Skip to Main Content

Best student loan rates in October 2024

Updated Aug 22, 2024

What to know first: A student loan is a type of funding designed to cover college costs such as tuition, fees, books, supplies and housing. In the United States, 42 million borrowers currently hold more than $1.7 trillion in student debt. Even though it’s a common form of debt, choosing the right loan for your needs is a big decision.

Check your personalized rates

Find my rate with Credible
  • Checkmark
    Compare rates in less than 2 minutes
  • Checkmark
    Checking will not impact your credit score

Filter results

Close X

STUDENT LOAN

Ascent: Best for outcomes-based no-cosigner loans

4.5

Fixed APR from
3.59- 14.59%
Loan term
5-15 yrs
Loan amount
$2,001-$400,000
See offersArrow Right

Apply on partner site

STUDENT LOAN

College Ave: Bankrate 2024 awards winner for graduate students

4.4

Fixed APR from
3.69- 17.99%
Loan term
5-15 yrs
Loan amount
$1,000-100% cost of attendance
See offersArrow Right

Apply on partner site

STUDENT LOAN

Sallie Mae: Best for part-time students

4.6

Fixed APR from
3.59- 15.49%
Loan term
10-15 yrs
Loan amount
$1,000-100% cost of attendance
See offersArrow Right

Apply on partner site

STUDENT LOAN

ELFI: Best for customer service

4.2

Fixed APR from
3.69- 14.22%
Loan term
5-15 yrs
Loan amount
$1,000-Varies
See offersArrow Right

Check rate on Credible

STUDENT LOAN

Citizens Bank: Best for existing Citizens Bank customers

4.0

Fixed APR from
3.99- 15.61%
Loan term
5-15 yrs
Loan amount
$1,000-$225,000
See offersArrow Right

Check rate on Credible

STUDENT LOAN

SoFi: 2024 Bankrate award winner for best for undergraduate students

4.7

Fixed APR from
3.99- 14.83%
Loan term
5-15 yrs
Loan amount
$1,000-100% cost of attendance

STUDENT LOAN

Earnest: 2024 Bankrate award winner for best for MBA students

4.5

Fixed APR from
3.69- 16.49%
Loan term
5-15 yrs
Loan amount
$1,000-100% cost of attendance
See offersArrow Right

Apply on partner site

STUDENT LOAN

Custom Choice: Best for graduation rewards

4.1

Fixed APR from
4.24- 14.02%
Loan term
7-15 yrs
Loan amount
$1,000-$180,000
See offersArrow Right

Check rate on Credible

STUDENT LOAN

INvestEd: Best for Indiana residents

Fixed APR from
4.80- 9.19%
Loan term
5-15 yrs
Loan amount
$1,001 - 100% total cost of attendance
See offersArrow Right

Check rate on Credible

STUDENT LOAN

MEFA: Best for paying past-due tuition

Fixed APR from
5.75- 8.95%
Loan term
10-15 yrs
Loan amount
$1.5k- $500K
See offersArrow Right

Check rate on Credible

Compare student loan rates from Bankrate’s top picks

When shopping for a student loan, look for a competitive interest rate, flexible repayment terms that meet your needs, generous hardship options and minimal fees. Lender details presented here are current as of July 2, 2024. Check the lenders’ websites for updates. 

LENDER VARIABLE APR FIXED APR LOAN TERM LOAN AMOUNT MIN. CREDIT SCORE
Ascent 6.00%-15.41% (with autopay) 3.59%-14.59% (with autopay) 5 - 15 years $2,001-$400,000 Not Specified
College Ave 5.59%-17.99% (with Autopay) 3.69%-17.99% (with Autopay) 5 - 15 years $1,000-100% total cost of attendance (maximum $150,000 for some degrees) Not Specified
Sallie Mae 5.54%-15.70% (with autopay) 3.59%-15.49% (with autopay) 10 - 15 years $1,000 to 100% cost of attendance Not Specified
Education Loan Finance 5.00%-14.22% 3.69%-14.22% 5 - 15 years $1,000-100% total cost of attendance Not Specified
Citizens Bank 5.89%-16.51% (with autopay) 3.99%-15.61% (with autopay) 5 - 15 years $1,000-$150,000 for most degrees Not Specified
SoFi 5.99%-15.86% (with autopay) 3.99%-14.83% (with autopay) 5 - 15 years $1,000- 100% total cost of attendance 640
Earnest 5.62%-16.85% (with autopay) 3.69%-16.49% (with autopay) 5 - 15 years $1,000-$1,000 to 100% cost of attendance 650
Custom Choice 5.46%-14.92% 4.24%-14.02% 7 - 15 years $1,000-$180,000 Not Specified
INvestED 7.75%-12.45% (with autopay) 4.80%-9.19% (with autopay) 5 - 15 years $1,001- 100% total cost of attendance 670
MEFA N/A 5.75%-8.95% 10 - 15 years $1,500- 100% total cost of attendance 670
Federal Direct Subsidized and Unsubsidized Loans N/A 6.53%-8.08% Fixed 10 - 25 years $5,500 to $12,500 per year (up to $57,500 aggregate) None

