When you take out a loan, you’re responsible for paying back the principal, or the amount you borrowed, with interest added on top of it. The higher your interest rate, the more you’re on the hook to repay after your loan term is up. But the lower your interest rate, the less you have to pay.
While federal student loans tend to offer the lowest interest rate on student loans, there are some private lenders that offer competitive rates as well. Here are the best low-interest student loans to help you cover college costs.
Inside this article
- Best low-interest student loans
- Best overall: SoFi
- Best for variety of repayment options: College Ave
- Best without a co-signer: Ascent
- Best for part-time students: Sallie Mae
- Best for borrowers with no credit: MEFA
- Compare the best low-interest student loans
- Why some lenders didn’t make the cut
- Methodology
- Frequently Asked Questions
Best low-interest student loans
Best overall: SoFi
Best for variety of repayment options: College Ave
Best without a co-signer: Ascent
Best for part-time students: Sallie Mae
Best for borrowers with no credit: MEFA
Best overall: SoFi
4.25 stars
Fixed APR: 4.49%-14.75%
Variable APR: 4.62%-13.82%
SoFi offers some of the lowest interest rates, borrower-friendly repayment terms, and the most perks out of all of the lenders we compared. They don’t charge any fees and have unemployment assistance in case you fall behind on payments after losing your job.
Pros
No fees
Hardship assistance, unemployment protection, and career services
Multiple repayment options to fit your budget
Cons
High maximum APR
More details
Rates available: Both fixed and variable interest rates available.
Loan terms: 5, 7, 10, and 15 years.
Perks: 0.25% autopay discount, unemployment assistance, hardship protection, personalized career advice, family discount, and more.
Fees: None.
Requirements: There’s no minimum income or credit score required, although both are reviewed as part of your eligibility when you complete your application. Your co-signer will need to complete a credit check as well.
Best for variety of repayment options: College Ave
3.75 stars
Fixed APR: 3.99%-14.96%
Variable APR: 3.99%-14.86%
College Ave offers loans up to the cost of attendance and if you have the means, you can start repayment while still in school (although deferred options exist as well). You can choose repayment terms between five and 15 years even if you start repayment once you graduate.
Pros
Multiple loan options to choose from
Offers a six-month grace period on undergraduate student loans
Cons
Co-signer release only available after half the repayment term is up
High maximum APR
More details
Rates available: Both fixed and variable interest rates available.
Loan terms: 5, 8, 10, and 15 years.
Perks: Lots of different repayment options and an autopay discount. Scholarships available to help boost loan repayment.
Fees: None.
Requirements: Some income and credit history requirements depending on the plan you choose. Must borrow at least $1,000 to take out a loan.
Best without a co-signer: Ascent
3.65 stars
Fixed APR: 4.62%-16.43%
Variable APR: 5.31%-15.32%
Ascent offers student loans for borrowers that have great credit (or have a co-signer that does) as well as loans for those that don’t have a co-signer. If you don’t have great credit on your own and you don’t have a co-signer, Ascent might be one of your best options for private student loans.
Pros
Loans available to DACA recipients and those without a co-signer
Lots of repayment options available depending on income and financial needs after graduation
Co-signer release available after 12 months
Cons
Not all repayment terms are available for every plan
More details
Rates available: Fixed and variable interest rates available.
Loan terms: 5, 7, 10, 12, and 15 years.
Perks: 0.25% autopay discount with a co-signer, 1% autopay discount without a co-signer, and a refer-a-friend discount up to $525 for each friend that signs up.
Fees: None.
Requirements: Some income and credit history requirements depending on the plan you choose.
Best for part-time students: Sallie Mae
3.5 stars
Fixed APR: 4.5%-15.10%
Variable APR: 5%-15.55%
Many loan servicers require students to be enrolled at least part time, but Sallie Mae offers student loans to borrowers who are enrolled less than half time. You can borrow up to the full cost of attendance minus any other aid, even if you’re enrolled less than half time.
Pros
Available for students enrolled less than half time
Offers loans for trade schools and non-traditional universities
Available to international and DACA students with a qualified co-signer
Co-signer release available after 12 months
Cons
High maximum APR
No pre-qualification available
More details
Rates available: Fixed and variable interest rates available.
Loan terms: 10 and 15 years.
Perks: 0.25% autopay discount and co-signer release available after 12 months.
Fees: Late payment (5% of the amount, up to a maximum of $25) and returned check fee (up to $20).
Requirements: Decent credit score or a creditworthy co-signer.
Best for borrowers with no credit: MEFA
3.1 stars
Fixed APR: 4.89%-6.99%
Variable APR: N/A
The Massachusetts Educational Financing Authority (MEFA) is a not-for-profit lender, which is different from most private lenders that are for-profit banking institutions. They focus more on borrowers who need money to pay for school and less on their creditworthiness.
Pros
Low interest rates even for those who don’t have excellent credit
Low income requirements
No fees
Cons
Only available to use at non-profit colleges and universities
No prequalification available
Co-signer release not available until after 48 months
More details
Rates available: Only fixed interest rates.
Loan terms: 10 to 15 years.
Perks: Lower interest rates and income requirements.
Fees: None.
Requirements: You or your co-signer will need at least good credit to qualify and you’ll need to be enrolled at least half-time at an accredited non-profit college or university.
Compare the best low-interest student loans
| Fixed APR | Variable APR | Loan terms (years) | |
|---|---|---|---|
| SoFi | 4.49% to 14.75% | 4.62% to 13.82% | 5, 7, 10, 15 |
| College Ave | 3.99% to 14.96% | 3.99% to 14.86% | 5, 8, 10, 15 |
| Ascent | 4.62% to 16.43% | 5.31% to 15.32% | 5, 7, 10, 12, 15 |
| Sallie Mae | 4.50% to 15.10% | 5% to 15.55% | 10 and 15 |
| MEFA | 4.89% to 6.99% | N/A | 10 to 15 |
Why some lenders didn’t make the cut
Of the 12 private student loan lenders that we reviewed, only a fraction made the cut. The lenders that didn’t have high enough scores to be included received lower ratings due to higher interest rates and fees.
Methodology
Our expert writers and editors have reviewed and researched 12 popular lenders to help you find the best lender for student loans. Out of all the lenders considered, the five that made our list excelled in areas across the following categories (with weightings): loan details (5%), loan cost (60%), eligibility and accessibility (15%), customer service experience (15%), and ease of application (5%).
Within each major category, we considered several characteristics, including available loan repayment terms, APR ranges, and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers and if they offer co-signer release. Finally, we evaluated each provider’s customer support options, borrower perks, and features that simplify the borrowing process like mobile apps.
All interest rates are accurate as of Jan. 11, 2023.