In order to provide you with a place to start in your research for college funds, Finxpd has reviewed 5 of the top private student loans currently available for the month of June 2022. This review takes into consideration rates, loan amounts, terms, fees, and other special characteristics. The following list may assist you in determining whether or not a private student loan is suitable for your needs. Moreover, it may help you to determine the interest rate that is most appropriate for your circumstances.
List of Contents
1. Ascent
Best for: Patience and adaptability
Variable Rates: 1.78% – 9.37% APR
Fixed Rates: 5.17% – 13.21% APR
Loan Amounts: $2,001 – $200,000
Overview
Ascent is a San Diego, California-based online student loan provider. Its student loan program is distinct from those of other lenders in that it provides three distinct possibilities. The typical cosigned loan, non-cosigned credit-based loan, and non-cosigned future income-based loan are among its offerings.
Borrowers seeking repayment protection may be relieved to learn that Ascent provides many deferral and kindness ways. Active-duty military deferral, in-school deferment, and residence or internship deferment are all choices for Ascent’s student loans.
Importantly, loans include temporary hardship forbearance, administrative forbearance, natural catastrophe, or proclaimed emergency forbearance for persons in financial distress. All three of these choices will lengthen the loan’s payback period.
Why We Selected It
Ascent shines out among private loans for its variety of payment reduction and deferral choices. Borrowers can choose a progressive repayment plan, which begins with a lower monthly payment and gradually climbs over time. This can be beneficial for recent graduates who will likely earn more money as they advance in their jobs.
Moreover, if borrowers are facing temporary financial trouble, they can also stop payments for one to three months at a period, up to a total of 24 months. However, by using this forbearance, you will repay the debt over a longer period of time. The overwhelming majority of private student loans continue to collect interest even in deferment. The most interesting is that Ascent was considered one of the best world’s private student loans of 2020 by Forbes Advisor.
Pros
✔ Cashback reward for graduating
✔ The hardship forbearance period is up to 24 months
✔ With no cosigner and no credit history, you may still qualify for a loan
Cons
✘ Interest rates may be expensive
✘ Freshmen and sophomores do not qualify for outcome-based loans without a cosigner
2. SoFi
Best for: Extra members benefits
Variable Rates: 1.20% – 11.23% APR
Fixed Rates: 4.23% – 10.66% APR
Loan Amounts: $5,000 – 100% of the school-certified cost of attendance
Overview
SoFi is an online personal finance startup that prioritizes mobile access. It is headquartered in San Francisco, California. It became the first firm in 2012 to refinance both federal and private student loans, which pushed it to the forefront of the industry. Because of this, it has grown into almost every market for consumer lending, and it has backed loans totaling over $50 billion.
Moreover, the variety of member advantages offered by SoFi is among the most attractive aspects of borrowing from this company. These advantages may be divided into three categories: financial, social, and professional.
Additionally, the financial advantages include financial planning guidance from certified advisers, referral incentives, and member rate savings. Social advantages, networking events, dinners, and happy hours are community perks. Besides, the professional perks include tools to help you achieve a raise, individualized career guidance, and a program to shield you against unemployment.
Why We Selected It
SoFi is likely most known for refinancing student loans. However, it also offers loans to undergraduates, graduate students, law and business students, and parents. Its undergraduate student loan program includes most industry-standard features like no late fees. Moreover, a 0.125 percent interest rate can be reduced if your co-signer currently uses another SoFi product and job search assistance from its career team.
Pros
✔ No late charges
✔ Prequalify without affecting your credit score
Cons
✘ The minimum loan amount is rather high
✔ Career guidance
✔ Rate discount for SoFi members and their cosigners
3. College Ave
Best for: Overall
Variable Rates: 0.94% – 12.99% APR
Fixed Rates: 3.22% – 13.95% APR
Loan Amounts: $1,000 – 100% of the school-certified cost of attendance
Overview
College Ave is an online lender for student loans headquartered in Wilmington, Delaware. The only objective of the lender is to make a college degree more accessible by assisting students and parents with the escalating expense of higher education.
Importantly, when you borrow from College Ave, you will get its Multi-Year Peace of mind. When applying with a cosigner, 90% of undergraduate students are authorized for extra loans for subsequent years due to this advantage.
Nevertheless, this is not the only advantage of College Ave. In addition, it enables you to set your repayment period and illustrates how the term and plan you choose affect the total cost of your loan over time.
Why We Selected It
College Avenue provides a comprehensive private loan solution with a few distinctive characteristics. In addition to the normal 5, 10, and 15 years maturities, borrowers have the option of selecting an 8 years term. In addition to the first payment-free period of 6 months following graduation, borrowers have access to an additional 6 months grace period.
Pros
✔ Estimates of interest rates are provided without a credit check
✔ Lengthy period (210 days) before debts become the default
✔ International students may qualify if they have a cosigner with U.S. citizenship or permanent residence
Cons
✘ Maximum APR exceeding 10 %
4. Sallie Mae
Best for: Cosigners
Variable Rates: 1.13% – 11.23% APR
Fixed Rates: 4.25% – 12.59% APR
Loan Amounts: $1,000 – 100% of the school-certified cost of attendance
Overview
Sallie Mae, the most well-known provider of student loans, is headquartered in Newark, Delaware. At its establishment, it was a government agency responsible for servicing federal student loans. From 1997 until 2004, Sallie Mae became a completely privatized bank and started issuing private student loans.
Currently, Sallie Mae has the greatest market share in private student loans. In addition, it has extended its product offering to include credit cards, savings accounts, and other products.
Borrowers from Sallie Mae can get benefits like free study help from Chegg® for 4 months, and the Multi-Year Advantage. Moreover, they are not having to pay any origination or application fees. With Multi-Year Advantage, a future loan is approved 95 % of the time for returning undergraduate students with a cosigner.
Why We Selected It
Due to the fact that Sallie Mae has a very quick cosigner release term, we consider it to be the ideal option for cosigners. After the student borrower makes only 12 consecutive on-time monthly payments toward their Sallie Mae student loan, the cosigner may request that they be freed from their obligation.
Pros
✔ Multi-Year Benefits
✔ 4 months of complimentary Chegg® study aid
✔ A shorter cosigner release duration
✔ Students enrolled less than half-time in school are eligible
Cons
✘ The simple credit check cannot be qualified
5. Earnest
Best for: No Fees
Variable Rates: 0.94% – 11.44% APR
Fixed Rates: 3.24% – 12.78% APR
Loan Amounts: $1,000 – 100% of the school-certified cost of attendance
Overview
Earnest is a California-based online lender headquartered in San Francisco. The lender was formed with the intention of making higher education cheap and accessible to everyone.
One of the primary advantages of obtaining a loan with Earnest is that there are no costs involved. Numerous lenders advertise their student loans as having no application costs. However, this only applies to origination and application fees. Earnest does not charge any application fees, nor does it impose any penalties for early loan repayment or late payments. In addition to having no fees, Earnest provides a longer-than-average grace period and the option to miss a payment once each year.
Why We Selected It
Earnest is really honest about not charging any fees when it states that it does not. There are no costs associated with the loan’s origination, application, prepayment, or late payments.
Pros
✔ No fees
✔ Skip a payment once per year
✔ Up to the complete cost of attendance is covered
Cons
✘ No release of a cosigner is provided
In conclusion, getting a college education is an investment that requires both time and money. Hence, it is imperative that you have to determine the appropriate loan that will assist you in achieving your goals without placing overwhelming financial pressure on you. If you are not sure where to begin your search, reliable can allow you to compare the information of up to all lenders side by side.
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