Use federal student loans first: for 2026 to 2027 undergraduates pay a fixed 6.52% with no credit check, and federal loans come with income-driven repayment and forgiveness options private loans do not offer. If you still have a gap, College Ave, Sallie Mae, SoFi, Citizens and Earnest are the main private lenders to compare, with advertised fixed APRs from about 1.94% to 17.99% as listed October 2026. Compare at least three prequalified offers on APR, cosigner release rules and fees, and borrow only what your school certifies you need.
This guide is for students and parents who have used grants, scholarships and federal aid and still need to cover part of the bill. It also covers two companies that are not lenders: a marketplace for comparing offers and a refinancer for private loans in default.
For most families, the choice comes down to three things: the APR you actually qualify for (not the advertised floor), how and when a cosigner can be released, and whether the lender accepts your school and enrollment status. Fees matter less, since none of the five lenders list an origination fee.
Below you will find why federal loans come first, current rate ranges side by side, how cosigner release works at each lender, and the scams to avoid.
Company reviews
Best for choosing your own term length and in-school payment plan: College Ave
- Fixed APR
- 1.94% to 17.99%
- Variable APR
- 3.89% to 17.99%
Why we picked it. College Ave posts one of the lowest starting fixed APRs among the lenders we compared and lets you pick your repayment term instead of being assigned one. Loans are made through partner banks that are FDIC members, and the company states its rate information is valid as of October 1, 2026.
More details, pros and cons
Loan amounts: $1,000 minimum, up to 100% of school-certified cost less other aid
Pros
- Lowest advertised starting fixed APR among the in-school lenders here (1.94%)
- Loans for undergrad, graduate, health, law, MBA and parents
- No origination fee
- International students eligible with a Social Security number and a qualified cosigner
Cons
- Top of the APR range reaches 17.99%, among the highest here
- Cosigner release terms were not shown on the pages we could open
- The company itself says undergraduates will likely need a cosigner
Skip it if: You want a lender that clearly publishes how soon a cosigner can be released before you apply.
More about College Ave
College Ave excels in providing customizable repayment structures, offering term choices ranging from 5 to 20 years. Borrowers benefit from multiple in-school payment options and extended grace periods for specific graduate programs.
Best for students who need a cosigner released quickly: Sallie Mae
- Fixed APR
- 2.08% to 17.49%
- Variable APR
- 3.75% to 16.95%
- Cosigner release
- After 12 on-time principal and interest payments
Why we picked it. Sallie Mae publishes a clear cosigner release path after 12 on-time principal and interest payments plus graduation, which is shorter than most lenders here. It also lends to students enrolled less than half-time, which many lenders do not.
More details, pros and cons
Eligibility: Full-time, half-time or less than half-time students; international students need a qualified cosigner
Parent Loan: Launched June 30, 2026, in the parent's name only: 3.99% to 15.49% fixed APR
Pros
- Shortest published cosigner release path in this group
- Students enrolled less than half-time can apply
- No origination fee or prepayment penalty
- 0.25 percentage point auto debit discount
Cons
- Fixed APR tops out at 17.49%
- Cosigner release also requires no 30 day late payments or hardship forbearance in the prior 12 months
- Standard term lengths were not shown on the product page we checked
Skip it if: You have strong credit and want the lowest possible fixed rate, since several lenders here start lower.
More about Sallie Mae
Sallie Mae provides excellent accessibility, approving a high percentage of applications supported by creditworthy cosigners. It offers up to 100% cost coverage and features an industry-leading 12-month cosigner release option.
Best for a capped variable rate and no late or origination fees: SoFi
- Fixed APR
- 2.99% to 15.99%
- Variable APR
- 4.64% to 15.99%
- Cosigner release
- Offered
Why we picked it. SoFi's undergraduate maximum APR of 15.99% is lower than the top of the range at College Ave and Sallie Mae, and it states it charges no late fees. Its variable rate is capped at 17.95%, so the worst case is published up front.
More details, pros and cons
Loan amounts: $1,000 minimum (higher in some states), each application capped at $99,999
Pros
- Lower maximum APR than several competitors (15.99%)
- No late fees or origination fees
- Published cap on variable rates
- Extra rate discounts for returning borrowers and family members
Cons
- Lowest fixed rate (2.99%) applies only to the 5 year term, and 7 year terms start at 7.24%
- Requires at least half-time enrollment at a SoFi-participating school
- Cosigner release details were not on the pages we checked
Skip it if: You attend less than half-time or your school is not on SoFi's participating list.
More about SoFi
SoFi delivers a comprehensive, fee-free loan experience with strong protections like a generous unemployment forbearance program. It is an excellent choice for creditworthy graduates seeking reliable refinancing.
Show all 5 picks2 more, ranked 4 to 5
Best for borrowing for several years with one application: Citizens Bank
- Fixed APR
- 3.24% to 13.49%
- Variable APR
- 5.04% to 13.22%
Cosigner release: Borrower may apply after entering full principal and interest repayment, once every 12 months
Why we picked it. Citizens had the lowest maximum APR among the in-school lenders we compared, and its Multi-Year Approval lets eligible students request future years' funds with a soft credit check instead of a new full application.
More details, pros and cons
School eligibility: Four-year Title IV schools only; no community colleges or for-profit schools
Pros
- Lowest top-of-range APR among the in-school lenders here (13.49% fixed)
- Multi-Year Approval for later school years
- 0.25% loyalty discount on top of the 0.25% autopay discount
- Rate quote with no impact to your credit score
Cons
- Two-year schools, community colleges and for-profit schools are not eligible
- Lowest rates require a 5 year term and immediate repayment
- No published payment count for cosigner release; approval depends on a credit and income review
Skip it if: You attend a community college or a for-profit school.
More about Citizens Bank
Citizens stands out for offering a robust multi-year approval process that allows students to secure continuous funding with a single credit check. The bank also provides notable interest rate discounts for existing customers and automatic payments.
Best for a longer grace period and a skip-a-payment option: Earnest
- Fixed APR
- From 1.99%
- Variable APR
- Full range not published on the page we checked
Cosigner release: After at least 36 months of payments and a balance at or below 50% of original principal, plus credit and income review
Why we picked it. Earnest gives a 9 month grace period instead of the usual 6 and lets you skip one payment in a 12 month period after 6 consecutive on-time payments. It also charges no late fees.
More details, pros and cons
Pros
- 9 month grace period
- Skip one payment per 12 months after 6 on-time payments
- No origination, late or prepayment fees
- Automatic cosigner release review once milestones are met
Cons
- Slowest cosigner release in this group: 36 months of payments and half the balance repaid
- Full fixed and variable APR ranges were not shown on the page we checked
- Lowest advertised rate assumes a cosigner and both discounts
Skip it if: Your cosigner wants off the loan within a year or two of graduation.
More about Earnest
Earnest offers highly granular repayment customization, allowing borrowers to select exact terms between 5 and 20 years. Its skip-a-payment benefit provides additional flexibility for managing personal budgets.
Why federal student loans come first
Before you compare private lenders, file the FAFSA and take any federal loans you qualify for. For loans first disbursed from July 1, 2026 to June 30, 2027, the federal fixed rate is 6.52% for undergraduates, 8.07% for graduate unsubsidized loans and 9.07% for PLUS loans, according to Federal Student Aid. Undergraduate Direct Loans have no credit check and carry a 1.057% loan fee.
Private loans can beat 6.52% only if you or your cosigner have strong credit, and even then you give up federal protections:
- Income-driven repayment plans tied to your earnings
- Public Service Loan Forgiveness and other forgiveness programs
- Federal deferment and forbearance options
- Subsidized loans, where the government pays interest while you are in school
College Ave makes the same point on its own site: federal loans carry benefits like income-based repayment and public service forgiveness that private loans do not. Use private loans for the gap left after grants, scholarships, work-study and federal loans.
What private student loans cost in October 2026
These are the advertised APR ranges as listed on each company’s site in October 2026. Your actual rate depends on your credit (or your cosigner’s), the term and the repayment option you choose.
| Lender |
Fixed APR |
Variable APR |
| College Ave |
1.94% to 17.99% |
3.89% to 17.99% |
| Sallie Mae |
2.08% to 17.49% |
3.75% to 16.95% |
| SoFi (undergrad) |
2.99% to 15.99% |
4.64% to 15.99% |
| Citizens |
3.24% to 13.49% |
5.04% to 13.22% |
| Earnest |
From 1.99% |
Not published |
The lowest rates in every range include autopay (and sometimes loyalty) discounts, require the shortest term, and go to the most creditworthy applicants. The interest you pay also depends on the in-school option: deferring all payments costs the most over the life of the loan. College Ave’s own example shows a $10,000 loan at 8.35% fixed APR over 10 years costing $21,501.54 in total payments when payments are deferred during school.
