Private student loans are loans taken out to cover college costs after you have exhausted the maximum amount borrowable at federal universities. Private student loans are offered by private financial institutions, such as banks, credit unions, and online lenders, rather than the government.
Most private student loan companies offer loans based on the beneficiaries’ credit score, income, and employment history.
Some private loan companies may require a co-signer, especially if the borrower has a limited credit history or a lower credit score. A co-signer is an individual who accepts to be responsible for the loan if the primary borrower fails to repay.
Private student loan interest rates can be fixed or variable, fixed interest rates mean that the interests remain constant throughout the duration of the loan, while the variable interest may fluctuate based on market conditions. Private student loans offer students a higher borrowing limit unlike the federal student loan agency.
It’s important for students who are considering taking private student loans to research the best private loan companies, compare the features of different loan companies, and make informed decisions based on their discovery.
If you are considering taking a student loan from a private loan company, here is an article that provides you with information on the best private loans of 2024, explore.
Best Private Student Loans Of 2024
1. Rhode Island Student Loan Authority
Rhode Island Student Loan Authority is otherwise known as RISLA. It is a nonprofit organization based in Rhode, this organization provides lending services all over the world.
Rhode offers two kinds to undergraduate students and each have their fixed interest rates. The first kind of student loan requires beneficiaries to start repayment immediately and the second loan allows beneficiaries to start repayment six months after graduation.
Beneficiaries of each type of loan are given the same interest rate. It might interest you to know that RISLA loan is the only private student loan agency that offers income-based repayment plan. Rhode Island Student Loan Authority won the Forbes Advisor best private student loans in 2020
2. Ascent
Ascent is unique for its co-signed and non-cosigned student loans. Students who opt for the non-co-signed option are allowed to choose from a range of funding options. Another unique feature of Ascent is its range of payment reduction and postponement options. This feature is very rare among private student loan agencies.
Beneficiaries are allowed to choose a graduated repayment plan which offers them a low repayment plan which increases as they move up in heir careers.
Beneficiaries of the Ascent loan can also put a hold on their repayment for about 3-24 months if they are facing financial challenges. Putting a hold on repayment however means that the loan repayment period will be extended and interest will accrue. Ascent won the Forbes Advisor’s best private student loans of 2021 awards.
3. SoFi
SoFi is a popularly known student loan refinance lender that also offers loans to undergraduates, graduate students, law and business students and parents.
The undergraduate loan offered by SoFi has industry-standard features with no late fees, an interest rate discount of 0.125% if your co-signer already uses another SoFi product and job search help through its career team. SoFi offers benefits like career coaching and no late fees.