Federal vs. Private Student Loans
🏛️ Federal Loans — Start Here
- Fixed rates set by Congress: 6.53% (undergrad)
- No credit check for most programs
- Income-driven repayment plans
- Public Service Loan Forgiveness eligible
- Deferment & forbearance options
- Apply via FAFSA at studentaid.gov
🏦 Private Loans — Fill the Gap
- Variable rates from 4.49%
- Credit score affects your rate
- Higher loan limits available
- Less flexible repayment options
- No federal forgiveness programs
- Use only after maxing federal aid
Top Student Loan Lenders — 2026
College Ave offers the widest range of repayment options: full deferral, interest-only, flat payment, or full principal+interest while in school. Terms from 5–15 years. Cover 100% of school-certified costs. Available at 2,200+ schools nationwide. 0.25% autopay discount.
Pros
- Most flexible repayment plans
- Covers 100% of costs
- Competitive starting rates
- No origination or prepay fees
Cons
- No co-signer release
- Higher rates for poor credit
- Not available all schools
The most recognized name in private student lending. Sallie Mae offers loans for undergraduate, graduate, law, MBA, medical, dental, and trade schools. Career Training loans available even for non-degree programs. 4-month forbearance option. 16 specialized loan products.
Pros
- All school types covered
- Multi-year loan option
- Scholarships & resources
- 0.25% autopay discount
Cons
- No prequalification
- Hard pull required
- Co-signer release after 12 months only
SoFi offers industry-leading refinancing with no fees, unemployment protection (pause payments up to 12 months), and free career coaching. Refinance both federal and private loans. The unemployment protection is particularly valuable — losing your job doesn't mean losing your footing.
Pros
- No fees ever
- Unemployment protection
- Free financial planning
- 5–20 year terms
Cons
- Lose federal benefits on refi
- Requires degree completed
- Higher income requirements
Earnest's unique feature: choose your exact monthly payment to the penny, and the term adjusts accordingly. Also allows skipping one payment per year without penalty. Biweekly payment option. No fees. Available for private loans and refinancing. Owned by Navient.
Pros
- Custom payment precision
- Skip 1 payment/year
- No fees
- Biweekly option
Cons
- No co-signer option
- Narrow eligibility
- Not available in all states
Student Loan Comparison Table
| Lender | Type | Fixed APR | Variable APR | Amount | Co-signer? | Rating | |
|---|---|---|---|---|---|---|---|
| College Ave | Private + Refi | 4.49%–16.99% | 4.39%–16.85% | Up to full cost | Optional | ★★★★★ | Get Rate |
| Sallie Mae | Private | 4.50%–15.69% | 5.37%–16.78% | Up to full cost | Optional | ★★★★½ | Get Rate |
| SoFi | Refi + Private | 4.74%–9.99% | 5.99%–9.99% | $5K–$500K refi | Optional | ★★★★★ | Get Rate |
| Earnest | Private + Refi | 4.49%–16.85% | 5.34%–17.99% | Up to full cost | No | ★★★★½ | Get Rate |
| Discover | Private | 5.24%–15.99% | N/A | Up to full cost | Optional | ★★★★ | Get Rate |
| CommonBond | Refi | 5.50%–9.99% | 4.55%–9.45% | $5K–$500K | Optional | ★★★★ | Get Rate |
Federal Loan Rates 2024–25
| Loan Type | Interest Rate | Annual Limit | Who Can Borrow |
|---|---|---|---|
| Direct Subsidized | 6.53% | $3.5K–$5.5K/yr | Undergrad with financial need |
| Direct Unsubsidized | 6.53% | $5.5K–$20.5K/yr | All eligible undergrads |
| Direct Unsubsidized (Grad) | 8.08% | $20.5K/yr | Graduate students |
| PLUS Loan (Parents) | 9.08% | Full cost − other aid | Parents of undergrads |
| Grad PLUS | 9.08% | Full cost − other aid | Graduate students |