10 Best Private Student Loan Companies for 2024

College is an investment. There’s no reason not to finance your education through a loan — provided you’re confident in your ability to reach your educational goals and you’ve factored the costs against the financial benefits.

In the U.S., Federal Student Aid, a performance-based governmental organization, performs the bulk of higher education lending. But consider a private student loan when you can’t get what you need from the feds. Private loans from traditional banks and other institutions can be cheaper and more flexible.

It’s easier said than done, but keep your eyes on the prize, and you’ll be fine. In this article, we highlight the 10 best private student loan companies, which we chose through careful deliberation. When you’re ready, we encourage you to find the provider right for you to continue your educational journey.

The fixed and variable interest rate ranges below were current for undergraduate loans on each student loan company website in mid-August 2024.

#1 Private Loan Company for Cosigners

Cosigning is a fact of life for most private student loan recipients because students usually don’t have an extensive — or convincing — credit history. Often, it’s up to Mom and Dad to sign on the dotted line to make the loan happen.

With its long history as a student loan provider, Sallie Mae knows the ins and outs of personal lending better than most. It has signaled its understanding of the cosigner’s predicament by offering a release option for all cosigners after 12 on-time principal and interest payments.

Why We Love Sallie Mae

Early cosigner release is a significant benefit because it incentivizes borrowers to work together. When borrowers gain credit independence, they also gain the credit score benefits that come with it.

Sallie Mae has many beneficial products and services for borrowers. Early cosigner release takes the cake for getting more students and parents on the same page about their mutual responsibilities.

• Key Info
• Founded in: 1972
• Fixed rates start at: 3.69%
• Variable rates start at: 5.37%
• Website: https://www.salliemae.com/

#1 Private Loan Company for Customer Service

Student loans are special. They’re usually the result of a family decision. When they aren’t, they’re an individual’s declaration of self-improvement. But deciding to finance a college education through private student loans is a gamble.

College Ave is a dedicated student loan provider that understands the stress and uncertainty that parents and students feel when it’s time to sign on the dotted line. We appreciate that it offers simplicity and flexibility in return.

Why We Love College Ave

The College Ave experience extends to other aspects of financial management, which makes sense because the emphasis is always on service. They make a point of saying on the site that many on the team are former students and current parents who understand the struggle.

It shows. You get a sense of warmth from browsing the site that you may not sense elsewhere. There’s a welcoming communication style with just the right level of detail to help borrowers understand all the steps.

Key Info

• Founded in: 2014
• Fixed rates start at: 3.74%
• Variable rates start at: 5.59%
• Website: https://www.collegeave.com/

#1 Private Loan Company for Rewards

Some people don’t know why they went, or want to go, to college. We think SoFi has the right idea, which is that you should invest in higher education to succeed at what you’re doing and move on to bigger and better things.

We get that feeling from SoFi because it offers private student loan borrowers an annual cash bonus of up to $250 to their SoFi Checking and Savings accounts in return for a 3.0 GPA or higher.

Why We Love SoFi

Now, we just love that. It’s not the biggest prize you could ever win, but it’s fun, and it acknowledges the purpose of higher education in a way that boosts our faith in SoFi in general.

You’ve got to believe a company understands its customers’ problems when it goes out of its way to provide a solution so precisely targeted to their concerns.

Key Info

• Founded in: 2011
• Fixed rates start at: 3.99%
• Variable rates start at: 5.74%
• Website: https://www.sofi.com/

#1 Private Loan Company for Flexible Payment Options

The fact of the matter is that most families and students who work with private student loan companies do so because they need to. Either they’re maxed out with federal student aid or in search of something potentially less expensive.

You can give up certain kinds of flexibility when you go with federal student aid, including payment flexibility. That’s why we’re so impressed with Ascent: you get 40 flexible payment options to keep you in the game no matter what life hands out.

Why We Love Ascent

Deferments for active-duty military personnel, students, and others allow borrowers to make plans without feeling tied down by finances. Forbearances for financial difficulties, legal disputes, and natural disasters also provide a level of security.

No one wants these things to happen, but Ascent spells out the terms in a way we highly appreciate. There are too many gambles in life to put all your eggs in one basket. We think Ascent respects that.

Key Info

• Founded in: 2016
• Fixed rates start at: 3.69%
• Variable rates start at: 5.99%
• Website: https://www.ascentfunding.com/

#1 Private Loan Company for Multi-Year Approvals

College is a four-year proposition — right? Actually, the majority of undergraduates need more time than that to get from the first-year jitters to the triumphs of senior year.

Many private student loan lenders require a fresh application and credit check every year. Citizens Bank is on our list for acknowledging that college is a multiyear investment through its multi-year approval benefit.

Why We Love Citizens Bank

Citizens was founded in 1828, before student loans were imaginable. As a leading U.S. regional bank, it provides a well-rounded student loan and refinancing portfolio to match its many other financial services.

