Best Student Loans (May 2024)

College Ave Student Loans

Established in 2014, College Ave Student Loans is an online lender offering undergraduate, graduate, career and parent student loans as well as student loan refinancing. College Ave consistently offers some of the most competitive rates and flexible repayment terms in the industry. Prospective borrowers can apply for funding in as little as three minutes and find out immediately if they qualify, making it one of the fastest and most convenient options on the market.

Best student loans for undergraduates

College Ave Student Loans is our top pick for undergraduate student loans. The company's flexible repayment options make it a great choice for students looking to manage their monthly payments. College Ave offers 5, 8, 10, and 15-year term loans, and up to 20-year term loans for graduate degree holders, giving borrowers multiple repayment options. In addition, borrowers can choose to pay interest-only and flat $25 monthly payments while in school. In-school payments reduce the interest that accrues during that period, lessening the loan amount to be repaid after graduation.

In a similar manner to federal loans, College Ave defers student loan payments until after the borrower graduates from college. College Ave borrowers benefit from a 6-month grace period for undergraduate loans and a 9-month grace period for graduate loans. Unlike some other lenders that have maximum loan amounts, College Ave provides loans up to the full cost of attendance with a minimum loan amount of $1,000. This makes it ideal for students without significant financial aid who need to cover the whole cost of their education.

Quick Application Process

We found College Ave’s website to have a user-friendly interface and information that's very easy to read and locate. Similarly, the application process is very straightforward. The application is designed as a walk-through for borrowers, explaining the process while pointing out details like the difference between applying alone and with a cosigner. Users can get a credit check within 3 minutes and the company will inform prospective borrowers of their approval before finalizing the application, in case they decide to add a cosigner. Applicants will see their interest rate once their application is approved.

Another strong point with its application process is that potential borrowers can use College Ave’s pre-qualification tool to get an idea of whether they will be approved, as well as view the estimated interest rate and loan terms. This feature is free to use and doesn’t constitute a hard credit check, meaning it won't impact your credit score.

Screenshot collegeavestudentloans.com July 8, 2019

Customer Resources

Graduate students may know a thing or two about student loan terminology, but high school students, not so much. College Ave provides a comprehensive student loan glossary, helping soon-to-be undergrads (and parents) understand terms, abbreviations, and other industry jargon. 

The website also has a resource section, offering informative how-to articles on  topics such as how to apply for loans and grants and how to pay for graduate school. The FAQ section is well-organized, categorized by loan type, and very easy to follow. It even includes a search bar, enabling users to immediately locate the answers to their specific questions.

Users can also find loan calculators to help estimate accrued interest rates and analyze their individual repayment terms. One of our favorite features are College Ave’s monthly scholarship sweepstakes and contests where both students and loan applicants can enter for chances to win money and other college essentials, such as free college textbooks for a year.  

Room for Improvement

One area where College Ave falls short is that co-signers cannot be released until the loan is halfway through its repayment term. As a result, co-signers are locked into the loan for a longer period of time than with other lenders. Other conditions that the borrower must meet to release the co-signer include:

• A minimum of 24 consecutive payments (not including periods of deferment or forbearance)
• Be a U.S. citizen or permanent resident
• Pass a credit review — no 30-day or greater delinquency in the last 12 months and no bankruptcy, foreclosure or repossession in the last 24 months
• A documented annual income that is at least twice the balance of outstanding loan

For more information, read our full College Ave Student Loans review.

SoFi Private Student Loans

SoFi is the second largest marketplace lender around today, providing student loans, student loan refinancing, mortgages, and personal loans. With over $14 billion in loans issued to date, SoFi extends undergraduate, graduate, and parent loans with competitive rates, particularly for autopay users. Special rates are also available for MBA and Law students. SoFi ensures comprehensive coverage of educational expenses, including living costs and books, with a fully digital application process that expedites approval. With a click, students can add cosigners and receive approval within minutes, accompanied by a flexible array of repayment options.

