7 Best Private Student Loans of 2026: Rates & Terms

Jake Caldwell
• 13 min read

Private student loans can close a college funding gap after scholarships, grants, federal student loans, and family contributions fall short. The wrong loan can also leave you with a high APR, limited payment relief, and a cosigner who stays responsible for years.

To find the best private student loans of 2026, we compared lender costs, loan terms, in-school payment choices, cosigner rules, hardship options, and loan types. Rates can change often, so use this guide to narrow your list and compare personalized offers on the same day.

Federal student aid should still come first. Private student loans do not carry the same repayment plans, forgiveness programs, and borrower protections as federal loans.

Best Private Student Loan Lenders of 2026

Each lender below has a clear strength, but each lender also has limits. Check your personalized rate with several lenders before you decide.

1. SoFi: Best for Broad Loan Options

SoFi: Best for Broad Loan Options logo
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SoFi offers private student loans for undergraduate students, graduate students, parents, and students in select professional programs.

Borrowers can choose a fixed or variable rate and several repayment terms.

SoFi does not charge application, origination, or prepayment fees. A soft credit check lets you see an estimated rate before a full application. Automatic payments can reduce the interest rate by 0.25 percentage points.

SoFi also gives members access to financial planning and career services. These extras may help, but the loan terms should drive your choice.

SoFi is a strong match for borrowers who want one lender with several education loan products. Students with limited credit history may need a creditworthy cosigner.

Read our full SoFi student loans review for more details.

2. Ascent: Best for Students Without a Cosigner

Ascent: Best for Students Without a Cosigner logo
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Ascent offers cosigned loans, non-cosigned credit-based loans, and outcomes-based loans.

The outcomes-based option can consider factors such as the student’s program, graduation date, and expected income.

That choice makes Ascent worth a look for eligible students who lack enough credit history to qualify alone with a standard lender. Approval is not guaranteed, and loan terms can differ by product.

Ascent offers fixed and variable rates, several in-school payment choices, and a 1% graduation reward for eligible borrowers. The reward has a $500 limit. Automatic payment discounts also differ by loan type.

Ascent may work best for an upper-level undergraduate student or graduate student who wants a path without a cosigner. A cosigned loan may still produce a lower APR.

Read our complete Ascent student loans review before you apply.

3. Sallie Mae: Best for Degree and Career Program Coverage

Sallie Mae: Best for Degree and Career Program Coverage logo
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Sallie Mae offers loans for undergraduate school, graduate school, career training, and parent borrowers.

It also has loan products for several professional degree programs.

Undergraduate borrowers can choose deferred payments, $25 monthly payments, or interest-only payments during school and the grace period. Interest starts after the lender sends funds to the school, even when no payment is due.

Sallie Mae does not charge an origination fee or a prepayment penalty. Borrowers may request cosigner release after 12 on-time principal and interest payments. They must also meet credit and income requirements.

Sallie Mae can work well for students who want broad school and program coverage. The lender assigns the final repayment term, so applicants have less control over term length than they may receive elsewhere.

Our Sallie Mae student loans review covers its loan types, costs, and repayment choices.

4. Earnest: Best for Flexible Payment Features

Earnest: Best for Flexible Payment Features logo
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Earnest gives borrowers several term and in-school payment choices.

Its private student loans have fixed and variable rates, and the lender does not charge application, origination, or prepayment fees.

Eligible borrowers may request one skipped payment during a 12-month period. The first request requires at least six months of consecutive, on-time principal and interest payments. Interest continues to accrue, and approval is not automatic.

Earnest also offers cosigner release after 12 consecutive, on-time principal and interest payments. The student must meet the lender’s credit and income standards at that point.

Earnest suits borrowers who want more control over the payment structure. A skipped payment can help during a temporary cash shortage, but it increases the loan cost and counts toward forbearance limits.

5. Custom Choice: Best for a Graduation Reward

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Custom Choice offers fixed APRs from 3.35% to 17.17% and variable APRs from 3.56% to 17.22%.

The lowest APRs include a 0.25 percentage point automatic payment discount.

The lender offers terms of 5, 7, 10, 15, or 20 years. Borrowers can make no school payments, pay $25 per month, pay interest, or start full payments right away. The $25 plan and the 15-year and 20-year terms require a loan of at least $5,000.

Custom Choice charges no application, origination, late, or prepayment fees. Eligible graduates can request a principal reduction equal to 2% of the disbursed loan amount. The student must earn at least a bachelor’s degree and provide proof of graduation.

This lender also offers cosigner release and hardship forbearance under stated conditions. Custom Choice may appeal to students who value the graduation reward, but applicants should compare the full APR against competing offers.

6. Citizens Bank: Best for Multi-Year Approval

Citizens Bank: Best for Multi-Year Approval logo
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Citizens offers private loans for undergraduate students, graduate students, parents, and several professional degree programs. Its main feature is Multi-Year Approval.

