Best low-interest student loans of July 2026

About 70% of college students rely on loans to finance their education, according to the Urban Institute. And while federal student loans offer lower rates and more hardship relief options, they’re rarely large enough to cover all your educational expenses.

More borrowers are turning to private student loans to fill financing gaps, especially as federal lending limits tighten in 2026 under the One Big Beautiful Bill Act.

Here are the best lenders for low-interest private student loans across a variety of categories. See our methodology for more information on how we made this list.

Who’s this for? Earnest guarantees it can match any competitor’s rate and it will give you a $100 Amazon gift card once the match is finalized. In addition, borrowers aren’t assessed application, origination, late or prepayment fees.

Standout benefits: Borrowers can take advantage of a nine-month grace period and skip one loan payment per year without penalty.

Who’s this for? College Ave lets borrowers select repayment terms of 5 to 20 years and choose full deferral until graduation, or begin payments in school with full, interest-only or flat $25 monthly payments. It also offers hardship protections, including grace periods, deferment and forbearance.

Standout benefits: College Ave is praised for its superior customer service and streamlined application process, which can be completed online in just minutes. Enrolling in autopay can earn you a 0.25-percentage-point rate discount.

Who’s this for? Citizens Bank‘s multi-year approval process allows borrowers to apply once and only undergo a soft credit inquiry in subsequent semesters.

Standout benefits: Borrowers with a Citizens deposit account can enjoy a 0.25% rate discount and an additional 0.25% off for setting up autopay. The borrowing limit for refinancing is a generous $750,000.

Who’s this for? Sallie Mae lets borrowers release their co-signer after just 12 consecutive on-time payments, far sooner than most competitors.

Standout benefits: Unlike many lenders, Sallie Mae has loans for part-time students, study abroad and trade certifications. It also offers a six-month grace period and a graduated repayment option for your first year out of school.

Who’s this for? If you’re going it alone, Ascent has lower rates on non-cosigned student loans than most lenders. It also considers factors beyond your credit score, including GPA, expected graduation date and future earning potential. Depending on the loan, you may even be entitled to a grace period of up to 36 months.

Standout benefits: Ascent offers rewards like 1% cash back on the principal at graduation. Borrowers can also apply for deferment and forbearance.

Who’s this for? If you’re looking to lower your student loan rates, SoFi offers competitive fixed and variable rates on refinancing options for undergraduate, graduate, law, MBA and health professions students, with terms varying from 5 to 20 years.

Standout benefits: You can get prequalified online in minutes with no hard credit check. There are no application, origination or late fees and borrowers may qualify for forbearance if they become unemployed. Upgrading to a SoFi Plus subscription gives you a 0.125% interest rate reduction on student loan refinancing, plus a favorable APR on deposit accounts and other perks.

In June 2026, fixed-rate student loans on lender marketplace Credible range from 2.54% APR to 17.99% APR, depending on your creditworthiness, while variable-rate loans range from 3.53% to 17.99% APR.

To improve your odds of getting a lower rate, you can:

1. Raise your credit score: The easiest way to get a lower interest rate is to have excellent credit (FICO 780 or better). If your score isn’t up to par, make sure you’re making on-time payments in full each month and keeping your credit usage below 30%. (For the best rates, experts suggest a rate below 10%). In addition, review your credit reports from all three credit bureaus for errors or signs of fraud that can be challenged.

2. Use a co-signer: If you’re a young college student, your credit file is probably weak or nonexistent. If you can get a creditworthy parent or other adult to co-sign on your loan, the lender is more likely to approve a lower rate. After a set number of regular monthly payments, you should be able to release your co-signer and assume the debt fully yourself.

3. Look for discounts. Most lenders will take 0.25% off your rate if you set up monthly autopay and some offer loyalty discounts: Citizens borrowers with a linked deposit account can qualify for an additional 0.25% rate discount.

4. Refinance: Student loan refinancing lets you replace a private or federal loan with a new loan, ideally at a lower rate or different repayment terms. Refinancing federal loans requires turning them into private loans, which will cost you access to loan forgiveness, income-driven repayment plans and other benefits.

Educational loans are divided into federal student loans, which are provided by the Department of Education, and private student loans, which come from banks, credit unions, online lenders and other financial institutions.

Because they have more flexible credit and repayment requirements and more generous relief options, it’s best to exhaust all your federal student loans before turning to private student loans.

Differences between federal and private loans include:

1. The application process

For a federal loan, you’ll need to submit a Free Application for Federal Student Aid (FAFSA) form by June 30. Your FAFSA will also indicate if you qualify for other aid, like Pell Grants and work-study programs.

Applying for a private student loan involves a bank or other lender reviewing your finances, including a hard credit inquiry. In more than 90% of cases, borrowers rely on a co-signer for approval.

2. Interest rates

Federal loans have a fixed interest rate, while private ones can be fixed or variable.

3. Borrowing limits

Depending on your year in school and dependency status, federal student loans are capped annually at between $5,500 and $12,500.

