College students who have taken out student loans to cover tuition might need another type of financing to help cover miscellaneous expenses â or any emergencies that might come up. Instead of maxing out their credit cards, students might consider personal loans for non-college-related costs.
Personal loans usually have lower interest rates than credit cards, and thatâs not the only positive they offer. Read on to learn more.
Best Personal Loans for Students
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Lender |
Learn More |
APR |
Max. Loan Amount |
Min. Credit Score |
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5.24% to 19.88% | $100,000 | Not disclosed | |
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5.99% to 17.99% | $50,000 | 650 | |
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5.99% to 24.99% | $40,000 | 600 | |
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6.76% to 35.99% | $50,000 | 650 | |
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5.99% to 35.99% | $50,000 | 640 | |
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As low as 2.49% | $250,000 | Not disclosed | |
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6.99% to 21.99% | $50,000 | Not disclosed | |
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5.99% to 18.49% | $50,000 | 660 | |
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5.97% to 29.99% | $45,000 | Not disclosed | |
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6.99 to 24.99% | $35,000 | 660 |
Best for loans of up to $100,000 with no fees

Before You Apply
- Minimum FICO credit score: undisclosed
- Loan amounts: $5,000 to $100,000
- Repayment terms: up to 84 months
- Better Business Bureau rating: A+
Best Features
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The lender does not charge origination, prepayment or late fees.
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Loans of up to $100,000 are available.
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Co-borrowers are accepted.
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Borrowers become members and get special benefits.
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Best for low minimum loan amounts

Before You Apply
- Minimum FICO credit score: 650
- Loan amounts: $600 to $50,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Terms extend up to 60 months.
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There are no origination fees.
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Borrowers can get as early as next day access to funds upon approval.
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Best for debt consolidation

Payoff is not a bank; instead, it works with lending partners that originate the loans. The company, which considers itself a financial wellness firm, is based in California.
In 2017, Payoff launched a sister company called Happy Money, which takes a psychological approach to money matters. Today, Payoff is a service under the Happy Money umbrella.
Before You Apply
- Minimum FICO credit score: 600
- Loan amounts: $5,000 to $40,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Borrowers donât face prepayment or late fees.
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Borrowers can get preapproved with no hard credit check.
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Some borrowers with fair credit may be eligible.
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Best for borrowers with no credit or poor credit

Before You Apply
- Minimum FICO credit score: 650
- Loan amounts: $1,000 to $50,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A
Best Features
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Next-day funding: Upstart says 99% of applicants who accept their loans by 5 p.m. Eastern Time Monday through Friday will get their money in one business day. The exception is loans for education expenses, which are subject to a waiting period of three business days, according to federal law.
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No credit history required: Upstart offers loans to borrowers with no credit scores, which traditional lenders may not do. If you have little or poor credit history, your loan will likely be more expensive, however.
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No prepayment penalty: You can repay all or part of your loan anytime without being charged a fee.
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Best for fair credit

Before You Apply
- Minimum FICO credit score: 640
- Loan amounts: $2,000 to $50,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Loan funding typically takes one to three business days.
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The minimum loan amount is $2,000 in most states.
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Borrowers incur no prepayment penalty.
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Best for large loan amounts

Before You Apply:
Minimum FICO credit score: Not disclosed
Loan amounts: $1,000 to $250,0000
Repayment terms: up to 144 months
BBB rating: A
Best Features
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Prospective borrowers can match with loan options within 60 seconds.
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Loans available up to $250,000.
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Searching loan options on Fiona doesnât impact your credit score.
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Best for fast funding

Lender Highlights:
- Minimum FICO credit score: undisclosed
- Loan amounts: $2,000 to $50,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: B+
Best Features
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Personal loans are issued by one of the 10 largest banks in the United States.
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Best for short-term loans

Before You Apply
- Minimum FICO credit score: 660
- Loan amounts: $1,000 to $50,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Pays out loan funds relatively quickly.
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Offers a 0.50% rate discount if you use a U.S. Bank personal checking or savings account to make automatic payments.
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Does not charge an origination fee.
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Best for digital customer care

