Federal student loans are typically the first stop when financing higher education: You don't need a credit history or co-signer, and interest rates are fixed, so your monthly payments won't ever change.
Federal student loan rates for the 2025-2026 academic year are 6.39% for undergraduate loans, 7.94% for graduate unsubsidized loans, and 8.94% for PLUS loans.
They also offer flexible repayment options, extensive borrower protections, delayed interest accrual and — historically, at least — lower rates than those offered by private lenders.
Find the right student loan financing
Should you take out a private student loan?
When it comes to student loans, the general recommendation is to exhaust all federal loans and financial aid options before first turning to private student loans. More than 90% of education debt is federal student loans.
But the current rate environment means some borrowers taking out new student loans may want to rethink this advice. To decide if you should take out a private student loan, ask yourself these questions.
What's your credit score?
Unlike federal loans, private student loan lenders use your credit score to determine your eligibility. Because they only perform a soft credit inquiry when you prequalify, though, it won't ding your credit.
If you have very good or excellent credit, you may find a lower annual percentage rate (APR) with a private lender than with the Department of Education. On the FICO® Score scale, a "very good" credit score falls between 740 to 799, while 800 or above is considered "excellent." A 760 credit score will likely qualify you for the lowest rate and best terms.
College Ave offers undergraduate student loans with 2.59% - 17.99% Fixed APR with autopay discount, well below the new rates for federal loans (Undergraduate New Loan). Other rates and loan types are available. Visit College Ave's website for full details.
College Ave's student loan products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or BTG Pactual Bank, N.A., member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term
Can you get a co-signer?
If you don't have a strong credit profile, a creditworthy co-signer could help you secure a better rate. Some 93% of private undergraduate loans are co-signed, according to Enterval Analytics.
Ascent Funding offers co-signed undergraduate loans with fixed rates. Other rates and loan types are available. Visit Ascent's website for full details.
Ascent Funding
APR
Fixed rates from 2.69% to 15.26% APR* with autopay discount (Undergraduate New Loan). Other rates and loan types are available. Visit Ascent's website for full details.
Loan amounts
Up to $200,000
Loan terms
Range from 5 to 20 years
Loan types
Variable and fixed
Borrower protections
Deferment and forbearance options available
Co-signer required?
Co-signer requirements vary by applicant; Co-signer is required for DACA recipients and non-U.S. citizens or permanent residents
Offer student loan refinancing?
No
Terms apply.
Disclosure: *Ascent Funding, LLC products are made available through Bank of Lake Mills or DR Bank, each Member FDIC. Subject to credit approval. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations, terms and conditions may apply for Ascent's Terms and Conditions please visit AscentFunding.com/Ts&Cs. Annual Percentage Rates (APRs) displayed above are effective as of 3/1/2026 and reflect an Automatic Payment Discount (ACH). The ACH discount consists of 0.25% on credit-based college student loans submitted prior to 6/1/2025, a 0.5% discount for on credit-based college student loans submitted on or after 6/1/2025 and a 1.00% discount on outcomes-based loans when you enroll in automatic payments. Loans subject to individual approval, restrictions and conditions apply. Loan features and information advertised are intended for college student loans and are subject to change at any time. For more information, see repayment examples or review the Ascent Student Loans Terms and Conditions. The final amount approved depends on the borrower's credit history, verifiable cost of attendance as certified by an eligible school and is subject to credit approval and verification of application information. Lowest interest rates require full principal and interest (Immediate) payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. Variable rates may increase after consummation.1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/BorrowerBenefits. Ascent applicants and borrowers that agree to the AscentUP Terms of Service and Privacy Policy, as well as students associated with an Ascent parent loan application, have access to the AscentUP platform.
Co-signed undergraduate loans with Earnest® have a fixed rate starting at 4.60% APR (excluding 0.25% autopay discount).
Earnest
Eligible borrowers
Undergraduate and graduate students, parents, half-time students, international and DACA students
Loan amounts
$1,000 minimum (or up to state) for new loans, $5,000 minimum for refinance; maximum up to cost of attendance for new loans, $550,000 for refinance loans
Loan terms
Range from 5 to 15 years
Loan types
Variable and fixed
Borrower protections
9-month grace period
Co-signer required?
No
Offer student loan refinancing?
Yes - click here for details
Terms apply.
Actual rate will vary based on your financial profile. Fixed annual percentage rates (APR) range from 4.60% APR to 10.24% APR (4.35% - 9.99% with .25% auto pay discount). Variable annual percentage rates (APR) range from 6.13% APR to 10.24% APR (5.88% - 9.99% with .25% auto pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and require selection of our shortest term offered (5 years) and enrollment in our .25% auto pay discount from a checking or savings account. Enrolling in autopay is not required as a condition for approval.
What's your income?
Private lenders also look at your debt-to-income (DTI) ratio to get a sense of your ability to repay a loan. A higher ratio means that more of your paycheck already goes toward paying your bills, so the lower the better. To calculate your DTI ratio, divide your total monthly payments by your gross monthly earnings. Homeowners should aim for a DTI ratio of 36% or less (including your mortgage) and renters for 15% to 20% or less (not including rent).
