Every student faces the daunting task of finding a loan to help cover the cost of college. With such a significant financial decision, you must select a loan with flexible repayment plans and highly competitive rates.

To ensure you're getting the right student loan for your needs, you must compare different loans from various lenders to evaluate their features.

In this blog post, we'll take an in-depth look at which student loans offer the best terms so that you can feel confident in making an informed financing decision.

Best Overall: Earnest

Pros & Cons

Earnest is a great choice for student loan borrowers due to its low-interest rates, flexible repayment options, and no origination fees. It also offers a rewards program that allows you to earn cash back on your loans. The downside is that Earnest only services certain states and requires good credit scores for approval.

Why We Chose It

We chose Earnest as the best overall student loan lender because of its low-interest rates, flexible repayment options, no origination fees, and rewards program. These features make it one of the most competitive options in the market. Additionally, Earnest has great customer service, and their website is easy to navigate. Overall, we found them to be an excellent choice for student loan borrowers.

Repayment Options

Earnest offers several different types of repayment options. Depending on your needs, you can choose from an income-driven repayment plan, fixed monthly payments, or a deferred payment option. You also have the option to make multiple payments per month if needed. These flexible options make it easy to find a plan that fits your budget and financial situation.

Eligibility Requirements

Unfortunately, Earnest only services certain states and requires good credit scores for approval. If you meet the requirements and are approved, you can expect to have various repayment options available to you. Additionally, Earnest does not charge origination fees or require private mortgage insurance (PMI).

Best for Negotiating Low Rates: Juno

Pros & Cons

Juno is great for students looking to get the best interest rate possible. Juno’s experienced loan negotiators will work with lenders to ensure you get the lowest rate. They also offer flexible repayment terms and no origination fees or prepayment penalties.

The downside is limited loan types, such as private student loans, are offered. Additionally, Juno’s services don’t include consolidation or refinancing options for existing student loan debt.

Why We Chose It

Juno is an excellent choice for students applying for a new loan with the lowest interest rate possible. With experienced negotiators and no fees, Juno makes it easy to get the best deal when borrowing money for school. It’s also important to note that Juno only offers private student loans, so if you have existing debt or are looking to refinance, you will need to look elsewhere.

Juno is a great choice for students who want the best rates on new loans without any hidden fees. With its experienced negotiators and flexible repayment plans, Juno makes it easy to get the most out of your money when borrowing for school.

Repayment Options

Juno offers flexible repayment options to fit your specific financial situation. Depending on the amount you borrow and your income, you can choose from interest-only, deferred, graduated, or fixed payments. You can also set up automatic payments for added convenience. There are no origination fees or prepayment penalties when working with Juno.

It’s important to note that Juno does not offer loan consolidation or refinancing options. If you have existing student loan debt, you will need to look elsewhere for those services.

Eligibility Requirements

To be eligible for a loan through Juno, you must have U.S. citizenship or permanent residency, good credit (640+ FICO score), and no active bankruptcies. You also need to be at least 18 years old and not in default on any student loans. Additionally, you must be enrolled in an accredited college or university as a full-time student.

If you meet these requirements, Juno makes it easy to get the best rates on your student loan with its experienced negotiators and flexible repayment options. With no fees, it’s a great choice for students looking to borrow money for school.

Student Loan Marketplace: Credible

Pros & Cons

One of the major benefits of using Credible is that students can apply for multiple loans from a single application. This saves time and energy and potentially increases the chances of getting better rates and terms. Furthermore, Credible has no hidden fees or prepayment penalties, so it’s easy to understand what kind of loan you get before signing up.

On the other hand, the downside of Credible is that it doesn’t offer federal student loans. Using a traditional lender or another marketplace to qualify for a federal loan would be best. Additionally, since Credible works with multiple lenders, there can be discrepancies in the qualifying criteria and rates each lender offers.

Why We Chose It

Ultimately, we chose Credible because it’s a reliable and convenient way to compare multiple lenders quickly. It also has an excellent customer service team available 24/7 to answer questions or address concerns. Additionally, Credible is FDIC insured for up to $250,000 per user, ensuring your loan information is safe.

Repayment Options

Credible offers repayment options, including traditional fixed- and variable-rate loans and income-driven plans. These plans allow borrowers to pay based on their income and family size, making it easier for students to manage their loan payments.

Eligibility Requirements

When applying for a loan on Credible, there are certain requirements that borrowers must meet. These include having a minimum credit score 650 and meeting the individual lender's eligibility criteria. It’s important to note that the terms and conditions of each loan may vary from lender to lender.

Best for Graduate School: Iowa Student Loan (ISL) Education Lending

Pros & Cons

ISL Education Lending could be a great option for those looking to finance their graduate school education. It's well-known for its competitive interest rates, flexible loan terms, and generous repayment options. There are also no origination fees or prepayment penalties. The downside is that it requires good credit and proof of income to qualify for the loan.

Why We Chose It

Iowa Student Loan (ISL) Education Lending is one of the best student loans for graduate students. ISL Education Lending offers low fixed interest rates, flexible loan terms, and generous repayment options, making it attractive for those looking to finance their educational expenses.

Repayment Options

ISL Education Lending offers a variety of repayment options, including traditional installments, deferment, forbearance, and even loan consolidation. The interest rates are competitive for graduate students, so it's worth considering. Additionally, no origination fees or prepayment penalties are associated with the loan.

Eligibility Requirements

You must meet certain eligibility requirements to qualify for an ISL Education Lending loan. You must have good credit and proof of income, including a record of your employment history and other financial information. Additionally, you must be enrolled in at least half-time study at a graduate school program in the U.S.

FAQs

Which loan is the best for students?

The best student loan for most students is Earnest. It offers competitive rates and features flexible repayment options.

Which student loan type has the most benefits?

The loan type with the most benefits is a Parent Student Loan from SoFi. It offers great rates and has competitive repayment terms. Plus, your parent can help you manage the loan payments.

Who gets the 39 billion in student loan forgiveness?

The 39 billion in student loan forgiveness is awarded to borrowers who have made the necessary payments on their loans and meet other eligibility requirements. The Department of Education will review applications and determine which borrowers are eligible for loan forgiveness.

Conclusion

Many student loan options are available, and researching the best one for your unique situation before applying is essential. While Earnest offers some of the best terms overall, Juno is an option to consider if you want to negotiate excellent loan terms. If, instead, you need funds for graduate school expenses, Iowa Student Loan (ISL) Education Lending may have more favorable terms than Earnest. And remember that Credible can also serve as a helpful marketplace for comparing multiple student loans.