Last Updated on December 15, 2022
Government Subsidized Student Loans Tend To
Government subsidized student loans are a type of federal student aid that the government pays interest on while you’re in school. They’re also known as “Stafford Loans.” The good news is that they don’t have to be paid back until after you graduate, but the bad news is that they have a pretty high interest rate.
If you’re paying off your government-subsidized student loans, you may be wondering if there’s any way to get rid of them early. The answer is yes! There are three main ways to do this:
1) Consolidation
2) Forgiveness
3) Deferment or forbearance
Government Subsidized Student Loans Tend To
Many students may need some help paying for school. College costs may be high. Many students may not have jobs to help cover those costs. That is where direct subsidized loans could help. These federal subsidized student loans may pay for many school costs. They may also help students to put off repaying the loan while they are in school. These types of loans are typically called subsidized student loans. It is important to understand these loans fully before borrowing one. Financial aid may be available to those who qualify.
Students may pay for some of their higher education costs with subsidized loans. These are federal loans. The term “subsidized” refers to the repayment. The student usually does not incur any interest on the loan while they are in school. No interest builds on this student loan during that time. The student must meet specific requirements. The student must be attending an accredited institution for at least half time.
Students may learn about various types of student loans. Subsidized and direct unsubsidized are two types. It is typically important to know the difference when applying. These loans come from the U.S. Department of Education who set the eligibility requirements.
Another important term relates to the “Direct” component. A direct loan simply means the U.S. federal government is providing the loan to the student. A federal direct loan is another term for this. By comparison, a private loan is from a private or traditional lender, like your local bank. Federal direct loans are those that come from the government to typically cover the cost of your school. These come from the U.S. Department of Education. A direct loan program is generally one of the most common types of ways to pay for higher education costs.
best private student loans
If you’ve exhausted all your scholarship, grant, work-study, and federal student loan options and still need money for school, private student loans can be a good option.
Since most private student loan lenders require good credit, we recommend adding a creditworthy cosigner to your application to improve your chances of approval. A cosigner can also help you receive a lower interest rate, which will reduce the overall cost of your loan.
In the table and reviews below, you’ll find the best private student loans amongst our partners, based on hours of research into rates, repayment terms, unique benefits, and more.
Compare the best private student loan lenders
| Lender | Best for | Rates (APR) | Our Rating | |
|---|---|---|---|---|
 | Best Overall | 1.19% – 12.99% | 5.0 | View Rates |
 | Best for Cosigners | 1.13% – 12.59% | 4.8 | View Rates |
 | Best for No Fees | 0.94% – 12.78% | 4.3 | View Rates |
 | Best for Forebearance Flexibility | 1.64% – 12.76% | 4.7 | View Rates |
 | Best for Member Benefits | 1.20% – 11.23% | 4.1 | View Rates |
Reviews of the five best private student loans
Check out the reviews below for an in-depth explanation as to why we selected each lender as one of the best private student loans. If you’re interested in learning more about a specific lender, you can jump to that review by clicking on its name in the list below.
- Best overall: College Ave
- Best for cosigners: Sallie Mae
- Best for forebearance flexibility: Ascent
- Best for member benefits: SoFi
- Best for no fees: Earnest
College Ave
Our Pick: Best Overall
5.0 LendEDU RatingView RatesDisclosures
Why It’s One of the Best
College Ave is our choice as the best overall lender for the second year in a row because it has competitive rates, lets you choose your repayment term, and can cover up to 100% of your school-certified cost of attendance.
Variable Rates
1.19% – 11.98% APR
Fixed Rates
3.49% – 12.99% APR
Loan Amounts
$1,000 – 100% of school-certified cost of attendance
Pros & Cons
Eligibility Requirements
Repayment Details
College Ave is an online student loan lender based out of Wilmington, Delaware. The lender’s sole focus is to make a college degree more attainable by helping students and parents afford the rising cost of higher education.
When you borrow with College Ave, you’ll get to take advantage of its Multi-Year Peace of Mind™. Thanks to this benefit, 90% of undergraduate borrowers are approved for additional loans for future years when applying with a cosigner.
That’s not the only benefit of College Ave. It also allows you to select your repayment term and explains how the term and plan you choose impacts the long-term cost of your loan.
Are you interested in applying for a loan with College Ave? You can get an instant credit decision in just three minutes.
Sallie Mae
Our Pick: Best for Cosigners
4.8 LendEDU RatingView Rates
Why It’s One of the Best
Sallie Mae is our choice as the best for cosigners due to its short cosigner release period. Cosigners can be released from a Sallie Mae student loan after the borrower makes just 12 consecutive on-time monthly payments.
