Earnest offers the best student loans online
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Kat Tretina is is an expert on student loans who started her career paying off her $35,000 student loans years ahead of schedule. Her work has been published by Experian, Credit Karma, Student Loan Hero, and more.
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Updated on September 21, 2023
Reviewed byCierra Murry
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We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. Private student loans make up a small percentage of the total education debt — just 6.9% according to information from the Education Data Initiative. But with skyrocketing college costs, private student loans can play a pivotal role in financing your education. Other forms of financial aid, including grants, scholarships, and federal student loans, may not be enough to cover the total cost of your degree, so private student loans can help cover your remaining expenses. The best private student loans offer low interest rates, multiple in-school repayment options, and, in some cases, borrower perks. See the best loans from the best lenders here. Private student loans tend to have higher interest rates and fewer benefits than federal student loans. Before applying for a private loan, fill out the Free Application for Federal Student Aid (FAFSA) and contact your college’s financial aid office to ensure you exhaust all other financial aid options. Best Student Loans of 2024 Best Student Loans of 2024 Final Verdict How to Choose FAQs Methodology The Balance's Rating 4.9 Pros & Cons Pros Borrow up to the total cost of attendance Long grace period International students eligible with co-signer Rate match guarantee Cons Not available in all states Does not allow co-signer releases Good to excellent credit required Why We Chose It With federal undergraduate student loans and some private loans, there are annual and lifetime limits on how much you can borrow. But with Earnest, you can borrow up to the total cost of attendance, and you can have up to 15 years to repay your loan. Earnest offers a longer-than-usual grace period. Instead of six months like you get with federal loans, Earnest gives you nine months after graduating or leaving school before you have to start making full principal and interest payments. Earnest has competitive variable and fixed interest rates, and it backs its rates with a guarantee. It will match any competitor’s rate and give you a $100 Amazon gift card once your rate match is complete. Earnest also offers student loan refinancing and parent loan refinancing. Repayment Options Below are Earnest's repayment options. Earnest also provides options for those having extended difficulty in paying as well as those that are not able to pay. Eligibility Requirements To qualify for an undergraduate loan from Earnest, you must meet the following requirements: Earnest does not issue loans to residents of Nevada. The Balance's Rating 4.9 Pros & Cons Pros Special discounts and bonus offers Rate match guarantee Lower rates than you may get on your own Loan options for international and DACA students Cons Limited list of partners No pre-qualification option Process takes longer Why We Chose It With typical student loan marketplaces, you submit a pre-qualification form, undergo a soft credit check, and are shown offers from the platform’s partner lenders. There isn’t usually an advantage to using a marketplace other than being able to compare offers from several lenders at once. Juno works differently. When you join Juno, it places you in a group of similar borrowers. It uses that group to negotiate loan terms with its partner lenders. As a result, you may be eligible for lower interest rates than you’d get shopping on your own. Keep in mind that Juno works by negotiating as a group, so you cannot get a loan instantly. Make sure you start the process well ahead of time so you have the money you need to pay for school. Some of Juno’s partners offer additional incentives, such as cash-back bonuses. And if you find a lower rate elsewhere, Juno’s partners will match that rate and give you 1% of the loan amount as a cash-back bonus. Juno connects borrowers to loans from leading lenders, and it also works with lenders that lend to international and DACA students. Repayment Options Repayment options vary based on the lender issuing the loan. Generally, you may have access to the following options: Eligibility Requirements To qualify for a loan through Juno, you must meet the following requirements: Both international and DACA students are eligible. Most students, regardless of their citizenship status, will need a co-signer to qualify for a loan. Pros & Cons Pros Compare several offers at once Multiple loan types available $200 best rate guarantee Cons Repayment options and policies vary Does not partner with all major lenders Eligibility requirements vary by partner lender Why We Chose It When it comes to private student loans, eligibility requirements, repayment options, and rates can vary between lenders, so it pays to shop around. But reviewing offers from several lenders can be time-consuming; that’s where Credible comes in. Credible isn’t a lender; it’s a marketplace that allows you to get quotes from several leading lenders at once with just a soft credit inquiry. It