Best Student Loans And Rates In June 2023

Paying for college is already challenging enough, but then you have to think about finding the best student loans and student loan rates, and it can just be daunting. How do you find a lender? What should you think about? How do you know you’re getting a good deal? It can all be overwhelming.

When I was in college, there weren’t a lot of options. If you got Federal loans, you filled out your FAFSA and waited for your email from the financial aid office. If you were looking for private loans, you went to a major bank.

That’s all changed today. There are lots of options, and comparing them all could be a challenge. If you want to quickly get a quote, check out our partner College Ave. You can get a quote and find some of the lowest student loan rates in minutes.

Federal vs. Private Student Loans

The first thing to understand is that you don’t get a choice in your student loan rates with Federal loans. Federal student loan rates are set by the government and change periodically.

However, for most people borrowing Federal student loans, that doesn’t matter because they are trying to take advantage of the special student loan repayment programs or loan forgiveness plans that come with Federal student loans.

Federal student loan interest rates vary, from as low as 4.993% to as high as 7.543%. They actually increased by over a percentage this year. Check out this chart to see where you student loan interest rate may fall:

For many borrowers, Federal loans with be the best student loans. However, if you have great credit (or a cosigner with great credit), a private loan could potentially save you a lot of money. But you do lose out on government benefits (like loan forgiveness and income-driven repayment) if you opt for a private loan.

If you’re curious about what future student loan rates could look like, see this guide: Predicting Future Student Loan Rates.

Comparing The Best Student Loan Rates

The best private student loan rates range from 4.99% APR to over 16.99% APR, depending on various factors – including your credit score, household income, cosigner, and more. 

We recommend using a service like Credible to compare the best student loan rates. With Credible, you can compare multiple lenders in about 2 minutes. It’s quick and easy, and will give you a snapshot of what you might see for student loan rates.

Check it out here and see for yourself: Credible Private Student Loan Comparison.

Credible doesn’t have every lender available, and it’s important to shop around. When shopping for a student loan, remember that most banks and credit unions will do a “soft pull” of your credit on the initial application. That’s okay. If you do all your loan shopping within a 2 week period of time, it shouldn’t hurt your score overall.

When you do a formal application, the lender will do a hard pull. You should only move to this part once you’re ready to go.

Finally, remember it can take about 30 days to complete the application from start to finish. If you’re looking to start college in August, you should probably have your loans all ready to go no later than July. Start shopping now! You can find the best private loans here.

Our Picks For The Best Student Loans

If you’re ready to shop around, here are our picks for the best private student loans. We recommend comparing all of them – it honestly only takes a few minutes. You can take a look at our full list of the best private student loan lenders.

Considering everything else you’ve done to apply for college at this point in time, spending an hour to compare the best student loans is a no brainer!

Note: The student loan offers that appear on this site are from companies from which The College Investor receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The College Investor does not include all student loan companies or all student loan offers available in the marketplace. As always, shop and compare!

1. Credible

Credible is our #1 pick for the best private student loans because they are a comparison tool that shops all the major private loan providers to give you the best rates and terms possible. Instead of manually doing the work, Credible shops multiple lenders, including:

• Citizens Bank
• Connext
• IHelp
• EDVestIn
• Raise Private Student Loans

These are pretty much all the major private student loan lenders available. The cool thing with Credible is that it takes about 2 minutes, and you can get a good sense of your loan options. Read our full Credible review.

Check out Credible here >>

2. College Ave

College Ave is a private student loan lender that typically offers some of the lowest interest rates in the market at any given time.

You’ll have the option to pay back your private student loan in 5, 8, 10, or 15 years. The minimum loan amount is $1,000 and College Ave will cover up to 100% of the cost of attendance.

College Ave also has multiple options for repayment programs once you are out of school.

Read our full College Ave review.

Check out College Ave here >>

3. Discover® Student Loans

Discover has been a solid private student loan option for the last few years. They offer both undergraduate and graduate private student loans, with competitive rates and terms. You can borrow up to 100% of school-certified costs, including tuition, housing, books and more. Aggregate loan limits apply.

Students can choose from in-school or deferred repayment options, and there is never a penalty for prepayment. You can also earn a 0.25% interest rate reduction while enrolled in automatic payments.**

With Discover, hard work pays off. Literally. You can qualify for a one-time cash reward on each new Discover student loan if you get at least a 3.0 GPA (or equivalent) in college or graduate school.***

Get a quote at Discover here >>

4. Earnest

Earnest is another lender that offers strong student loan options – with good rates and loan terms. They also don’t charge any fees for origination, disbursement, prepayment, or late payment.

In repayment, they also allow you to have a 9 month grace period after graduation (most lenders are 6 months), and they allow you to skip a payment once a year.

Read our full Earnest review.

Check out Earnest here >>

5. ELFI

ELFI is one of the largest student loan originators, and as a result, they typically offer some of the lowest student loan rates available.

They offer extremely competitive rates, with standard loan terms and conditions. You can borrow from 5 to 15 years, and they can lend across the entire United States, including Puerto Rico.

The only major drawback is you must be enrolled in a bachelor’s degree or more advanced education program.

Check our out full ELFI student loans review here.

6. Ascent

Ascent Student Loans offers competitive in-school loans and has two products – cosigner student loans and non-cosigner student loans. Ascent is one of the few companies that makes their criteria on getting a private student loan without a cosigner very clear. 

Ascent doesn’t charge any application fees, and they have solid repayment options – including deferment while in school. They also offer very competitive interest rates on their loans.

Read our full Ascent review.

Check out Ascent here >>

7. Sallie Mae

Sallie Mae is probably one of the most well-known lenders on this list. They are the nation’s largest private student loan lender by loan volume. As a result, they also offer some of the most competitive private student loans and parent loans out there.

You can take out Sallie Mae student loans starting at just $1,000 (which is one of the lowest) and can borrow up to the total cost of education¹. Sallie Mae has over 8 different student loan options to choose from and a variety of repayment plans too. 

Read our full Sallie Mae review here.

Get a quote for Sallie Mae here >>

Are Private Student Loans Right For You?

It can be hard to know if private student loans are right for you. Honestly… there is no right answer. Some people swear off private student loans. Other people have found them to be a helpful way to pay for college while saving money in interest.

It’s important to remember that Federal student loans come with a lot of options, and they usually have a very good interest rate. With Federal student loans, you get access to income-driven repayment plans, student loan forgiveness options, and more. You don’t get many benefits with private student loans.

However, private student loans typically give you the best student loan rates possible. 

You might also consider an income-sharing agreement as an alternative to a private loan. Income-sharing agreements are where you get money for school in exchange for paying back a portion of your income after graduation. These plans are typically structured in a way that means you only pay back if you see a positive return on your education. Check out our guide to income-sharing agreements here.

As with everything related to paying for college, we recommend you follow the Proper Order Of Operations To Pay For College. Make sure you’ve exhausted your other aid, Federal student loans, and working before diving into private student loans. If you’re at that point already, then make sure you’re shopping around for the best student loan rates and terms.  

Final Thoughts

No matter what path you take in paying for school, it’s essential that you educate yourself on your options. Whether your looking for the best student loans, or other financial aid options, you’re going to have to spend a little time doing homework.

If you haven’t already checked out financial aid options, look at this guide: Student Loan And Financial Aid Options By State. Many states maintain their own special financial aid and student loan programs that could save you even more money or help pay for college!