Best Personal Loans for Students in April 2025

Attending college is an investment in your future income, but financing an education can be challenging. Unfortunately, while student loans can help with things like tuition, housing, and groceries, they don’t cover all student living expenses — for example, you can’t use student loan funds to order a pizza or buy concert tickets. 

Personal loans for students can help you bridge the gap. LendingClub offers the best personal loans for students, with availability for fair credit, low minimum income requirements, and high close rate on loans made through Credible. 

We’ll cover the best personal loans for students, how to compare your options, tips for building credit, and a few personal loan alternatives to consider.

Best personal loans for students

Methodology

Credible evaluated 31 lenders across 899 data points to find the best personal loans for students. We made a point to include lenders with very low minimum income requirements and that allow cosigners or co-applicants. 

Our criteria also included factors such as minimum credit score requirements, minimum and maximum APRs, and funding times. We gathered information from each lender's website and directly from our partners. We assigned star ratings to lenders based on the following weighted categories:

• Rates and fees: 18%
• Loan terms: 18%
• Customer experience: 17%
• Eligibility: 14%
• Customer satisfaction: 10%
• Efficiency: 10%
• Options for poor credit and no credit: 9%
• Discounts: 4%

Each data point was sourced and verified by a senior editor to make sure it was accurate and up to date. Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

What are personal loans for students and how do they work?

It’s important to understand the distinction between student loans and personal loans for students. If you’ve been accepted to a school that you can’t afford, you can apply for a federal direct student loan and private student loans. These options may have lower interest rates than personal loans, and you typically don’t need to make payments while you’re studying full-time. 

Personal loans for students are in a different category. A personal loan provides a lump sum of cash that you can use for a variety of personal expenses, from unexpected expenses to vacations. You can also use a personal loan to consolidate credit card debt, which could save you money if you’re carrying a balance. 

You repay a personal loan in monthly installments. Personal loans typically have fixed interest rates, so your monthly payment stays the same each month, which helps with budgeting. Personal loans also have lower average interest rates than credit cards. 

However, most personal loans can’t be used for postsecondary educational expenses, including:

• Tuition and fees
• Books and supplies
• Room and board

“The reason for the restriction is lenders that provide loans for education purposes must meet certain federal regulations and special disclosures that are not required for all personal loans,” says Jonathan Sparling, Certified College Financial Consultant and Accredited Financial Counselor at CollegeWell. Sparling suggests reviewing your personal loan agreement carefully to ensure you understand the restrictions. 

Compare: Personal Loan vs. Credit Card: Which Is Better?

Student loans vs. personal loans

Student loans are designed to be used for educational expenses, and they come with some unique benefits. “They generally come with lower interest rates, repayment options that can adjust to income, and sometimes deferrals while the borrower is studying,” says Dennis Shirshikov, Educational Leader at Fullmind Learning. 

There are two types of student loans:

• Federal direct loans: These loans may be subsidized by the government or unsubsidized, depending on financial need. They come with borrowing limits and may not cover the full cost of college. 
• Private student loans: These loans are issued by private lenders, often require a co-signer, and typically aren’t eligible for special programs like loan forgiveness or income-driven repayment plans.

Personal loans from most lenders, on the other hand, can be used for almost any expense except postsecondary education.

There may be some overlap between personal loans and student loans. Depending on your loan agreement, it may be possible to use either loan type to pay for:

• Childcare
• Personal care items
• Transportation costs, including car repair (but student loans can’t be used to purchase a car)

You should use student loans to cover as many of these expenses as possible and reserve personal loans for other costs. 

Types of personal loans for students

Unsecured personal loans

Most personal loans are unsecured, meaning they aren’t backed by an asset. Lenders approve borrowers based on their credit score and other financial criteria. If you apply with a cosigner, the lender will also take your cosigner’s credit score and income into account. If you fail to repay an unsecured loan, the lender can’t take your property, but they can file a lawsuit against you. Missed or late payments will also damage your credit score.

Secured personal loans

Secured personal loans are backed by an asset, known as collateral. They may be easier to qualify for and may have lower APRs, since a secured loan agreement allows the lender to take your property if you don’t repay the loan. For example, if you don’t repay a loan that is secured by your vehicle title, the lender could take your car. Some lenders also offer loans secured by a savings account. Keep in mind, the lender will still evaluate your credit history when you apply for a secured loan, and nonpayment will still damage your credit score. 

