Best Student Loan Companies

The right student loan provider can help you fund your educational dreams with easy-to-manage repayment terms after you graduate.

PNC Bank provides private student loans and refinancing for undergraduate, graduate and professional students. Students can borrow up to $50,000 per year, with a maximum combined federal and private student loan debt total of $225,000. Opting for automated payment gives you a 0.50% interest rate discount.

Repayment options are available as immediate, interest-only or deferred, and terms range from five to 15 years. Co-signers are not required for all applicants but are recommended for borrowers who do not meet the income or credit score criteria. Co-signers can be released from the loan after 48 months of consecutive on-time payments.

For all students except bar study applicants, loan funds are sent directly to the school. You will need to provide specific school details when applying, such as your enrollment date, expected graduation date and major. You will need to contact the school to see if and how you can access any excess funds.

PNC also offers $2,000 scholarships for 12 winners each year. Scholarships, unlike loans, are money that does not need to be repaid. To apply, create a free financial literacy account through PNC.​

Credible does not issue direct loans but rather connects potential borrowers to up to eight private student loan providers within three minutes. It is free to use, and your credit will not be dinged for checking pre-qualified rates. You can compare lenders for undergraduate, graduate, parent and professional loans.

Credible claims that borrowers can find funds for up to 100% of their schooling costs, but some partner lenders, like Ascent, do have maximum loan limits that can interfere with total coverage. If you pre-qualify for a lower interest rate with another lender, Credible will pay you a $200 “Best Rate Reward.” The catch? This offer comes with a lot of fine print, including that the lender must not be on Credible’s website.

Credible connects borrowers with lenders that do not charge origination fees or prepayment fees. Credible also states that it does not get paid to rank select lenders higher, and it doesn’t sell your data. Make sure you know each lender’s cost breakdown before you proceed.

Not all of the student loan partners will require co-signers, but Credible reports that about 85%  of its applicants use one.

SoFi offers private student loans ranging from $1,000 to 100% of your educational fees. Student loans can be used for undergraduate and graduate degrees, as well as healthcare, law and MBA professional degrees, but the funds are sent to the school, not the borrower. Parent loans are also available. Note that if you are pursuing an associate’s degree or career training, you will not be able to obtain a SoFi student loan.

Students can also refinance their student loans through SoFi, provided they meet SoFi’s refinancing eligibility requirements. Borrowers interested in refinancing with SoFi must have graduated with an associate degree or higher from a Title IV school, and must be employed, have sufficient income from other sources, or have an offer of employment to start within 90 days.

Loans come with no fees (not even late fees), and SoFi offers several discount opportunities for student loan borrowers. A 0.25% rate discount is available to all who sign up for autopay. An additional 0.25% rate discount is available for those who have previously taken out a private student loan with SoFi.

Additionally, SoFi offers a Member Rewards program, which allows members to earn points for completing financially-responsible tasks, like checking their accounts often. These points can then be redeemed toward student loan refinance payments.

One of the most notable benefits of a SoFi student loan is its Unemployment Protection. If you become unemployed through no fault of your own and your loan is in good standing, SoFi will modify your monthly payments and provide job placement assistance.

Earnest, which was acquired by Navient in 2017 as an independent subsidiary, offers private student loans ranging from $1,000 to 100% of your education costs. Sign up for autopay to receive a 0.25% interest rate discount. Most student loans have a six-month grace period, meaning borrowers have six months after graduation before their first bill. Earnest gives you an additional three months.

If you find a lower private student loan rate with a competitor, Earnest will match that rate and give you a $100 Amazon gift card. You can also miss one payment each year without any penalties.

Co-signers can be added to your loan easily with an invite link. Co-signers will need to have a credit score of 650 or more and an annual income of at least $35,000 to be eligible. Earnest does not allow co-signer release at this time.

Through Earnest, private student loans have repayment options for borrowers who are struggling. The rate education program allows borrowers to pay a reduced rate for six months. In the case of a total and permanent disability (TPD), Earnest might discharge your private student loan.

Sallie Mae lends up to 100% of school costs to undergraduate, graduate, professional and career training students. Full-time enrollment is not required for funding, and you can receive lending for community college tuition too.

While student loan amounts cannot exceed the cost of attendance, miscellaneous expenses such as a laptop, equipment and traveling might be considered part of the cost of attendance. All loans come with no origination fees or prepayment penalties, and you can receive a 0.25% interest rate discount with autopay.

Having a co-signer is not required but strongly encouraged. Salle Mae says that 87% of its approved undergraduate borrowers have co-signers and that students have historically been three times more likely to be approved with a co-signer.

Sallie Mae does not offer a way for students and co-signers to check if they are pre-qualified or what rate they will get without a hard credit check. You don’t have to accept the loan terms if you do apply, but your score will still be affected. While Sallie Mae says that either the borrower or the co-signer needs to be creditworthy, it does not have credit or income requirements posted on its site.

If you find yourself struggling to pay for your student loans after graduation, Sallie Mae offers some assistance. After the six-month grace period, qualifying borrowers will have the option for interest-only payments for 12 months. This does not increase the loan term, but it will increase the total loan cost.

Student loans are education loans that must be repaid with interest either immediately or after the set grace period. There are two types of student loans: federal and private.

Federal student loans are funded by the federal government, and they have fixed rates that are often lower than private loans. Federal loans can also come with more flexible repayment options if the borrower cannot repay them.

Private student loans come with a fixed or variable rate and are typically backed by banks, credit unions or other lenders.

Federal vs. private student loans

Most students obtain a federal student loan first and then seek private loans if they need additional funding. Both types come with different options, terms and conditions. It's important to know the differences between these two kinds of student loans:

To start your student loan process, submit a Free Application for Federal Student Aid (FAFSA) form, even if you don’t think you will qualify for aid. The information provided can be sent to one or many schools. Based on your FAFSA results, the college you select will send you a financial aid offer letter containing the amount you're awarded and other pertinent information. This will allow you to access federal student loans and special school-specific aid.

If there are still gaps in tuition coverage, private student loans can help. You can apply for private student loans directly on a lender's website. You should apply after you've made your school decision and once you know how much you need to borrow.

Depending on the repayment option offered by the lender, you will have to start full or partial repayment right away or six months after graduation. Waiting to start repayment until after graduation is the costliest option since the interest still accrues even if you don’t have a monthly bill yet.

Do I need a co-signer for my student loan?

Not all lenders require co-signers, but if you are a student with limited or poor credit history, it is easier to get a private student loan with one. However, to get a student loan without a co-signer, consider federal student loans first — most of these don’t require one. If you need additional financing, some private lenders offer loans without co-signers.

If you do need a co-signer, they must be an eligible applicant who meets the lender’s income and credit criteria. Only one co-signer is allowed, so choose the applicant that is more creditworthy to get the best rates. Your co-signer is responsible for repaying the full amount of the loan if you default.

While student loans are a common financial tool to afford higher education costs, they should be considered carefully before you apply. Financial aid that you don’t have to repay, such as scholarships, grants and work-study programs, should be considered alongside private student loans. Here are the top pros and cons of taking out student loan debt: