Private student loans should be a last resort after exhausting federal aid — federal loans offer income-driven repayment, forgiveness programs, and forbearance protections that private loans don't. For students who've maxed federal borrowing and still have a funding gap, here are 3 private lenders worth comparing.
Largest private student loan lender. No origination fees. Competitive rates with autopay discount. Interest-only and flat-payment in-school options. Available to both undergraduate and graduate borrowers.
Multiple in-school repayment options (full deferment, interest-only, flat $25/month, full principal+interest). Highest-rated for customer experience among private lenders. 5-15 year repayment terms.
Precision pricing — 0.25% rate discount for choosing biweekly vs monthly payments (in addition to autopay discount). Skip-a-payment feature (once per year). Strong for borrowers who want granular control over their repayment structure.
No — always exhaust federal student loans first. Federal loans offer income-driven repayment (IDR) plans that cap payments at 5-10% of discretionary income, multiple forgiveness programs (PSLF, SAVE), and broad forbearance/deferment protections. Private loans have none of these. The Department of Education's studentaid.gov is the authoritative source on federal aid options.
Most undergraduate students without independent income or credit history need a co-signer (typically a parent) to qualify for private loans at reasonable rates. Some lenders offer co-signer release after 24-48 months of on-time payments. The co-signer is fully responsible for the loan if the student doesn't pay.
Variable rates typically start around 5-8%; fixed rates around 4-14% depending on credit profile, loan type, and repayment option selected. Rates for borrowers with excellent credit and strong co-signers will be toward the low end; borrowers with thin credit and no co-signer toward the high end. The Consumer Financial Protection Bureau provides guidance on private student loans at consumerfinance.gov and the Department of Education covers federal options at studentaid.gov. See our full guide (/blog/best-private-student-loans-2026). Reviewed by Brian's ClearValue Lending Team. Updated May 2026.