A Guide to the Best Student Loan Lenders for Students

Education may be one of the most important investments you make, but it is also usually one of the most expensive. Economic conditions have pushed higher education costs into the stratosphere, requiring loans for most students in the U.S.

Best College Loans: Tips for Choosing the Right Option

It can be a bit daunting to wade through the many other options that exist to receive funding, however finding the right lender is essential. That is an analysis of the best student loan lenders that are there for you. Types of Student Loan Lenders In this post we made a complete list to help you in selecting a lender or two ­depending on your needs in diverse situations.

Factors to consider when picking the best student loan lender

However, before we get to our list of the best student loan lenders, let me brief you about this. Some of the key points to keep in mind include:

Interest Rates – A higher interest rate translates to more you will have to pay back over the years. Interest rates are fixed and variable depending on the lender, so you want to compare this among lenders.

Different lenders have different repayment options, from five to twenty years or more. The greater the loan term, typically the lower your monthly payment will be, but it could end up costing you in interest over time.

Flexible Repayment: Some lenders have grace periods, deferment, or forbearance options that can be helpful if you fall on hard times.

Cosigner: Many lenders will require a cosigner, particularly if the borrower has short credit or low scores. Think about your chances of qualifying on your own without a cosigner.

Customer Service: This one is a no-brainer, as you may need customer service when managing your loan and finding out more about repayment choices or another question

1. Low rates and perks: SoFi

There are a handful of reasons why SoFi is always one of the best student loan lenders. SoFi is especially prized for its low rates and customer service, along with extra borrower perks. SoFi offers fixed and variable rates for undergraduate as well as graduate loans.

Key Features:

Interest Rates: With both fixed and variable rates in its tool shed, SoFi stands out as a top company for borrowers interested in affordable access.

Loan Terms: Borrowers can select either a 5-, 10-, or 20-year repayment term.

Perks: SoFi is a bit more full-service than others we reviewed, with career coaching, unemployment protection and invites to a networking events for borrowers.

Repayment Flexibility: Borrowers who hit financial hardship can apply for forbearance from SoFi, which means they can put payments on pause.

Pros:

• Competitive interest rates
• No fees (no origination fee or prepayment penalties)
• Borrower benefits not offered elsewhere (ex: career services)
• Excellent customer service

Cons:

• No cosigner release option
• Not for bad credit borrowers

2. Earnest: Best for Loan Customization

EarnestFor: Those who value being able to tweak their loansWhat we like about it: Like SoFi, Earnest is a high-ranking option for the best student loan lenders. With Earnest borrowers choose their own monthly payment amount, loan term and variable or fixed interest rate.

Key Features:

Interest Rates: Competitive fixed and variable rates

Flexible loan terms: Earnest offers borrowers the option of setting their own term length and monthly payment amount.

No Fees: Earnest loans do not have origination, prepayment, or late fees.

Pros:

• Loan terms are very flexible
• No fees
• Autopay discounts available
• Simple application process on the web

Cons:

• No cosigner release option
• Approval needs a good credit score

3. College Ave: Best for Flexible Repayment Options

College Ave is a standout as well as one of the best student loan lenders if you want a say in how your repayment plan will look. The lender charges no origination fees or prepayment penalties, and there are a few different in-school repayment options available with full, interest-only, and deferred payments.

Key Features:

Rates: College Ave offers competitive fixed and variable rates

Branded enough with flexibility on repayment plans, this loan simply suggests that you can start repaying your loan after completion of school.

Here Are The Loan Terms Offered By College Ave terms of 5–15 years are available to borrowers

Pros:

• Flexible repayment options
• Release option for cosigners after 24 months of consecutive payments
• No fees
• Easy online application

Cons:

• Needs a good credit score or co-signer for approval
• No forbearance option

4. Discover: Highest Borrower Perks

Best known for its credit cards, Discover also provides among the top student loans you can find. What sets Discover apart are its borrower incentives, such as a cash bonus for good grades and 0.25% interest rate discount for automated payments.

Key Features:

Discover Interest Rates — offers competitive fixed rates and variable rates.

Cons: Loan Terms — 10 and 20-Year terms are available.

Borrower Perks: Earn 1% of your loan amount back if you achieve a GPA of 3.0 or higher (only once per loan).

Pros:

• No fees
• Good grades get borrower rewards
• Points: 0.25% interest rate reduction with automatic payment
• After 24 months, you can apply to have your consigner released

Cons:

• Only 10 Or 20 Year Plans Available
• Less flexible than some other lenders

5. Sallie Mae:

Best for Cosigner Release best for Cosigner Release Learn More Sallie Mae loan DetailsMinimum Credit Score680A newer borrower can qualify on the basis of his/her cosigners credit scoreGraduates preferred demand that an applicant includes a top earnings and…

For decades, Sallie Mae has been a household name in student lending, and it remains one of the best places to get student loans — especially if you want to release your cosigner later on. Sallie Mae also has a suite of private student loans for undergraduate, graduate, and professional degrees, and specialized programs such as medical school or law school.

