The Best Private Student Loans for 2022

Last Updated: May 21, 2022

If savings, scholarships, and grants aren’t enough to fully fund your college education, you might be considering taking out a private student loan. While you want to make sure that you’re getting the best deal possible, it’s also important to ensure that you’re minimizing your student loan debt by working with a reputable lender.

Securing a student loan with reasonable interest rates and borrower-friendly loan repayment terms will allow you to invest in your future, knowing that you won’t be saddled with unreasonable debt after you graduate. 

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What Makes the Best Student Loan Lenders?

So where can you get the best deal on a private undergraduate or graduate student loan? Which lenders have the best rates and terms? And which lenders can you trust?

At Nitro, we have relationships with several lenders that we’ve put through an intensive vetting process. We have researched and compared:

  • Low interest rates
  • Repayment options and terms
  • Discounts
  • Fees and penalties
  • Responsiveness to customers and applicants
  • The lender’s reputation, history, and solvency

Private Student Loan Options For 2022: Comparing Lenders

Working with a reputable lender is key to ensuring that you’re getting a loan that you’ll be able to pay back

Compare All Private Student Loan Options For Your School

Compare All Private Student Loan Options For Your School

Sallie Mae® has developed a wide range of private education loans, and other education-related services to help make students' dreams of higher education a reality.

  • APR: 1.62% - 12.85%1
  • Loan Types: Undergraduate
  • Loan Terms: 10 - 15 years2
Visit Sallie Mae

View Disclosure

Why Get a Student Loan from Sallie Mae?

Students and families can invest in their education with private education loans designed to responsibly bridge the gap between personal resources and federal student aid.

Private education loans:

Sallie Mae is committed to serving their borrowers so they can successfully pay their loans and build their credit.

  • 100% U.S. based loan originations and loan servicing representatives
  • Financial literacy resources
  • 24/7 account self-service available online and by phone
  • Team dedicated to helping our borrowers in the military

Key features of Smart Option Student Loan® from Sallie Mae:

  • Competitive interest rates — variable rates start from 1.62% APR to 11.73% APR1 for undergraduate students (as of May 13, 2022). Lowest rates shown include the auto debit discount.
  • Pay now or later - Defer your payments until after school or choose an in-school repayment option that fits your needs.1
  • Discounts: Save with auto debit - get a 0.25 percentage point interest rate reduction when you enroll in and make monthly payments by auto debit.1
  • Detailed review of Sallie Mae Student Loans

Get the money you need for school from Sallie Mae

To help you borrow responsibly, Ascent has incorporated financial education into their application process.

  • APR: 1.62% - 14.52%
  • Loan Types: Undergraduate & Graduate
  • Loan Terms: 5, 10 & 15 Years
Visit Ascent

View Disclosure

What are the benefits of an Ascent student loan?If you're in the market for a student loan, Ascent has three unique benefits that you should pay attention to:

  1. 1% Cash Back Graduation Reward** 
  2. Non-Cosigned loan options for juniors, seniors and graduate students
  3. Graduated Repayment option to make monthly payments more affordable + and deferment and forbearance plans, which can be hard to come by with private lenders

Ascent offers a 1% Cash Back** Graduation Reward if you meet certain qualifying criteria. This is a very unusual benefit among student loan lenders. Depending how much you borrow, your reward could be enough to cover your first monthly payment ... or to buy a new outfit to wear on job interviews.

Key features of a private student loans through Ascent:

    • 1% CASH BACK Graduation Reward
    • CUSTOMIZE your loan with flexible repayment options
    • COVER UP TO 100% of your tuition & living expenses
    • AVOID FEES - No application, origination or disbursement fees
    • 0.25%-2.00% INTEREST RATE REDUCTION for enrolling in automatic payments
    • RELEASE YOUR COSIGNER after 24 consecutive on-time payments
    • FREE financial Tools

Detailed review of Ascent Student Loans

Education Loan Finance (“ELFI”) makes financing your future simple by offering easy payment options, affordable rates, and flexible terms in an application process that is transparent and secure.

  • APR: 1.30% - 11.99%
  • Loan Types: Undergraduate, Graduate & Parent
  • Loan Terms: 5 - 15 Years
Visit ELFI

View Disclosure

Why Get A Student Loan Through ELFI?

ELFI believes education fuels empowerment, and because of that, we take the hassle out of obtaining a private student loan.

Want freedom? You can check your rate in minutes without it affecting your credit score.

