Lowest Private Student Loan Interest Rates

Lowest Private Student Loan Interest Rates

Private student loans are a convenient way for students, parents and graduates to pay for college. They typically offer lower interest rates than federal student loans, which means you can save money on interest over the life of your loan. But just like any other type of loan, private student loans have their own pros and cons. If you’re considering taking out a private student loan, here are some things to consider:

U-fi from Wells Fargo

Wells Fargo offers a student loan with fixed interest rates between 5.74% and 8.74%. The minimum amount you can borrow is $5,000, while the maximum amount is $50,000. If you choose to take out a 10-year loan, your monthly payment will be $50; if you choose to take out a 7-year loan instead, it’ll be even lower at $45 per month.

The annual percentage rate (APR) on this Wells Fargo student loan ranges from 5.74% for borrowers with excellent credit scores to 8.74% for those with less than perfect credit scores.

Sallie Mae Smart Option Student Loan

  • Sallie Mae Smart Option Student Loan
  • Interest rate: Variable and fixed
  • Fixed interest rates range from 3.30% to 8.00% depending on the size of your loan and whether it’s a subsidized, unsubsidized or graduate PLUS loan. The variable portion is currently set at 5.10%.
  • Example: Let’s say you have $40,000 in student loans with Sallie Mae and you want to pay off your debt as quickly as possible with an interest rate that doesn’t fluctuate too much over time—but not too quickly either (you don’t want to default on your payments). Your monthly payment would be $270 if all of your loans were subsidized loans that carried a fixed rate of 6% (which is about average for these types of loans), and $301 if all of them had variable rates topping out at 7%, which is also pretty typical for this type of loan scenario.

College Ave.

College Ave. offers a variety of private student loans that have fixed interest rates. The lender’s interest rate is based on your credit score, and they offer loans ranging from $1,000 to $50,000 with terms between 1 and 10 years. If you have a solid credit score, you can expect rates as low as 5.49%. However, if your score isn’t as high or if you’re looking for a longer term loan, the rates may be higher than average at 12.99% or more per year (the longest term at College Ave is 10 years).

To apply for a loan with College Ave., borrowers must fill out an online application form that takes less than five minutes to complete; no paperwork is needed during this process beyond linking proof of identity via social media (e-mail address) and uploading photos of proof of income like pay stubs from recent employment history up until May 2019 (or W-2 forms/SS-2 tax transcripts).

There are no origination fees associated with most loans made through College Ave., which makes it easier for borrowers who may not have access to funds otherwise; however there is still an application fee ($5-$25) which covers research conducted by dedicated staff members in order to determine whether applicants meet all eligibility requirements before issuing funding agreements for selected applications according these criteria:

SunTrust Custom Choice Loan

Another option is SunTrust’s Custom Choice Loan, which has a rate of 3.95% and comes in terms of 5, 7 or 10 years. It also has a minimum credit score requirement of 660 and income requirements starting at $25,000. With no origination fee, prepayment penalty or application fee required for this private student loan you’ll have more money to put toward your education while saving on interest costs.

Discover Undergraduate Loan

Discover Undergraduate Loan

Interest Rate: 6.99% fixed

Origination Fee: None

Prepayment Penalty: None

Minimum Credit Score Needed: 620+

Application Fee: None

Cosigner Required?: No

Citizens Bank Education Refinance Loan

Citizens Bank offers a fixed-rate private student loan, the Education Refinance Loan, with an interest rate of 4.75%. There is no origination fee and no prepayment penalty.

The maximum amount you can borrow is $25,000 for undergraduate study and $35,000 for graduate or professional studies. You can borrow up to 100% of your eligible federal loans. There are no minimum credit score requirements or income verification requirements. However, there is an employment verification requirement (you must have a job that makes 120% of your total monthly loan payment).

To apply for this private student loan program from Citizens Bank:

  • Apply online at https://www2.citizensbankonline.com/studentloans/index#apply?start=1&page=2&type=3&id=PLD00000109

Discover Graduate Loan

Discover Graduate Loan:

  • Lowest interest rate for grad students
  • No origination fee
  • No prepayment penalty
  • No penalty for paying off early

ELFI (Educational Loan Finance)

ELFI (Educational Loan Finance) is a new lender that’s been around since 2018. While it’s not as well known as other student loan companies, ELFI offers competitive rates and flexible repayment options to borrowers who are looking for a fixed interest rate or have already defaulted on their loans.

ELFI offers loans up to $10,000 and has an average APR of 8%, which is slightly lower than some of the other lenders on our list. The company also gives borrowers the option of refinancing previous federal student loans through its private refinancing program, but only if they can show proof that they’ve been making timely payments on those loans for at least six months prior to applying with ELFI.

ELFI makes it easy for applicants who want fixed interest rates by offering only two options: 6-month and 10-year plans available at 5% and 7%, respectively—but be aware that these fixed rates may change over time based on market conditions.

These are the lowest private student loan interest rates available.

Private student loans have a fixed interest rate that’s based on your credit score, credit worthiness and history. If you have good or excellent credit (you’re going to need at least a credit score of 720 or above), you can qualify for the lowest private student loan interest rates available.

The private student loan market is competitive, and you have many options to choose from. We hope this article helped you make an informed decision on which student loan provider to go with.

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