It’s hard enough to pay for education as it is. How can you locate a lender? What should you think about? How can you be sure you’re getting a good deal? It can all be too much. Best Student Loans And Current Rates
To make it easy, you should always obtain federal loans first and then private loans.
There weren’t many choices while I was in college. If you got Federal loans, you had to fill out your FAFSA and wait for an email from the financial aid office. If you wanted a private loan, you went to a big bank.
Things are different now. There are a lot of choices, and it could be hard to compare them all. For a quick quote, check out our partner College Ave. In just a few minutes, you may get a quote and locate some of the best student loan rates.
Here’s what you need to know about getting the finest student loans and interest rates.
Federal vs. Private Student Loans
We need to start the conversation by ignoring the rates. The best student loans will always be the Federal loan your child can take in their name. You then follow that up with either federal Parent PLUS loans or private loans. And in that conversation, student loan rates matter.
You need to understand 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 are set annually based on the year you take out the loan.
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 6.3% to as high as 8.9%. They actually increased by over a percentage this year. Check out the tables below to see where your federal student loan interest rate may fall:
2025 – 2026 Federal Student Loan Interest Rates
If you’re planning on attending college in the fall, these rates are for loans taken after July 1, 2025 but before July 1, 2026:
The half point interest rate increases continue a trend that began at the start of the pandemic, after interest rates reached a historic low. See StudentAid.gov for information about federal loans.
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.
Note: The new Federal student loan interest rates for the next academic year (2026 – 2027) will be announced in May 2026. However, you’ll want to fill out the FAFSA now if you plan on accepting a student loan next year. Best Student Loans And Current Rates
Finding The Best Student Loans
If you go the private student loan route, there are a lot of lenders with different programs and it’s important to compare.
We’ve reviewed most of the major student loan lenders and have a comparison tool here: Comparing Private Student Loan Lenders.
We also recommend really researching the different loan programs out there. There are a lot of lenders that offer different programs and incentives that can be helpful depending on the type of degree and what you believe your employment will look like after graduation. Best Student Loans And Current Rates
If you already have student loans and are looking to refinance, it’s also essential to compare.
Some of the key features that you should look for to find the best student loans include:
- Interest Rate (the lower, the better)
- Loan Term (anywhere from 3 years to 25 years)
- Origination Fees (you want none)
- Repayment Plan Options
- Forbearance Options
- Bonus Offers
- No Prepayment Penalties
- Student Loan Borrowing Limits
- Cosigner Release (since it’s almost impossible to get a student loan without a cosigner)
Comparing The Best Student Loan Rates
The best private student loan rates range from 2.89% APR to over 16.99% APR, depending on various factors – including your credit score, household income, cosigner, and more. Best Student Loans And Current Rates
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!
1. Credible
Credible is our top pick for 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
- EDVestIn
- MEFA
- RISLA
Their platform covers roughly half of 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.
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.
3. 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.
4. 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.
5. 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 its criteria for 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. Best Student Loans And Current Rates
6. Sallie Mae
Sallie Mae is probably one of the most well-known lenders on this list. By loan volume, they are the nation’s largest private student loan lender. 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. Best Student Loans And Current Rates
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. Best Student Loans And Current Rates
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 have reached that stage, please ensure you are exploring the best student loan rates and terms.
Common Student Loan FAQs
Here are some of the most common questions we get when it comes to finding the best student loans and borrowing to pay for college.
Which is better – federal or private student loans?
You should always borrow the maximum amount of federal student loans before moving to private student loans. Federal student loans offer more benefits, such as loan forgiveness and flexible repayment plans, compared to private student loans. Best Student Loans And Current Rates
What type of student loan is best?
Federal student loans, specifically subsidized student loans, are the best to pay for college. Then you have unsubsidized loans. Many borrowers will also be offered parent PLUS loans, which we don’t recommend. Then you have private student loan options.
How can you find the lowest student loan rate?
Interest on federal student loans is fixed for all borrowers based on your school year. These rates are typically some of the lowest in the marketplace. If you’re looking at private student loans, you need to shop around and get multiple quotes on your student loan rate. Best Student Loans And Current Rates
What are the drawbacks of student loans?
Student loans have drawbacks just like any other form of debt. You’re going to need to repay the debt, and your ability to repay is going to be based on your income after graduation. However, unlike other loan types, student loans have very few options for discharge – meaning you can’t easily get rid of them in bankruptcy. And the government and private lenders have a lot of collection options available to them.
Why Should You Trust Us
I am America’s Student Loan Debt Expert™ and have been actively writing about and covering student loans since 2009. Myself and the team here at The College Investor have been actively tracking student loan providers since 2015 and have reviewed, tested, and followed almost every provider and lender in the space. Best Student Loans And Current Rates
Furthermore, our compliance team reviews the rates and terms on these listing every weekday to ensure they are accurate. That way you can be sure you’re looking at an accurate and up-to-date rate when you’re comparison shopping.
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! Best Student Loans And Current Rates