At a point in one’s life as a student, money is needed; sometimes, you have it in excess. Sometimes you don’t have it, and here is where personal loans for students come in. 

A personal loan is a money you borrow for any particular reason, including student loans, medical bills, vacation, and other relevant reasons best known to you.

Sometimes, many personal loans could be more stable as they are mostly not backed up with collateral. Personal loans are to be paid back, which includes an interest in monthly or yearly installments over the term of payments.

As a student with money issues, consider applying for a personal loan, which you can repay quickly without getting into a huge debt. 

Generally, private loans must be paid back over a set term, usually two to five years.

Anyone can apply for personal loans because they can be quickly paid back, so it is advisable to check out the terms of these loans before using them. 

This overview will give you a clear view of everything you need about the best personal loans for students and their requirements.

What is a Personal Loan?

From the introduction above, we said a personal loan is a money you borrow for any particular reason, usually including student loans, medical bills, vacation, and other relevant reasons best known to you. 

While personal loans can’t be used for education costs like tuition, they usually help pay for other essential expenses.

In most cases, private loans usually have higher interest rates than student loans, making personal loans more expensive than student loans. 

But one of its perks is that you get to pay it back quickly because you’ll have to start making payments as soon as the loan is disbursed. 

As of 2019, the average APR on a personal loan is 9.41%, but it can range from 6% to 36% depending on your creditworthiness, including an examination of your income, debts, and credit score.

Personal loans come in various types, and banks and other financial institutions make private loans to students. 

When you apply for private loans, the lender will want to see proof you can repay them, usually in the form of a good credit score. 

A cosigner can help you qualify; that person will be responsible for the loan if you can’t repay it.

If you’re an MBA student, check out: Best Student Loans for MBA (Business Students) in 2022

Types of Personal Loans

Here are a few lists of types of personal loans;

Bar exam loans

Bar exam loans are types of personal loans that cover expenses like examination application fees and book expenses, and it has a long term of 1-20 years with higher interest rates than most.

Boot-camp loans

Boot-camp loans are personal loans for coding boot-camp, with lower interest rates.

International student loans

These loans are generally for international students and usually require a cosigner for the applicant.

Institutional loans

Institutional loans are types of personal loans offered directly by a college.

What is a Student Loan?

A student loan is created to help a student cover school-related expenses such as books, living expenses, and tuition. Student loans are designed to help students pay for college. 

Taking out federal loans first is often advisable since they come with federal protections, such as access to income-driven repayment plans and student loan forgiveness programs. You can then use personal student loans to cover any financial gaps left over.

Why you Need to Apply for a Personal Student Loan

Personal student loans are created to help support students financially; students in serious need of financial help and unable to attend college can apply for a private loan.

Most private lenders do not need your credit history to disburse a student loan, although Student loans often have lower interest rates than personal loans.

If you desire to attend a community college, check out: 15 Best Student Loans For Community College In the USA

RELATED: What is an allowance for loan losses?

What You Need To Know Before Applying For Personal Loans As A Student

Before applying for a personal loan, it is essential to look out for the interest rate charges and be sure you can repay in time. 

Check your credit scores before applying and your eligibility to know if you can use them. 

Research and check for important details like APR, loan term, loan amount, fees, prepayment penalty, automatic withdrawals, and other essential information.

Where Can you Apply for a Personal Loan?

1. You can apply for a personal loan at banks

2. Through credit unions

3. Through a referral from family or friends

4. Through a secure online provider

5. Non-banking financial institutions, 

How Much Can you Get in Student Loan?

Depending on your platform, you can borrow up to the total cost of your college education in personal student loans, although the exact amount depends on the type of student loan you borrow.

20 Best Personal Loans for Students in 2023

Top personal loan lenders allow students to borrow for any reason, and the best lenders offer students a clear and straightforward application process. The lenders below provide the best personal loans for students.

1. SoFi Private Student Loan

Minimum credit score: 650.

Fixed APR: 4.99-19.50%

Days to receive a loan: 2-4 Days

Loan terms: 5, 7, 10, 15, or 20 years.

Pros

a) SoFi has flexible repayment terms

b) They are pretty transparent

c) A parent can transfer a loan to their child

d) No extra fees

e) They offer career planning, job search assistance, and entrepreneurship support available to students

Cons

a. Loan size minimum is higher than most lenders; they don’t offer less than $5000

b. Not available in some states

c. There is a late fee of $5 late fee if your loan is 15 days past due.

Eligibility:

Applicant must be a U.S. citizen, permanent resident, or have a qualifying visa (E-2, E-3, H-1B, J-1, L-1, or O-1). Non-permanent residents, DACA recipients, and those without a qualifying visa need a citizen or permanent resident cosigner.

2. Earnest

Variable Rates Starting at 0.99%

Fixed Rates 2.94%

Loan Amounts of $1,000 up to the total cost of attendance

Loan Terms 5-15 years

Pros

a) You can decide to skip a payment every 12 months.

b) There is a nine-month grace period.

c) No extra fees.