SoFi offers loans starting at $1,000. Repayment options include deferred, immediate, partial interest, and interest-only plans, catering to varying financial circumstances and preferences. Eligibility criteria are standard, requiring applicants to be U.S. citizens or permanent residents, enrolled either full or half-time. While a cosigner is not mandatory, it can be advantageous for applicants with limited or poor credit history.

SoFi provides a swift online rate quote process, accompanied by a user-friendly interface and a student loan calculator for informed decision-making. Enrolling in autopay garners a 0.25% interest rate reduction, with additional savings for existing SoFi members or cosigners. Overall, SoFi delivers a streamlined and customer-centric experience, enhancing accessibility and affordability for borrowers seeking student loans.

Sallie Mae Student Loans

Formerly known as the Student Loan Marketing (SLM) Association, Sallie Mae is a consumer banking company that originates, services, and collects student loans. Founded in 1973, the company initially functioned as a federally guaranteed student loan issuer, and later transitioned strictly to private student loans in 2014 after transferring its remaining federal loan portfolio to Navient, a separate entity. 

Best student loans for graduate school

While many other lenders only offer four or five specialized graduate school loans, Sallie Mae provides nine loan options tailored to different types of graduate students. This diversity in loans seeks to take into account the varying needs of graduate students and their respective programs. Their graduate loan offerings include:

• General graduate school loan
• MBA loan
• Medical school loan
• Medical residency loan
• Health professions loan (e.g. nursing, pharmacy and other graduate-level health programs)
• Dental school loan
• Dental residency loan
• Law school loan
• Bar study loan

Not many lenders offer loans for medical and dental residencies, which can be a turnoff for some prospective borrowers. Since medical residents aren’t fully licensed, most residency programs pay low salaries and require residents to relocate to different states, in which residents may need additional financial assistance to afford that area’s cost of living. Sallie Mae addresses this need, offering medical and dental residency loans that operate just as a school loan regarding grace period and deferment. 

Sallie Mae also offers a generous deferment option. Medical and dental students have a 3-year grace period after graduating. Similarly, all borrowers with graduate degrees have a 48-month loan deferment (taken in 12 month increments) as long as they’re in a medical or dental residency, or an internship program.

Excellent Resources for Borrowers

Sallie Mae has an exceptionally well-structured, user-friendly website that highlights key factors in large print and darker font. The disclaimers are moderately sized and located directly at the bottom of each page. Finding resources on the site was also a breeze.

Users who choose to register with Sallie Mae have access to numerous tools and resources. One in particular, the college planning calculator, helps students analyze the total cost of college attendance based on their own situation and helps them build a customized payment plan. The calculator uses realistic factors such as grants, scholarships, and savings, and enables users to revise and update the plan as they see fit.

Sallie Mae also assists in scholarship search and provides tips on applying and writing essays, as well as free access to FICO scores.

Screenshot salliemae.com January 27, 2023

Transparency

Wording is an essential element for us when researching and comparing companies, especially when it comes to student lenders. It’s important that borrowers know what they're getting into so they can plan appropriately and avoid being saddled with debt for longer than they need to.

Salie Mae lists its full APR range for every type of loan, explains the benefit of borrowing with a cosigner, and has a live chat for immediate answers from customer representatives. We also noticed that Sallie Mae is diligent in responding to customer concerns online, promptly answering negative consumer feedback on social media and the Better Business Bureau.

Room for Improvement

Sallie Mae is honest about its lending process, where credit is checked and analyzed for loan approval. Since Sallie Mae caters to a diverse group of borrowers, we believe the company should consider offering pre-approved rates during the application process. Borrowers are automatically subject to having a hard credit pull for loan approval, which can affect their score without having any certainty that they will actually qualify for funding. 

Also, considering undergraduates whose first jobs out of college may not have competitive salaries, Sallie Mae’s six month grace period may not be realistic. For this reason, we believe loan deferment should be extended to twelve months. 