For more information on private student loan rates, check out our page on private student loans.

*The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.

A closer look at our top student loan lenders

The top lenders listed below are selected based on factors such as APR, loan amounts, fees, credit requirements and broad availability.

Ascent: Best for outcomes-based no-cosigner loans

Ascent
Rating: 4.5 stars out of 5
4.5

Overview: Ascent offers undergraduate and graduate private student loans in all 50 states. Borrowers without a co-signer have their own loan option, which is a rarity in the private student loan space. If you don’t have a co-signer, you may be able to qualify for a loan based on your school, graduation date, major and cost of attendance.

Fixed APR
3.59%–14.59%
Loan amount
$2,001-$400,000
Loan term
5-15 yrs

College Ave: Bankrate 2024 awards winner for graduate students

College Ave
Rating: 4.4 stars out of 5
4.4

Overview: College Ave is an online lender that offers private student loans to undergraduate students, graduate students, parents and students attending community college and career programs.

Fixed APR
3.69%–17.99%
Loan amount
$1,000-100% cost of attendance
Loan term
5-15 yrs

Sallie Mae: Best for part-time students

Sallie Mae
Rating: 4.6 stars out of 5
4.6

Overview: Sallie Mae is one of the most recognized lenders on our list and serves borrowers at all stages of their academic experience. Most notably, borrowers who are only enrolled in part-time programs can secure funding.

Fixed APR
3.59%–15.49%
Loan amount
$1,000-100% cost of attendance
Loan term
10-15 yrs

Education Loan Finance: Best for customer service

Education Loan Finance
Rating: 4.2 stars out of 5
4.2

Overview: Education Loan Finance functions as a not-for-profit organization that is built on creating deep relationships with its borrowers. It awards scholarships the country and connects families with assistance when it comes to the complexities of student loans.

Fixed APR
3.69%–14.22%
Loan amount
$1,000-Varies
Loan term
5-15 yrs

Citizens Bank: Best for existing Citizens Bank customers

Citizens
Rating: 4 stars out of 5
4

Overview: Citizens Bank offers private student loans to undergraduate students, graduate students and parents. Borrowers can get a 0.25 percent discount for signing up for automatic payment and existing Citzens Bank customers get a bonus 0.25 percent loyalty discount.

Fixed APR
3.99%–15.61%
Loan amount
$1,000-$225,000
Loan term
5-15 yrs

SoFi: 2024 Bankrate award winner for best for undergraduate students

SoFi
Rating: 4.7 stars out of 5
4.7

Overview: SoFi is an online lender that offers private student loans for undergraduate students, graduate students and parents. Among its perks, SoFi doesn’t charge any fees, which cuts down on the overall cost of borrowing.

Fixed APR
3.99%–14.83%
Loan amount
$1,000-100% cost of attendance
Loan term
5-15 yrs

Earnest: 2024 Bankrate award winner for best for MBA students

Earnest
Rating: 4.5 stars out of 5
4.5

Overview: Online lender Earnest funds private student loans to undergraduate and graduate students and offers unique repayment options. Earnest's grace period is nine months long, which is three months longer than what most lenders offer. Borrowers are also allowed to skip one payment every 12 months.

Fixed APR
3.69%–16.49%
Loan amount
$1,000-100% cost of attendance
Loan term
5-15 yrs

Custom Choice: Best for graduation rewards

Custom Choice
Rating: 4.1 stars out of 5
4.1

Overview: Custom Choice has been in business for over 30 years and serves students in all 50 states. It lends up to $99,999 per school year or $180,000 in total.

Fixed APR
4.24%–14.02%
Loan amount
$1,000-$180,000
Loan term
7-15 yrs

INvestEd: Best for Indiana residents

Invested

Overview: INvestEd is a student loan option tailored for students who reside or are attending school in Indiana. The lender is unusually engaged in bringing resources and information to students — it hosts FAFSA filing events and provides financial aid resources directly to school counselors in the state.