Compare: Secured vs. Unsecured Personal Loans

How to compare personal loans for students

Research personal loans from local banks, credit unions, and online lenders. Evaluate each option based on the following factors:

• Cost: You can prequalify with a handful of lenders to get an estimated annual percentage rate (APR), which is the annual borrowing cost, including both interest charges and any upfront fees. Prequalifying is a great way to compare your options without hurting your credit score. It’s not an offer of credit, however, and the rates and terms included in a loan offer may differ.
• Loan amount: Lenders typically offer loan amounts ranging from $1,000 to $50,000, but your credit score and other financial criteria will determine how much you qualify for. Some lenders have high minimum loan amounts, and you should never borrow more than you need. If you just need a $1,000 loan, make sure the lender you choose offers that amount. 
• Repayment term: You can typically repay a personal loan over one to seven years. A longer repayment term comes with lower monthly payments but will likely cost more in interest over time. Make sure you can afford the monthly payments, but also consider the total cost. 
• Cosigner allowance: Personal loans typically require at least fair credit and a source of income. If you don’t have a part-time job or any credit history, you’ll need a family member with good credit to cosign the loan. A cosigner promises to repay the loan if you can’t. Few personal loan lenders allow cosigners, but some offer joint personal loans, which also involve shared responsibility for repayment while giving your co-applicant access to the funds.

Learn More: How To Compare Personal Loans: A Step-by-Step Guide

Pros and cons of personal loans

Before you consider a personal loan for students, it’s important to understand both the advantages and disadvantages.

Related: Should I Get a Personal Loan?

Personal loan interest rates

Lenders determine personal loan interest rates based on your credit score, income, loan amount, repayment term, and other factors. Rates can also fluctuate in response to economic conditions. The chart below shows average prequalified interest rates based on FICO score, according to data from the Credible marketplace from March 2025:

Check Out: Current Personal Loan Interest Rates

How to get a personal loan for students

1. Check your credit score and add up your income. Note that some lenders have very low minimum income requirements, making them more viable options for student borrowers. You may be eligible for a loan from Upstart if you have a full-time job offer starting in six months or a regular part-time job.
2. If you’re worried about meeting personal loan requirements, ask a family member to cosign or apply with you.
3. Research no-credit-history lenders and lenders that allow cosigners.
4. Prequalify with a handful of lenders. You may need to enter your Social Security number and answer a few questions. You can also use a loan marketplace to compare your options. 
5. Compare the APR, monthly payment, total cost, and other features of each loan option.
6. Formally apply for the personal loan of your choice (you may need to upload a document that proves your income and authorize a hard credit inquiry, which can temporarily lower your credit score).
7. If approved, review the loan agreement. Ask a family member or call the customer service department if any of the terms are unclear.
8. E-sign your loan documents.
9. Receive the cash in your bank account.

Check Out: How to Get a Personal Loan Using Credible's Marketplace

How to build credit as a student

• Become an authorized user: If someone in your family uses credit cards responsibly, ask if they can add you as an authorized user. “The account, along with payment history, will appear on the student’s credit report, helping to build credit. Just make sure the lender reports authorized users to the credit bureaus,” says Sparling. 
• Apply for a credit-builder loan: Some banks and credit unions offer credit-builder loans. These loans may not offer money upfront, but rather require monthly payments into a savings account. The lender reports your payments to the major credit bureaus to help you build credit. Once the loan is paid, you’ll have access to the funds. 
• Apply for a secured credit card: Secured credit cards require a deposit, which may be up to 100% of your credit limit. You can use the card to make purchases up to the limit. These cards tend to come with more fees and higher APRs, but they can help you build credit if you make your payments on time. Establishing credit and a positive payment history can help you qualify for better credit card options, including rewards credit cards, later on. 
• Open an account at a community bank or credit union: “Check out community banks or credit unions, which often offer student-friendly products; or, in a pinch, consider non-traditional options,” says Shirshikov. For example, some federal credit unions offer small-dollar payday alternative loans (PALs I and PALs II loans) that may be available without any credit history. These can help you build credit if the credit union reports your payments to the credit bureaus. 
• Use a credit-building tool: Tools like Experian Go, Self, and Kikoff help you build credit by paying your rent and other bills on time. Note that some of these services charge a monthly fee.

Related: How To Build Credit: 10 Easy Strategies

Alternatives to personal loans for students

• Federal and private student loans: “Before jumping into using personal loans, it is best to check your eligibility for federal student loans and private student loans,” says Sparling. “Both loans were created specifically for education expenses, typically offer better rates, are usually easier to be approved for, and in some cases offer borrower protections when compared to personal loans.”
• Scholarships and grants: Scholarships and grants don’t need to be repaid. If your college or university doesn’t offer them, look into other options, like nonprofit scholarships and federal grants. 
• “Buy Now, Pay Later” (BNPL) loans: If you need to make an online purchase, check whether the retailer works with a BNPL provider. It’s possible to qualify with no credit history, and there are interest-free options if you can repay the amount within six weeks. However, some BNPL loans have fees and finance charges that can make them an expensive option.
• Cash advance apps: If you receive a regular paycheck, you can use a cash advance app like MoneyLion to get some of your earned wages ahead of payday. But avoid paying for same-day delivery and say no to optional tips. These add-ons can make cash advance apps nearly as pricey as payday loans. 
• Emergency loans and grants for students: Some universities and nonprofit organizations offer interest-free emergency loans or grants that can be used for non-educational expenses. You may need to meet certain requirements. Start by asking your financial aid office.
• Work-study: Students with financial need may be eligible for a part-time Federal Work-Study job, either on-campus or off-campus, earning at least the federal minimum wage.