A student in need of a private student loan can approach banks, credit unions, and other financial institutions. They offer student loans at fixed or variable interest rates with predictable monthly installments. The credit score requirement and APR may vary from one bank to another. Some banks may require a creditworthy co-signer to sanction a loan. Lenders send the loans to the financial aid office of your university or college.

How to choose a right private student loan
You can apply for a private student loan if you have checked your eligibility for federal loans or grants using the Free Application for Federal Student Aid (FAFSA) or already availed of the maximum federal loan amounts. You can compare the offers from multiple banks and credit unions in your state and choose one which offers the lowest fixed or variable interest rates. The fixed rates are currently 3.34% to 14.99%, and variable rates are 1.04% and 11.99%. Consider the Annual Percentage Rate (APR), repayment terms, and forbearance periods before choosing a lender.

Based on the above features, some of the top private student loans are:

Ascent Funding
Ascent offers three types of loans for independent students and students of law, dental school, and MBA. It offers co-signed loans for students with a co-signer. You can also choose a non-co-signed credit-based loan if you have two years of credit history. Ascent’s non-co-signed future income-based loan is ideal for upper-level students with a 2.9 GPA, no credit, income, or a co-signer. Ascent stipulates a credit score of 540 and offers flexible repayment options. Its APR varies based on the type of loan and the branch of education. It allows multiple options that facilitate faster repayment of loans and has generous forbearance options.

Sallie Mae Student Loans
Sallie Mae offers loans to part-time students and is one of the few lenders who offer this service. The minimum credit score eligibility is mid-600 and offers fixed and variable interests. It offers loans for non-citizens who can provide a US co-signer. You can start making interest payments of $25 while in school and continue to pay interests only for 12 months once you complete schooling. It offers repayment terms from five to 20 years and does not charge an application fee or prepayment penalty.

College Ave Student Loans
College Ave private student loans are best suited for those with a co-signer, and you can get a co-signer release once you repay half the loan amount. A student can opt for immediate, interest-only, and fixed $25 payment and defer payments until graduation. College Ave offers a repayment term between five and 15 years. It also offers refinancing options. International students can avail of this loan if they apply with a co-signer who is a permanent resident or a US citizen.

Citizens™ Student Loans
Citizen’s Bank offers loans for graduate and undergraduate students pursuing law, healthcare, or MBA. It offers fixed and variable APR and a repayment term of five to 15 years. The USP is a multi-year approval that approves loans for more than one year. It saves students from applying for a loan repeatedly. You can get a release after 36 consecutive payments if you have applied for a co-signer loan. You can defer payments up to eight years.

MPOWER Financing
MPOWER’s non-co-signed loans are ideal for international students with Deferred Action for Childhood Arrivals or DACA status. Undergraduates, graduates, juniors, and seniors are eligible for loans from MPOWER. They offer only a fixed APR of 7.52-14.98%, which is slightly higher when compared to other lenders. It also offers a loan forbearance of 24 months, which is longer than most other lenders. Students have to start payment while in college, and their only repayment term option is for 10 years.