Fixed APR
4.80%–9.19%
Loan amount
$1,001 - 100% total cost of attendance
Loan term
5-15 yrs

MEFA: Best for paying past-due tuition

mefa

Overview: MEFA serves borrowers across the country with competitive rates and comprehensive support. It also allows borrowers to use funds to pay for summer sessions or repay past-due balances from other academic semesters.

Fixed APR
5.75%–8.95%
Loan amount
$1.5k– $500k
Loan term
10-15 yrs

Federal Student Loans: Best overall

Federal Student Loans
Rating: 4.6 stars out of 5
4.6

Overview: The federal government offers student loans with fixed rates to undergraduates, graduates and parents. Borrowers have access to income-driven payments, forgiveness programs and other perks you almost certainly won’t find with a private lender.

Fixed APR
6.53%–9.08%
Loan amount
$5,500- $12,500 per year (up to $57,500 in total)
Loan term
10-25 yrs

What are student loans and how do they work?

Student loans cover the cost of schooling if scholarships and federal loans are not enough. Students can choose federal or private student loans to help pay for school.

They can cover school-related expenses such as, tuition, fees, supplies, housing and books. It’s usually best to start with federal student loans, which have an interest rate of 6.53 percent for undergraduate students for the 2024-25 school year. 

Private student loans have fewer borrower protections. However they can fill in any funding gaps and typically have a wider range of repayment terms. Private student loan rates typically range anywhere from around 4 percent to 18 percent. 

Your lender sets the interest rate you pay to borrow the funds. You typically have between five and 20 years to repay student loans. If your lender offers the option to prequalify, take advantage — it will let you calculate your student loan interest and payments to understand how much you will spend.

Types of student loans

Students have several options for student loan types depending on their degree program:

  • Federal undergraduate loans: U.S. citizens and eligible noncitizens can qualify for federal student loans, regardless of credit score or whether they have a co-signer. Undergraduates may have the option of Direct Unsubsidized Loans or Direct Subsidized Loans, the latter of which is offered only to students with financial need.
  • Federal graduate loans: Graduate students can qualify for federal Direct Unsubsidized Loans or Direct PLUS Loans. Unsubsidized loans are cheaper, but PLUS Loans have higher loan amounts.
  • Private undergraduate loans: Borrowers who have taken out the maximum in federal student loans may choose to look for private student loans. In many cases, these loans may also be the only viable option for international students looking to study in the U.S., since these students don't qualify for federal aid.
  • Private graduate loans: Many private lenders offer loans for graduate study, including loans tailored to students attending law school, business school, medical school and more.
  • Student loan refinancing: If you took out a student loan in the past but want to change your repayment term or interest rate, you may choose to refinance. Refinancing pays off your old loans in exchange for a new loan.

Federal vs. private student loans

Federal student loans are offered by the U.S. Department of Education, while banks, credit unions and private lenders offer private student loans. It's almost always best to start your search with federal student loans.

The biggest difference between federal and private loans is in the rates and eligibility requirements. Private lenders base your rates on your credit score, with a poor credit score leading to higher rates. 

Federal student loans, on the other hand, offer every borrower the same rate for each type of loan. The average interest rate on a private student loan can range from around 4 percent to 17 percent, while federal loans charge 6.53 percent, 8.08 percent or 9.08 percent, depending on the loan type.

Federal loans have borrowing limits, so borrowers will often turn to private lenders to finance their remaining academic costs. While private loans can often finance up to the total cost of attendance, they don't offer as many ways to customize your repayment plan. 

Most private student loans also don't offer many opportunities for loan forgiveness. Any federal student loan forgiveness options don't apply to private debt.

FEDERAL STUDENT LOANS PRIVATE STUDENT LOANS
Interest rates 6.53%-9.08% for 2024-25 4.19%-17.99% fixed, 4.37%-17.99% variable
Fees 1.057% for for Direct Subsidized Loans and Direct Unsubsidized Loans; 4.228% for Direct PLUS Loans Varies by lender
Borrowing limits $31,000 total for dependent undergraduates, $57,500 total for independent undergraduates, 100% total cost of attendance for graduates 100% total cost of attendance with many lenders
Qualification requirements Must be a U.S. citizen or eligible noncitizen and be enrolled at least half time Varies by lender; often must have good credit and consistent income
Benefits Income-driven repayment plans, robust deferment and forbearance, no minimum credit score Low interest rates for good-credit borrowers, often zero fees, lender-specific perks
Drawbacks Potentially higher interest rates than private loans offer for borrowers with good credit, loan amount caps for undergraduate borrowers Credit check required, high rate caps, fewer borrower protections

What are current student loan interest rates?

