In 2024, individuals who are graduate or college students, or the parent of one might find personal loans beneficial for them. Students can use personal loans to cover the cost of various non-educational expenses, unlike student loans. Although budgeting, working part-time, and avoiding debt is good, you may need to take out money while getting your degree.
Fortunately, you might be eligible to obtain a loan even if your credit is poor or don’t have any credit history at all. Moreover, the best personal loans for students in 2024 are available, offer affordable rates, and flexible repayment plans, and could cover other expenses like books, rent, food, transportation, and other requirements while you finish your education.
Best Personal Loans for Students in 2024
Installment loans, also known as personal loans, are a type of financial assistance where a lump sum is given upfront and repaid over one to seven years in monthly installments. These loans typically have fixed rates, ensuring a stable monthly payment. However, they don’t have a deferment period unlike student loans while in school and it has stricter eligibility requirements. The following are the best personal loans for students in 2024;
Patelco Credit Union
Patelco Credit Union is a federal credit union offering affordable loans with an 18% interest rate cap. Eligible candidates must be San Francisco or Sacramento residents, have a high credit score, work, study, worship, or have a 680 credit score. Patelco offers nationwide lending, no origination fees, next-day funding, low APR, and pre-qualification options. However, strict eligibility requirements, high credit scores, and membership requirements apply. Students should consider Patelco if they can benefit from rate reductions and prefer joining a credit union.
SoFi
SoFi is an online lender offering member-only benefits like discounted loans, free financial planning, and travel offers. It offers no fees, no origination fees, and repayment terms ranging from two to seven years. Borrowers can secure lower interest rates by paying an origination fee of up to 7% of the loan amount. SoFi also offers pre-qualification, co-borrowing, six-figure borrowing, free financial planning, auto-pay discount, same-day funding, and no fees. However, it is not available in 21 states.
Upgrade
Upgrade personal loans offer a Debt Payoff option, allowing lenders to settle existing debts and provide discounts on interest rates. These loans are available to non-citizens with valid visas, fair credit borrowers, and no minimum income requirements. However, they are expensive with an origination fee of up to 9.99% and a maximum annual percentage rate of 35.99%. Lower rates can be found in federal credit unions with an 18% rate cap. The lender offers repayment terms ranging from two to seven years and is accessible to qualified noncitizens.
Discover
Discover offers personal loans with competitive rates and flexible repayment terms, with pre-qualification and funds available the next business day. They offer three assistance plans for financial hardships, including reducing monthly payments, extending the loan term, and making timely payments.
However, Discover caps loans at $40,000 and requires a minimum credit score of 660 and an annual income over $25,000. The lender does not accept cosigners or co-borrowers, making it difficult for students without a stable income source. Despite being one of the best auto repair loans, Discover has a high credit score requirement, no cosigned or joint loans, no rate discounts, and a low maximum loan amount.
PenFed
PenFed is a credit union that offers low interest rates, small loan amounts, and no origination fees to applicants with good credit for personal loans. Members can apply with a creditworthy cosigner, something that lenders do not usually allow. PenFed offers live chat support, an online loan application process, and no minimum income requirements. Loan amounts are not limited by fixed amounts or fees, and they range from $600 to $50,000. Credit card refinancing, home improvement, and debt consolidation are among the loan uses; eligibility is not disclosed. There are 12 to 60-month repayment options.
Best Egg
Best Egg is a lender offering fair credit personal loans at competitive rates. Eligibility requires a FICO score of at least 600, with lower scores potentially leading to higher APRs. Interest rates and origination fees range from 0.99% to 9.99%. Successful prequalification increases loan approval chances. Loan amounts range from $2,000 to $50,000, with all states eligible except DC, IA, VT, and WV. No minimum income requirement is required. Funds can be received within 1 to 3 business days after verification. Customer service is available via phone and email.
OneMain Financial
OneMain Financial provides cosigners with secured personal loans with collateral and other options for bad-credit personal loans. Origination fees range from 1% to 10% depending on the state of residence or a flat fee of up to $500. Eligibility requires a U.S. government-issued photo ID, minimum income, and refusal to reveal discounts. Moreover, customer service can be contacted via phone, email, or soft credit checks. However, funds, except for business and education loans, are available within a day or two.
Upstart
Upstart is a student-friendly personal loan lender that uses AI to make lending decisions and review alternative criteria. Applicants must have a credit score of 300 or above, a debt-to-income ratio of 50% or less, a job or job offer starting in the next six months, no bankruptcies in the past year, no current delinquent accounts, and less than six hard credit inquiries in the past six months.
Upon approval, applicants can select a repayment term of three or five years and receive funds within 24 hours. However, the lender’s high origination fees and APR of 35.99% may be a concern. Upstart offers pre-qualification options, low minimum borrowing amounts, next-day funding, and potential fast funding in one business day.
Final Thought
Generally, personal loans are unsuitable for paying off student loans due to lenders’ restrictions on using them for higher education costs and the general avoidance of such borrowing. Private and federal student loans often offer lower rates and additional borrower protections, such as income-driven repayment, loan forgiveness, and deferment and forbearance options, which personal loans do not offer.