Our best private student loans and student loan refinance ratings methodology

How we rate the best student loans

We evaluated 18 popular lenders to determine the best private student loans — for both students paying for college as well as borrowers looking to refinance. These lenders typically offer competitive rates, relatively long repayment terms and minimal fees. Some also provide perks like rate discounts, the option to release a co-signer and hardship assistance like forbearance. 

We scored each of the lenders on a scale from one to five stars based on these metrics as well as other factors covered below. These scores were then used to rank the lenders in order and to thus determine the list of best private student loans and best refinance loans.

Need to borrow for school? Compare the best private student loans 

Methodologies

• Private student loans.
• Student loan refinance.

Private student loans methodology

How we choose the products we ranked

The products included in our rankings are chosen based on multiple eligibility factors. For example, we make sure that each lender is trustworthy and legitimate according to customer reviews and more. 

We also consider if any actions have been taken against a lender by the Consumer Financial Protection Bureau (CFPB) or other federal agencies. In situations like this, a lender might be disqualified from our rankings depending on the severity of the violations and their impact on customers.

Best private student loans ranking factors

We used the following factors (with weightings) to determine our private student loan rankings:

• Loan details: 10%.
• Loan cost: 40%.
• Eligibility and accessibility: 30%.
• Customer experience: 15%.
• Application process: 5%.

These factors were chosen based on what is typically most important to borrowers. For example, a prospective student borrower (or parent borrower) will likely consider elements like repayment terms, fixed and variable interest rates (if applicable) and eligibility criteria (like minimum income requirements) to decide if a student loan is a good fit for them.

Here’s how our factors break down, with weightings for each subfactor that comprises a category. We also included explanations for how lenders could receive the highest score in each particular area:

Loan details (10%)

• Maximum repayment term (10%): Private student loan terms typically range from five to 20 years, depending on the lender. We gave the highest scores in this area to lenders that offer terms longer than 15 years.

Loan cost (40%)

• Minimum fixed APR (10%): A fixed APR will stay the same throughout the life of the loan. The highest scores in this area were given to lenders that offer a minimum fixed APR below 4%.
• Maximum fixed APR (10%): To score the highest amount of points in this area, a lender must cap their fixed APR range below 10%.
• Minimum variable APR (5%): While variable rates can start off lower than fixed rates, they can fluctuate based on market conditions. We gave the highest amount of points in this area to lenders with a minimum variable APR below 4%.
• Maximum variable APR (5%): To score the highest amount of points in this area, a lender must cap their fixed APR range below 10%.
• Fees (5%): Fees — such as late fees — can add to your overall borrowing costs. We gave points in this area to lenders that don’t charge fees on their student loans.
• Discounts (5%): We also considered what discounts lenders offer to help borrowers save on loan costs. To score points in this area, a lender must provide at least one discount, such as to borrowers who sign up for automatic payments or have an existing account.

Eligibility and accessibility (30%)

• Minimum income (10%): Lenders want to see that a borrower can afford repayment and therefore look at your income. We gave the highest amount of points in this area to lenders with a minimum income requirement of $30,000 or less.
• Co-signer or co-borrower acceptance (10%): Many college students need a co-signer or co-borrower to qualify for a private student loan. We awarded points in this area to lenders that permit applications with a co-signer or co-borrower.
• Co-signer release option (5%): Co-signing on a loan can be a financial risk. Because of this, we gave points in this area to lenders that allow co-signers to be released from a student loan after meeting the requirements.
• Hardship options (5%): Unfortunately, emergencies can happen that can make it hard or impossible to make payments. We awarded points in this area to lenders that provide hardship options — such as temporary forbearance — in these cases.

Customer experience (15%)

• Customer service hours and access options (5%): While some lenders have limited customer service hours, others extend their service hours through Saturday or even 24/7. Several also allow you to contact them not only by phone but also via email and/or live chat. To score the highest amount of points in this area, lenders must offer service past 6 p.m. Eastern Time (ET) and offer multiple contact options.
• Mobile app (5%): Lenders that provide a mobile app to their customers were given points in this area.
• Trustpilot reviews (5%): Customer reviews can be invaluable when deciding whether to work with a lender. Because of this, we awarded the highest points in this area to lenders that have earned five stars on Trustpilot.

Application process (5%)

• Online application (5%): To score points in this area, a lender must offer an online application process.

Student loan refinance methodology

How we choose the products we ranked

The products included in our rankings are chosen based on multiple eligibility factors. This includes making sure that each lender is trustworthy and legitimate according to customer reviews and more. 