Before You Apply
- Minimum FICO credit score: Not disclosed
- Loan amounts: $2,000 to $45,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Same-day loan funding may be available.
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No prepayment penalties apply.
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An online application process is available.
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Best for low costs

Before You Apply
- Minimum FICO credit score: 660
- Loan amounts: $2,500 to $35,000
- Repayment terms: up to 84 months
- Better Business Bureau rating: A+
Best Features
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Discover has no closing costs or origination fees.
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The lender offers loan terms from 36 to 84 months.
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Borrowers get free access to a credit scorecard that includes their FICO credit score.
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What Is the Best Interest Rate on a Personal Loan?
When you shop around for the best personal loan interest rate, you can save. Compare your personal loan offers with national average trends for personal loans to know whether youâve found a good deal.
*Rate as of October. 7, 2021
Personal Loan Finder
Select your desired loan amount and loan purpose, your credit score range, and your state to see estimated annual percentage rates and loan terms.
How Do Personal Loans for Students Work?
When you obtain a personal loan â whether from a bank, credit union or online lender â you usually get the money upfront and pay in monthly installments for as long as seven years. Personal loans can total as much as $100,000, but the amount allowed depends on your debt-to-income ratio and overall creditworthiness.
Personal loans can be used for a variety of reasons, ranging from home repairs to a vacation trip. A college student might use it to cover an emergency expense, like a car repair. A personal loan might be ideal because approval happens quickly and youâll receive the money within a day or two.
Since the loan payments will need to start right away and the payment period is likely to last a few years, âbe diligent about paying that off as scheduled,â says Justin Nichols, co-founder and managing principal for advisor services of Garrett Investment Advisors in Manhattan, Kansas. âIdeally, if you have to get a personal loan, next semester try to position your schedule so you can get a part-time job and aggressively pay off the personal loan ahead of schedule.â
Personal loans are not usually used to pay for direct college expenses like tuition because many lenders will not allow them to go toward postsecondary education. Most students also realize that student loans â whether federal or private â are likely to have more advantageous terms than a personal loan.
What Are the Different Types of Personal Loans for Students?
There are two primary types of personal loans â secured and unsecured. To get approved for a personal loan, youâll need to rely on your creditworthiness to get an unsecured loan, or collateral â such as a vehicle or securities â to obtain a secured loan. Secured loans usually have a lower interest rate because the collateral decreases the risk for the lender in case you canât pay off the loan. Personal loans typically have fixed interest rates for the life of the loan.
Unsecured Personal Loans
As a full-time student, it might be difficult to get approved for an unsecured personal loan on your own because you likely donât have enough income or a strong credit score. Fortunately, there are loans designed for people with bad credit.
If you apply for a loan, a lender will want to know how you will pay it back. âWhere is this magical money going to come from if you donât have a job and youâre in school?â says Tiffany Aliche, founder of The Budgetnista and author of âGet Good With Money.”
When you apply for a personal loan, pay attention to the interest rate youâre offered. It could be in the single digits if you have a strong credit score, or be as high as 35%, which would likely be significantly higher than your credit cardâs rate.
Secured Personal Loans
You might not have a lot of assets that would be valuable enough to serve as collateral on a personal loan, but a vehicle â especially if itâs fairly new â could be one.
âThe bank naturally should be more comfortable because there is a tangible asset that is acting as security for that loan,â Nichols says.
But if you canât pay back the loan, you could lose your car.
Thatâs why an unsecured loan is âa more desirable loan for a borrower because if you canât pay, the assets you have arenât at risk of being taken right away,â Aliche says.
Who Qualifies for Personal Loans for Students?
The minimum credit score necessary to get a loan varies by lender â it can be anywhere between 550 and 720. Youâll also need proof of consistent income. Remember that the higher your credit score, the better the interest rate youâll get. To improve your chances of getting approved on your own, you could look for ways to quickly improve your credit score.
You could also apply with a co-signer, such as a family member or friend, who could make your application more appealing to the lender. If the co-signer has a consistent income, low debt-to-income ratio and a strong credit record, it should dramatically increase your chances for approval.
