Student loans 21 February 2023

8 Best Student Loans with the Lowest Interest Rates this Year

If you are looking for student loans lowest interest rates, we have compared 8 top lenders for you. Read to find out how to apply.

Student Loan Lowest Interest Rates

College can be costly and loans are often the best way for you to cope financially while you study. We recommend that you look at student loans with the lowest interest rates so that you can pursue your educational opportunities with ease. You can start by exploring federal student loans, but they alone may not be enough to cover the cost of your education. Therefore, many students choose to take out private student loans. However, keep in mind that most lenders do require the borrower to be creditworthy for offering them the lowest interest rate so you might need a cosigner if you do not have a good credit score.

We have reviewed the most trusted private lenders of this year that are offering student loans with the lowest interest rates.

Top Private Student Loans with Lowest Interest Rates

LenderScholaroo ratingFixed rates starting (APR)Variable rates starting (APR)

College Ave

The best for low interest student loans

Visit website
5/53.99%3.99%

Earnest

The best for low interest student loans

Visit website
5/53.99%3.99%

Sallie Mae

A trusted lender with great offers

Visit website
4.9/54.50%4.62%

Ascent

Great for loans without cosigners.

Visit website
4.8/54.62%4.72%

SoFi

Great lender for private student loans.

Visit website
4.8/54.99%4.49%

Discover

Best lender with zero fees and valuable rewards

Visit website
4.5/55.49%5.87%

Citizens Bank

Great for multi-year approval

Visit website
4/54.99%5.10%

PNC Bank

Best for auto-pay interest rate discounts

Visit website
3/54.49%5.64%
Lender

College Ave

The best for low interest student loans

Scholaroo rating
5/5
Fixed rates starting (APR)
3.99%
Variable rates starting (APR)
3.99%
Visit website
Lender

Earnest

The best for low interest student loans

Scholaroo rating
5/5
Fixed rates starting (APR)
3.99%
Variable rates starting (APR)
3.99%
Visit website
Lender

Sallie Mae

A trusted lender with great offers

Scholaroo rating
4.9/5
Fixed rates starting (APR)
4.50%
Variable rates starting (APR)
4.62%
Visit website
Lender

Ascent

Great for loans without cosigners.

Scholaroo rating
4.8/5
Fixed rates starting (APR)
4.62%
Variable rates starting (APR)
4.72%
Visit website
Lender

SoFi

Great lender for private student loans.

Scholaroo rating
4.8/5
Fixed rates starting (APR)
4.99%
Variable rates starting (APR)
4.49%
Visit website
Lender

Discover

Best lender with zero fees and valuable rewards

Scholaroo rating
4.5/5
Fixed rates starting (APR)
5.49%
Variable rates starting (APR)
5.87%
Visit website
Lender

Citizens Bank

Great for multi-year approval

Scholaroo rating
4/5
Fixed rates starting (APR)
4.99%
Variable rates starting (APR)
5.10%
Visit website
Lender

PNC Bank

Best for auto-pay interest rate discounts

Scholaroo rating
3/5
Fixed rates starting (APR)
4.49%
Variable rates starting (APR)
5.64%
Visit website

#1 College Ave

The best for low interest student loans

Apply now

College Ave

5
Scholaroo Rating
Fixed Rates Starting (APR)3.99%
Variable Rates Starting (APR)3.99%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

College Ave provides many loan options that are flexible and has the lowest APR rates. Students can choose from various repayment options, along with coverage of 90% of their school costs. You also have the flexibility to choose additional loans with a co-signer, giving you a multi-year peace of mind.

You can easily calculate the terms and your payments on their website, making it easier for you to see everything in one go.

