Table of Contents
Private student loans offer college students numerous options to help pay for their education. However, even though it’s easy for you to qualify for federal student loans, they usually provide less funding than private loans. That’s where private loans come in.
If you don’t have adequate federal financial aid to pay for your college education, consider private student loans. But before you sign any agreement, we recommend searching for the best private student loans.
This guide will give you several alternatives to pick from. With that said, let’s begin.
1. Ascent
Do you have issues finding a cosigner when searching for private student loans? If so, consider Ascent. The company makes it possible for some students to acquire independent loans. And also offer the same interest rates to students who apply with a guarantor.
Ascent, however, has certain features borrowed from federal student loans: progressive repayment option and entrance counseling. As you probably know, with the progressive repayment, your monthly payments increase gradually with time.
Ascent Current Interest Rates
American-based, international, and DACA students with a creditworthy cosigner get the following interest rates:
Undergraduate Loans: Variable: 1.51% – 9.09%, Fixed: 3.24% – 11.33%
For students who are eligible based on credit and income, they get the following:
Undergraduate Loans: Variable: 4.09% – 10.84%, Fixed: 5.91% – 13.09%
Ascent offers a flexible option for almost all borrowers. The interest rates are pretty competitive, and terms can range from five to 15 years. In addition, the company comes with a unique feature called cosigner release.
Here’s how it works. Make on-time monthly payments 24 consecutive times, and the company can release a cosigner from your student loan.
However, if you want to pay back your student loans while in school, it won’t be possible. And that’s because Ascent doesn’t offer a repayment plan with total payments while the student is still in school. But you can make partial payments in school; there’s no prepayment penalty on that.
The limit Ascent places on the amount you can borrow is $200,000. And that includes private loans and federal student loans outside of Ascent. However, consider a private student loan relief before taking out a loan.
2. SoFi
Private student loans offered by SoFi are one of the lowest interest rates for graduate loans than undergraduate school loans. The graduate loans start at 0.1%, which is lower than undergraduate loans.
Even though the interest rates are quite competitive, some features make SoFi unique. For example, the lender provides excellent protections for loan borrowers, such as unemployment protection or career services.
Furthermore, SoFi’s student loans come with no fees, such as no late fees. However, the interest will continue to accrue. The company’s minimum student loan amount is $5,000. So it’s better to look for other options if you want smaller loans.
SoFi Interest Rates
Undergraduate interest rate: Variable 0.95% – 11.18%, Fixed: 2.99% – 10.66%
Graduate rate: Variable: 1.05% – 11.29%, Fixed: 4.13% – 10.90%
3. Earnest
Earnest offers flexible repayment options and low-interest rates. In addition, the company offers four alternatives for repayment and a nine-month deferral after graduation.
Earnest considers your career path and total financial profile to determine refinancing rates.
Earnest began in 2013 as a student loan refinancing company. But they began offering private loans to graduate and undergraduate students in 2019. The company provides graduate and undergraduate loans with a fixed APR beginning at 3.49% and a variable APR of 1.05%.
As of April 2021, you get five, seven, ten, 12, or 15 years of repayment terms. This loan lender offers four repayment terms, including:
- a flat $25 in-school payment,
- in-school interest-only payments,
- a nine-month deferred payment period, and
- full payments.
Furthermore, Earnest offers a 0.25% autopay discount and comes with no disbursement, late payment fees, prepayment, or origination. Also, you can skip a payment every 12 months. However, interest will still accumulate, extending your payoff date.
Note: Before you opt for a private student loan, always choose federal student loans first. And that is because it comes with other benefits such as student loan forgiveness and other repayment plans.