Want savings? You won’t pay an application, origination or prepayment fee.

Looking for support? Your Student Loan Advisor will make sure there are no hiccups when receiving your funds. How’s that for feeling empowered?

Key features of a student loans from ELFI:

  • Prequalify to estimate your rate without affecting your credit score
  • Submit online application in minutes
  • No application fees, origination fees, or prepayment penalties
  • Low rates and flexible repayment terms to fit your needs and goals
  • Student Loan Advisor to guide you through the application process

Get a personalized quote from ELFI now

Funding U offers no-cosigner student loans up to $15K per school year to help cover the cost of college. Quickly check your eligibility with no impact on your credit.

  • APR: 6.99% - 12.99%
  • Loan Types: Undergraduate
  • Loan Terms: 10 Years
Visit Funding U

View Disclosure

What are the benefits of a Funding U student loan?

No-Cosigner Student Loans! Unlike other lenders, Funding U doesn't fund your parents. They fund you. Their no cosigner student loans are based on you and your potential.

  1. Pre-approval in minutes.
  2. Our no cosigner student loans always have fixed interest and no hidden fees.
  3. Every student is assigned a single Loan Officer whose job is to be helpful.

Funding U key features & benefits:

  • Finally, a loan high-achieving undergrad students can get based on their own academic merit and not their FICO score.
  • Quickly check your eligibility with no impact on your credit.
  • 100% No Fees
  • Earn rewards through our Borrower Referral Program
  • 0.5% autopay discount

Apply for your no-cosigner student loan today!

SoFi helps undergrads pay for college without the hassle. See rates and terms in just minutes—and get access to tips, tools, and resources along the way.

  • APR: 1.69% - 11.97%
  • Loan Types: Undergraduate & Graduate
  • Loan Terms: 5, 10 & 15 Years
Visit SoFi

View Disclosure

Why Get A Student Loan Through SoFi?

A better way to pay for school. SoFi’s helped 300,000+ grads refinance their student debt. Now we’re helping undergraduates pay for school with competitive-rate private school loans.

  • All online. All easy. Finish our fast and easy online application all in minutes—and add a cosigner in just a few clicks.
  • Save money. Better rates and more savings versus other private lenders.
  • Repay your way. Pick the repayment option that works for you and your budget.

Key features of a student loans from SoFi:

  • We’re making it easy to apply and add a cosigner to your application in minutes.
  • No fees means no fees. That means no origination fees, no late fees, and no insufficient fund fees. Period.
  • SoFi has flexible repayment options to help you find the loan that fits your budget.
  • Get a 0.25% discount when you set up autopay. Plus, SoFi members can qualify for exclusive rate discounts.
  • Get a your rate in 3 minutes or less.
  • 98% of surveyed members would recommend SoFi to a friend.
  • SoFi Private Student Loans can cover up to 100% of the school-certified cost of attendance.

Get a personalized quote from SoFi now

Important: Remember, most rising college students do not have enough of a credit history or consistent income to quality for a loan on their own.

Applying with a cosigner can help get you over that hurdle. Or, if you can’t qualify with your current cosigner, consider asking someone else. Keep in mind that cosigners do not have to be parents, guardians, or relatives. Even if you can qualify for a loan on your own, applying with a cosigner may get you a lower interest rate.

The Benefits of a Private Student Loan

A good student loan should have a few key elements, including:

PAYMENT FLEXIBILITY

Having a variety of payment plans to choose from means that you can select an option that will set you up for success. For example, if you’re not able to make full payments while you’re in school, making interest-only payments until you graduate can prevent additional interest from accruing and inflating the size of your loan.

TIME TO FIND EMPLOYMENT

A grace period after graduation means that you’re not obligated to start making full payments on your loan right away. Lenders usually offer a six-month grace period after graduation or after your enrollment drops to half-time.

COSIGNER RELEASE

Few incoming college students have the credit history to qualify for a loan on their own. Most reputable lenders will allow you to release your cosigner from their obligation after you’ve established your own positive credit history and made a certain number on of-time payments. It's a great way to thank your cosigner for their help.

RATE DISCOUNTS

Many lenders offer reduced interest rates to qualified borrowers. For example, signing up for autopay can often yield a discount of 0.25 percentage points. That quarter of a percent can save you a lot of money over the life of your loan.