How to choose a private student lender
- Prequalify with at least three lenders. Most lenders here, and marketplaces like Credible, show a rate with a soft credit check that does not affect your score.
- Compare APR, not interest rate. APR includes fees, so it is the fair comparison.
- Choose fixed unless you can repay fast. Variable rates follow the SOFR index and can rise after you sign. SoFi caps its variable rate at 17.95%, so check each lender’s cap.
- Check school eligibility. Citizens lends only at four-year Title IV schools, and SoFi requires a participating school and half-time enrollment. Sallie Mae accepts students enrolled less than half-time.
- Read the cosigner release rules (see below) if a parent is cosigning.
- Look at hardship options. Ask about forbearance, a longer grace period (Earnest offers 9 months) and skip-a-payment features before you need them.
- Borrow only the certified gap. Lenders will fund up to the school-certified cost of attendance, but every dollar accrues interest.
How cosigner release works at each lender
Most undergraduates need a cosigner. Cosigner release removes that person from the loan once you show you can repay alone. Rules vary widely:
- Sallie Mae: 12 on-time principal and interest payments, proof of graduation, and a credit review. No 30 day late payments or hardship forbearance in the prior 12 months.
- Citizens: apply after you enter full principal and interest repayment (interest-only payments do not count), with income documents. You can reapply once every 12 months. Not available on its parent loan.
- Earnest: at least 36 months of required payments and a balance at or below 50% of the original principal, plus credit and income review. Earnest reviews eligible loans automatically.
- SoFi and College Ave: both offer loans with cosigners, but release requirements were not on the pages we could check. Ask before you sign.
Release is never automatic approval. You must pass a credit review at the time you apply, so building your own credit after school matters.
Red flags: student loan scams and defaulted loans
The Consumer Financial Protection Bureau warns that student loan scams often:
- Contact you first and ask for your income, Social Security number or other personal information
- Promise to reduce or eliminate your student loans
- Charge up-front fees
- Pretend to be the Department of Education or your servicer
No company can guarantee forgiveness, approval or a specific rate. Verify any contact through your servicer directly, and use studentaid.gov for anything about federal loans. Nothing on this page is affiliated with any government program.
If your private loans are already in default, call the lender or servicer first and ask about modified payments. A specialty refinancer like Yrefy is one option, but compare the full cost, including its 5% fee charged at payoff. If your loans are federal, default resolution options are free through Federal Student Aid, and you never need to pay a company for them.
Free options to try before a private loan
- Ask your financial aid office for an appeal if your family’s finances changed. They can also show you the school’s preferred lender list.
- Scholarships and grants from your school, state and local organizations never need to be repaid.
- Tuition payment plans offered by many schools spread a semester’s bill over several months, often for a small enrollment fee and no interest.
- Work-study and part-time work reduce how much you borrow.
- Federal loans at 6.52% fixed for undergraduates in 2026 to 2027, with no credit check.
For questions about federal loans you already have, your servicer and studentaid.gov are free. Nonprofit credit counselors can also review a budget at little or no cost.
Terms to know
- APR
- The yearly cost of a loan including interest and fees, the best number for comparing lenders.
- Cosigner release
- A process that removes the cosigner from a loan once the student meets payment and credit requirements.
- Variable rate
- An interest rate that changes over time with a market index such as SOFR.
- SOFR
- The Secured Overnight Financing Rate, the index most private lenders use to set variable rates.
- School-certified cost of attendance
- The total cost your school confirms, including tuition, housing and books, which caps how much you can borrow.
- Grace period
- The months after you leave school before full payments start, usually 6 months (9 months at Earnest).
- Soft credit check
- A credit review used for prequalification that does not affect your credit score.
- Refinancing
- Replacing existing loans with a new loan, ideally at a lower rate or more affordable payment.