We also consider if any actions have been taken against a lender by the CFPB or other federal agencies. In situations like this, a lender might be disqualified from our rankings depending on the severity of the violations and their impact on customers.

Looking at refinancing? Compare the top student loan refinance lenders 

Best student loan refinance ranking factors

We used the following factors (with weightings) to determine our student loan refinance rankings:

• Loan details: 10%.
• Loan cost: 40%.
• Eligibility and accessibility: 30%.
• Customer experience: 15%.
• Application process: 5%.

These factors were chosen based on what is typically most important to borrowers. For example, a borrower wanting to refinance their student loans will likely consider elements like repayment terms, fixed and variable interest rates (if applicable) and eligibility criteria (like graduation requirements) to decide whether to proceed with an application.

Here’s how our factors break down, with weightings for each subfactor that comprises a category. We also included explanations for how lenders could receive the highest score in each particular area:

Loan details (10%)

• Maximum repayment term (10%): Student loan refinance terms typically range from five to 20 years, depending on the lender. We gave the highest scores in this area to lenders that offer terms longer than 15 years.

Loan cost (40%)

• Minimum fixed APR (10%): A fixed APR will stay the same throughout the life of the loan. The highest scores in this area were given to lenders that offer a minimum fixed APR below 4%. 
• Maximum fixed APR (10%): To score the highest amount of points in this area, a lender must cap their fixed APR range below 7%.
• Minimum variable APR (10%): While variable rates can start off lower than fixed rates, they can fluctuate based on market conditions. We gave the highest amount of points in this area to lenders with a minimum variable APR below 4%.
• Maximum variable APR (5%): To score the highest amount of points in this area, a lender must cap their variable APR range below 7%.
• Fees (5%): Fees — such as late fees — can add to your overall borrowing costs. We gave points in this area to lenders that don’t charge fees on their refinance loans.
• Discounts (5%): We also considered what discounts lenders offer to help borrowers save on loan costs. To score points in this area, a lender must provide at least one discount, such as to borrowers who sign up for automatic payments or have an existing account.

Eligibility and accessibility (30%)

• Minimum income (5%): Lenders want to see that a borrower can afford repayment and therefore look at your income. We gave the highest amount of points in this area to lenders with a minimum income requirement of $30,000 or less.
• Ability to refinance without a degree (10%): To score the highest amount of points in this area, a lender must allow borrowers who didn’t graduate with a degree to apply for refinancing.
• Co-signer or co-borrower acceptance (5%): Many college students need a co-signer or co-borrower to qualify for a private student loan. We awarded points in this area to lenders that permit applications with a co-signer or co-borrower.
• Co-signer release option (5%): Co-signing on a loan can be a financial risk. Because of this, we gave points in this area to lenders that allow co-signers to be released from a refinanced loan after meeting the requirements.
• Hardship options (5%): Unfortunately, emergencies can happen that can make it hard or impossible to make payments. We awarded points in this area to lenders that provide hardship options — such as temporary forbearance — in these cases.

Customer experience (15%)

• Customer service hours and access options (5%): While some lenders have limited customer service hours, others extend their service hours through Saturday or even 24/7. Several also allow you to contact them not only by phone but also via email and/or live chat. To score the highest amount of points in this area, lenders must offer service past 6 p.m. Eastern Time (ET) and offer multiple contact options.
• Mobile app (5%): Lenders that provide a mobile app to their customers were given points in this area.
• Trustpilot reviews (5%): Customer reviews can be invaluable when deciding whether to work with a lender. Because of this, we awarded the highest points in this area to lenders that have earned five stars on Trustpilot.

Application process (5%)

• Online application (5%): To score points in this area, a lender must offer an online application process.

How we collect data

We rely on lenders when doing our research — never on third-party sources. We research each individual lender by reviewing their website and collecting data. Then, we reach out to each lender directly to collect additional information and get clarification on any details we were unable to find on the website. 

We regularly recheck and update our lender information. Our data team also researches each lender annually to verify that the data is up to date.

In some cases, lenders don’t disclose certain details on their website and either don’t reply to our inquiries or don’t disclose the information at all. When this is the case, the lender does not receive any points for that factor at all and it’s marked as “Does not disclose.” 

USA TODAY Blueprint’s editorial standards

Every article is fact checked by our writers and editors along with our data and compliance teams to ensure we have the most accurate and up to date information. Our team uses a data-driven methodology based on what borrowers value most to determine each rating. 

We pride ourselves on our journalistic integrity and our goal is to always empower our readers to make sound financial decisions. Advertisers do not influence any of our content, opinions or evaluations.