Private loans, however, can be for as much as 100% of the certified cost of attendance at an approved school. There are minimum loan amounts, as well, usually $1,000 to $5,000.

4. Repayment terms

Federal loans are set up with standard monthly payments over a 10-year term. You can enroll in an extended repayment plan, however, with payments that increase over time — or enroll in an income-driven repayment (IDR) program, which caps your monthly bill based on your salary, extends your term to up to 25 years and forgives any remaining balance. 

Private student loans usually have terms of between 5 and 15 years and rarely offer non-standard repayment options.

5. When repayment starts

Borrowers don’t have to start repaying federal loans until they graduate or their enrollment status drops to below half-time. With private loans, you may be expected to make full, interest-only or fixed-dollar payments while still enrolled.

6. Relief options

Federal student loans have a variety of protections for borrowers facing financial hardship, like income-driven repayment, deferment, forbearance and loan forgiveness. (If you suffer a total and permanent disability, you may even qualify for discharge of your federal loan.)

Private student loans come with far fewer protections. Some lenders allow deferment or forbearance, but for much shorter terms.

If federal aid doesn’t cover all your education expenses, a private student loan can fill the gap.Once you know how much you need in private loans, ask yourself these five questions:

1. What will it cost to borrow? 

The annual percentage rate on your loan will depend on your credit and if you have a co-signer, but each lender will calculate your rate differently. Be sure to comparison shop to get the best offering.  

2. How soon do I have to repay the loan?

Terms for private student loans usually range from 5 to 20 years, depending on the program. Find out what options a lender offers and decide what works for you. A longer repayment term will have smaller monthly payments, but you’ll pay significantly more in interest .

3. When can I release my co-signer?

Over 90% of borrowers apply for private student loans with a co-signer. Most lenders will allow you to release your co-signer after a set number of on-time payments, but that can range from 12 to 36 installments, or even more. And some lenders won’t release co-signers until the debt is paid in full. 

4. What borrower assistance is available?

Some lenders offer special benefits, like interest rate discounts for using autopay or having deposit accounts. Earnest allows you to skip one payment a year without penalty.

Borrowers facing financial hardship may also be able to apply for deferment or forbearance, but on a much more limited scale than federal loans allow.

5. What other benefits does this lender provide?

Depending on the institution, borrowers may benefit from an interest rate reduction for setting up autopay or by making payments while still in school.

Some lenders, like Ascent, also offer cash back on your loan principal at graduation.

Pros

• Much higher borrowing limits than federal student loans
• Can choose between a fixed or variable interest rate
• Refinancing options available
• Open to international and non-citizen students

Cons

• Have credit score and income requirements
• May require a co-signer
• Limited relief options compared to federal loans

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every student loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of student loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

CNBC Select compared private student loan funding options from banks, credit unions, online lenders and other financial institutions offering competitive rates.

We limited our search to institutions that offer variable and fixed interest rates and do not charge origination or application fees or repayment penalties.

We also compared companies on:

• Availability: All of the lenders we chose offer private student loans for undergraduate and graduate students and parents, with many providing unique options for health professions, law, MBA programs and other disciplines.
• Loan terms: Each company has a variety of repayment terms and allows borrowers to start repaying their student loans while still in school.
• Application process: We limited this list to lenders that offered a streamlined online application.
• Autopay discounts: All of the companies on our list offer an autopay interest rate discount.
• Private student loan protections: Each company on our list offers some form of financial hardship protection, ranging from grace periods and deferrals to forbearance.
• Loan sizes: The above companies offer private student loans in a range of sizes, up to the cost of college attendance. Each company advertises its loan sizes, and completing a preapproval process can give borrowers an idea of their interest rate and monthly payment.
• Co-signer release: We considered how long borrowers had to make consecutive on-time payments, before their co-signer could be released from the loan.
• Credit requirements: Lenders with more flexible credit score and income requirements were weighed more heavily.
• Customer support: We gave more weight to lenders with robust customer service phone hours, mobile apps and a website with an online chat feature and educational resources. We noted if a lender scored highly on J.D. Power’s consumer lending satisfaction survey.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Based on that criteria, our picks for the best mortgage lenders are:

For affordability: Earnest
Forflexible repayment options: College Ave
For multi-year loans: Citizens Bank
For applying with a co-signer: Sallie Mae
For applying without a co-signer: Ascent
For student loanrefinancing: SoFi®

