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Private student loans generally have tougher eligibility requirements than federal loans. In addition to age, income, and credit score minimums, students must be enrolled at an eligible school and use funds for specific expenses.
The Cons of Private Student Loans Most private student loans do not offer income-driven repayment plans. Private student loans do not qualify for teacher loan forgiveness or public service loan forgiveness. Private student loans have limited options for financial relief when a borrower experiences financial difficulty.
Private student loan borrowers can refinance to a longer repayment term for a lower monthly payment. Lets say you owe $50,000 with an 8% interest rate with a 10-year term. If you refinance to a 6% interest rate and a 20-year term, your new monthly payment will be $256 less each month.
Private student loans, including refinance loans, usually require a credit score of at least 670. However, knowing the precise requirements is tricky because private lenders consider their credit score guidelines a trade secret. The only way to find out if you qualify is to apply.
Ultimately, private student loans are worth considering if you have unmet financial needs that cant be covered by federal loans or other forms of free aid. They come with many benefits that could make them a good fit for your financial situation.
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While federal student loans dont require a credit check, private student loans typically require a positive payment history and a minimum credit score in the upper 600s or higher. You might also have to meet the minimum income requirement to ensure you can repay your student loan.
Approval Rates In 2020, the overall private student loan approval rate was 21.61%. In 2020, the private student loan approval rate for applicants who applied with a cosigner was 36.09%. In 2020, the private student loan approval rate for applicants who did NOT apply with a cosigner was 8.84%.
If youve been denied a private student loan. Its not uncommon to be denied a private student loan1 if you applied on your own. Most students lack the credit history needed to qualify for a sizable loan without a cosigner. If youve been denied, here are a few things you can do.

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