9 Best Low-Interest Student Loans

Editor’s Take

Earnest is known for its flexible repayment options, allowing you to customize your monthly payment and adjust your loan term in small increments. This approach helps you manage both affordability and long-term interest costs. It also offers fixed and variable APRs, along with a small rate reduction for setting up autopay.

One drawback is that Earnest does not allow co-signer release, meaning a co-signer remains responsible for the loan until it is fully repaid. This can be a challenge if your co-signer expects to be released later.

Overall, Earnest is a good fit for borrowers who want repayment flexibility and have strong credit. If you value the ability to fine-tune your loan terms, this lender may be a strong choice.

Pros & Cons

Pros:

• Flexible repayment options with customizable monthly payments
• Fixed and variable APR choices
• Autopay discount available
• Forbearance options for financial hardship
• No origination or prepayment fees

Cons:

• No co-signer release option
• Approval depends heavily on credit and financial profile
• Limited availability compared to federal loans
• Variable APRs can increase over time

Details

Earnest provides flexible loan terms ranging from 5 to 20 years, allowing you to decide how quickly to pay off your balance. Loan amounts can cover up to the full cost of attendance, including tuition, fees, and living expenses, making it a comprehensive option for students.

You can choose between fixed APRs, which offer predictable payments, or variable APRs, which may start lower but can change over time. Borrowers also benefit from an autopay discount, typically lowering rates by 0.25%.

If you face financial hardship, Earnest offers forbearance for a limited time, giving you a chance to pause payments without defaulting. However, one drawback is the lack of a co-signer release, meaning co-signers remain responsible for the loan until it’s fully repaid.

Disclosures

Earnest’s student loans require good credit for approval and are not guaranteed. Rates depend on your credit, income, and other financial factors. Variable APRs can change over time, which may increase your monthly payments.

You may qualify for an autopay discount only if payments are made directly from a linked bank account. Forbearance is not automatic and requires approval.

These loans are private, so they do not include federal protections such as income-driven repayment or forgiveness programs. Always compare federal loan options before applying for a private loan.

Editor’s Take

Ascent stands out because it offers both co-signed and non-co-signed loans. This makes it useful if you don’t have access to a creditworthy co-signer. You also get a choice between fixed and variable rates, which gives you some control over costs.

One drawback is that interest rates can be higher if you apply without a co-signer and have limited credit history. You may also face stricter limits on how much you can borrow without one.

Ascent works best if you are an independent student, a borrower with little or no credit, or someone who wants to build credit history while in school. It’s a good option if you need repayment flexibility and want the possibility of getting a co-signer release later.

Pros & Cons

Pros:

• Offers loans with or without a co-signer
• Provides fixed and variable interest rate options
• Flexible repayment terms, including deferred and interest-only while in school
• Co-signer release available after meeting requirements
• Covers a wide range of degree programs, including part-time enrollment

Cons:

• Higher rates for non-co-signed loans
• Borrowing limits may be lower without a co-signer
• Requires proof of income or credit for some options
• Not always the lowest rate compared to top private lenders

Details

Ascent offers loan terms typically ranging from 5 to 15 years, depending on the loan type and repayment plan you choose. You can borrow up to the full cost of attendance, but limits may apply if you apply without a co-signer.

Forbearance options allow you to pause payments temporarily if you face financial hardship. These pauses are usually granted in short increments, often up to 24 months total over the life of the loan.

If you apply with a co-signer, you can request their release after making about 24 consecutive on-time payments and meeting credit or income requirements. This gives you independence once you establish your own financial history.

Disclosures

Ascent student loans are private loans, not federal loans. That means they do not qualify for federal repayment programs or forgiveness options. Interest rates and eligibility depend on your credit, income, school, and whether you apply with a co-signer.

You should compare Ascent’s offers with federal loans first, since federal loans often provide lower fixed rates and broader protections. Always review the loan agreement carefully, including interest rate details, repayment terms, and any fees, before signing.

