Private student loans with low interest rates have become exceptionally hard to find considering the ever increasing demand in recent years. Undergraduate students are mostly in need of financial help in their later years. Higher education has become quite expensive due to great competition among students. Usually federal government provides loan offers and incentives for such students. However, there are a few private companies and foundations who offer loans at much lower rates. The annual interest rate offered by federal government is 7% to 8.8% but few companies are offering rates as low as 2% with certain conditions.
For this specific guide we have tried to identify those companies that offer lowest interest rates for student loans. We have focused entirely on under-graduate and graduate students who are looking for finance their educational costs. There are situations where students need to borrow more loans than Federal government can offer. In this case, it is also suggested to look for other alternatives to cope up with such requirements. There are even some companies that offer more more than 70% of the debt to be forgiven. And usually people don’t know such companies them because they aren’t too popular. You may not find some of them among the Big names list.
The best Private Student Loans
We will provide brief descriptions about what each company has to offer. The comparison will primarily be on the basis of Interest Rate. Here are 5 organizations worth mentioning:
Georgia Student Finance Access Loan
Georgia Student Finance Authority (GSFA) offers private student loans for eligible students attending an eligible university system of Georgia (USG), Technical College System (TSG) or Private post-secondary institution in Georgia. You can find a list of qualified universities and colleges HERE. The aim of this loan program is to help undergraduate and technical students with their financial situation during education. If you’re looking to apply to one of these universities or already are studying there then this is a great opportunity for you. Apply From HERE.
Minimum annual loan amount: $500 for USG and $300 for TCSG
Maximum term loan amount: $4000 for USG and $1500 for TCSG
Maximum loan limit per year: $8000 for USG and $3000 for TCSG
Interest Rate: 1%
Repayment Details: Cash repayment with interest OR Service Cancellation for USG who work in select Public service sectors. Loan discharge for TCSG students who graduate with minimum 3.5 CPGA.
Pickett & Hatcher Educational Fund
Pickett & Hatcher is another private student loans foundation aimed to assist students with their graduate studies. Currently they are not accepting applications for the term 2017 – 2018 but you can apply for the 2018 – 2019 term. The application process will begin in August 2018. They are also known for their low interest rates. Apply from HERE. Here are the loan details:
Maximum loan per academic year: $10,000
Maximum total loan amount: $40,000
Interest Rate: 2% while in school, 6% after graduation
Repayment Details: The total loan can be repaid in a maximum period of 15 years. Shorter repayment terms are also available.
SoFi is another very popular lender for student loans with highly flexible options and good interest rates. Along with student loans they also provide mortgage loans and personal loans. For undergraduate and graduate students this is another great option to refinance their studies. They offer loans in 49 states and District of Columbia. According to their eligibility criteria you must be employed or have a stable income from other sources. Apply from HERE.
Minimum loan amount: $5000
Variable interest rates: 2.815% to 6.740%
Fixed interest rate: 3.350% to 7.125%
Repayment Details: Loan repayment term is 5 to 20 years.
Bill Raskob Foundation
Bill Raskob foundation is a private foundation started by a small family that offers interest free loans to students. That’s right! by interest-free we mean 0% Interest rate. The aim of this foundation is to help all needy and deserving students with their study expenses. You have to be a US citizen to apply for the loan. They do not offer loans to foreign students. You can read about their eligibility criteria HERE. Their idea is to provide interest free loans to students and when they repay those loans they will offer them to other students. Sound great right? Apply from HERE.
Minimum student loan amount: $1000
Average student loan amount: $5000
Interest Rate: 0%
Repayment Details: The payback period starts either 6 months or 12 months after the student completes his / her degree
Lendkey is another student loan company that offers very competitive interest rates. They also offer to reduce 0.25% interest rates if you sign up for automatic ACH payments. Lendkey is competing with other popular student loan companies including SoFi. Both have very good reviews from users that have opted for their services. They don’t have very strict requirements and every eligible student can apply for their loan. Apply from HERE.
Maximum loan amount: $125,000 for undergraduate and $175,000 for graduate students
Minimum loan amount: $7500
Variable interest rates: 2.80% to 6%
Fixed interest rates: 3.25% to $7.26%
Repayment Details: Loan repayment term is from 5 to 15 years