Pros

  • Lowest APR rates
  • Multi-year additional loans are available
  • Coverage for up to 100% cost of attendance
  • Flexible repayment terms
  • No origination fees

Cons

  • Co-signer release is not possible until half of the loan payments are complete
  • Need a co-signer
  • U.S. citizenship or permanent residency
  • School verification
  • You can start repaying your principal interest from the beginning
  • Loan term can be 5–15 years
  • Deferment options available
  • Co-signer release only possible after half of loan payments are done

#2 Earnest

The best for low interest student loans

Apply now

Earnest

5
Scholaroo Rating
Fixed Rates Starting (APR)3.99%
Variable Rates Starting (APR)3.99%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Students can get good loan options with flexible terms of repayment through Earnest without worrying about additional fees. Earnest does not charge any fee for the origination, application, or early closure of the loans. It provides good APR rates and a choice of variable or fixed interest rates.

You can check their website and find out eligibility in a few minutes.

Pros

  • No fees at any point of the loan
  • 9 months grace period
  • Discount on fixed payments
  • Flexible loan repayment terms

Cons

  • Co-signer has to complete the loan term
  • Should have a minimum credit score of 650
  • Should be a U.S. citizen or permanent resident
  • All States except Washington DC and Nevada
  • 9-month grace period
  • Start paying principal interest from start
  • Loan term 5–15 years
  • No co-signer release

#3 Sallie Mae

A trusted lender with great offers

Apply now

Sallie Mae

4.9
Scholaroo Rating
Fixed Rates Starting (APR)4.50%
Variable Rates Starting (APR)4.62%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Sallie Mae is one of the most popular lending institutions and is considered to be the largest loan provider in the country. For students, Sallie Mae offers multiple different types of loans including undergraduate, graduate, career training, medical school loans, and many more, as well as also offering credit cards and saving accounts.

Loans by Sallie Mae can be easily applied for through a cosigner and provide discounts for fixed payment schedules.

Pros

  • No origination fees
  • 100% school attendance costs covered
  • Discounts for fixed payment schedules
  • Easy repayment options
  • Needs a cosigner

Cons

  • They will conduct a credit check
  • Verified school admission halftime or more
  • Must be a U.S. citizen or permanent resident
  • Should have a minimum credit score (undisclosed)
  • Fixed and variable repayment options available
  • Co-signer can be released after 12 regular payments
  • Deferment options available for undergraduate and graduate borrowers
  • Repayment terms 5–15 years

#4 Ascent

Great for loans without cosigners.

Apply now

Ascent

4.8
Scholaroo Rating
Fixed Rates Starting (APR)4.62%
Variable Rates Starting (APR)4.72%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Ascent is a popular choice for students as its options include a non-cosigned loan and a loan based on future income.

Ascent also offers deferment options and flexible repayment plans. It provides a 9-month grace period after graduation making it easier for the students to start repaying their loans.

Pros

  • Apply for loans without a co-signer
  • 9 months grace period
  • Flexible repayment options
  • Deferment options available

Cons

  • Loan amounts have limitations
  • Minimum credit score 540
  • School verification
  • U.S citizenship or permanent residency
  • Co-signer release after 24 regular payments
  • 9 months grace period
  • Loan terms from 5 to 15 years

#5 SoFi

Great lender for private student loans.

Apply now

SoFi

4.8
Scholaroo Rating
Fixed Rates Starting (APR)4.99%
Variable Rates Starting (APR)4.49%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

SoFi is a leading provider of student loans that covers federal and private loans. SoFi also provides various other banking services including credit card, mortgage and auto financing.

SoFi members can gain access to exclusive deals and discounts, financial advice, flexible repayment plans, and more.

Pros

  • Many member benefits
  • Financial planning & advice
  • Special discounts for a co-signer that is also a SoFi member
  • Flexible plans

Cons

  • Minimum loan amount required
  • Must be enrolled in a degree-awarding eligible school
  • No minimum income requirement
  • All 50 states covered
  • Co-signer release after 24 regular payments
  • 6-month grace period
  • Fixed monthly payments of $25

#6 Discover

Best lender with zero fees and valuable rewards

Apply now

Discover

4.5
Scholaroo Rating
Fixed Rates Starting (APR)5.49%
Variable Rates Starting (APR)5.87%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Discover offers multiple private student loan options available to undergraduates, graduates, health professionals, MBA students, Law students, bar exam, and to students in residency. They also have options for parents and other creditworthy individuals. They do not charge late fees on their private student loans and provide further interest rate discounts based on certain conditions. For example, those registered for auto pay can receive a 0.25% rate reduction.

