10 Private College Loans For Students


Do private colleges offer loans? Yes, they do, and private college loans can be a valuable resource. However, it’s crucial to assess your eligibility, loan terms, and conditions to ensure a smooth repayment process. Additionally, other institutions provide loans for private students, which we’ll discuss below.

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Once you’ve exhausted your eligibility for federal financial aid in both sponsored and private plans, private student loans become a viable option for funding your education.

These loans are offered by financial institutions, community banks, and lending agencies. Unlike government college loans for freshmen, private student loans require a credit check. Most undergraduates will need a co-signer to qualify.

Private student loans offer several advantages when it comes to financing education. They typically offer competitive interest rates for eligible applicants, flexible repayment options, and additional services like career coaching.

However, it’s essential to explore all other financial aid options, including government loans, before turning to private loans. Private student loans should be considered as a last resort in your education funding strategy.


Before signing any loan agreement, make sure you fully understand the terms and conditions. Remember, student loans are an investment in your future earnings, so it’s crucial to ensure that your education offers a favorable return on investment (ROI).

Here are some of the top private student loan options for this year:

1. Ascent Student Loans

Ascent Student Loans is an excellent choice as a private lender, offering both guarantor and non-cosigner financing for college and university students. They provide loans ranging from $2,001 to $200,000 with competitive rates and straightforward repayment terms.

Ascent’s transparency in their eligibility criteria, which considers more than just credit scores, is a standout feature. To qualify, students must be full-time juniors or seniors, U.S. citizens, permanent residents, or have DACA status, and maintain a GPA of 2.9 or higher. They also offer debt deferment for up to 9 months after graduation.

2. Citizens Bank

Citizens Bank offers a comprehensive range of private student loan options, allowing you to borrow as little as $1,000 or as much as $295,000, depending on your degree.

They consider your course of study when determining loan amounts, helping you focus on your ROI. Citizens Bank also offers undergraduate and parental college loans, which can be an attractive alternative to Parent PLUS Loans.

3. College Ave

College Ave stands out for its competitive student loan rates and flexible repayment options. Borrowers can choose from loan terms of 5, 8, 10, or 15 years and borrow a minimum of $1,000 up to the total cost of attendance.

They also offer repayment flexibility, allowing students to defer payments until after graduation or make interest-only payments while in school.

4. Commonbond

Commonbond offers some of the most affordable student loan rates available. They cater to bachelor, postgraduate, and MBA students, providing various repayment plans, including loan deferment until graduation.

While they don’t charge an application fee, there is a 2% origination fee, and a cosigner is typically required.

5. Discover

Discover has a reliable track record as a private student loan provider, offering competitive interest rates to undergraduate and graduate students. They provide loan terms of up to 20 years and various options for interest rate reduction.

Their program even offers a 1% interest rate reduction for graduates with a GPA of 3.0 or higher.

6. Funding U

Funding U specializes in private student loans without requiring a cosigner, which is relatively rare. However, they offer smaller loan balances and higher interest rates.

If you’re seeking a student loan without a cosigner, Funding U can be a valuable option.

7. LendKey

LendKey is an excellent lender known for competitive student loan rates. They partner with finance companies and local banks to offer loans, ensuring quality loan management.

Borrowers may have less flexibility in repayment, with a recommended minimum monthly payment of $25 while in college. LendKey does not provide loans directly to parents.

8. Sallie Mae

Despite its reputation, Sallie Mae is one of the largest private student loan lenders and offers some of the most affordable options. They provide loans starting at $1,000 and cover the entire cost of college.

Sallie Mae offers over eight different student loan options and multiple repayment schedules.

9. Stride Funding

Stride Funding offers an income-sharing agreement (ISA) as an alternative to traditional student loans. With no interest rates, you repay based on post-graduation earnings.

The downside is that Stride Funding only offers loans between $5,000 and $25,000 for specific programs at certain colleges.

10. Earnest

While known for college loan refinancing, Earnest now offers flexible private student loans with excellent rates and terms. They offer a generous grace period of 9 months after graduation.

Earnest does not impose initiation, payout, prepayment, or missed payment fees, making it a favorable option for borrowers.

Consider these private student loan providers carefully, keeping in mind your financial goals and educational needs. Make an informed decision that aligns with your future financial success.

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