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*  Fixed rates range from 3.99% APR to 9.99% APR with 0.25% autopay discount and 0.125% SoFi Plus discount. Variable rates range from 5.74% APR to 9.99% APR with 0.25% autopay discount and 0.125% SoFi Plus discount. Unless required to be lower to comply with applicable law, Variable Interest rates will never exceed 13.95% (the maximum rate for these loans). SoFi rate ranges are current as of 5/6/26 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. You may pay more interest over the life of the loan if you refinance with an extended term. Medical/Dental Loan Disclaimer: Fixed rates range from 4.12% APR to 9.99% APR with a 0.125% discount for Doctors and Dentist, and a 0.25% autopay discount and 0.125% SoFi Plus Discount. Variable rates range from 5.87% – 9.99% APR with a 0.125% discount for Doctors and Dentist, and a 0.25% autopay discount and 0.125% SoFi Plus Discount. Unless required to be lower to comply with applicable law, Variable Interest rates will never exceed 13.95% (the maximum rate for these loans). SoFi rate ranges are current as of 4/1/26 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. These specialized rates are offered to applicants who are physicians or dentists with the following degrees: Doctor of Medicine (MD), Doctor of Osteopathic Medicine (DO), Doctor of Medicine in Dentistry or Doctor of Dental Medicine (DMD), Doctor of Dental Surgery (DDS), Doctor of Optometry (OD), Doctor of Veterinary Medicine (DVM or VMD), Physician Assistant (MPA), Physical Therapy (MTP or DPT). Not available to residents, fellows, or students. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. You may pay more interest over the life of the loan if you refinance with an extended term. Autopay Discount: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly payments as outlined in your loan agreement by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. When the autopay interest rate deduction is added or removed, the next time the loan is re-amortized (quarterly for fixed rate loans; monthly for variable rate loans),the principal balance of your loan will be spread over the remaining loan term, and your monthly payment amount will change. This benefit is suspended during periods of deferment, grace period, or forbearance. Autopay is not required to receive a loan from SoFi. Member Rate Discount: To be eligible for an additional 0.125% interest rate reduction on a Student Loan Refinancing, you must, within 31 days of loan funding, either (1) be a SoFi Plus subscriber, (2) receive an Eligible Direct Deposit into a SoFi Checking or Savings account, or (3) receive at least $5,000 in Qualifying Deposits into a SoFi Checking or Savings account. You must continue to meet at least one of the above eligibility criteria every 31 days to maintain the discount. See the SoFi Plus terms for details on SoFi Plus subscription. For more details on Eligible Direct Deposit or Qualifying Deposits, please see https://www.sofi.com/legal/banking-rate-sheet. Once you become eligible during the initial period, the discount will be removed or reinstated depending on whether the criteria have been met. Each time your loan is re-amortized, your monthly payment amount will change based upon the interest rate that was in place. SoFi reserves the right to modify or terminate this offer at any time for unenrolled participants. You are not required to meet these criteria to be approved for a loan. SoFi Plus Discount: To be eligible to receive an additional (0.125%) interest rate reduction on your Student Loan Refinancing (your “Loan”) for enrolling in SoFi Plus, you must enroll in SoFi Plus within 30 days of Loan funding, either by receiving an Eligible Direct Deposit to your SoFi Checking and Savings account, or by paying the SoFi Plus Subscription Fee. Once eligible, you will receive this discount during periods in which you have received Eligible Direct Deposit to your SoFi Checking and Savings Account, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount lowers your interest rate but does not change the amount of your regular monthly payment. This discount will be removed during periods in which SoFi determines you have turned off Eligible Direct Deposit to your Checking and Savings account or in which you have not paid the SoFi Plus Subscription Fee. SoFi reserves the right to change or terminate this interest rate reduction offer for unenrolled participants at any time without notice. You are not required to enroll in Eligible Direct Deposit or to pay the SoFi Plus Subscription Fee to be eligible for Loan approval. See what qualifies as an Eligible Direct Deposit here: www.sofi.com/terms-of-use/#slr-discount
Eligible Direct Deposit means regularly recurring deposit of regular income to an Automated Clearing House (“ACH”) Network during a 30-Day Evaluation Period (as defined below). Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not generate payments that are detectable by our system. So qualifying direct deposits are those where the student loan refinance discount rate is applied automatically for each month where you have an Eligible Direct Deposit of at least $1,000 per 30-day Evaluation Period. Eligible Direct Deposit does not include transfers between accounts you own, refunds, rebates, reimbursements, stimulus payments, merchant refunds, or payments from person-to-person payment services (such as Venmo). To qualify for the 0.25% interest rate reduction, the direct deposit must be recurring and paid directly into a SoFi Checking or Savings account. For the avoidance of doubt, deposits made via check, cash, or mobile check deposit are not eligible. Direct Deposit eligibility is determined by SoFi’s sole discretion. The 30-Day Evaluation Period refers to the period starting on the “Start Date” and ending on the “End Date” set forth on the App Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APV Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking → Checking → APV or (ii) Banking → Checking → APV Details. If you do not qualify for the discount during the initial 30-Day Evaluation Period, your loan will not be eligible for a discount unless you re-qualify in a later 30-Day Evaluation Period. If you qualify during the 30-Day Evaluation Period, the discount will be applied on a going-forward basis only. SoFi Bank determines eligibility. If you have a joint account, each account holder receives Eligible Direct Deposits into your SoFi Checking and Savings account, then you will be eligible for all SoFi Plus benefits, including on accounts you hold in your own name. Federal Loan Disclosure: Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELiIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligiblity. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).