Best Personal Loans for Students in 2024

Best for joint applications

Best for small loans

Best for financial planning and career guidance

Best for flexible due dates

Best for bad or no credit

Student and personal loans share many similarities. With both, you receive a lump sum upfront and pay back what you borrowed in installments. Student loans and personal loans are typically unsecured debt, meaning you don’t need to provide collateral.

The biggest difference between personal loans and student loans is how lenders allow you to use the funds:

• Student loans: Generally, you can only use student loans for tuition and school-related expenses. These could include room and board, food, textbooks and supplies, transportation and more. If you can, take out federal student loans before private. Federal student loans come with borrower benefits like income-driven repayment plans.
• Personal loans: You can use personal loans for almost anything, but most lenders have some exclusions. Tuition is usually one of them, as are real estate and investing.

Talk to your lender about approved expenses before obtaining a personal loan. If you need more money for school costs, consider applying for a federal or private student loan. Otherwise, a personal loan could help if your most significant expenses aren’t school-related.

While the application process varies by lender, here are a few common steps you’ll take when applying for a personal loan.

Estimate how much you need

You should only borrow what you think you can repay. Use our personal loan calculator to estimate monthly payments and the total interest for the loan to see whether it’s within your budget.

Check your credit score

Having a good credit score can help you qualify for competitive rates on a personal loan. However, certain lenders are more lenient for students, especially if you can add a cosigner. Check your credit score for free to see where you stand.

Prequalify with multiple lenders

Not all lenders offer prequalification, so prioritize those that do to minimize hard credit pulls. This will help you get a handful of potential offers you can compare.

Compare offers

Scrutinize potential loan offers to find the best deal. Pay attention to estimated APR, fees and penalties, terms and your potential monthly payment.

Gather documents

Every lender will differ, but you’ll likely need to provide proof of income, address and a valid ID.

Submit official application(s)

Once you’ve narrowed down your choices, you can apply to your top picks. Make sure to submit all applications within a 14-day window to limit the effect on your credit score. This is called “rate shopping.”

Review offer and accept

Read the fine print to ensure that the final offer will work for your needs and that you understand the repayment schedule.

We reviewed more than 28 lenders to determine the overall best five personal loans. To make our list, lenders must offer joint loans with competitive annual percentage rates (APRs) From there, we prioritize lenders based on the following factors:

• Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
• Lower credit score requirements (or the ability to co-borrow): Many students have a thin credit profile. Because of this, we chose lenders with lower credit score requirements. If a lender requires good credit, they must also allow coborrowing to help the student meet eligibility requirements.
• Rates and terms: We prioritize lenders with more-competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
• Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.