Current interest rates on private student loans vary based on where the loan originates, the type of interest rate and the creditworthiness of the borrower. Federal student loans, aside from Perkins loans, disbursed after July 1, 2006 have fixed rates. The interest rates shown for these types of loans apply to those disbursed between July 1, 2024 and June 30, 2025.

LOAN TYPE FIXED APR
Direct Subsidized and Unsubsidized Loans (undergraduate borrowers) 6.53%
Direct Unsubsidized Loans (graduate and professional borrowers) 8.08%
Direct PLUS Loans (parents and graduate and professional borrowers) 9.08%

What are interest rates for federal student loans?

Federal student loan rates change each year. Your rate depends on when you took out your loan.

LOAN FIRST DISBURSED UNDERGRADUATE DIRECT SUBSIDIZED LOANS UNDERGRADUATE DIRECT UNSUBSIDIZED LOANS GRADUATE OR PROFESSIONAL DIRECT UNSUBSIDIZED LOANS DIRECT PLUS LOANS
July 1, 2024-June 30, 2025 6.53% 6.53% 8.08% 9.08%
July 1, 2023-June 30, 2024 5.50% 5.50% 7.05% 8.05%
July 1, 2022-June 30, 2023 4.99% 4.99% 6.54% 7.54%
July 1, 2021-June 30, 2022 3.73% 3.73% 5.28% 6.28%
July 1, 2020-June 30, 2021 2.75% 2.75% 4.30% 5.30%
July 1, 2019-June 30, 2020 4.53% 4.53% 6.08% 7.08%
July 1, 2018-June 30, 2019 5.05% 5.05% 6.60% 7.60%
July 1, 2017-June 30, 2018 4.45% 4.45% 6.00% 7.00%
July 1, 2016-June 30, 2017 3.76% 3.76% 5.31% 6.31%
July 1, 2015-June 30, 2016 4.29% 4.29% 5.84% 6.84%

How student loan interest works

When you apply for a student loan, you'll be offered an interest rate. This interest rate is an extra percentage of your loan amount that you'll have to pay each month.

With federal loans, this rate is the same for all borrowers and is determined by the federal government each year. With private loans, this rate is determined by your credit score, income and more. The most affordable private student loans go to students in good financial health with high credit scores.

Borrowers can usually choose between a fixed and a variable interest rate. Fixed interest rates remain the same over the life of the loan, while variable rates change based on market trends. Federal student loans are always fixed, while private student loans can be either fixed or variable.

How to choose a student loan

  1. Look at federal student loan options: With low rates and many options for payment assistance, federal loans are the best choice for most borrowers.
  2. Compare offers from a few private lenders: If you need funding from private loans, a good rule of thumb is to get prequalified with at least three lenders to compare rates.
  3. Consider interest rates and terms: With offers in hand, look at which interest rate and repayment term works best for your budget. Also consider any additional fees from the lenders.
  4. Look into unique features: If a lender offers a long grace period or deferment options while you return to school, it may be worth it to choose that lender over one with a slightly lower interest rate.

How to apply for a student loan

If you are planning on taking out federal student loans, mark your calendar. The Free Application for Federal Student Aid (FAFSA) for 2024-25 opened on Oct. 1, 2023 and closes June 30, 2025. It's the only way to access federal aid, which is first-come, first-serve, so it's best to apply as soon as possible.

  1. Fill out the FAFSA: The Free Application for Federal Student Aid opens on October 1 each year and will tell you your options for federal student loans.
  2. Get prequalified with private lenders: Prequalifying with private lenders lets you see your interest rate and terms without a hard credit pull.
  3. Submit an application: Once you've chosen a lender, you'll send in a formal application online, over the phone or in person. You'll need to provide income verification documents, and you'll go through a hard credit check.
  4. Sign loan documents: After being approved by a lender, you'll sign your loan documents to finalize the transaction. Your student loan funds will be sent directly to your school.

Student loan news updates

Following the pandemic-related pause, federal student loans began accumulating interest again on Sept. 1, 2023 and payments resumed in October. 

Early in his presidency, Biden revealed a sweeping student loan forgiveness plan. This original student loan forgiveness plan was rejected by the Supreme Court, but the Biden administration continues to pursue forgiveness options.

