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Best Private Student Loans

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If you ever find yourself still struggling to pay for your tuition and other education-related expenses despite having a federal student aid, you can start looking for the best private student loans.

While there are a number of companies offering this, there are several factors to consider before applying for one.

Here, we listed the best private student loans you can choose from.

9 Best Private Student Loans For You To Check out

1. Citizens Bank

Citizens Bank is one of the largest banks in the U.S. which offers one of the best private student loans.

Most prefer them because of their physical stores people can go to if they need to ask for loan-related questions in person.

  • Pros: Borrowers can go to their branch locations to discuss loan-related concerns in person; multiple repayment lengths.
  • Cons: No cosigner release unless the borrower has 36 consistent months of on-time payments; Borrower needs to have a qualified cosigner or good credit. Learn how student loans affect your credit.
  • Fees: No application or origination fees; no early payment fee.
  • Rates: Fixed and variable rates available; 0.50% rate discount (highest rate reduction in the market).
  • Loan amount: $1,000 to $170,000
  • Term: Student (5, 10 or 15 years) or Parent (5 or 10 years) repayment options.
  • Bonus: Interest rate reduction if the borrower has an account with Citizens Bank or if you set up automatic payments.

2. College Ave

Although new in the industry (2014), College Ave is preferred by students due to their flexibility and ability to simplify the process of applying for a private student loan.

However, to qualify, the borrower should have 24 consecutive early payments and no record of late payment in the past 24 months.

  • Pros: Four loan repayment lengths; student and parent loan options.
  • Cons: One of the longest cosigner release period, which is 48 months.
  • Fees: No application or origination fees; no early payment fee.
  • Rates: Fixed and variable rates available; 0.25% rate reduction.
  • Loan amount: $2,000 to 100 percent of how much is the school-certified attendance cost.
  • Term: Student (8, 10, 12 or 15 years) or Parent (5 to 12 years) repayment options.
  • Bonus: For additional education costs, College Ave offers additional funds of up to $2,500 in parent loans.

3. LendKey

To provide the best rates for its borrowers, LendKey works with various credit unions and small community banks.

Students prefer their service because of the assistance in finding local credit unions which provide student loan.

  • Pros: Cost calculators that can help you in planning your college expenses; longer forbearance period of 18 months; short cosigner release period of 12 months.
  • Cons: No unemployment protection; interest rates will depend on market rates.
  • Fees: No application or origination fees.
  • Rates: Variable rates
  • Loan amount: Up to $175,000
  • Term: 10 years
  • Bonus: Interest rate reduction for the full repayment period, once 10 percent of the loan principal is repaid, or if you set up automatic payments; Good grades can help lower the interest rate.

4. SunTrust

Driven by a purpose and a personal touch, SunTrust helps their clients achieve financial confidence through their products and services.

  • Pros: Forbearance period is up to 24 months for qualified borrowers.
  • Cons: This loan cannot be consolidated with others such as federal and private student loans; 48 on-time payments before cosigner is released.
  • Fees: No repayment penalties.
  • Rates: Fixed and variable rates available; 0.50% rate discount (highest rate reduction in the market).
  • Loan amount: Up to $150,000
  • Term: 7, 10 and 15 years

RELATED: How to Apply for Student Loans

5. PNC

PNC offers private student loans for both undergraduate and graduate/professional students.

  • Pros: Highest loan amount offered in the market; Customer service through phone, email and live chat.
  • Cons: No loan consolidation for federal and private student loans; 48 on-time payments before cosigner is released.
  • Fees: No application or origination fees.
  • Rates: Fixed and variable rates available; 0.50% rate discount (highest rate reduction in the market).
  • Loan amount: Up to $225,000 (the highest in the market)
  • Term: 15 years
  • Bonus: Can opt to apply without a cosigner provided the borrower has two years of good credit history and proof of employment for at least two years.

6. Wells Fargo

Being a large and popular bank in America, borrowers consider this as stability, thus preferring their services.

It should be noted though, that their services are also among the best ones in the market.

Wells Fargo releases a cosigner if the borrower is able to make 24 on-time payments, particularly on the first one.

Otherwise, this will be doubled and become 48 on-time payments.

  • Pros: Many on-campus branches; loan limit can be extended if needed; good customer service via phone and email support.
  • Cons: No loan consolidation for federal and private student loans; forbearance period is up to six months only.
  • Fees: No application, origination, or early repayment fees.
  • Rates: Fixed and variable rates available; 0.50% rate discount (highest rate reduction in the market) when you sign up for a checking account with Wells Fargo and register for automatic payments.
  • Loan amount: Up to $120,000
  • Term: 15 years (but can change depending on the loan terms)

7. Discover Student Loans

Discover has been in the industry since 1986, starting out with the first cash rewards credit card. Today, they have a variety of products and services to offer to the customers.

  • Pros: High loan limit; offers loan consolidation for federal and private loans.
  • Cons: No cosigner release until the loan is paid in full; forbearance period is 12 months only.
  • Fees: No fees and no interest capitalization for the entire deferment period.
  • Rates: Fixed and variable rates available; 0.25% rate discount if you apply for scheduled automatic loan payments from your savings or checking account.
  • Loan amount: Up to $200,000
  • Term: 15 years
  • Bonus: Cash back incentives if the borrower gets at least a 3.0-grade point, and if you show your diploma to Discover.

8. iHelp

iHelp‘s services may not be at par with the others, but if you’re looking for a longer forbearance period, you can opt for their service.

  • Pros: Good customer service; 24-month forbearance period.
  • Cons: No fixed-rate loans; low loan amount limit; interest rate is not reduced even if you sign up for automatic payments.
  • Fees: No pay
  • Rates: Variable rates; 0.30% rate discount for high variable rate loans and if you make 24 on-time payments.
  • Loan amount: Up to $100,000
  • Term: 20 years

 9. Sallie Mae

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Unlike others, Sallie Mae offers three repayment options for the borrowers to choose from: Deferred, Fixed or Interest Repayment Option.

  • Pros: Cosigner can be released after 12 on-time payments; shorter repayment period with only 12 months.
  • Cons: No email support or live chat, communication is through phone only.
  • Fees: No origination and early payment fees.
  • Rates: Fixed and variable rates available; 0.25% rate discount if you sign up for automatic payments via savings or checking account.
  • Loan amount: $1,000 to $200,000 or 100 percent of how much is the school-certified attendance cost.
  • Term: 12 years
  • Bonus: Student and parent loan options; free FICO credit score tracking for both the borrower and co-signer; free tutoring (120 minutes) and study resources from Chegg.

Factors To Consider In Private Student Loans

Essentially, the interest rates and fees should be the center of your attention in looking for the best private student loan.

These two are the determining factor on whether that private student loan is the best for you.

Below are the other factors you have to consider:

  • Term
  • Payments while in school
  • Cosigner release
  • Penalties
  • Repayment benefits

Here’s a video from eStudentLoan for a guide on how to properly use private college loans:

Choosing the best private student loan is tricky, as it will depend on the borrower’s situation and preferences.

Our advice: focus on the rates and fees, but consider other factors as well.

Are there other companies you consider to provide the best private student loans? Share it in the comments section below!

Up Next: How To Apply for Student Loans.