Top 5 Private Student Loans

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Being a student in the United States doesn’t come cheaply. Many people struggle to find ways to pay for their college education when they have chosen to go to private school instead of public. Of course, it’s wise to look at other options, such as grants, work study, scholarships and federal loans before turning to private student loans, which should only be considered after exhausting those other options. Fortunately, there are several good private student loan institutions that provide loans to worthy students. If you are planning on going to college or continuing with your post-secondary education, it is well worth exploring these options. It will help you to pay for your education and give you peace of mind.

1. Sallie Mae Loans

Sallie Mae was formed in 1973 by the US government as part of the federally guaranteed student loan program. Since then, the company has evolved to a considerable degree. By 2004, it became a private company and as of 2014, it has provided private student loans to both graduate and undergraduate students, as well as parents of students.

To qualify for a loan with Sallie Mae, you must meet certain requirements. A minimum credit score of 640 is required, but the typical borrower has a score of 748. However, if you don’t meet the minimum credit score, you can co-sign with someone who does meet the requirements. In fact, 90 percent of individuals who seek a loan from Sallie Mae co-sign with another person.

One of the best things about Sallie Mae’s loans is that the company allows you to make interest-only payments during the initial 12 months after your grace period. The co-signer is also released after this time. The loan’s fixed APR ranges from 5.75 to 12.87 percent and the variable APR range is 3.25 to 12.62 percent.

2. Ascent Loans

Ascent’s loans are relatively new and launched in April 2017. There are two options, one that doesn’t require a co-signer and one that does require one. The APR ranges are 5.44 to 14.44 for fixed rates and variable rates range from 3.98 to 12.73 percent. There is no specified credit score required to qualify, but the applicant’s future potential earnings are taken into consideration, as is their debt-to-income ratio.

To qualify for a loan, students must be enrolled at least half time at an eligible school. Generally, the amount that a person can borrow generally depends on their program of study. The loan’s terms are available in increments of five, 12 or 15.

3. SunTrust Loans

SunTrust is a good option for students with excellent credit once they have already exhausted other sources of financial aid to cover their education expenses. Fixed APR rates range from 4.75 to 11.50 percent and variable rates are 3.00 to 10.05 percent. You can choose among seven-, 10- or 10-year terms and receive a loan of anywhere from $1,001 to $175,000.

You have the option of paying back interest-only, partial interest or immediately with both interest and principal payments 30 to 60 days after the final disbursement. The minimum monthly payment is $50 after you begin paying it back, even if you have a longer term and borrowed a greater amount of money.

4. Discover Loans

Students with excellent credit can secure a loan with a variable APR rate from Discover Bank. One thing to keep in mind, however, is that there are no fees associated with the loan, which means you will pay higher interest. Fixed APR rates for Discover loans range from 6.24 to 12.99 percent, while variable APR rates are 3.87 to 11.12 percent. Terms of the loan are a bit flexible with six or nine month grace periods and 15 to 20 years to pay it back.

You must have a FICO credit score of at least 660 to qualify for the loan. The average borrower’s score is 750. You can also choose to have a co-signer if your credit is under the minimum required.

Repayment can be done while you are still in school. You can even choose to make payments for as little as $25 per month. However, with this loan, you have many borrower assistance programs available to you, such as an extension on your grace period so long as your first payment is under 60 days late.

5. College Ave Loans

One of the newest private student loan providers, College Ave offers a limit of $150,000 in loans. Repayment terms can be chosen in eight, 10, 12 and 15 years and you can receive a discount of 0.25 percent if you sign up for automatic repayments from your savings or checking account.

A great perk of College Ave is that you can consolidate its loans with federal loans. That makes it easier to be able to pay it back. You can also choose between fixed and variable interest rates. You can also choose to use a co-signer, but keep in mind that if you do that, you must make more than half your repayments on time before you can release that person.

These are the five best private student loans available. To determine which one is best for you, it’s worth exploring what each one has to offer.