Discounts and Additional Benefits for Private Student Loans

  Interest Rate Discounts Multi-year Borrower Option Repayment Options (Monthly) Cosigner Release Grace Period  
Interest Rate Discounts
0.25 percentage point deduction for auto debit1 No Pay now or later: Make interest payments, pay a fixed $25 payment,2 or defer payments until after school.1 Yes3 6 months1 Visit Sallie Mae

View Loan Disclosure

0.25% - 1.00% discount for enrollment in automatic debit5 No In-School interest only, Deferred, and $25 minimum payment Yes10 9 months Visit Ascent

View Loan Disclosure

No No ELFI offers Immediate, Deferred, Fixed, and Interest Only Repayment options No 6 months Visit ELFI

View Loan Disclosure

0.5% auto pay discount Yes $20 in-school fixed payment, interest-only payment, full P&I repayment begins 6 months after graduating/leaving school N/A 6 months Visit Funding U

View Loan Disclosure

0.25% autopay discount No Deferred Payment, Fixed $25 Payment, Interest-Only Payment, Principal & Interest Payment Yes, after 24 payments of P&I 6 months Visit SoFi

View Loan Disclosure

Would I be Eligible for a Private Student Loan?

Most providers determine loan eligibility based on a defined set of characteristics that paint a picture of your credit worthiness.

What are banks looking for, specifically? To give you an idea, here’s what our preferred lenders typically evaluate when considering a new loan.

Eligibility Requirements for Private Student Loans

  Min Loan Limits Max Loan Limits Annual Income Requirements US Citizenship / Permanent Resident Proof of School Enrollment  
Max Loan Limits
$1,000 Up to 100% of school-certified expenses4 Yes Yes Visit Sallie Mae

View Loan Disclosure

$2,001 $200,000 Cosigner minimum gross annual income of $24,000 Yes* Yes Visit Ascent

View Loan Disclosure

$1,000 Up to the Cost of Attendance $35,000 Yes Yes Visit ELFI

View Loan Disclosure

$3,001 $15,000 Yes Yes Visit Funding U

View Loan Disclosure

$5,000 Up to 100% of Cost of Attendance as certified by the school No limit however proof of income is required Yes No Visit SoFi

View Loan Disclosure

Private Student Loan Interest Rates & Fees

True student loan costs can be broken down in several ways.

FEES

The first and most-obvious thing to consider are fees, which are one-time charges that are usually attached to a specific service. For example, some lenders charge an application fee or an origination fee, which is typically a percentage of the loan value. Note: None of our recommended lenders charge application or origination fees.

PENALTIES

Next, you’ll want to look at penalties. Some lenders may charge a penalty for early prepayment. There may also be penalties for late or missed payments. Note: None of our preferred lenders charge early pre-payment fees, which is one major reason we’re happy to recommend them. 

INTEREST RATES

Finally, you’ll want to look at the largest cost of all: interest rates. Interest is how you pay the bank for giving you the loan. Interest is charged monthly, based on the annual percentage rate of your loan, or APR. The higher the APR, the most you’re going to pay every month, and ultimately, over the life of the loan. A fixed interest rate means that you’ll pay the same amount of interest for the life of the loan. A variable interest rate may fluctuate based on market conditions, meaning that your payments may increase or decrease over time.

Here’s how our preferred lenders stack up:

Interest Rates, Fees & Penalties to Consider for Private Student Loans

    Undergrad Graduate Parent Fees & Penalties  
Loan Type
Variable (APR) Variable (APR)1.62% -11.73%1
Fixed (APR)
3.75% - 12.85%1
2.37% - 11.87%1 N/A No origination or disbursement fees Visit Sallie Mae

View Loan Disclosure

  Fixed (APR) Fixed (APR)3.75% - 12.85%1 4.75% - 12.11%1 N/A    
Variable (APR) Variable (APR)1.64%-11.45%1
Fixed (APR)
4.78% - 14.52%1
1.62% - 10.98%1 N/A None Visit Ascent

View Loan Disclosure

  Fixed (APR) Fixed (APR)4.78% - 14.52%1 4.63% - 14.52%1 N/A    
Variable (APR) Variable (APR)1.30% - 11.52%1
Fixed (APR)
3.20% - 11.99%1
1.30% - 11.52%1 1.30% - 10.92%1 No origination or prepayment fees Visit ELFI

View Loan Disclosure

  Fixed (APR) Fixed (APR)3.20% - 11.99%1 3.20% - 11.99%1 3.20% - 11.74%1    
Variable (APR) Variable (APR)6.99% - 12.99%1
Fixed (APR)
7.49% - 12.99%1
N/A N/A None Visit Funding U

