Obtaining a higher education has become increasingly costly. The National Center for Education Statistics reports a significant 13% rise in average tuition fees for full-time undergraduate students at public colleges since 2010.
Although federal student loans can provide some relief for these expenses, they may not always suffice. In such cases, private student loans present a viable alternative. This article delves into the essential information regarding private student loans, along with a list of reputable lenders to contemplate.
Credible offers a streamlined solution to obtain personalized private student loan rates from multiple lenders within a mere two-minute window.
1,Ascent
Ascent provides two distinct loan options: one designed for students with a cosigner and another tailored for those without cosigners. The borrowing limit extends up to your institution’s total cost of attendance, and you won’t incur any application, origination, or disbursement fees.
However, a limitation of Ascent is that its Independent loans (those without a cosigner) are solely accessible to juniors, seniors, and graduate students. Opting for the Ascent Independent Loan means that deferred payments represent your only repayment choice.
On a more positive note, Ascent offers a wider array of choices concerning interest rates and repayment terms. Borrowers can select from both fixed and variable rates, with term durations spanning from five to 20 years. To qualify, you must maintain a minimum GPA of 2.9 and possess a credit score of at least 540.
Loan amount: $2,001 to $200,000 Loan terms (years): 5, 7, 10, 12, 15, 20 (depending on loan type) Discounts: 0.25% to 1% automatic payment discount; 1% cashback graduation reward Cosigner release: Available after 24 months.
2.Citizens Bank
Citizens Bank offers a plethora of student loan options catering to undergraduates, graduates, and even parents of students. Additionally, specialized loan programs are available for students pursuing degrees in fields such as law and healthcare.
One limitation of Citizens Bank lies in its restricted forbearance options, capped at a maximum of 12 months.
Borrowers have the flexibility to choose between fixed and variable interest rates. Citizens Bank extends eligibility to borrowers in all 50 states, with a soft credit inquiry being a requisite during the application process.
Loan amount: $1,000 to $350,000 (varying with the type of degree) Loan terms (years): 5, 10, 15 Discounts: 0.25% autopay; 0.25% loyalty Cosigner release: Available after 36 months.
3.College Ave
The online lender, College Ave, presents a comprehensive array of loan programs and repayment alternatives. Borrowers have the capacity to secure funds up to the entire cost of their school’s attendance, and the lender refrains from imposing application, disbursement, or origination fees.
However, one notable limitation of a College Ave loan revolves around cosigners. When a cosigner is involved in your loan, they cannot be released from the agreement until you have crossed the midpoint of your repayment term, which might span as long as 7.5 years.
College Ave’s loan packages encompass both fixed and adjustable interest rates. Furthermore, the lender provides several repayment choices, which include complete deferral, interest-only payments, student loan forbearance, among others.
Loan amount: Ranging from $1,000 up to 100% of the school-certified cost of attendance Loan terms (years): 5, 8, 10, 15, 20 Discounts: 0.25% autopay Cosigner release: Available after 24 months.
4.Custom Choice
Custom Choice extends private student loans to undergraduate and graduate students who are enrolled at least half-time in an accredited institution. What sets Custom Choice apart is the absence of any associated fees, including late or prepayment fees. Furthermore, the prequalification process entails a soft credit inquiry, ensuring it doesn’t adversely affect your credit.
Loan amount: Ranging from $1,000 to $99,999 annually (with an aggregate limit of $180,000) Loan terms (years): 7, 10, 15 Discounts: 0.25% autopay; 2% graduation reward Cosigner release: Available after 36 months.
5.EDvestinU
EDvestinU offers private student loans without the burden of fees, presenting a wide array of repayment options. However, the primary drawback associated with EDvestinU lies in its eligibility criteria. To qualify for an individual application, EDvestinU mandates a minimum annual income of $30,000 and a credit score of at least 750. Conversely, for cosigned applications, cosigners only require a score of 675. The lender provides both fixed and variable rate loans, with the possibility of cosigner release after 36 months of consistent loan payments.
Loan amount: Ranging from $1,000 to $200,000 Loan terms (years): 7, 10, 15 Discounts: 0.50% autopay Cosigner release: Available after 36 months.
6.INvestED
For residents of Indiana, INvestED is a highly regarded choice. The lender provides no-fee student loans, covering up to 100% of a school’s attendance costs. Furthermore, if you successfully graduate on time, 2% of your principal balance will be forgiven.
The primary limitation here is that eligibility is restricted to Indiana residents or students attending Indiana universities. Additionally, cosigners are committed for a longer duration compared to most other lenders (four years). Both fixed and variable-rate loans are available, with a minimum credit score requirement of 670.
Loan amount: Ranging from $1,001 up to 100% of the school-certified cost of attendance Loan terms (years): 5, 10, 15 Discounts: 0.25% autopay; 2% reward for on-time graduation Cosigner release: Available after 48 months.
7.MEFA
Despite its name, the Massachusetts Educational Financing Authority (MEFA) extends private student loans to students nationwide. Applicants can anticipate an absence of application fees, along with no origination or disbursement fees.
MEFA exclusively offers fixed-rate loans, with terms limited to 10 or 15 years. Graduate students, however, only have the option of 15-year loans. To be eligible, a minimum credit score of 670 is required, and applicants must be U.S. citizens or permanent residents.
Loan amount: Ranging from $1,500 up to the school’s certified cost of attendance (varies based on school type and minus other aid received) Loan terms (years): 10, 15 Discounts: None Cosigner release: Available after 48 months.
8.Sallie Mae
Sallie Mae is a well-established private student loan provider that extends loans to students, parents, as well as medical and dental residents. Sallie Mae also offers loans tailored for law students preparing for their state bar exams. The advantage of Sallie Mae loans is the absence of application or origination fees.
The limitation lies in Sallie Mae’s forbearance options, which are restricted to a maximum of 12 months. This may present challenges if you encounter significant financial hardship. You have the flexibility to choose between fixed or variable-rate loans, with available terms spanning 10 and 15 years.
Loan amount: Ranging from $1,000 up to the cost of attendance Loan terms (years): 10, 15 Discounts: 0.25% autopay Cosigner release: Available after 12 months.