Cons

a. There is no cosigner release.

b. Only available in some 50 states.

c. You must be enrolled in school full-time.

Eligibility: 

• You must have a Social Security number. 
• Must be enrolled in school full-time.
• You must have no past-due balances for at least one year. 
• Must be pursuing a bachelor’s or graduate degree.

3. Sallie Mae 

APR: 3.50-12.60%

Variable APR: 1.13-11.23%

Minimum Credit Score: 600

Mid-600’s

A credit score of approved borrowers or cosigners: 749.

Loan amounts: $1,000 up to 100% of the school-certified cost of attendance.

Interest rates, fees, and terms

Loan terms: 5 to 20 years.

Pros

a. Non-U.S. citizens, including DACA students, can apply with a U.S. cosigner.

b. They provide loans to part-time students.

c. Students can access online tutoring and free credit score tracking.

Cons

a. There is a Late fee of $5 late fee if your loan is 15 days past due.

4. Upstart

APR: 6.12% – 35.99%1

Loan Amounts: $1,000 – $50,0002

Repayment Terms: 36 or 60 months1

A minimum credit score of 580

Cons

A. There is a Late fee of $5 late fee if your loan is 15 days past due.

Eligibility:

No bankruptcies or public records on your credit report

5. Ascent Co-signed Student Loan:

APR: 3.28-11.26%

Min. Credit Score: 540

Fixed Rates: 3.28% to 11.26%

Variable Rates 1.47% to 9.05%

Loan Amount:$2,001 up to $200,000

Loan Terms:5-15 years

Pros

a) No need for a cosigner, and no credit history is needed

Cons

a. Interest rates may be higher than other options

RELATED: McLean Mortgage Reviews 2023: Interest Rates & Plans

Eligibility: 

You must be a U.S. citizen, permanent resident, or have DACA status and must be enrolled at an eligible institution full-time or half-time.

6. BoroCash

APR: 15.99% – 19.90%

Loan Amounts: $50 – $2,000

Repayment Terms: 1 – 12 months

Pros

a) International students are eligible

b) Low maximum APR

Cons

a. Available in only a few states

b. There is a risk of over-borrowing

Eligibility: 

• You must be enrolled in a U.S. college or university or have recently graduated
• Must be over 18 years old, 
• Must be a U.S. citizen, Green Card holder, or A5, C8, F1/OPT, G, H1B, J1, L1, O1 Visa holder

7. Discover Undergraduate and Graduate Student Loans

APR: 5.99-24.99%

Days to receive a loan: 1 day

Loan amount: $2,500-$35,000

Loan terms: 15 years for undergraduate students; 20 years for graduate students.

Pros

a) Quick Funding.

b) No original fees

c) Among the best for payment flexibility.

d) International students are eligible

Cons

a. There is a late penalty

b. No credit score check to see what rate you’ll get

Eligibility:

• Must be a U.S. citizen or permanent resident. 
• International students are eligible if they apply with a cosigner who is a U.S. citizen or permanent resident.

8. CommonBond Private Student Loan

Min. Credit Score: 660

APR: 3.99-10.99%

Variable APR 3.80%- 9.36%

Loan term: 5 to 15 years

Loan amount: $2,000- $500,000

Pros

a) Forbearance of 24 months is more extended than many lenders offer.

b) Cosigners are acceptable

Cons

a. Loans aren’t available in all states

b. Cosigners are required

c. There is a late payment penalty.

Eligibility:

• Must have attended a school as a student. 
• Must be a U.S. citizen or possess a non-conditional green card.

9. Custom Choice Loan

APR: 3.20-10.77%

Variable APR: 1.03%-9.67%

Min. Credit Score: 660

loan terms: 7 to 15 years

Loan amounts: $1,000 up to 100% of the school-certified cost of attendance minus other aid, to be at most $99,000.

Pros

No prepayment penalty

Low minimum loan interest rate

No late fees.

There is a graduation discount.

Cons

Loans aren’t available in all the states

Loans not available to borrowers international students with student pass

Eligibility: 

Must be a U.S. citizen or permanent resident.

10. Education Loan Finance Private Student Loan

Min. Credit Score: 680

APR: 3.20-11.99%

Loan terms: 5 to 20 years.

Loan amounts: $15,000 up to your total outstanding loan balance.

Pros

a) You will be assigned to a student loan adviser.

b) Borrower can refinance parent PLUS loans in your name.

c) Available to borrowers in all 50 states

Cons

a. No cosigner release available.

b. There is a late payment fee of Late fees of 5%. Payment postponement isn’t available for borrowers who return to school.

Eligibility:

• Must be a U.S. citizen or permanent resident. 
• Must have at least a bachelor’s degree.

11. Funding U Private Student Loan

Min. Credit Score: None

 APR: 7.49-12.99%

Loan terms: 10 years.

Loan amounts: $3,000 up to $10,000.