Earnest Student Loans

Once a rapidly-growing startup with sights set on disrupting the industry through a "modern financial approach," Earnest is now owned by the student loan giant Navient Corporation. While this might not sound initially promising, it could be considered an additional selling point for student borrowers looking to fund their loans through a financially stable institution. Not only is Navient the largest student loan servicer in the nation, but they have also stated their intentions of keeping Earnest as a separate brand, still offering the same innovative loan products but now with additional financial backing.

Best student loans for international students

International students come across an additional hurdle when it comes to taking out student loans. Not only do they need to find a lender that offers loan products specifically designed for them, but they also typically need to have a co-signer that is a U.S. citizen or permanent resident in order to qualify for the loan.

Earnest is one of the few lenders that does offer student loans to international students while also featuring very flexible repayment options. With a 9-month grace period, up to 12 months of forbearance and the ability to skip one payment per year, international borrowers can find a repayment plan that works best for their situation. In addition, the company doesn't charge any extra fees on top of the interest rate for borrowers, meaning no late fees, application fees or origination fees. It even provides a 0.25% interest rate discount for borrowers who sign up for automatic payments.

International students looking to borrow from Earnest will need to have a co-signer that is a U.S. citizen or permanent resident, has a Social Security Number or individual taxpayer identification number (ITIN) and retains a physical address in the United States.

Flexible Repayment Options

Earnest continues to provide private student loans and refinancing options as well as personal loans, a newer product. Their two major selling points also remain unchanged, which are their flexible repayment terms and unique underwriting guidelines. Student borrowers who do business with the company can customize their loan terms by choosing their preferred payment plan. In addition, and unlike other online lenders, Earnest mainly caters to "financially responsible" borrowers who meet their distinctive underwriting criteria.

Competitive Loans for Responsible Borrowers

You may be wondering what exactly constitutes a responsible borrower. Well, for Earnest, responsible borrowers are those who have enough in savings to cover at least two months' worth of expenses, spend less than they earn, don't have large amounts of debt,  have a good credit and repayment history, and/or are studying for a career with "strong earning potential." That also entails having at least a 650 credit score, three years of credit history, an annual income of at least $35,000, no bankruptcies on their credit report, and no credit accounts in collection.

While these factors severely limit the pool of applicants who may qualify for loans through Earnest, it also makes it easier for borrowers who do qualify to obtain streamlined financing through a full-service lender offering additional perks like:

• Quick application and approval times

• No origination, disbursement, prepayment, or late payment fees

• A 0.25% discount for enrolling in automatic payments

• The ability to skip a payment once per year

Earnest loans can also cover up to 100% of the school's cost of attendance and have a nine-month grace period, which is higher than what most online lenders typically offer. Those interested in these benefits but worried about their eligibility should also know that, unlike some online reviews point out, the company allows cosigners as long as they are also financially responsible.

Like many other student lenders, the company does require applicants to be full-time students pursuing a Bachelor's or Graduate degree from a Title IV-qualified, not-for-profit four-year college.

Educational Resources

Earnest has a resources page with relevant articles, guides, and calculators. Topics range from the most fundamental aspects of student loans to the difference between fixed and variable rates and consolidation vs. refinance. Their guides provide hands-on tips about decision making, how to pay for graduate school, and how to refinance a student loan.

One cool detail about Earnest's resources and articles is that they state how long it will take you to read them, so you can pick a topic that interests you and also have the time to finish.  Lastly, the company also offers a student loan consolidation calculator and a refinance calculator, both pretty useful for students looking to make better-informed financial decisions.

Drawbacks

The biggest drawback about Earnest is what sets them apart from other lenders: their unique qualification requirements. Only applicants with strong financials or the prospect of high income in the future can get approved for a loan through Earnest, and even those who apply with a cosigner are held to the same standards. Other drawbacks have to do with their student loan refinance options, mainly that refinance isn't available in every state and that they only refinance Parent Plus Loans for student borrowers (not parents).