Key Features:

Interest Rate: Sallie Mae Lends at competitive fixed and variable interest rates.

Though not available with every loan, some of Earnest’s loans offer a cosigner release: After making 12 consecutive on-time payments, borrowers can apply to have their cosigners removed from the application.

The typical loan terms range from 5 to 15 years, with various repayment options which will be flexible for a student such as deferred, interest-only and fixed monthly payments while in school.

Pros:

• Early cosigner release after as few as 12 payments
• Flexible repayment plans
• Loans for professional programs such as medical and law school
• No origination fees

Cons:

• Rates may be higher than those charged by some competitors
• Must have good credit or a cosigner

6. Best for Credit Union Loans: LendKey

LendKey is a little different, since it works with credit unions and community banks to offer student loans. This enables borrowers to secure interest rates that are lower and often comes with more personal customer service than one might typically find at larger financial institutions. LendKey is a borrower-friendly online platform that can help connect you with smaller, local financial institutions that are often some of the best student loan lenders.

Key Features:

• Competitive will likely fixed and variable interest rates.
• Loan Terms: Loan terms are 5-15 years.

Cosigner Release: LendKey also provides the option for cosigners to be released after a set number of on-time payments (usually 12 -36 months, depending on the lender).

Pros:

• Access to credit union loans
• Interest rates and fees that are difficult to beat
• Cosigner release option
• Flexible repayment options

Cons:

• Involvement of partner institutions can delay application process
• Borrowers need at least fair credit or good along with a cosigner

7. Ascend: Finest for self-students

Ascent is rare among lenders because it offers loans for students who might not have a cosigner or strong credit history. This helps make it one of the top lendUPs for independent students, who may have difficulty qualifying for loans elsewhere.

Key Features:

Interest rates: competitive fixed and variable interest rates.

Loan Terms: 5-15 years, repayment terms

Without Cosigner Option: Ascent provides a lending platform and benefits that offer credit to students and/or their families based on future income potential, not just credit history.

Pros:

• No cosigner option available
• APR may decrease if cosigner is release after 24 on-time payments
• Flexible repayment terms
• Resources for Borrowers – Financial Literacy

Cons:

• Increased interest rates for those who do not have cosigners
• Needs future income for qualification no cosigner

8. = Citizens Bank: Best for Multi-Loan Discounts

Citizens Bank offers potential discounts on student loans to borrowers who have multiple Citizens accounts. It is a top student loan lender for those who might also be looking to refinance their loans or borrowing for graduate school.

Key Features:

Interest rates: Fixed and variable competitive rates.

Discounts: Citizens Bank features a 0.25% refund for automatic payments and an additional 0.25% discount if you have a qualifying account with the bank.

Repayment Plan: There are four different repayment plans, and the one you choose will depend on your financial circumstances; check with a loan officer for guidance. Or learn more in our 4 Things to Consider Before Repaying Your Student Loan blog postCosigner Release: Cosigner release is possible after making just 36 on-time payments!

Pros:

• Loan discount opportunities
• Competitive interest rates
• No fees
• Cosigner release option

Cons:

• Citizens One – You must make payments for at least 36 months to have this cosigner release as an option.
• Few payment term options (5, 10 or 15 years)

9. Learn More at MEFA: Best for Residents of Massachusetts

Massachusetts residents and those attending college in the state can borrow money through student loans from the Massachusetts Educational Financing Authority (MEFA). In short, MEFA is one of the top-rated student loan lenders in Massachusetts with low interest rates and fixed repayment terms.

Key Features:

• MI rates: MI provides low fixed-rate UG and Canb loans.
• Terms: 10 and 15-year repayment options available.
• Zero Fees: MEFA charges no origination fees or prepayment penalties.

Pros:

• Low, fixed interest rates
• No fees
• Open to Massachusetts residents or students enrolled in schools in the state

Cons:

• For MA residents/students only
• No cosigner release option

Federal and private student loans: A comparison

If the second option applies to you, interest rates may become merely an interesting aside to whether it would be more advantageous to take out a federal or private student loan.

Federal Loans:

• Supply fixed rates of interest as determined by Congress
• Offer borrower protections such as IDR plans, deferment and forbearance
• Most loans are not credit score-based
• Establish programs to forgive the student loans for those in public service jobs.

Private Loans:

• Fixed and variable interest rates available, including potentially lower than federal rates for highly qualified borrowers
• Refinance typically subject to credit check and/or cosigner
• Absence of federal borrower protections (though some offer their own options for repayment flexibility)

Nearly all experts will agree that you should use up federal loans before private solutions. In the end, private loans might be worth considering if federal loans won’t cover the full cost of attendance or you have an opportunity to get a lower interest rate through a private lender.

Conclusion

The decision of which student loan lender is the best for you can have a huge effect on your financial future. No matter what you are looking for — from competitive interest rates or flexible repayment options, to cosigner release and career coaching — there is a lender that can help. Be sure to evaluate all your options — such as federal loans — before committing. References: Choose the best student loan lenders for youWhich Students Use Private Student Loans?