View Loan Disclosure

  Fixed (APR) Fixed (APR)7.49% - 12.99%1 N/A N/A    
Variable (APR) Variable (APR)1.89% - 11.92%1
Fixed (APR)
3.47% - 11.16%1
2.59% - 11.82%1 1.69- 11.92%1 None Visit SoFi

View Loan Disclosure

  Fixed (APR) Fixed (APR)3.47% - 11.16%1 4.60% - 11.06%1 4.48% - 11.16%1    

How Should I Compare Lenders for Private Student Loans?

Hopefully some of the charts in this article have given you some insight into how different lenders compare. But there’s more to a loan than just crunching numbers. As we mentioned before, working with a reputable lender is key to ensuring that you’re getting a loan that you’ll be able to pay back.

Our review of the top private student loan lenders and why we endorse them:

Sallie Mae® has developed a wide range of private education loans and other education-related services to help make students' dreams of higher education a reality.

Key features of Smart Option Student Loan® from Sallie Mae:

  • Competitive interest rates — Variable rates start from 1.62% APR to 11.73% APR1 for undergraduate students (as of May 13, 2022). Lowest rates shown include the auto debit discount.
  • Pay now or later - Defer your payments until after you graduate or choose an in-school repayment option that fits your needs.1
  • Discounts: Save with auto debit - Get a 0.25 percentage point interest rate reduction when you enroll in and make monthly payments by auto debit.1
  • Detailed review of Sallie Mae Student Loans

Get the money you need for school from Sallie Mae

Key features of a private student loan through Ascent include:
    • 1% CASH BACK Graduation Reward.9
    • AFFORDABLE fixed or variable rates.1
    • CUSTOMIZE your loan with flexible repayment options.
    • COVER UP TO 100% of your tuition & living expenses.
    • AVOID FEES - No application, origination or disbursement fees.
    • NO PENALTY FEE if you pay off your loan early.
    • 0.25% - 2.00% INTEREST RATE REDUCTION for enrolling in automatic payments.
    • RELEASE YOUR COSIGNER after 24 consecutive on-time payments.
    • 100% US-based customer service.
    • FREE financial tools.
    • Detailed review of Ascent Student Loans

It’s wrong to lose your financial freedom before you’ve even had a chance to earn it! To help you borrow responsibly, Ascent has incorporated financial education into their application process and give you exclusive access to tools to help you manage your money.

ELFI believes education fuels empowerment, and because of that, we take the hassle out of obtaining a private student loan.

Key features of a student loans from ELFI:

  • Prequalify to estimate your rate without affecting your credit score
  • Submit online application in minutes
  • No application fees, origination fees, or prepayment penalties
  • Low rates and flexible repayment terms to fit your needs and goals
  • Student Loan Advisor to guide you through the application process

Get a personalized quote from ELFI now

Funding U offers no-cosigner student loans up to $15K per school year to help cover the cost of college. 

Funding U key features & benefits:

  • Finally, a loan high-achieving undergrad students can get based on their own academic merit and not their FICO score.
  • Quickly check your eligibility with no impact on your credit.
  • 100% No Fees
  • Earn rewards through our Borrower Referral Program
  • 0.5% autopay discount

Apply for your no-cosigner student loan today!

SoFi helps undergrads pay for college without the hassle. See rates and terms in just minutes—and get access to tips, tools, and resources along the way.

Key features of a student loan from SoFi:

  • Easily apply and add a cosigner to your application in minutes.
  • No fees means no fees. That means no origination fees, no late fees, and no insufficient fund fees. Period.
  • SoFi has flexible repayment options to help you find the loan that fits your budget.
  • Get a 0.25% discount when you set up autopay. Plus, SoFi members can qualify for exclusive rate discounts.
  • Get your rate in 3 minutes or less.
  • 98% of surveyed members would recommend SoFi to a friend.
  • SoFi Private Student Loans can cover up to 100% of the school-certified cost of attendance.

Apply online in just minutes

Ready to fill your gap in tuition costs and start your college journey?

Apply now and find out your personalized rates with:


** Remember the following two items **

1.) If you apply with a cosigner, you may increase your chances of getting approved for a loan & you may get a lower interest rate, and
2.) If you apply through Nitro, any loan application fees will be waived.

