Best low-interest private student loans for fall 2023
August is quickly coming to a close. And for students planning to attend college this fall, that means the window for arranging your tuition is closing, too.
Fortunately, it's not too late to apply for student loans — both federal and private.
While federal student loans should usually be your first line of defense, private student loans can make up the difference when those run out. They also may come with lower interest rates (if you have a high credit score) and can offer much more in funding than federal loans typically offer.
Will you need the help of private student loans this fall? If so, then consider the below best low-interest private student loans. Start exploring your options here today.
Best low-interest private student loans for fall 2023
Here are five of the best low-interest private student loan lenders to consider now.
College Ave
College Ave is a well-known name in the student loan space — and for good reason. With interest rates starting at just 4.39%, it offers some of the lowest student loan interest rates around.
There are loans both for undergraduates and graduate students, as well as specialized loans for students getting their MBA, enrolled in dental, law, or medical school, or who are pursuing healthcare careers.
In any case, borrowers can choose between fixed and variable-rate options, and there are four repayment plans while in school — full principal and interest, interest-only, flat $25 payments or deferred payments. Depending on what type of loan you're using, there are either four or five terms to choose from, too.
Learn more about College Ave here now.
Earnest
Earnest offers a wide variety of private student loans — ones for cosigners and non-cosigners, undergrads and graduate students, borrowers with half-time enrollment, and students in MBA programs, medical school and law school.
The lender's standout feature is its rate match guarantee, which promises to match any competitor's interest rate — plus they give you a $100 Amazon gift card to boot. There are also four repayment options, and borrowers get a nine-month payment grace period after graduation.
See what rate you could get with Earnest here.
SoFi
SoFi offers six types of private student loans: undergraduate loans, parent loans, graduate loans, MBA loans, law school loans and health profession loans.
The lender also offers a number of different rate discounts, including auto-payment discounts and discounts for new borrowers, returning borrowers and families. You can also earn SoFi reward points and use them to pay down your loan balance, and there's even unemployment protection included, so in the event you lose your job, you can pause your monthly payments and take advantage of SoFi's job placement assistance.
Check your private student loan options with SoFi here now.
Ascent
Ascent offers both cosigned and non-cosigned loans, and not all options are credit-based either. Its non-cosigned loan, for example, is an "outcomes-based loan," which qualifies you based on your GPA and academic performance. It's only for juniors and seniors with full-time enrollment or who are graduating within nine months.
All Ascent's loans offer nine-month deferred payments after graduation, interest-only payments while in school and a 1% cash-back graduation reward. There is also a 0.25% rate discount for setting up automatic payments.
MEFA
MEFA offers private student loans with fixed interest rates as low as just 5.35%. There are both undergraduate and graduate loan options and undergrad loans come with four different repayment plans. You can opt for immediate interest and principal payments, interest-only payments while in school, deferred payments until six months after graduation and deferred payments plus a cosigner release. There are also no origination or application fees and you can be enrolled just half-time.
How to get a low private student loan interest rate
If you're applying for a private student loan, your interest rate (and eligibility) is going to depend a lot on your credit score. So if you want the lowest rate, work on improving your score before submitting your application. This means paying down debts, making on-time bill payments and disputing any errors on your credit report.
If you don't have credit to your name, you can open a credit card and make small purchases on it, being sure to repay the balance in full every month. This helps you build a strong payment history and a credit score all in one.
Bringing in a cosigner with a high credit score can help you get a lower interest rate, too, as can having a low debt-to-income ratio, meaning your debt payments (or your cosigner's) don't take up very much of your monthly income.
Finally, shop around for your lender — especially when refinancing. Rates vary a bit from one company to the next, so make sure to compare several of the best private student loan lenders to ensure you get the lowest possible interest rate. Get started here today!
