Did you know that the average college tuition cost ranges from $9,410 to $32,410?
It’s no wonder that most students need to take out a loan in order to attend college.
Wondering what the best student loans to fund college are?
Discover the best private student loans with low interest rates and a variety of repayment options.
College Finance Guide: The 5 Best Private Student Loans for 2019
If you are in a situation where there is a small gap between your grants and federal aid to cover your college tuition taking out a private student loan is an option. There are many lenders out there make sure you shop around to see the loan term options, compare interest rates and compare any other benefits they each have.
To make your search a little easier here are 5 best private student loans.
1. Citizens Bank
Citizens Bank charges no application fee and they have loan options for students and parents. They have parent repayment options of five to twelve years.
They don’t charge any fees for paying the loan off early. They offer an interest rate reduction when automatic payments are set up. Citizens Bank offers fixed and variable rates.
They have the following options available:
- Option to defer payments until after graduation
- Option to make interest-only or full payments while in school
- Option for the parent to make payments while the student is in school
CommonBond charges a 2% origination fee but they have no application fee. They also offer an interest rate reduction with automatic payments. They don’t charge a fee for paying the loan off early.
This private loan option is available to MBA candidates, undergraduates, and other graduate students. Their loans will cover up to 100%of the school’s cost. They have different repayment options including five, ten, or fifteen years.
CommonBond offers fixed and variable rates and their repayment plans come with a 6 month grace period.
CommonBond offers the following options:
- The option of $25 fixed monthly payments during school
- Option of interest-only payment while in school
- Option of full monthly payments
For this private lender, applicants have to apply with a creditworthy cosigner. If you are an MBA student then you don’t need a cosigner. Once the student pays on the loan for two consecutive years they may apply for a cosigner release.
If a student is dealing with economic hardship after graduation they may apply for forbearance.
LendKey loans are funded by credit unions and community banks but facilitated by LendKey. They don’t charge an application fee or origination fees.
They offer interest rate reduction with automatic payments and interest-only payments while attending school or a $25 flat fee.
LendKey offers the following options:
- The option of making full payments while attending school
- Student repayment option of ten years after five years of minimum interest only or $25 flat fee payments
4. College Ave
College Ave doesn’t charge an application fee or an origination fee. They offer interest rate reduction with automatic payments.
This loan is available to undergraduate and graduate students and they have parent loan options available. College Ave loans can cover from $2,000 up to 100 percent of school costs.
College Ave has the following options available:
- Student repayment options are available of 5, 8, 10, or 15 years
- Option to make interest-only payments while in school or flat fee payments
5. Sallie Mae
Sallie Mae doesn’t charge an origination fee or fees for paying off the loan early. They offer interest rate reduction with automatic payments.
This loan is available to undergraduate and graduate students and the loan can cover from $1,000 up to 100% of school costs. They offer both fixed and variable rates.
Once you graduate keep in mind that there are also options available while finding a career in your field. You can check out commonbond vs earnest to see options available once you leave school.
The last thing you want to do is default on your student loans after graduation. This can have a huge impact on your credit. It also comes with further consequences
Is a Private Lender Right for You?
The best private student loans above are a starting point for your research on which private lender to choose to pay for college. There are many options out there. Most private loans require a cosigner because these loans are based on creditworthiness.
Curious if there is a benefit on paying your loans off early? Check out our article with more information about the benefits of paying your loan off early.