Eligible borrowers can request funds for a later school year without another hard credit inquiry or a full new application. Citizens still performs a soft credit check and confirms continued eligibility. The APR for a later loan can differ from the APR on the first loan.

Citizens reports that 99% of prior Multi-Year Approval borrowers received approval for later funding requests during its stated measurement period. That figure only covers borrowers who had already accepted the Multi-Year Approval offer.

Citizens does not charge application, disbursement, or origination fees. Applicants can receive interest rate discounts for automatic payments and an eligible Citizens account.

The lender limits student loans to eligible four-year Title IV schools. Community colleges, two-year schools, and for-profit schools do not qualify.

Read our Citizens Bank student loans review for the full eligibility and repayment details.

7. College Ave: Best for Repayment Customization

College Ave: Best for Repayment Customization logo
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College Ave offers private loans for undergraduate students, graduate students, parents, career programs, and several professional degrees.

Its undergraduate fixed APRs range from 2.19% to 17.99%, and variable APRs range from 3.89% to 17.99%. Those ranges include a 0.25 percentage point automatic payment discount. The lowest APRs require strong credit and specific loan choices.

College Ave lets borrowers choose among deferred payments, $25 monthly payments, interest-only payments, and immediate principal and interest payments. It also offers several repayment terms.

The lender charges no application or origination fees. Its online application can provide an instant credit decision after the applicant submits the required information.

College Ave has a stricter cosigner release timeline than several lenders on this list. Half of the original repayment term must pass before the student can request release. A 10-year term would require five years of principal and interest payments before a request.

See our full College Ave student loans review for more information.

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How We Chose the Best Private Student Loan Lenders

We compared the public loan terms for each lender as of August 1, 2026. We placed more weight on costs and borrower protections than on perks or promotional claims.

The review focused on these factors:

  • Loan cost: We checked APR ranges, fees, automatic payment discounts, and total repayment terms.
  • Payment choices: We compared deferred, fixed, interest-only, and immediate payment plans.
  • Borrower support: We reviewed grace periods, deferment, forbearance, and payment relief.
  • Cosigner rules: We checked whether a lender permits cosigner release and how long a borrower must wait.
  • Loan access: We considered school rules, program coverage, loan minimums, and non-cosigned options.
  • Transparency: We favored lenders that publish rates, restrictions, and borrower requirements clearly.

Rates and lender rules can change without notice. Confirm all terms on the lender’s website before you sign a loan agreement.

What Changed for Federal Student Loans in 2026

Federal student loans should remain the first loan option for most students. They have fixed rates and legal protections that private lenders do not have to match.

For federal loans first disbursed from July 1, 2026, through June 30, 2027, the fixed interest rates are:

  • Undergraduate Direct Subsidized and Direct Unsubsidized Loans: 6.52%.
  • Graduate and professional Direct Unsubsidized Loans: 8.07%.
  • Parent PLUS Loans: 9.07%.

Federal loan limits also changed on July 1, 2026. Grad PLUS loans ended for most new graduate and professional students. New graduate students generally face a $20,500 annual limit and a $100,000 aggregate limit. New professional students generally face a $50,000 annual limit and a $200,000 aggregate limit.

Parent PLUS loans now have a $20,000 annual limit and a $65,000 aggregate limit per dependent student. Some students and parents can qualify for a temporary exception if the student was in the same program by June 30, 2026, and received a Direct Loan for that program before July 1, 2026.

These changes can create larger college funding gaps. A private student loan may fill part of that gap, but students should check scholarships, grants, school aid, and federal loans first.

When a Private Student Loan May Make Sense

A private student loan can make sense after other funding sources fail to cover the school-certified cost of attendance.

Consider a private student loan only after you have completed these steps:

  • Submit the FAFSA: The Free Application for Federal Student Aid can qualify you for grants, work-study, and federal student loans.
  • Accept grants and scholarships: This money usually does not require repayment.
  • Use federal student loans: Federal loans often provide better repayment protections.
  • Ask the school for more aid: A financial aid appeal, emergency grant, or payment plan may reduce the gap.
  • Calculate the exact shortage: Borrow only the amount you still need.

Private student loans may also make sense for a parent or graduate student with excellent credit who receives an APR below the federal alternative. The comparison must include fees, repayment protections, and total cost. A lower APR does not always make the private loan safer.

How to Compare Private Student Loan Offers

A lender’s advertised minimum APR tells you very little about the offer you will receive. Compare personalized offers with the same loan amount, term, and payment plan.

Compare APRs and Total Repayment Costs

The APR includes the interest rate and certain loan costs. It provides a better comparison than the interest rate alone.

Check the total amount repaid as well. A long term may lower the monthly payment but add thousands of dollars in interest.

Choose Between Fixed and Variable Rates

A fixed rate stays the same for the full loan term. It gives you a predictable monthly payment.

A variable rate can rise or fall with its market index. It may start below the fixed rate, but future increases can raise the payment and total cost.

A fixed rate is usually the safer choice for a long repayment term. A variable rate may suit a borrower who expects to repay the loan quickly and can afford a higher payment if rates rise.

