When it comes to what is the best loan, it is the one that you can successfully pay off and doesn’t have a huge interest rate. Talking about student loans, people start by searching for federal lending solutions, but in most cases, that is not enough to get all the financing.
As for the private lenders, banks do offer the best interest rates but that does come with higher requirements.
We did a review of the best options in order to help you make an educated decision. Have a look.
Best Student Loans
To determine whether one bank does offer a viable loan solution for your case, there are various factors to consider. This includes the interest rate, repayment, application, as well as income, and credit score that will be looked into.
Most banks try to make sure that you will be able to repay the debt, by all means, necessary before they go ahead and allow you a student loan.
Through our research, we did come across a few that seem to offer great options both when compared to Federal and other private lenders:
Citizens Bank (great for parent loans)
There are a number of reasons why this bank does rate among the best when it comes to student loans. First and foremost, there is an acceptable APR set between 2.72% and 10.83%. Also, a BBB score of A+ and the fact that multi-year applications are possible.
Probably the most important feature of it is that while it does stand as a regional bank, anyone in the US can apply both for their refinancing plans as well as private student loans.
This, along with the fact that the application process is extremely easy and that you only need to apply once for the entire schooling, makes Citizens Bank a viable choice.
Not to forget, you can get up to a 0.5% interest rate discount as long as you set up an autopay and make sure that your payments do come from a Citizens Bank account.
Taking everything into consideration, we can say with confidence that it is a choice you won’t regret (both as a parent and a student).
Discover (for good students)
The Discover bank does have a few innovative features that are not as common for private bank lenders. This includes bar and residency loans, as well as a couple of different repayment options.
The starting APR is set between 2.80% and 12.49%, which is again quite friendly compared to what most other private lenders offer. The BBC score is set at A+.
Among the coolest things of the program that they offer is you will be motivated to keep a GPA at 3.0 or above. How come? Well, in case you do that, there is a 1% cash reward you are eligible for.
It also offers deferment and forbearance, as well as an early assistance program that should make the repayment process more comfortable.
SunTrust (for graduate and MBAs)
With a starting APR of 4.75% to 9.41%, SunTrust does seem to offer a viable solution to almost any student. The best thing about it? International students can also apply.
Also, there is a reward for graduation, which should further motivate the students into getting their degree (1% discount on principal).
You will get to enjoy a discount of 0.25% on interest rate with an autopay, and another 0.25% as long as you pay through a SunTrust account.
Credible (lending service)
- APR from 2.84% to 4.21% (with AutoPay)
- 5-20 repayment period
- Many different lenders
- Variable APR from 1.50% to 9.66%
- Fixed APR from 4.74% to 11.85%
- Co-signer release
Who is Eligible
Most banks and private lenders do require that you are a US citizen. However, there are certain lenders, including SunTrust that allow international students to apply for the loan as well.
While you don’t necessarily have to own an account with the bank that is financing your loan, it will give you a discount.
How to Apply
When it comes to applying for a federal government loan, you should fill the FAFSA application. When it comes to asking for a loan from private lenders and banks, it is also a few steps process.
So log on to the official website of your potential lender, find an application form, and submit all the requested documents.
A student loan can go a long way when it comes to financing your college. In order to be as comfortable as you possibly can, we do suggest you apply for a loan from some of the aforementioned banks, including Citizen, SunTrust, and Discover.