Best Low-Interest Student Loans in December 2024

College Ave is an online student loan lender offering various student loan products and refinancing since 2014 in 50 states and Washington, D.C. These loans are offered to both students and their parents or guardians for funding one’s higher education.

One of the best things about College Ave is that they offer student loans starting at $1,000 up to the total cost of tuition or attendance, which is not common among other lenders. Borrowers can also get a fixed APR as low as 4.43% and a variable APR as low as 5.59%, depending on their financial situation and other factors, along with various repayment options.

To save on interest, College Ave offers borrowers the opportunity to reduce their APR by 0.25% if they make automatic payments. Further, if a co-signer is present, they can be released after a specific time. A permanent disability or death can also trigger loan forgiveness at College Ave.

However, students must make satisfactory academic progress to be considered — and College Ave confirms with the school that requirements are met. Additionally, if you have any late payments, you will be charged a fee based on the monthly payment amount.

Earnest was founded in 2013 and began refinancing federal and private student loans in 2015. With customizable terms, Earnest launched private student loans for undergraduates and graduates in 2019. In addition, the company provides credit cards and personal loans to its clientele.

Earnest does not charge origination fees or late payment penalties like its competitors. Additionally, they allow you to pre-qualify, letting you know the potential rate you may qualify for without affecting your credit score. Once you’ve applied and are approved, your can receive your loan within two to five weeks.

It's possible to delay loan payments for up to nine months after graduation if you qualify for a grace period offered by the company. Earnest may also allow you to skip one payment every 12 months if you’ve been on time with your payments.

Sallie Mae began in 1972 as a publicly listed banking corporation providing federal education loans. Currently, the company only gives private student loans to undergraduate, graduate and career training students who seek to finance part or all of their education. Students enrolled half-time or less than half-time can also get a student loan through Sallie Mae, which is unique among student loan lenders. The lender also provides loans to students taking online programs or studying abroad.

Your program of study and creditworthiness determines the APR, and you can select between a fixed or variable interest rate. While the fixed APR can range between 3.50% and 13.83%, the variable APR range is 1.37% to 11.76%. All students get a 0.25% discount on the APR for scheduling automatic payments and receive a four-month subscription to the Chegg learning platform for signing up. There is also a Sallie Mae parent loan for parents that want to fund their kids’ education.

The best part of a Sallie Mae student loan is the flexible repayment options (three in total) and the six-month grace period. Plus, students who are neither citizens nor permanent residents of the United States, including DACA students living or attending school in the country, may acquire loans with a co-signer. The co-signer, however, must be a U.S. citizen or permanent resident.

SoFi, founded in 2011, started offering student loan refinancing in 2012. It was the first company to offer the refinancing of both federal and private student loans. Since then, it has funded over $50 billion in loans.

SoFi offers several different financial products, including student loans. Depending on your needs, you can choose an undergraduate, graduate, law or MBA loan. SoFi also offers student loan refinancing. Parents and sponsors can also take out a loan to finance their student’s education.

If you choose to make automated payments, you can get a 0.25% discount on your interest rate. If you or your co-signer is already a SoFi member, you can also enjoy a 0.13% interest rate reduction. Additionally, you can earn and redeem rewards points by using the SoFi app. Student loans in good standing that are at least nine months old may also apply for unemployment protection assistance, which may lower monthly payments in the event of unemployment.

SoFi is a great option for individuals looking to finance the total cost of attendance in school. That said, there is a minimum loan amount of $5,000. If you need a lower amount, you may want to explore other options.