Private Student Loans FAQs

Q. How Do Private Student Loans Work?

Just like federal student loans, private student loans can help bridge the gap between grants, scholarships, and the price of college tuition. However, when you apply for student loans, whether or not you get the interest rate, loan term, and loan amount you need is completely dependent on your credit check.

Before you are approved for a private student loan, you are subjected to a credit check. The credit check will reveal your credit score, existing debt, and repayment history. With good credit, you'll likely get a favorable interest rate and loan term.

Q. What do I need to apply for a private student loan?

For most student loans, you can apply online within a matter of minutes if you have the right documentation on hand. The information you might want to have at the ready includes:

  • Contact info
  • Date of birth
  • Name of the school
  • Major
  • Social security number
  • Your financial information, including a recent pay stub or other proof of income
  • Proof of mortgage or rental payment amounts
  • Contact info for your employer (if applicable)
  • The financial aid award letter from the school you plan to attend
  • The total cost of attendance
  • Total financial aid offered
  • Anticipated graduation date
  • A personal reference

Note: If you’re applying with a cosigner, you’ll need the above info as it pertains to him or her as well.

Q: What are the different types of private student loans?

There are a few different private student loan types: undergraduate loans, graduate school loans (including law school and medical school loans), parent loans, and technical school loans.

Each loan type has different interest rates, minimum loan amounts, maximum loan limits, and loan terms. Loans for graduate programs like law school and medical school usually have higher maximum loan limits while loans for shorter programs tend to offer the lowest minimum loan amounts.

Q: Does it cost money to apply for a private student loan?

Some banks may charge an application fee. However, all application fees are waived if you apply through Nitro.

Q: What else do I need to think about when applying for private student loans?

Before applying for private student loans, be sure to fill out the Free Application for Federal Student Aid, otherwise known as FAFSA. Doing so will help determine your eligibility for federal grants and loans, as well as some scholarships. Accept all of your grant and scholarship money, followed by federal loans, before applying for private student loans. Then, use our free NitroScore tool to determine how much money you need to borrow before applying for loans.

Q: How long does it take to get approved for a student loan?

Most lenders will require certain kinds of documentation, including your (and your cosigner’s) social security number, address, and employment or income info. If you have your paperwork in hand, it should take about 15 minutes to go through the application process. Some banks may approve you within a few minutes. If you have to provide additional documentation, that process may take several days.

Q: What’s the difference between a federal student loan and a private student loan? Is one better than the other?

Federal student loans are issued by the government, while private loans are offered by a variety of sources, including credit unions, online lenders, and banks. Federal student loans typically feature lower interest rates than loans offered by private lenders.

It’s a good idea to utilize all federal loan money that’s offered to you before applying for private student loans, as federal loans are eligible for financial protections like loan forgiveness programs, forbearance, and income-based repayment plans.

Moreover, some federal student loans are subsidized, meaning that the government pays interest while you are still in school. Private student loans are typically unsubsidized loans, meaning that interest starts accruing right away.

Q: What are fixed-rate loans vs variable-rate loans?

The two types of private loan interest rates are fixed-rate and variable-rate. The interest rate on fixed-rate loans won't change for the duration of your loan, while the interest rate on variable-rate loans can rise and fall with the market.

The perk of variable-rate loans is that their interest rates can start lower and remain lower than fixed-rate loans throughout the life of the loan. This is not a guarantee, however, as interest rates can also rise above those of fixed rate loans, increasing your monthly payment and overall loan amount.

Fixed interest rates are generally a safer bet for student loan borrowers, although finding a good deal on a variable rate might make sense if you’re only taking the loan for a short period of time, or if interest rates are expected to fall.

Disclaimer:  NitroCollege.com is a free website designed to help students and their families evaluate how to responsibly pay for their college education. Before recommending any services we put lenders thru a vetting process that includes: the competitiveness of rates, repayment options and terms, any discounts offered, any fees or penalties to be aware of, responsiveness to customers and applicants, and the lender's overall reputation and history. Nitro is not a lender and is not involved in the private student loan approval process, nor do we make credit related decisions. The lenders profiled on our site are the ones who will issue and approve your private student loan applications. We will sometimes earn a bounty for recommending various products and services to you. Actual interest rates may vary depending on your credit score, income, savings, type of degree, and whether you apply with a cosigner. Here at Nitro we strive to provide the most up-to-date information, but you should always check with individual lenders for current rates, terms, and conditions before applying for private student loans.