What Is a Private Student Loan and Who Is Eligible?
When you take out a private student loan, the lender pays for your college degree and associated expenses. You repay these funds over time according to the loan agreement. You can use your loan to cover tuition, fees, books, supplies, and living expenses.
You’re eligible for a student loan if you’re enrolled at an eligible school, are at least 18 years old, and have a high school diploma or an equivalent. Most lenders will also require you to be a U.S. citizen or permanent resident.
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How to Apply for a Private Student Loan?
Once you select a private student loan offer that meets your needs, you’ll need to complete a full application. Usually, you’ll have to provide proof of identity, address, and financial status.
If you’re applying with a cosigner, you’ll need to provide their information as well. It’s a good idea to gather your pay stubs, tax forms, and other related documentation to stay ahead of the game. You will also need proof of acceptance at a qualifying college or university.
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How Does the Student Loan Process Work?
After you submit your private student loan application, the lender reviews your paperwork to make sure you meet its qualifications. Generally, you can expect an answer to your application in 5-7 business days.
Once you receive approval, most lenders send the money to your school’s financial aid office. However, you may be able to request direct funds to cover books, supplies, and approved living expenses.
After you receive your funds, the loan starts accruing interest right away. You can save money over the life of the loan by making interest-only payments while in school. Most lenders also let you defer payments until you graduate, sometimes after a grace period of about six months.
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What Are the Requirements for a Student Loan?
You’ll need good credit and a steady strong income to qualify for a private student loan. Different lenders have different standards, but most ask for a credit score of at least 640 and earnings of at least $24,000 per year.
If you’re not quite there yet, applying with a cosigner will seriously increase your chances of private student loan approval. Your cosigner will need to meet the requirements and agree to take responsibility if you can’t repay your loan. Many lenders offer cosigner release after you make a certain number of on-time payments.
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How to Choose the Right Student Lender for You?
When comparing private student loan options, the offer with the lowest interest rate may seem tempting. You can use a student loan calculator to see how much you will pay in total, including interest and fees.
While an affordable APR does play a role in choosing the right student loan, you should also consider the available repayment terms and options. For example, you might want to give yourself time to earn money after graduation by choosing a lender with a generous grace period.
Different lenders offer different customer service channels, so make sure the one you select can work with your preferred contact method. In other words, don’t choose a tech-averse company if you use your mobile to manage your finances.
Finally, you might want to consider other benefits offered by each lender. Some student loans come with advantages like autopay discounts, hardship forbearance, and automatic cosigner release.
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FAQ
What’s the difference between an adjustable and a fixed-rate student loan?
A fixed-rate student loan maintains the same interest rate for the life of the loan. You can only get a new interest rate if you refinance. An adjustable-rate loan has a fixed rate for the first few years, then the APR changes based on the federal interest rate and other factors established in your loan documents.
Will applying for a student loan affect my credit score?
Your credit score may decrease when you apply for a student loan, which occurs when the lender does a so-called “hard” credit pull. Student loans also affect your debt-to-income ratio, a factor that compares how much you owe to how much earn. Over time, however, paying back your student loan as agreed will have a positive effect on your score.
How long does the student loan application process take?
Some lenders have short processing times, generally 7-10 business days. Others can take two to four weeks to complete the private student loan application process. If you need funds quickly, you may want to look for lenders that have a reputation for fast approval and disbursement.
What do student lenders consider when reviewing applications?
Lenders make sure that you have the income to make payments on the loan. They also review your credit score to determine the risk associated with lending to you. Other factors that play into the approval decision include the school you will attend, the type of degree program, your citizenship status, whether you have a cosigner, and the amount you want to borrow.
How do I choose the right term for my student loan?
The answer depends on your financial goals. If you want lower monthly payments, you should select a longer term to pay back your loans. If you want to get out of debt as quickly as possible, you can save significantly on interest with a shorter loan term. You can also balance these priorities with a term somewhere in the middle.
Disclosures:
College Ave Disclosure:
College Ave’s student loan products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or BTG Pactual Bank, N.A., member FDIC.
(1)All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
(2)As certified by your school and less any other financial aid you might receive. Minimum $1,000.
(3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of Wednesday, 07/01/2026. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
Sallie Mae Disclosure:
Borrow responsibly
We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.
Explore federal loans and compare to make sure you understand the terms and features. Private student loans that have variable rates can go up over the life of the loan. Federal student loans are required by law to provide a range of flexible repayment options, including, but not limited to, income -based repayment and income-contingent repayment plans, and loan forgiveness and deferment benefits, which other student loans are not required to provide. Federal loans generally have origination fees, but are available to students regardless of income.
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.
© 2025 Sallie Mae Bank. Sallie Mae loans are made by Sallie Mae Bank. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.
SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America. W646400 0325
SoFi Disclosure:
Interest Rates: Eligibility and Important Details. Fixed rates range from 2.45% APR to 15.99% APR with 0.25% autopay discount. Variable rates range from 4.39% APR to
15.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates are capped at 17.95%. SoFi rate ranges are
current as of 7/6/2026 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term and type of
repayment option you select, evaluation of your creditworthiness, income, presence of a co-signer (if applicable) and a variety of other factors. Lowest rates reserved for
the most creditworthy borrowers. Check out our eligibility criteria at www.sofi.com/eligibility-criteria. For the SoFi variable-rate product, the variable interest
rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the
nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases.