Currently, the Biden administration is working with the U.S. Department of Education on a plan that would provide the following

  • Up to $10,000 in relief to borrowers whose federal student loan debt balance has grown due to interest.
  • One-time loan forgiveness to undergraduate-only borrowers whose loans entered repayment 20 or more years ago and any other borrowers whose loans entered repayment 25 or more years ago. 
  • Benefits to borrowers who are eligible but have not signed up for forgiveness under various federal plans, such as Public Service Loan Forgiveness.
  • Further relief to borrowers whose schools were shuttered or otherwise penalized by the department for leaving students with unaffordable debts or providing a subpar value.

Additionally, the administration has worked to reform and improve federal programs such as PSLF to provide overdue relief to borrowers, as well as forgive the loans of borrowers whose schools have shuttered. 

Bankrate's image file
In the news

Appeals judge rules student loan payment cuts can proceed

In late June, two federal judges placed temporary injunctions on forgiveness through the Saving on A Valuable Education (SAVE). However, a July 1 appeals court decision means planned payment reductions can proceed.

Arrow Right Icon

How the Fed rate hikes impact student loans

In an attempt to cool inflation, the Federal Reserve raised rates 11 times from early 2022 to late 2023. Observers say a final hike is unlikely. The Federal Open Market committee has kept rates steady at seven meetings since then, including the most recent June FOMC meeting.

While the Fed decisions won’t impact federal student loans for the 2023-24 school year — those are already set in stone — they could impact new private student loans and refinancing. They also impact the rates on Federal student loans for the 2024-25 school year. 

The Fed rate has the biggest influence for borrowers with private student loans with a variable interest rate. If you have an existing loan, now might be the time to refinance into a fixed rate. If you’re taking out a new private student loan, it may be wise to choose a fixed rate from the start.

What to know about the FAFSA

The FAFSA is the only way to get federal student loans, which is why all eligible students should fill out the form if they anticipate needing to borrow money for college.

  • When does the FAFSA open? The FAFSA opens on Oct. 1 every year. For the 2024-25 school year, the FAFSA opened on Oct. 1, 2023.
  • When is the FAFSA due? The federal deadline for the FAFSA is June 30 for the award year you need funding. For the 2024-25 school year, the FAFSA is due on June 30, 2025. However, some states and colleges have earlier deadlines.
  • Who is eligible to apply for the FAFSA? U.S. citizens, eligible noncitizens and DACA recipients can fill out the FAFSA. However, only U.S. citizens and eligible noncitizens can receive federal financial aid.
  • What happens if you make a mistake on your FAFSA? If you've experienced a serious financial event since submitting the FAFSA or your personal details have changed, you are able to update your FAFSA after the fact.

Ask the experts: Should you start paying off your student loans while in school?


Nationally recognized student financial aid expert

"There is a tradeoff. If you start paying off your student loans during the in-school and grace periods, you may reduce the loan balance at graduation and the interest that accrues before you enter repayment. However, the money you use to pay down your debt might have been available to pay for college costs, reducing the amount you need to borrow. You should not pay down subsidized loans while in school, since no interest accumulates on those loans until your loans enter repayment. There’s no difference between paying the loans during the in-school period and making a lump sum payment just before entering repayment. If you save the money in an interest-bearing account, you might earn a little interest during the in-school period. One benefit of paying the interest on unsubsidized loans during the in-school period is you can keep your loans from growing larger. Between the fees and capitalized interest, your loan balance might increase by as much as a fifth by the time you graduate."

Writer, Personal Loans and Debt Relief

"If you can, making payments on your student loans while enrolled can improve your credit and lower your interest accrual before graduating. However, when it comes down to it, whether you need to pay back your loans while enrolled depends on the type of loan you have. Both private and federal loans come with a grace period that lasts an average of six months after graduating or leaving the institution. Federal loans, regardless of the type, don't require payments while in school, but some private lenders require payments while in school. To avoid negative credit ramifications or increased interest accrual, read through your loan agreement before starting your semester to see if you're required to pay principal or interest payments before graduating."

FAQs about student loans

How we chose the best student loan providers 

Bankrate's trusted personal loans industry expertise

48

years in business

25

lenders reviewed

14

loan features weighed

350

data points collected

To find the best student loan lenders, Bankrate's team of experts evaluated over 20 lenders. Each lender was then rated on a 14-point scale. The scale is split into three main categories

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.