connects borrowers to several different types of loans, including loans for undergraduates, graduate students, and parent borrowers. Repayment Options Repayment options vary by lender, but you may be able to choose from the following: Eligibility Requirements Eligibility requirements vary by Credible’s partner lender, but you generally need to be enrolled at a four-year school at least half-time. You typically need to be a U.S. citizen or permanent resident, or have a creditworthy co-signer that is. The Balance's Rating 4.5 Pros & Cons Pros Non-co-signed options available No origination fees Financial hardship programs Cons Good to excellent credit required Not available to residents of Maine International students not eligible Why We Chose It For graduate students exploring their financing options, ISL Lending could be a valuable option. It offers loans with interest rates that can be lower than those of federal graduate loans, and it allows students to borrow up to the total cost of attendance. Unlike federal graduate loans, ISL Lending doesn’t charge origination or disbursem*nt fees. While most private student loan companies require borrowers to have co-signers, ISL Lending has an option specifically designed for graduate students who don’t have one. Its non-co-signed graduate loan has higher rates than co-signed options, but it provides loans to graduate students who may not have access to a creditworthy co-signer. Repayment Options ISL Lending offers three repayment options: Eligibility Requirements To qualify for a loan from ISL Lending, you must meet the following requirements: ISL does not issue loans to residents of Maine. Pros & Cons Pros Loans without co-signers No origination fees DACA students eligible Cons Doesn’t have variable rates Does not offer loans for graduate school Not available in all states Low loan maximums Why We Chose It If you’re an undergraduate student, qualifying for a private student loan on your own can be difficult. Most lenders require strong credit histories and full-time salaries, or you may need a co-signer. If you don’t have a relative or friend who can co-sign your loan, Funding U can be a useful option. Funding U offers fixed-rate loans exclusively for undergraduate students who don’t have co-signers. You can borrow up to $20,000 per academic year, and there are no application or origination fees. Repayment Options All Funding U loans have 10-year repayment terms. There are two repayment options: Full loan repayment begins six months after graduating or leaving school. Eligibility Requirements To qualify for a loan from Funding U, you must meet the following requirements: Funding U isn’t available in all states. To qualify, you must be a resident of one of the following states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin. The Balance's Rating 4.3 Pros & Cons Pros Loans available for associate programs Multiple repayment options Extended repayment terms for health professionals Cons Strict requirements for co-signer releases Unclear eligibility requirements Why We Chose It With College Ave Student Loans, you borrow money to pay for associates, bachelor’s, or graduate programs, and you can pick from several repayment options and terms. You can choose a loan term of 5, 8, 10, or 15 years—more options than some other lenders offer—to get an in-school repayment plan that works for you. College Ave is especially helpful for students in health professions. With a health professions loan, you can defer your payments for up to 48 months after you leave school if you participate in a medical residency or fellowship. While College Ave allows you to apply with a co-signer, its requirements for co-signer releases are more strict than other lenders. You can only apply for co-signer release after more than half of your repayment term is over. For example, if you have a 10-year term, you can only apply after at least five years have passed. Repayment Options College Ave Student Loans offers the following repayment options: Eligibility Requirements College Ave Student Loans doesn’t disclose its credit or income requirements, but it does say that most students will need a co-signer to qualify for a loan. To be eligible for a loan, you must meet the following requirements: The Balance's Rating 4.8 Pros & Cons Pros No fees Multiple repayment options available No loan caps Cons Not available to associate degree students Unclear borrower credit or income requirements Students must be enrolled at least half-time Why We Chose It Although federal loans usually have lower interest rates than private loans, parent loans can be the exception. Federal Parent PLUS Loans have the highest interest rate of all federal loans; Parent PLUS Loans disbursed for the 2022–2023 academic year have a rate of 8.05%. Plus, they have a 4.23% disbursem*nt fee. SoFi’s parent loans may be a cost-effective alternative. Borrowers with excellent credit may qualify for a loan with a lower rate than Parent PLUS loans, and SoFi doesn’t charge origination, disbursem*nt, or late fees. Repayment Options SoFi offers four repayment options for both fixed and variable loans. These options are: Each of these options has terms of either five, seven, 10, or 15 years. The APR for each option and each term varies, and, therefore, the monthly payment amount. While SoFi offers several repayment options