All those who qualify for multi-year approval have to do is log on to the Citizens site prior to each academic year and request their funds. There’s no new application required — and, most importantly, no new ding on your credit score.

Key Info

• Founded in: 1828
• Fixed rates start at: 3.99%
• Variable rates start at: 5/99%
• Website: https://www.citizensbank.com/

#1 Private Loan Company for Student Loan Refinancing

Finding innovative ways to manage the complexities of the borrower/cosigner relationship in private student lending is a potential recipe for disaster because the parties are usually related.

Laurel Road signals its understanding of those complexities by allowing debt from refinanced federal Parent PLUS and private parent loans to be transferred to the child.

Why We Love Laurel Road

Depending on the rate landscape, borrowers can save thousands by refinancing older federal and private student loans. Doing so through Laurel Road allows parents to transfer financial responsibility over the loan to the child who benefitted from it.

That confers another opportunity for the child: to build a stronger credit score through a series of successful on-time payments. Some gifts keep on giving.

Key Info

• Founded in: 2013
• Fixed rates start at: 3.69%
• Variable rates start at: 5.37%
• Website: https://www.laurelroad.com/

#1 Private Loan Company for Personalized Support

Smarter is almost always simpler — wouldn’t you agree? For that reason, we definitely understand why Education Loan Finance, better known as ELFI, bills itself as a smarter way to manage student loans. 

That’s because ELFI offers simplicity throughout the process of obtaining a loan. Even better, ELFI pairs a dedicated Student Loan Advisor with every borrower to provide guidance every step of the way, even after you sign your papers — electronically, of course.

Why We Love Education Loan Finance

With great rates and flexible terms come great responsibilities, and ELFI lives up to its end of the student loan bargain with support designed to offer peace of mind. Having a feeling of security may be particularly important to borrowers (and cosigners) during the stressful time of obtaining a loan.

ELFI gets it. People have to make tough choices when it comes to financing their education or the education of their loved ones. Many prefer to make those tough choices with a lender that has their back.

Key Info

• Founded in: 2015
• Fixed rates start at: 3.98%
• Variable rates start at: 6.00%
• Website: https://www.elfi.com/

#1 Private Loan Company for International Students

The U.S. is a global beacon of educational excellence. For generations, robust international demand has helped American colleges and universities maintain and extend their reputation for excellence.

Unfortunately, the American financial system doesn’t follow the lead of the universities. Instead, it turns the process of qualifying for credit into an obstacle course. MPOWER is a private loan company dedicated to helping international students overcome financial obstacles to higher education in America.

Why We Love MPOWER

International students are a great addition to U.S. college campuses for many reasons, including their willingness to go the extra mile to achieve.

MPOWER helps by basing its lending decisions on a student’s future potential, not their U.S. credit history. Just being willing to meet international students where they are on their educational and financial journey has helped thousands gain the experience and benefits of studying abroad.

Key Info

• Founded in: 2014
• Fixed rates start at: 12.99%
• Variable rates start at: N/A
• Website: https://www.mpowerfinancing.com/

#1 Private Loan Company for Loan Comparison

If you think it makes all the sense in the world to create a comparison site for private student loans, relax because Credible beat you to it. Credible lets you cut through the clutter and compare rates from multiple lenders in minutes.

It works for personal loans, home purchases, home refinances, and insurance as well as for student loans and student loan refinances. All you do is plug in your info to receive an overview of estimated rates and terms from different lenders.

Why We Love Credible

As if that weren’t enough, Credible lets you compare rates, options, fees, benefits, and reviews before you arrive at a final decision.

Then, it’s a matter of selecting a lender and applying. When you decide to initiate contact with your choice, you’ll do it knowing you’ve done your due diligence to find the loan right for you.

Key Info

• Founded in: 2012
• Fixed rates start at: N/A
• Variable rates start at: N/A
• Website: https://www.credible.com/

#1 Private Loan Company for No-Cosigner Loans

You already know from elsewhere in this article that cosigning is very common in private student loans because young people often lack credit scores to qualify for lower-cost credit — or, indeed, any credit at all.

Other providers in this list strive to make cosigning as easy as possible. Funding U goes a step further by basing its business model on no-cosign loans.

Why We Love Funding U

The team does it by working exclusively with U.S. citizens or permanent residents aged 18 and above who are enrolled full time in an undergraduate bachelor’s degree program at an eligible four-year institution. For-profit “degree mills” are not included.

The aim is to reach out directly to a student cohort often left by the wayside: singles with ambition but not a lot to show for it — yet. Consider working with Funding U if you know what you want to do and just need a financial nudge to do it.

Key Info

• Founded in: 2015
• Fixed rates start at: 8.99%
• Variable rates start at: N/A
• Website: https://www.funding-u.com/

Student loans are like all other forms of credit: They’re best for people who feel they can count on obtaining the outcome they’re paying for.

In that way, they can open a window to opportunity. We hope working with a private student loan company on this list helps you thrive.