federal loans, scholarships, grants, and family savings cover. Only consider private loans (1) after borrowing the maximum in federal Direct Loans, (2) after applying for all available scholarships and grants, and (3) if you have a clear plan for repayment based on your expected post-graduation income. Private loans have variable or fixed rates determined by your credit score (and a co-signers if needed), no income-driven repayment, and limited deferment/forbearance options.
Top Private Student Loan Lenders
SoFi: The most popular private lender. Fixed rates from 4.5% APR, variable from 5.7% APR (with autopay and loyalty discount). Offers unemployment protection (up to 12 months forbearance, career coaching, job placement assistance). No fees (origination, late, or prepayment). Requires strong credit (670+) or a qualified co-signer. SoFi also offers graduate school loans, parent loans, and refinancing. Membership benefits include career coaching, financial planning, and community events.
Earnest: Known for precision pricing — rates vary based on your specific financial profile. Fixed rates from 4.4% APR, variable from 5.5% APR. Unique feature: skip one payment per year (after 6 months of on-time payments). No fees. Allows you to choose your monthly payment amount and due date. Requires strong credit. Best for borrowers who want a personalized rate and flexible payment options.
College Ave: Offers undergraduate, graduate, and parent loans plus refinancing. Fixed rates from 4.4% APR, variable from 5.6% APR. Choose repayment options: interest-only payments in school ($25/month), fixed payments ($25/month), or deferred (no payments until 6 months after graduation). Multiple repayment term options (5, 8, 10, 15 years). No fees. Fast online application with instant credit decision.
Sallie Mae: The best-known name in student lending. Fixed rates from 4.5% APR, variable from 5.7% APR. Offers undergraduate, graduate, health professions, bar study, and MBA loans. Rate reduction for graduation (lowers rate by 1% after graduation). Must make 12 consecutive on-time payments to qualify. Multi-year approval: once approved, you do not need to reapply for future years. No fees.
CommonBond: Fixed rates from 4.3% APR, variable from 5.5% APR. Unique social promise: for every loan funded, CommonBond funds a students education in a developing country through Pencils of Promise. No fees. Offers 24-month forbearance total (in 12-month increments). Hybrid repayment: pay $25/month while in school. Strong borrower protections.
RISLA (Rhode Island Student Loan Authority): Non-profit lender with competitive rates (fixed from 4.7% APR). Best-in-class borrower protections: 36 months of forbearance (by far the most), disability and death discharge. Income-based repayment option (pay based on income, up to 5% of discretionary income). Available to students attending any eligible school nationwide, not just Rhode Island. Most borrower-friendly private lender.
How to Choose
Compare offers from at least 3-4 lenders. Most allow you to check your rate with a soft credit inquiry (does not affect your credit score). Key factors to compare: APR (lowest rate wins), fees (choose no-fee lenders), repayment options (in-school deferment, interest-only, or fixed payments), borrower protections (forbearance, death/disability discharge, unemployment protection), customer service quality, and co-signer release options (most allow release after 12-48 months of on-time payments).
Key Takeaways
- Max out federal Direct Loans before considering private loans — federal protections are irreplaceable
- Compare rates from 3-4 lenders using soft credit checks — rates vary based on your specific credit profile
- Choose a lender with strong borrower protections (forbearance, unemployment, death/disability discharge)
- A co-signer with good credit can significantly lower your rate — most undergraduate borrowers need one
- RISLA (non-profit) offers the best borrower protections; SoFi and Earnest offer the best rates for strong credit
- Refinancing federal loans into private loans means losing access to IDR, PSLF, and other protections