Variable Rates
1.13% – 11.23% APR
Fixed Rates
4.25% – 12.59% APR
Loan Amounts
$1,000 – 100% of school-certified cost of attendance
Pros & Cons
Eligibility Requirements
Repayment Details
Sallie Mae, the most widely known student loan lender, is based out of Newark, Delaware. When it was founded, it was a government entity in charge of servicing federal education loans. Then, between 1997 and 2004, Sallie Mae transitioned into a fully privatized bank and began offering private student loans.
Today, Sallie Mae controls the largest share of the private student loan market. It’s also expanded its product offering to include credit cards, savings accounts, and more.
Sallie Mae borrowers can enjoy benefits including four months of free Chegg® study help, Multi-Year Advantage, and no origination or application fees. With Multi-Year Advantage, returning undergraduate students with a cosigner have a 95% approval rate for a future loan.
Are you interested in applying for a loan with Sallie Mae? You can apply and get a credit decision in about 15 minutes by
Earnest
Our Pick: Best for No Fees
4.3 LendEDU RatingView Rates
Why It’s One of the Best
When Earnest says it doesn’t charge any fees, it means it. There are no origination, application, prepayment, or late payment fees.
Variable Rates
0.94% – 11.44% APR
Fixed Rates
3.24% – 12.78% APR
Loan Amounts
$1,000 – 100% of school-certified cost of attendance
Pros & Cons
Eligibility Requirements
Repayment Details
Earnest is an online lender based out of San Francisco, California. The lender was founded with the goal of making higher education accessible and affordable for everyone.
One of the main benefits of taking out a loan with Earnest is that there are no fees. Many lenders market their student loans as having no fees to apply, but this only refers to origination and application fees. With Earnest, you won’t be charged any fees to apply, plus you won’t be charged for paying off your loan early or for any late payments.
In addition to no fees, Earnest offers several other benefits, like a longer than average grace period and the ability to skip a payment once per year.
Are you interested in applying with Earnest? You can find out if you’re eligible in just two minutes by clicking here.
Ascent
Our Pick: Best for Forbearance Flexibility
4.7 LendEDU RatingView Rates
Why It’s One of the Best
Ascent allows borrowers experiencing financial difficulty to enter temporary hardship forbearance for up to 24 months. Other options include administrative and natural disaster forbearance.
Variable Rates
1.64% – 9.23% APR
Fixed Rates
4.78% – 12.76% APR
Loan Amounts
$2,001 – $200,000
Pros & Cons
Eligibility Requirements
Repayment Details
Ascent is an online student loan lender based out of San Diego, California. Its student loan offering is unique compared to other lenders in that it offers three different options. These options include its traditional cosigned loan, non-cosigned credit-based loan, and non-cosigned future income-based loan.
Borrowers looking for repayment protection will be happy to know that Ascent offers several deferment and forbearance options. Ascent’s college loans include active-duty military deferment, in-school deferment, and residency or internship deferment.
For those dealing with financial difficulty, loans include temporary hardship forbearance, administrative forbearance, and natural disaster or declared emergency forbearance. All three of these options will extend the repayment term on your loan.
Are you interested in applying with Ascent? You can prequalify and check your rate with no impact on your credit by clicking here.
SoFi
Our Pick: Best for Member Benefits
4.1 LendEDU RatingView Rates
Why It’s One of the Best
SoFi members enjoy a wide range of benefits, including a 0.125% rate discount, career coaching, unemployment protection, and more.
Variable Rates
1.20% – 11.23% APR
Fixed Rates
4.23% – 10.66% APR
Loan Amounts
$5,000 – 100% of school-certified cost of attendance
Pros & Cons
Eligibility Requirements
Repayment Details
SoFi is a mobile-first online personal finance company based out of San Francisco, California. It made a name for itself in 2012 as the first company to refinance both federal and private student loans. Since then, it has expanded into nearly all consumer lending markets with over $50 billion in loans funded.
Without a doubt, one of the biggest draws to borrowing from SoFi is the wide range of benefits available to its members. These benefits fall into three categories: money, community, and career.
Money benefits include financial planning advice from credentialed advisors, referral bonuses, and member rate discounts. Community benefits include attending networking events, dinners, and happy hours. Career benefits include tools to help you earn a raise, personalized career advice, and an unemployment protection program.
Are you interested in applying for a loan with SoFi? You can prequalify without impacting your credit in minutes by clicking here.