Editor’s Take

RISLA stands out because it combines competitive fixed interest rates with flexible repayment options. Unlike many private lenders, it gives you access to income-driven repayment plans, which can help if your income is limited after graduation. The nonprofit structure also means RISLA focuses on borrower support rather than profit.

RISLA loans are not offered nationwide. If you live outside Rhode Island or certain eligible states, you may not qualify. The application process may also feel less streamlined compared to larger online lenders that emphasize speed and digital tools.

RISLA works best if you value stability, predictable payments, and borrower protections. It’s especially helpful if you want to refinance with income-based repayment or if you prefer a nonprofit lender over a for-profit company.

Pros & Cons

Pros:

• Fixed interest rates that are often lower than many private lenders
• Income-based repayment option available on refinance loans
• Nonprofit lender with a borrower-first approach
• Offers interest rate discounts for automatic payments
• Co-signer release option available after meeting requirements

Cons:

• Limited geographic availability
• Application process may not be as fast as some online lenders
• Fewer loan types compared to larger private lenders
• No variable-rate loan options

Details

RISLA offers undergraduate, graduate, and refinancing loans. Loan amounts typically cover up to 100% of school-certified costs. Fixed interest rates apply, and you can choose between immediate repayment or deferred repayment while in school.

Eligibility depends on your residency and school enrollment. RISLA loans are open to Rhode Island residents and some out-of-state students attending eligible schools. A credit check is required, and a co-signer may help you qualify.

Forbearance is available if you face financial hardship, though it is limited in duration. RISLA also provides an income-based repayment option for refinancing, which is unusual for a private lender. Co-signer release is possible after meeting on-time payment and credit requirements.

Editor’s Take

You may find ELFI appealing if you want a low interest rate and a straightforward borrowing process. The company often advertises competitive fixed and variable rates compared to many lenders. Its platform is easy to use, and you can manage your loan fully online.

One drawback is that ELFI sets higher credit and income requirements than some other lenders. If you do not meet these, you may need a co-signer. Also, ELFI does not offer the widest range of repayment plans, which limits flexibility if your income changes.

ELFI works best for borrowers with strong credit, steady income, or a reliable co-signer. It is also a good fit if you want to refinance existing student loans to reduce your monthly payments or interest costs.

Pros & Cons

Pros

• Competitive interest rates, both fixed and variable
• No application, origination, or prepayment fees
• User-friendly online application and account management
• High loan limits, making it useful for graduate or professional degrees
• Option to refinance both federal and private loans

Cons

• Strict credit and income requirements
• Limited repayment plans compared to some competitors
• No co-signer release until after several years of on-time payments
• Forbearance options are available but not as flexible as federal loans
• Not ideal for borrowers with poor or limited credit history

Details

ELFI offers fixed rates starting around 4.86% and variable rates starting near 2.99%, depending on credit qualifications. Loan amounts typically range from $1,000 up to 100% of school-certified costs, with higher limits for graduate and professional programs.

Repayment terms usually span 5 to 20 years, giving you some flexibility to choose between lower monthly payments or faster payoff. ELFI does not charge origination or prepayment fees.

Forbearance is available in cases of financial hardship, usually in short-term increments, but it is less flexible than federal loan protections. Co-signer release is possible after a set number of on-time payments, but approval depends on your credit and income at that time.

Editor’s Take

You may like SoFi because it does not charge origination fees, late fees, or prepayment penalties. This makes it easier to manage costs over time. The company also offers flexible repayment terms ranging from five to fifteen years, which can help you choose a plan that fits your budget.

On the downside, SoFi requires strong credit or a creditworthy co-signer for approval. If you do not meet these requirements, you may find it difficult to qualify. Unlike federal loans, SoFi loans do not include income-driven repayment plans or broad forgiveness programs.

SoFi works best for borrowers with solid credit, a steady income, or family members willing to co-sign. It also suits students who want a straightforward loan with predictable terms and who may benefit from refinancing later.