Pros

a) Loans aren’t based on credit scores

, b) No need for a cosigner or credit history to get a loan.

c) No late fees

d) One of the best for payment flexibility.

Cons

a. Loans aren’t available in 19 states.

b. Low maximum loan amount

c. Payment is required while in school and during the grace period.

Eligibility: 

Must be a U.S. citizen, permanent resident, or DACA recipient with a work-eligible Social Security number.

12. LendKey Private Student Loan

Min. Credit Score: 660

APR: 4.25-12.59%

Loan terms: 5 to 20 years.

Loan amounts: $5,000 to $125,000 for undergraduate degrees; up to $250,000 for graduate degrees; and up to $300,000 for medical, dental, or veterinary degrees.

Pros

Co-signing options available

No original fees

Forbearance of 18 months for the borrower’s 15- and 20-year loan terms.

Cons

Not available in all states

No payment postponement is available.

Eligibility:

• Must be a U.S. citizen or permanent resident. 
• Must be a graduate. 
• Have at least an associate degree.

13. MPOWER Private Student Loan

APR: 7.52-14.98%

Loan terms: 10 years.

Loan amounts: $2,001 to $100,000

Pros

a) Non-co-signed student loans for international and DACA students.

b) No credit check

RELATED: What Increases Your Total Loan Balance?

c) Available to international students

d) Borrowers are assigned a dedicated student loan adviser.

e) Interest rate discounts available

Cons

a. High-interest rate

b. Origination fees required

c. Low loan maximum

Eligibility:

International students must be from one of the 180 countries MPOWER works with. You must be enrolled half-time or more.

14. College Ave Student Loan

Minimum Credit Score: Mid-600s

Fixed APR: 4.49-11.98%

Variable APR: 0.94%-11.98

Loan term: 5 to 15 years

Loan amounts: $1,000 up to the cost of attendance.

Pros

a) No origination fees

b) flexible repayment options

c) Six-month grace period extension is available.

Cons

a. Before requesting a cosigner release, You must be halfway through your repayment term.

b. Charges late fees

Eligibility:

International students are eligible if they apply with a cosigner who is a U.S. citizen or permanent resident.

15. ISL Private Student Loan

Min. Credit Score: 670

Fixed APR: 4.60-7.40%

Loan amount: $5,000 to $300,000

Loan term: 5 to 20 years

Pros

a) As a borrower, you can refinance without a degree.

b) You can refinance while in school or during a medical residency.

c) No origination fees

d) No payment penalty

Cons

a. interest rate varies by refinancing products

Eligibility:

Must be a U.S. citizen or permanent resident

16. Ally

Min. Credit Score:

Fixed APR: 0.00%-26.99%

Loan amount:$250-$65,000

Pros

Repayment terms are up to 180 months, which is better than most

Low credit check requirement

Low rates

Cons

No direct access to ALLY

Eligibility:

Must be a U.S. citizen or permanent resident.

17. LightStream

Min. Credit Score: 670

Fixed APR: 2.49-20.49%

Days to receive a loan: 0 days

Loan amount: $5,000 to $100,000

Loan term: 5 to 20 years

Pros

a) No origination fees

b) Fast disbursement

Cons

a. Credit check is one of their requirements

b. You cannot borrow less than $5,000

Eligibility: 

Must be a U.S. citizen or permanent resident.

18. Avant

Minimum Credit Score: 580

Fixed APR: 9.95-35.99%

Days to receive a loan: 1 day

Loan amount: $2,000 to $35,000

Loan term: 5 to 20 years

Pros

a) No prepayment penalty

b) Various range of loan amount

Cons

a. No cosigner

b. High APR

c. Not available in all states

d. Late penalty fee available

Eligibility: 

Must be a U.S. citizen or permanent resident.

19. LendingClub Personal Loan

Minimum Credit Score: 620

Fixed APR: 7.04-35.89%

Days to receive a loan: 2 days

Loan amount: $1,000 to $40,000

Loan term: 5 to 20 years

Pros

a) They disburse loan funds within 48 hours after approval

b) co-cosigner allowed

c) Joint application available

Cons

a. There is an origination fee

b. Low loan amounts

c. Limited loan term availability

Eligibility: 

• Must be a U.S. citizen or permanent resident. 
• Must be 18+

20. Marcus

Minimum Credit Score: 660

Fixed APR: 6.99.19.99%

Days to receive a loan: 1 day

Loan amount: $3,500 to $40,000

Loan term: 5 to 20 years

Pros

a) No charges on loan, that is, no extra fees

b) Discounts are available

Cons

a. Funding can be slow

b. High credit score

c. Low maximum loan amount

Eligibility: 

• Must be a U.S. citizen or permanent resident. 
• Must be 18+

FAQs

Conclusion

Generally, loan makes students feel safe; the fact that you get to borrow funds for important stuff can be scary at first. However, going through the proper procedure will enable fast disbursement, enabling you to use the money faster. This overview gives you the answers to your questions. 

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