Pros

  • No origin fee, late fee, or application fee
  • Cash rewards for good grades
  • Covers up to 100% of school-certified college costs
  • 0.25% rate reduction with auto pay
  • Various economic hardships and repayment options
  • International students can qualify with a co-signer who is a U.S. citizen or a permanent resident
  • Multi-year option available

Cons

  • No co-signer release program
  • Must be a U.S. citizen or permanent resident, or have a co-signer that is one
  • Seeking an undergraduate or graduate degree
  • Enrolled at least half-time in a degree program at an eligible school
  • Must be making satisfactory academic progress
  • Be 16 years or older when applying
  • Pass a credit check (minimum limit undisclosed)
  • Fixed and variable repayment options available
  • Deferment options available
  • Repayment term of 15 years
  • Interest-only payments during school and grace period

#7 Citizens Bank

Great for multi-year approval

Apply now

Citizens Bank

4
Scholaroo Rating
Fixed Rates Starting (APR)4.99%
Variable Rates Starting (APR)5.10%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Citizens Bank provides private student loans to undergraduates pursuing bachelor’s degrees, graduate students, and parents. They offer good rates to creditworthy individuals along with a further discount of 0.25% if the borrower or cosigner has an existing account with the bank. Citizens Bank has a multi-year approval system too where borrowers do not require a hard credit check for future loans.

Pros

  • Multi-year approval
  • International students can qualify with a cosigner who is a U.S. citizen or permanent resident
  • 0.25% loyalty discount

Cons

  • Maximum limit of $150,000 for undergraduate loans
  • No firm deferment or forbearance policies
  • Charges late fee and returned payment fee
  • Minimum credit required
  • No soft credit checks available
  • Must have U.S. citizenship, permanent residency or have a co-signer with either status
  • Borrowers must be enrolled at least half time
  • No prior student loan defaults
  • Must be the age of majority otherwise needs a co-signer that is
  • Must be credit-worthy (minimum score undefined)
  • Fixed and variable repayment options available
  • Repayment terms options of five, 10 and 15 years

#8 PNC Bank

Best for auto-pay interest rate discounts

Apply now

PNC Bank

3
Scholaroo Rating
Fixed Rates Starting (APR)4.49%
Variable Rates Starting (APR)5.64%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

PNC Bank offers multiple private student loan options with low-interest rates for undergraduates, graduates, and professionals. They offer a further discount of 0.50% on the rates if you enroll in automatic payments. PNC gives their borrowers various refinancing and forbearance options too. The loan modification with PNC can also help you to lower the rates and monthly payments charged on your loan.

Pros

  • No origin or application fee
  • 0.50% discount with auto pay
  • Customizable payment plans
  • Co-signer release
  • Scholarships available

Cons

  • Requires credit approval
  • Requires a hard credit check
  • Co-signer release available after 48 months of consecutive timely payments
  • International students cannot apply
  • Both student and co-signer (if any) must be a U.S. citizen or permanent resident
  • Enrolled at least half-time in a degree or certificate program
  • Satisfactory credit history
  • Fixed and variable repayment options available
  • Refinancing and forbearance available
  • Customizable payment plans
  • Loan term choice of 5, 10, and 15 years
  • Interest-only payments while in school
  • Deferred payments start after 6 months of graduation

Types of Low Interest Student Loans

There are two main types of low-rate loans including federal loan options and private student loans.

Federal Student Loans

Federal student loans are provided by the U.S. Department of Education and they have the lowest interest rates along with flexible repayment options. To qualify for these loans a student must complete the free application for federal student aid also known as FAFSA.