Get prequalified
To see what terms your credit score and income can get you with a private student loan, use the prequalification tools that most lenders offer. SoFi®, for example, allows you to view your rate in just three minutes.
Interest Rates: Eligibility and Important Details. Fixed rates range from 2.98% APR to 15.99% APR with 0.25% autopay discount. Variable rates range from 4.39% APR to 15.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates are capped at 17.95%. SoFi rate ranges are current as of 5/21/2026 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term and type of repayment option you select, evaluation of your creditworthiness, income, presence of a co-signer (if applicable) and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. Check out our eligibility criteria at https://www.sofi.com/eligibility criteria/. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases.
To receive a quote, you'll need to enter:
- Personal information, including address, birthday, Social Security number and citizenship status
- Enrollment details, including school name and expected graduation date
- Financial data, including income and monthly rent or mortgage amount
You may also have to include details about your co-signer, if you have one.
While you're shopping for the best rate, see which lenders have attractive features — like an autopay discount, flexible repayment options, deferment or forbearance and no application fees, origination fees or charges for late payments or prepayments.
Federal vs. private student loans: What's the difference?
| Federal student loans | Private student loans | |
|---|---|---|
| Eligibility | Enrolled at least half-time in an eligible degree/certificate program and maintaining satisfactory academic progress. May need to demonstrate financial need | Varies by lender, but usually includes age, credit score and income minimums |
| Application process | Fill out a FAFSA form; no credit check required unless applying for a PLUS loan | Apply directly through lender, usually with a credit check |
| Borrowing limits | Dependent undergrad: $31,000 (max $23,000 in subsidized loans) Independent undergrad: $57,500 (max $23,000 in subsidized loans) Graduate/professional students: $138,500 (max $65,500 in subsidized loans). | Varies, but typically up to 100% of the school's certified cost of attendance |
| Interest rates | Fixed interest rate only | Fixed and variable rates available |
| Terms | Standard term of 10 years (between 10 and 30 years for consolidation loans) | Varies by lender, but can range from 5 to 20 years |
| Repayment | Income-driven repayment plans; types of deferment offered include for economic hardship, unemployment, graduate fellowship and in-school deferment | Deferred, fixed and interest repayment options. Refinancing available. |
| Borrower relief | Income-based repayment plans, deferment and forbearance, loan forgiveness, public service programs; Eligible for widespread student loan relief or cancellation | Deferment and forbearance options vary, grace periods available but no income-based repayment or loan forgiveness unless borrower dies or is permanently disabled |
Private student loans pros and cons
Before taking out a private student loan, consider the benefits and drawbacks.
Pros
- Higher loan amounts than with federal student loans
- Faster application and approval process
- Lower interest rate if you have great credit and a low DTI ratio or a co-signer
- Usually no origination fees, compared to 1.057% for federal loans and 4.228% for Parent PLUS loans
- Available to students who may not qualify for federal student loans, like international students
- Available for career-training classes, bar exam prep and other programs
- Interest on private student loans may be tax-deductible
Cons
- Interest rate could be in the double digits if you don't have good credit or co-signer
- Limited deferment and forbearance options
- No income-based repayment plans
- No loan forgiveness programs for public service
- Widespread student loan cancellation or relief measures by the federal government don't apply to private loans
FAQs
Is it hard to get a private student loan?
Getting approved for a private student loan can be difficult if you have a limited or no credit history. This is why many students use a co-signer, often a parent, with very good or excellent credit.
How much can you borrow with a private student loan?
The amount you can get in private student loans varies by lender and can range from $75,000 to $120,000 for undergraduate students and from $150,000 to $300,000 for graduate students, according to LendEDU. Some lenders offer loan amounts up to the full cost of attendance.
Who's eligible for a private student loan?
To be eligible for a private student loan, you must meet the lender's credit score requirements or have a co-signer who does. International students can apply for private student loans, though most often will need a co-signer who's a U.S. citizen or permanent resident.
Do private student loans allow deferment?
Deferment and forbearance options vary by lender. If you delay payments, you may eventually owe interest even if you're not making payments.
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Interest Rates: Eligibility and Important Details. Fixed rates range from 2.98% APR to 15.99% APR with 0.25% autopay discount. Variable rates range from 4.39% APR to 15.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates are capped at 17.95%. SoFi rate ranges are current as of 5/21/2026 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term and type of repayment option you select, evaluation of your credit worthiness, income, presence of a co-signer (if applicable) and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. Check out our eligibility criteria at https://www.sofi.com/eligibility criteria/. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly payments as outlined in your loan agreement by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. When the autopay interest rate deduction is added or removed, the next time the loan is re-amortized (quarterly for fixed rate loans; monthly for variable rate loans), the principal balance of your loan will be spread over the remaining loan term, and your monthly payment amount will change. This benefit is suspended during periods of deferment, grace period, or forbearance. Autopay is not required to receive a loan from SoFi. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