Check In-School Payment Options

Deferred payments require no scheduled payment during school, but interest still accrues on private student loans. The unpaid interest can increase the balance before full repayment starts.

A $25 payment or an interest-only payment can reduce that increase. Immediate principal and interest payments usually produce the lowest total cost, but many students cannot afford them.

Review Cosigner Release Rules

A cosigner shares legal responsibility for the debt. A missed payment can hurt both credit histories.

Check the release timeline before you apply. Some lenders accept a request after 12 qualifying payments. Others require years of repayment. Release is never automatic, and the student must usually meet current credit and income standards.

Read the Hardship Policy

Private lender hardship programs differ. Some lenders offer temporary forbearance, while others give limited help.

Check the maximum number of months, interest treatment, approval rules, and effect on the repayment term. Do not rely on a general promise of payment help.

Confirm School and Program Eligibility

A lender may exclude certain schools, certificate programs, international schools, or enrollment levels.

Ask the lender to confirm your school and program before you depend on the loan. School certification can also reduce the amount you receive.

How to Apply for a Private Student Loan

Most lenders have an online process. Start several weeks before the school payment deadline because school certification can take time.

  1. Complete the FAFSA and review your federal aid offer.
  2. Subtract grants, scholarships, savings, federal loans, and other aid from the cost of attendance.
  3. Request soft credit rate checks from several private lenders.
  4. Add a creditworthy cosigner when it improves approval odds or lowers the APR.
  5. Compare offers with the same loan amount and a similar term.
  6. Review the monthly payment, total repayment cost, fees, and hardship rules.
  7. Submit the full application for your chosen offer.
  8. Wait for the school to certify the loan amount.
  9. Read the final disclosure before you accept the loan.

A full application may cause a hard credit inquiry. Several student loan inquiries within a short shopping period may receive special treatment in some credit scoring models, but the exact treatment can differ.

Can You Get a Private Student Loan With Bad Credit?

A private student loan with bad credit is possible, but approval can be difficult and the APR may be high. Most lenders review credit history, income, existing debt, and school information.

A creditworthy cosigner can improve the approval odds and may lower the APR. The cosigner becomes fully responsible for the debt, so both people should review the payment plan and release policy.

Ascent also offers outcomes-based loans for some eligible students. These loans can consider academic and career factors rather than credit history alone. Eligibility is limited, and the terms may cost more than a standard cosigned loan.

Do not assume that a no-credit-check loan will provide a fair price. Compare the total cost and confirm that the lender works with your school.

Alternatives to Private Student Loans

A smaller loan can reduce financial pressure after graduation. Check each source below before you borrow more.

  • School grants: Ask the financial aid office about institutional grants and emergency aid.
  • Scholarships: Search through the school, department, local groups, employers, and professional associations.
  • Tuition payment plans: A monthly plan may cover a small gap without interest, though setup fees may apply.
  • Employer aid: Some employers pay part of tuition or provide education reimbursement.
  • Assistantships: Graduate students may receive tuition support and a stipend through research or teaching work.
  • Lower-cost credits: Community college classes, transfer credits, or an approved online course may reduce the total bill.
  • Family contributions: A written plan can prevent confusion about whether the money is a gift or a loan.

Frequently Asked Question

Can you cancel a private student loan after accepting it?

Yes. You have until midnight on the third business day after you receive the final loan disclosures to cancel a private education loan without a penalty. The lender cannot send the funds before this cancellation period ends. Check the final disclosure for the exact deadline and cancellation instructions.

Is private student loan interest tax deductible?

Interest paid on a private student loan may qualify for the federal student loan interest deduction if the debt meets the IRS definition of a qualified student loan. Eligible taxpayers may deduct up to $2,500 or the amount of qualified interest paid during the year, whichever is lower. Income limits and other eligibility rules apply.

Do private student loans appear on your credit report while you are in school?

They can. Private student lenders may send account information to the credit bureaus while you are enrolled or while the loan is in deferment. The loan may appear on both the student’s and cosigner’s credit reports. Late payments can hurt both credit scores.

What happens to a private student loan if the borrower dies?

The answer depends on the lender and the loan agreement. Private lenders are not required by federal law to cancel a private student loan after the borrower dies. Some lenders discharge the balance, while others may seek payment from the borrower’s estate or a cosigner. Review the lender’s death-discharge policy before you accept the loan.

Can private student loans be discharged in bankruptcy?

Some private student loans can be discharged in bankruptcy. Certain education loans require the borrower to prove undue hardship, but other private education debts may qualify for discharge under the normal bankruptcy process. The result depends on the loan’s purpose, amount, school, and legal classification. A bankruptcy attorney can review the specific loan agreement and applicable law.

Jake Caldwell
Meet the author
Jake Caldwell

Jake is a personal finance writer with a background in consumer lending and credit counseling. He specializes in credit education, debt management, and helping readers understand the financial systems that affect their daily lives. His goal is simple: cut through the jargon and give people the information they actually need.

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