How to Pick Between Student Loan Lenders

So, you’re heading off to college. You’ve also deduced that you need to take out a student loan in order to make it work financially. You’ve heard all the horror stories and you know all the statistics. You’re aware that there’s over $1.3 trillion in total student loan debt spread over 44 million graduates, and this is very intimidating to you. Fortunately, you are not without help. There are several different student loan lenders available, and depending on your personal criteria, you can pick a loan that’s right for you. In fact, College Raptor has a handy (and free) Student Loan Finder tool to help you out! Here are some points to compare when picking where your loan will come from:

A row of gray doors with one yellow door.

Interest Rates

Simply put, this shows how much you’ll have to pay on top of the initial loan you receive. Without accruing interest, lenders would not be able to operate. This is the first aspect of a loan most students look at. Interest rates provide an indication of expenses to take into account after graduation. Rates differ by company, plan, and personal financial standing, but most are somewhere from 2.5% to 9%. Understanding your student loan interest rate is vital to picking your loan plan, and the statistics will be available online, so do your research before you make up your mind.

Repayment Plans

All loans are not created equal, thus, they are not expected to be repaid in equal time. Varying repayment plans exist, from installments that ask you to give a concrete percentage each month to “pay as you go” plans. Recent graduates favor the latter option due to its concern for your personal income. “Pay as you go” plans take your financial status post-graduation into account, meaning you will only be asked to pay what the lender deems to be a realistic amount for your salary (income-driven). Additionally, if you are between jobs, your payments will be frozen until you regain your financial footing. Repayment plans and interest rates are often directly related. Both require a great deal of simultaneous consideration before you reach a decision.

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This is a personal choice and more of an overarching theme than the specifics of repayment or interest. If you do not your loan to weigh you down financially without being able to change your options, make sure you do not sign up for a plan that etches your installments in stone. For example, “pay as you go” plans are usually best for those who don’t like to be locked into future financial decisions.

However, other, more procedural-minded people may not want to jump through the hoops of changing their repayment plans. They know they’ll be able to pay off any installments. If you fall into the latter category, flexibility probably isn’t a priority for you. Student loans are a personal—and tremendously important—decision. Take the time to pick the right student loan lender. It is also best to have all the information in front of you before you sign a contract that will affect much of your immediate future.

Use College Raptor to discover personalized college matches, cost estimates, acceptance odds, and potential financial aid for schools around the US—for FREE!


Lender Rates (APR) Eligibility
Citizens logo.
6.97%-15.03%* Variable
5.99%-14.00%* Fixed
Undergraduate and Graduate
Sallie Mae logo.
6.37% - 16.70% Variable
4.50% - 15.49% Fixed
Undergraduate and Graduate
Credibe company logo.
4.98% - 16.70% Variable
4.07% - 15.66% Fixed
Undergraduate and Graduate
Lendkey company logo.
6.07% - 11.31% Variable
4.39% - 10.39% Fixed
Undergraduate and Graduate
Ascent company logo.
6.22% - 16.08% Variable
4.09% - 15.66% Fixed
Undergraduate and Graduate
6.54% - 11.08% Variable
3.95% - 8.01% Fixed
Undergraduate and Graduate
Earnest company logo.
5.62% - 18.26% Variable
4.11% - 15.90% Fixed
Undergraduate and Graduate
4.98% - 12.79% Variable
8.42% - 13.01% Fixed
Undergraduate and Graduate
College Raptor is not a loan lender and does not assume responsibility for suggesting a loan to a user who may not be eligible for it. Rates, terms, conditions, eligibility, approval, and other considerations are the decisions of the lenders and may vary depending on which lender or marketplace the user selects. We urge users to carefully consider and review all loan options and terms before committing to taking out a loan.