Pros & Cons

Pros

• No origination fees, late fees, or prepayment penalties
• Multiple repayment term options (5–15 years)
• Autopay discount of 0.25% on interest rate
• Available for undergraduate and graduate students
• Refinancing available after graduation

Cons

• Requires good credit or a co-signer for approval
• No federal protections like income-driven repayment
• Limited options for borrowers with low income or poor credit
• Forbearance policies less flexible than federal programs

Details

SoFi offers loan amounts that can cover up to the full cost of attendance, including tuition, fees, and living expenses. Repayment terms typically range from 5 to 15 years. Interest rates vary based on your credit profile and whether you choose fixed or variable rates.

To qualify, you need to meet credit and income standards, or apply with a co-signer who does. U.S. citizens and permanent residents are eligible, and some international students may qualify with a co-signer.

Forbearance is available only in certain situations, like financial hardship or unemployment, and it offers less flexibility than federal loan options. SoFi does not currently offer a co-signer release policy, meaning your co-signer stays on the loan until it is fully repaid or refinanced.

Disclosures

SoFi loans are private loans and are not backed by the federal government. This means you will not have access to federal repayment programs, forgiveness options, or subsidized interest.

Interest rate reductions require enrollment in autopay. Loan approval depends on creditworthiness and other factors. Terms, conditions, and eligibility rules may change, so you should review the latest information directly from SoFi before applying.

Editor’s Take

You may find Custom Choice appealing if you want control over repayment options. It offers fixed and variable rates, and you can choose from different term lengths to match your budget. The lender also provides a co-signer release option after meeting certain requirements.

However, approval is tougher if you don’t have strong credit or a co-signer. The application process is straightforward, but the loan terms are less flexible compared to federal loans.

This loan works best for students with solid credit or those who can apply with a creditworthy co-signer. It also suits borrowers who want repayment flexibility and the ability to release a co-signer after building a history of on-time payments.

Pros & Cons

Pros

• Competitive fixed and variable interest rates
• Multiple repayment term options
• Co-signer release available after 36 on-time payments
• No application or prepayment fees
• Option to apply without a co-signer

Cons

• Approval depends on credit and income
• Higher rates for borrowers with weaker credit
• Limited borrower protections compared to federal loans
• No income-driven repayment plans
• Forbearance options are more limited than some competitors

Details

Custom Choice offers loan amounts starting at $1,000 and up to the full cost of attendance, subject to school certification. Repayment terms usually range from 7 to 15 years, depending on what you choose.

You can qualify if you are enrolled at least half-time in an eligible program. Having a steady income or a qualified co-signer improves approval chances and helps secure better rates.

Forbearance is available in cases of hardship, but it is limited in length and scope compared to federal programs. The co-signer release policy requires 36 consecutive on-time payments and a credit review to confirm financial stability.

Editor’s Take

You may appreciate College Ave for its streamlined application process and variety of repayment terms. The ability to choose between fixed and variable rates gives you more control over how you manage long-term costs.

However, interest rates can vary based on credit strength, and you may need a co-signer if your credit history is limited. Unlike federal loans, it does not offer income-driven repayment or broad forgiveness programs, which limits flexibility during financial hardship.

College Ave works best if you have strong credit or a reliable co-signer and want predictable repayment options. It can also be a good fit if you value the chance to refinance later and save on interest with competitive rates.

Pros & Cons

Pros

• No origination or application fees
• Quick online application process
• Multiple repayment term options (5–20 years)
• Refinancing available for federal and private loans
• Co-signer release after consistent on-time payments

Cons

• Rates depend heavily on creditworthiness
• No federal loan protections like income-driven repayment
• Limited forbearance compared to some lenders
• May require a co-signer for undergraduates
• Not the lowest fixed rates on the market for all borrowers

Details

Loan terms with College Ave range from 5 to 20 years, giving you the flexibility to balance monthly payments with long-term interest costs. You can borrow up to the total cost of attendance minus other aid, making it a useful way to cover funding gaps.

Eligibility is based on factors like credit history, income, and school enrollment, with options available for undergraduate, graduate, and parent borrowers. Refinancing is also offered for those who meet the lender’s credit and income requirements.

