Best Student Loan Lenders of 2025

College Ave stands out as the top private student loan lender overall on the Credible platform, with a rating of 4.9 out of 5 stars. This high mark is due to features such as its diverse repayment plans, competitive interest rates, and broad selection of loan types.

However, taking out a student loan is a significant financial decision. And with so many private lenders in the market, finding the perfect match for your circumstances can be challenging. This guide on the best student loan companies will help you compare private student loan rates, terms, and conditions to identify the loan that best fits your needs.

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Other loans to consider

Best overall: Federal student loans

Federal student loans will almost always be your best first choice. They typically have lower interest rates than private loans, but they also come with borrower benefits and protections that most private lenders don't offer.

These include flexible repayment options, such as income-driven repayment plans that adjust monthly payments based on your income and family size. Such plans can help you manage your debt in a way that aligns with your ability to pay and reduce the risk of defaulting on your student loans.

Federal student loan borrowers also may be eligible for forgiveness programs, such as Public Service Loan Forgiveness, which forgives the remaining balance on Direct Loans after the borrower has made 120 qualifying monthly payments while working full-time for a qualifying employer.

Most federal student loans do not require a credit check, and the rates are the same for all borrowers. Direct Subsidized Loans offer significant benefits to undergraduates who demonstrate financial need, as the government covers interest payments while they're in school and for six months after graduation. Unsubsidized loans are accessible to undergraduates and graduates, regardless of financial need. Additionally, the federal loan program includes grad PLUS loans, tailored for graduate and professional students with good credit standing, enhancing their educational funding options.

Why you can trust our Credible experts

The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.

Methodology

To determine the best student loan lenders, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.

• Repayment options: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• Customer support: 10%

While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.

Learn more about our methodology.

How to choose the right student loan company

Private student loan companies have different loan options, rates, and repayment terms. Before jumping into a loan agreement with any company, there are a few factors you'll want to consider, including:

• Eligibility: Check if the lender offers loans in your state, or if it requires a minimum credit score or cosigner on the application.
• Interest rates: Confirm whether the private loan has a fixed or variable rate. Fixed rates never change, so you'll always receive the same payment. Variable rates might start low at first, but can change and are unpredictable.
• Loan terms: Look at the repayment timelines offered by private lenders. Although a 10-year repayment period might be common, some lenders offer loans that must be repaid in less time, like a 5- or 7-year loan.
• Borrower perks: Explore whether the lender offers special incentives for its customers, like a rate discount if you enroll in automatic payments, or career resources after leaving school.
• Customer reviews: Read about other customers' experience working with the lender, and see if there are any patterns that might be red flags. For example, customers may have recurring concerns about misinformation or mishandling of payments.

Private vs. federal student loans

If you're borrowing money for college, federal student loans are generally a good first choice because of the many borrower protections and benefits they offer, like student loan forgiveness and fixed-rate subsidized loans for eligible borrowers. Applying for federal student loans is free and generally doesn't require a credit check.

Private student loans are nonfederal loans and therefore not eligible for any of the federal perks. Instead, lenders set their own repayment guidelines, rates, and loan details, which are typically based on your credit score and income. Overall, private student loans offer fewer protections in the event of an unexpected financial hardship that prevents you from making your payments.

Pros and cons of private student loans

Like any financial product, private student loans have advantages and disadvantages to consider.

Pros

Many lenders offer the convenience of borrowing up to your school's certified cost of attendance (COA), minus any financial aid you've already received. If you have a significant gap in federal aid versus your school costs, a private student loan might be your ideal solution.

In some situations, private student loans may offer lower rates than federal loans. This might be the case if you're a graduate student, for example. Federal graduate PLUS loans are the most expensive federal loan option, at a fixed rate of 9.08% for the 2024-25 year — but if you have excellent credit, you might find a lower rate through a private lender.

Cons

The flipside of private student loans is that their eligibility is generally credit-based, among other factors. You usually must have strong credit to get approved, and must have a top-tier credit score for the lender's lowest rates.

Private student loans may also come with variable rates, which fluctuate based on market conditions. This type of rate makes it harder to maintain a consistent budget since your payment can go up or down from month to month. Private student loans are also not eligible for federal programs, like loan forgiveness and income-driven repayment plans.

Am I eligible for a student loan?

Private student loan eligibility can be restrictive for some borrowers. Lenders have their own unique underwriting requirements that you must meet. For example, you might need to meet age and residency requirements. Companies also look at your credit score, income, monthly debt and housing payments, school, and your area of study.

Sometimes students haven't developed a substantial credit record, or they have an imperfect credit history. In these situations, some lenders let you apply with a cosigner. A cosigner is usually a trusted family member who takes legal responsibility for repaying the loan if you fall behind on payments.

Related: Can You Get a Student Loan With Bad Credit?

How to get a student loan

If you've decided that borrowing a private student loan is the best option for you, getting started is fairly straightforward. Each student loan company has its own application process, but here are the general steps to get a private student loan:

1. Compare lenders: The best student loan companies are transparent about their rates, fees, repayment timelines, discounts, and perks. Use this information to narrow down your preferred list of private student loan lenders.
2. Check your student loan rates: See if the student loan companies you're considering offer a prequalification tool online. This feature lets you check your rates and the loan that you might qualify for with only a soft credit check. A soft credit inquiry doesn't harm your credit.
3. Find a cosigner (optional): Submitting an application with a cosigner who has strong credit can improve your chances of getting approved and a competitive interest rate. If you don't have strong credit, talk to a parent, grandparent, spouse, or close friend to ask if they're willing to cosign your loan.
4. Submit an application: Loan applications might ask you in-depth questions about your enrollment, as well as income information for you and your cosigner, if applicable. After submitting your application, you'll need to wait for the lender's decision.