There are four types of federal loans:

  • Direct Subsidized Loans: To be eligible for a direct subsidized loan, you must be enrolled in college at least half of the time. These loans are provided to the student after assessment of their financial need and the interest rate is subsidized to make the repayment easier. The interest is only charged after graduation and the student gets an additional 6 months grace period as well. In case of deferment, you will not be charged interest for that time.
  • Direct Unsubsidized Loans: These loans do not need to assess the financial needs of the student and therefore have a fixed interest rate that starts as soon as the funds are allocated and continues till the loan is paid in full. Unsubsidized loans however still have flexibility in repayment
  • Direct PLUS Loans: Direct Plus loans are provided to the parents and caregivers of students. These also have fixed interest rates with flexible repayment options. The parents do not have to pass a credit check and can defer the loan till the student graduates. Direct Plus loans are also available for graduate and professional students.
  • Direct Consolidation Loans: For multiple federal student loans, the government can offer a single loan with fixed interest rates to pay off the other loans. This helps in getting debt sorted and provides the students with a better debt ratio.

Private Student Loans

Private student loans are provided by banks and other lending institutions. The borrowers of private loans must pass a credit check and prove their creditworthiness. These loans usually have a higher interest rate but you can borrow a bigger loan amount. The interest rate is also dependent on the creditworthiness of the applicant. The higher the credit score, the lower the rates you can get. For students with poor credit, consigning the loan would increase their chances of approval and also lower their rates.

How to Get A Low Interest Student Loan?

There various are factors that can contribute to getting a lower interest rate on a student loan. Following are a few main ways to get a low-rate offered on a loan:

  • Build Good Credit: Lending institutions provide better interest rates and repayment options to borrowers with good credit. You can start building your credit with easy steps like a prepaid credit card and paying your existing loan payments on time. When you have a good credit score lenders provide loan options with the lowest interest rates.
  • Have a Low Debt-to-Income Ratio: Reducing your overall debt load really helps in getting good loan options. Lenders always evaluate your credit, and your overall debt burden, and compare it to your income. If your debit burden is low, that means you are able to maintain regular loan payments without being a high risk. Consider paying off your debt load at least 2-3 months prior to applying for a new loan. This helps in improving your credit score and debt-to-income ratio.
  • A Co-signer or a Guarantor: A co-signer or a guarantor can bring their good credit score to your loan application. Commonly student loans are cosigned by the parents and they bear the full responsibility of paying off the loan. This can help in getting lower interest rates from lenders. Loans can also be co-signed by other relatives and grandparents.
  • Consider a Shorter Repayment Structure: A short-term loan is less risky and gets lower interest rates compared to a long-term loan. If you are able to pay off larger monthly payments, a short-term loan will not only get you better rates but you will also benefit from paying interest for a shorter time period.
  • Do Detailed Lender Comparisons: Before signing up with a lender, you should review different institutions and do detailed comparisons. Some lenders may offer you special student discounts which will help in getting a better loan deal. Study the lenders and their reviews before making a final decision.

FAQs

Which type of student loan has the lowest interest rates?

The subsidized federal student loans provide fixed interest rates that are lower than other lending institutions. To receive better interest rates on private student loans, we recommend building good credit and having a co-signer.

Do I need a co-signer for student loans?

Some banks and lending institutions require a co-signer for student loans. Sallie Mae is one of the top leading loan providers in the country and requires a co-signer that can be released after 12 regular payments. Co-signers can be parents, grandparents, or other relatives. However, not all lenders require a co-signer. Ascent is among the lenders offering student loans without a co-signer.

What is a good interest rate on a student loan?

Federal loans have the lowest student loan interest rates that are fixed. Therefore, the federal rates can be used as a benchmark when assessing how good is the private student loan interest rate that is offered to you.

Which bank gives the lowest interest rates on student loans?

Based on our research, College Ave offers student loans with the lowest interest rates and better repayment options than other banks and lending institutions. You can review our comparison table and detailed review of lenders to understand which options work best for you and which lender has the lowest APRs.

How to get low-interest student loans without cosigner?

There are some lenders that offer low APR to students without cosigners. Ascent is a great lender for non-cosigned student loans with lower interest rates.