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We base our star ratings on 10 metrics to help determine the most objective score for every lender. But while our star ratings provide a good starting point, our reviews go into detail to help you decide if a lender is the right fit for your education.
We rate business loan providers using a scale of 1 to 5 stars:
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
★★★★★ — Less than $5,000
★★★★★ — $5,000 to $7,000
★★★★★ — $7,500 or more
Because university costs vary widely between schools, lenders that offer the most flexible loan amounts earn high scores. Lenders earn 5 stars by offering loans of less than $5,000 for borrowers who may only need a small amount. Lenders that offer loans between $5,000 to $7,500 are slightly less flexible, so they earn 4 stars. Lenders that require borrowers to take out more than $7,500 earn 1 star — but few have such a high minimum requirement.
★★★★★ — Cost of attendance (COA)
★★★★★ — $100,000 or more
★★★★★ — $7,500 or more
Typically, lenders will allow students to borrow up to 100% of the cost of attendance — after subtracting other financial aid like federal loans, grants and scholarships. But some lenders will place restrictions on maximum loan amount. Those that allow borrowers to take out $100,000 or more earn 4 stars, while those that have a cap of $100,000 or less earn 3 stars.
★★★★★ — More than 20 years
★★★★★ — 15 to 20 years
★★★★★ — 10 to 14 years
★★★★★ — 7 to 10 years
★★★★★ — Less than7 years
Maximum loan term influences how long you have to repay your loans. The longer you’re able to borrow, the more affordable your monthly repayments will be — so lenders earn 5 stars for offering terms of 20 or more years. The less time you have to repay, the lower your score is. Lenders that only offer maximum terms of seven years earn our low 1-star rating.
★★★★★ — Below 2.99%
★★★★★ — 3% to 6.99%
★★★★★ — 7% to 10%
★★★★★ — More than 10%
The minimum APR is the interest and fees you pay on your loan. For borrowers with excellent credit — or a cosigner with excellent credit — having a lower APR means paying less overall. Lenders that charge 2.99% or less earn 5 stars, while lenders that have a minimum APR of 10% or higher earn 1 star.
★★★★★ — Below 10%
★★★★★ — 10% to 12%
★★★★★ — 12% to 15%
★★★★★ — 15% to 18%
★★★★★ — More than 18%
The maximum APR you pay is an important metric — especially if you borrow a variable-rate loan. If a lender sets its cap at 10%, you won’t pay more than that — provided you qualify. The majority of the lenders we review have a maximum APR under 15%.
★★★★★ — Has options for deferment and six-month grace period as well as in-school options, including interest-only repayments, small fixed repayments or full repayments
★★★★★ — Offers three of the four repayment options
★★★★★ — Offers two of the four repayment options
★★★★★ — Full repayments required while in school
Repayment is one of the major concerns for student loans. Lenders that give borrowers the most options — including a six-month deferment period after graduation — earn 5 stars. Lenders that have a mixture of payment options earn 4 or 3 stars based on how many options are offered. And lenders that require in-school repayments earn a low 1 star.
★★★★★ — No fees
★★★★★ — Late and NSF fees
★★★★★ — Origination fees
★★★★★ — Payment fees
The most common fees are late and NSF fees, so lenders that charge them earn 4 stars. 5 stars are reserved for lenders that charge no fees, and lenders that charge origination fees only earn 2 stars.
★★★★★ — Excellent customer service
★★★★★ — Good customer service
★★★★★ — Average customer service
★★★★★ — Subpar customer service
★★★★★ — Poor customer service
Customer reviews are optional. Our score is based on reviews from Trustpilot or the lender’s Better Business Bureau page. Any lender with more than 100 reviews will receive a score equivalent to what its customers gave it.
★★★★★ — Can apply with or without cosigner
★★★★★ — Cosigner required
★★★★★ — Must apply without a cosigner
Most lenders allow borrowers to apply for a student loan with or without a cosigner, and they earn a 5-star rating. Those that force borrowers to apply with a cosigner receive 4 stars, and those that force borrowers to apply without a cosigner receive 3 stars — largely because it limits young students’ ability to borrow.
★★★★★ — Offers one of these perks
If a lender has any of these perks, we give it an additional 5 stars.
While these star ratings can guide you to the right lender, you still need to make sure you qualify for a loan before applying.
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