for student borrowers, there are just two repayment options for parents: Eligibility Requirements To qualify for a parent student loan from SoFi, you and your child must meet the following requirements: Pros & Cons Pros No co-signers required Autopay discount Graduation and employment discount Cons Higher APRs Must be within two years of graduation Must attend a participating school Why We Chose It If you’re an international or DACA student, qualifying for a private student loan in the U.S. can be challenging. While some lenders will work with non-citizens, they usually require applicants to have a co-signer who is a U.S. citizen or permanent resident. But with MPOWER Finance, students can qualify for a private student loan without a co-signer. Students can borrow up to $50,000 per year—up to $100,000 over their lifetimes—and have 10 years to repay their loans. Plus, MPOWER offers discounts for automatic payments and for providing proof of graduation and employment. Repayment Options All MPOWER Finance loans offer interest-only payments while the student is in school and for six months after graduation. After that, the loan has a 10-year repayment term with fixed monthly payments. Eligibility Requirements To qualify for an MPOWER Finance loan, you must meet the following requirements: The Balance's Rating 3.7 Pros & Cons Pros Compare multiple offers at once Spousal loan refinancing available No loan maximum Cons No additional discounts or bonuses Repayment terms and policies vary by lender Degree required Why We Chose It Student loan refinancing is a way to lower the interest rates on your student loan debt and save money. Splash Financial is our choice as the best company for refinancing because it’s a mini-marketplace that allows you to compare offers from multiple lenders at once, and may provide some very low rates. By filling out one form, you can review refinancing options from several banks and credit unions. Splash allows you to refinance undergraduate and graduate student loans. And some of Splash Financial’s partners even offer spousal loan refinancing, so you can combine your debt with your partner’s. Repayment Options Splash Financial’s refinancing options have loan terms from 5 to 15 years. Repayment options in cases of financial hardship are dependent on the lender that issued you your loan. Eligibility Requirements To qualify for student loan refinancing through Slash Financial, you must meet the following requirements: Pros & Cons Pros Qualify without established credit Co-signers not required Discounts and bonuses available Cons Limited options for first- and second-year students High APRs Limited repayment options Why We Chose It With private student loans, you usually need good to excellent credit or a co-signer to qualify for a loan. Ascent Funding is one of the few lenders that doesn’t require a co-signer. It offers an outcomes-based loan for borrowers who have insufficient credit histories and don’t have any credit. The outcomes-based loan is available to college juniors or seniors and graduate students, and you can have up to 20 years to repay your loan. Depending on the type of loan you choose, you may qualify for an autopay discount that reduces your interest rate by as much as 1.00%. Or, you may qualify for a 1% cash-back reward once you graduate. Direct subsidized and unsubsidized loans—federal loans for graduate and undergraduate students—don’t have minimum credit or income requirements, and they have much lower interest rates than most private loans. Repayment Options Ascent Funding’s co-signed loans have repayment terms ranging from 5 to 20 years, and you can choose between fixed payments, deferred payments, and interest-only payments. Outcomes-based loans are more limited. The loan term options are 10 or 15 years, and the only repayment option is deferred repayment. Your payments will begin nine months after graduating or leaving school. Eligibility Requirements To qualify for Ascent’s outcomes-based loan without a co-signer, you must meet the following requirements: If you have a credit score, you must apply for a credit-based loan or a co-signed loan. To qualify, you must meet the following requirements: If you reach the borrowing limits for federal student loans or aren’t eligible for federal aid, private loans can be a tool you can use to finance your education. There are many private student loan companies out there. Some, such as Credible or Splash Financial, are marketplaces that connect you to multiple lenders. Others, such as ISL Lending, are direct lenders for undergraduate and graduate students. Our pick for the best overall lender is Earnest. It offers a range of loan options for students and parent borrowers, and it even offers student loan refinancing. By taking out a loan through Earnest, you can borrow up to the total cost of attendance and take advantage of an extended grace period. If you need to borrow student loans, spend time getting to know how student loans work. This can help you figure out what you need and want in a student loan to make an informed decision. As you compare federal and private student loan offerings, focus on the costs of borrowing. The interest rates and fees you’ll face will determine how much it will cost you to repay this debt in the future. Choosing a student loan with lower monthly costs can save you hundreds or