Forbearance is available but limited, usually granted in short, three-month increments, making it less comprehensive than federal protections. However, College Ave does allow co-signer release after 24 to 36 consecutive on-time payments, provided you also meet financial qualifications, helping ease long-term obligations for co-signers.

Disclosures

Interest rates vary by borrower profile and repayment term. Fixed rates are generally higher than variable rates but provide predictable monthly payments. Variable rates can start lower but may increase over time.

Loan approval is not guaranteed and depends on creditworthiness, income, and enrollment status. Refinancing federal loans with College Ave means you lose benefits like income-driven repayment and federal forgiveness programs.

Terms and conditions may change, so you should review the lender’s disclosures carefully before applying. Always compare offers from multiple lenders to ensure you secure the lowest possible rate.

Editor’s Take

Sallie Mae stands out for offering a wide range of loan types, including options for undergraduate, graduate, and professional programs. It also provides loans for part-time students and international borrowers with a U.S. co-signer, making it more versatile than many competitors.

One of its key advantages is the ability to apply for co-signer release after just 12 consecutive on-time payments, which is quicker than many other private lenders. This feature allows borrowers to take full responsibility for their loans sooner.

However, Sallie Mae does not offer income-driven repayment plans, a flexibility only available through federal loans. Interest rates may also be higher without strong credit or a qualified co-signer, but the lender can still be a good choice for students who need additional private funding and plan to repay steadily.

Pros & Cons

Pros

• Wide variety of loan types for different education levels
• Co-signer release available after 12 on-time payments
• 0.25% interest rate discount for autopay
• Options for part-time students and international students (with U.S. co-signer)
• Flexible repayment structures, including deferred and interest-only while in school

Cons

• No income-driven repayment options
• Rates may be higher without strong credit
• Forbearance is limited compared to federal loans
• Fees and terms can vary depending on borrower profile
• Less borrower protection than federal loan programs

Details

Sallie Mae loans can cover up to 100% of school-certified costs, including tuition, fees, and living expenses. Loan amounts vary by program, giving most students the ability to finance their full cost of attendance. Repayment terms typically range from 5 to 15 years, with the choice between fixed or variable interest rates depending on your credit profile and co-signer strength.

Eligibility is open to U.S. citizens and permanent residents, while international students may qualify with a U.S. co-signer. Sallie Mae also stands out for allowing part-time students to apply, which is not always an option with private lenders.

Forbearance is available if you face financial challenges, though it is usually capped at 12 months total. Another benefit is the co-signer release option, which allows you to apply after 12 consecutive on-time payments, provided you meet the necessary credit and income requirements.

Editor’s Take

You may find Nelnet appealing if you want a straightforward private loan from a bank with experience in education financing. The option to refinance existing loans can also help you reduce long-term costs if you qualify for lower interest rates.

One drawback is that Nelnet’s lowest advertised rates often require excellent credit or a strong co-signer. If you apply without these, you may face higher rates compared to other lenders.

Nelnet works best for borrowers with solid credit or those who can apply with a co-signer. It also suits graduates looking to refinance federal or private loans into a single payment with potentially better terms.

Pros & Cons

Pros

• Offers both new private student loans and refinancing
• Flexible repayment options for different borrower needs
• Co-signer release available after meeting requirements
• Established lender with experience in student loan servicing

Cons

• Best rates require strong credit or co-signer
• Limited federal-style borrower protections
• May not be the lowest-cost option for all applicants
• Forbearance and hardship options less generous than federal loans

Details

Nelnet typically offers fixed and variable interest rates, with terms ranging from 5 to 20 years depending on the loan type. Loan amounts can cover the full cost of attendance, but approval depends on your credit and income.

You usually need to be enrolled at least half-time in an eligible program, or be refinancing existing student debt. A co-signer can improve your chances of approval and help you qualify for lower rates.

Forbearance is available but usually limited to short periods, often around 12 months total. Co-signer release is possible after a set number of on-time payments, but you must also pass a credit review to qualify.