Autopay Discount: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly payments as outlined in your loan agreement by an automatic
monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a
savings or checking account. When the autopay interest rate deduction is added or removed, the next time the loan is re-amortized (quarterly for fixed rate loans;
monthly for variable rate loans),the principal balance of your loan will be spread over the remaining loan term, and your monthly payment amount
Ascent Disclosure:
*Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations, terms and conditions may apply for Ascent’s Terms and Conditions please visit AscentFunding.com/Ts&Cs.
Annual Percentage Rates (APRs) displayed are effective as of 08/01/2026 and reflect an Automatic Payment Discount (ACH). The ACH discount consists of 0.25% on credit-based college student loans submitted prior to 6/1/2025, a 0.5% discount for on credit-based college student loans submitted on or after 6/1/2025 and a 1.00% discount on outcomes-based loans when you enroll in automatic payments. Loans subject to individual approval, restrictions, and conditions apply. Loan features and information advertised are intended for college student loans and are subject to change at any time.
The final amount approved depends on the borrower’s credit history, verifiable cost of attendance as certified by an eligible school and is subject to credit approval and verification of application information. Lowest interest rates require full principal and interest (Immediate) payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. Variable rates may increase after consummation. 1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/BorrowerBenefits. Ascent applicants and borrowers that agree to the AscentUP Terms of Service and Privacy Policy, as well as students associated with an Ascent parent loan application, have access to the AscentUP platform.
The following examples for a $10,000 loan show a 48-month in-school period plus 9 months of grace prior to a full repayment term for 60-months (variable rate), with examples of (i) Interest Only payments, (ii) $25 Minimum payments, (iii) Deferred repayment, and (iv) Immediate Repayment options.
* Interest Only Repayment: 5.89% APR, with 57 payments of $49.08 while in-school/grace, 60 payments of $192.84 during the repayment term, and a total cost of $14,368.54.
* $25 Minimum Payment: 6.52% APR, with 57 payments of $25.00 while in-school/grace, 60 payments of $233.97 during the repayment term, and a total cost of $15,463.01.
* Deferred Repayment: 6.71% APR, with no payment while in-school/grace, 60 payments of $269.84 during the repayment term, and a total cost of $16,175.28.
* Immediate Repayment: 3.64% APR, with 60 payments of $182.55, and a total cost of $10,953.09.
The following examples for a $10,000 loan show a 48-month in-school period plus 9 months of grace prior to a full repayment term for 180-months (highest variable rate), with examples of (i) Interest Only payments, (ii) $25 Minimum payments, (iii) Deferred repayment, and (iv) Immediate Repayment options.
* Interest Only Repayment: 16.30% APR, with 57 payments of $135.75 while in-school/grace, 180 payments of $148.94 during the repayment term, and a total cost of $34,546.75.
* $25 Minimum Payment: 15.07% APR, with 57 payments of $25.00 while in-school/grace, 180 payments of $256.92 during the repayment term, and a total cost of $47,672.31.
* Deferred Repayment: 15.25% APR, with no payment while in-school/grace, 180 payments of $291.22 during the repayment term, and a total cost of $51,619.42.
* Immediate Repayment: 16.05% APR, with 180 payments of $147.21, and a total cost of $26,495.61.
Credible Disclosure:
¹ Student Loan Rate and Terms Disclosure: Rates displayed include Automatic Payment and Loyalty Discounts, where applicable. Note that such discounts do not apply while loans are in deferment. The lenders on the Credible.com platform offer fixed rates ranging from 3.49% - 17.99% APR and Variable interest rates from 4.50% - 17.99% APR. Variable rates will fluctuate over the term of the borrower’s loan with changes in the Index rate. The Index will be either LIBOR or SOFR. Rates are subject to change at any time without notice. Your actual rate may be different from the rates advertised and/or shown above and will be based on factors such as the term of your loan, your financial history (including your cosigner’s (if any) financial history) and the degree you are in the process of achieving or have achieved. While not always the case, lower rates typically require creditworthy applicants with creditworthy co-signers, graduate degrees, and shorter repayment terms (terms vary by lender and can range from 5-20 years) and include Automatic Payment and Loyalty discounts, where applicable. Loyalty and Automatic Payment discount requirements as well as Lender terms and conditions will vary by lender and therefore, reading each lender’s disclosures is important. Additionally, lenders may have loan minimum and maximum requirements, degree requirements, educational institution requirements, citizenship and residency requirements as well as other lender-specific requirements. Lenders will conduct a hard credit pull when you submit your application. Hard credit pulls will have an impact on your credit score.
Funding U Disclosure:
LOAN ELIGIBILITY: Must be a US citizen or permanent resident, age 18 or over. Must be enrolled as a full-time undergraduate student in a bachelor’s degree program at a Title IV-eligible four year college (for-profit schools not eligible).
LOAN AVAILABILITY – Residents of the following states are eligible for 2025-2026 loans: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin. Terms and conditions vary by state.
DISCLAIMER: Offered terms are subject to change. Loans are made by Funding University which is a for-profit enterprise. Funding University is not affiliated with the school you are attending or any other learning institution. None of the information contained in Funding University’s website constitutes a recommendation, solicitation or offer by Funding University or its affiliates to buy or sell any securities or other financial instruments or other assets or provide any investment advice or service.