thousands of dollars in interest over the life of your loan. Beyond cost, look at other factors that may affect how affordable or burdensome this debt will be to repay: Federal student loans are the more common form of student loans. The U.S. Department of Education offers and funds them, and they are not credit-based loans. On the other hand, private student loans are credit-based options offered by banks or other private lenders. Federal student loans often offer students a more affordable and accessible way to borrow. Still, private student loans are an important tool that can be used to fill in student aid gaps for students who hit borrowing limits on federal student loans. They can also be a more cost-effective alternative to the terms offered on federal direct PLUS loans. Private student loans may include options for international students, funding above the federal loan limits, no origination fees, and potentially better rates. However, because they are private loans, they are not eligible for the Public Student Loan Forgiveness program, there are fewer repayment options, and because they are credit-driven, you will need good credit (or have a co-signer with good credit) to take advantage of the best rates and terms. A student loan is a form of aid that helps students pay for a college education, from vocational training to a bachelor’s degree up to a doctorate degree. Students then use these funds to pay for their education-related costs including tuition, books, school supplies, and even living expenses like food or transportation. Student loans can be offered and originated by a number of lenders. The Department of Education’s Office of Federal Student Aid offers federal student loans, and many state governments run student loan programs. Colleges may offer their own student loan programs, along with other nonprofit organizations. Banks and other private lenders also commonly offer student loans. To get student loans, you’ll need to apply for them. For federal student loans, this includes submitting the Free Application for Federal Student Aid (FAFSA). For private student loans, that means completing an application with the lender of your choice. These lenders will require that you prove you’re a student, and you may be able to borrow up to the full costs of your educational degree or program. Once the repayment period starts, you are responsible for paying back the student loan principal and interest. You’ll face a monthly payment amount designed to repay the loan in full within your loan term. As they are loans, student loans are not gifted aid (like scholarships), and they must be paid back. Student loans are typically deferred while the student is enrolled in college and for a grace period after enrollment ends. Be aware that interest may accrue during this deferment period. The exception is interest on federal direct subsidized loans, which is paid through a federal subsidy. And, also of note, although student loans have lower interest rates and costs than other loans, they are harder to discharge in bankruptcy. The short answer is yes: You can deduct up to $2,500 in student loan interest that you paid to lower your taxable income. Both private and federal student loans can qualify for the student loan interest deduction. If you paid more than $600 in interest on a student loan that qualifies for this deduction, your lender is required to send you a Form 1098-E to certify what you paid. However, you can still claim this deduction if you paid less or didn’t receive a 1098-E. Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of student loan lenders. We collected thousands of data points across 30 lenders—including loan types, interest rates, fees, loan amounts, and repayment terms—to ensure that we help readers make the right borrowing decision for their education needs. Article Sources Education Data Initiative. "Student Loan Debt Statistics." Federal Student Aid. "Federal Versus Private Loans." Earnest. "Private Student Loans." Earnest. "Repayment Options for Private Student Loans." Juno. "We Negotiated the Lowest Private Undergrad Loan Rates for You, for Free." Funding U. "How It Works." College Ave Student Loans. "Undergraduate Student Loans." College Ave Student Loans. "Graduate Health Professions Student Loans." College Ave Student Loans. "Undergraduate Student Loan Cosigner." Federal Student Aid. "Federal Interest Rates and Fees." SoFi. "Parent Student Loans." MPOWER Finance. "College Loans for International Students." Ascent Funding. "College Loans." Federal Student Aid. "Subsidized and Unsubsidized Loans." Internal Revenue Service. "Topic No. 456 Student Loan Interest Deduction."Best Student Loans of 2024
Best Overall Lender :Earnest
Best Runner Up :Juno
Site for Comparing Student Loan Offers :Credible
Best for Graduate Students :Iowa Student Loan (ISL) Education Lending
Best Without a Co-Signer :Funding U
Best for Flexible Repayment Options :College Ave
Best for Parent Student Loans :SoFi
Best for International/DACA Student Loans :MPower
Best for Refinancing :Splash Financial
Best for Fair Credit :Ascent
Final Verdict
How to Choose the Best Student Loan Provider
Federal Student Loans vs. Private Student Loans
What Is a Student Loan?
How Do Student Loans Work?
Is Student Loan Interest Tax Deductible?
Methodology
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