Youâll need to let the prospective co-signer know that youâre âputting them in a position that if you donât pay, they are equally as responsible,â Aliche says. Your co-signerâs credit report will also reflect this new debt and possibly affect the personâs ability to buy a home or car.
Just bringing up the idea of a loan co-signer with a friend or family member could start a conversation that leads to that person lending you the money directly, Nichols says.
Should You Get a Personal Loan for College?
Personal Loan Benefits
- Better interest rate than credit cards: Thereâs no guarantee your interest rate will be in the single digits or low double digits â which would likely be lower than your credit card rates â but if it is, you could save hundreds of dollars over the life of the loan. âThe interest rate on a personal loan should be more reasonable than racking up any credit card debt,â Nichols says.
- Immediate solution to a crisis: If you need money right away to deal with an expense that could dramatically affect your daily life and safety â such as urgent home or auto repairs or a medical emergency â a personal loan can quickly provide the funds you need.
- Expected payoff with future earnings: If you expect to start a full-time position within several months that will provide you with adequate income, the personal loan might come at the right time for your financial situation.
- Head start to financial responsibility: If you get approved with a co-signer, it could improve your credit history and score and be a first step toward learning to pay for your expenses as you get the income to pay for them.
Personal Loan Drawbacks
- Immediate payments: Unlike student loans, which let you defer your payments until after you graduate, payments for personal loans start within a month of loan approval.
- Higher interest rates: If youâre used to the low interest rates on student loans â especially federal loans â the rates for personal loans will likely be a shock. If your creditworthiness is not strong, you could end up paying rates that are similar to ones for credit cards.
- Losing assets: If you obtain a secured personal loan and canât pay back the loan, you could lose the item â such as a vehicle â you used to secure the loan.
- Building debt: Student loans are already a huge debt burden for many people. If you add a personal loan, it will make starting out on your own even harder. âYou literally start your adult life in a hole,â Aliche says. âThe closer you can start your adult life at the start line, the better.â Instead, try to find other ways to address your debt, such as grants or scholarships through your school. âGo to the financial aid office regularly and make yourself known,â Aliche says. You could also decide to take fewer classes and find a job that offers more hours to pay down your debts.
What Other Types of Loans Are Best for College Students?
- Federal student loans: The best loan options for most students are federal student loans, which have fixed interest rates that are usually lower than private student loans. They also might be subsidized, which means the student does not pay interest while in school, and offer forbearance and deferment options.
- Private student loans: Although terms for these loans arenât usually as advantageous as federal loans and youâll likely need a co-signer, private student loans are a good second-choice option. The opportunity for payment deferment during school is an advantage over personal loans.
- Family loans: If you can reach an arrangement that works for both you and your relative, a family loan might save money in interest rates and provide a safety net if you run into trouble making payments.
View More Best Personal Loans for Students
Best for loan amounts of up to $50,000

Lender Highlights
- Minimum FICO credit score: 600
- Loan amounts: $1,000 to $50,000
- Repayment terms: up to 84 months
- Better Business Bureau rating: A
Best Features
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Loans and lines of credit are available up to $50,000 and $25,000, respectively.
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Borrowers can complete the entire loan process online.
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Best for FICO scores between 580 and 669

Before You Apply
- Minimum FICO credit score: 580
- Loan amounts: From $2,000 to $36,500
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Receive loan funds as soon as the next business day after approval.
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Qualify for a personal loan with fair credit.
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Prequalify with a soft pull that wonât harm credit.
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Prepay your loan with no penalties and change your payment due date.
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Best for low fees and discounts

Before You Apply
- Minimum FICO credit score: undisclosed
- Loan amounts: $1,000 to $35,000
- Repayment terms: up to 36 months
- Better Business Bureau rating: A+
Best Features
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A range of loan amounts and repayment terms.
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No prepayment penalty and no origination or application fee.
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Get a 0.25-percentage-point discount if you set up autopay using a PNC checking account.
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Applicants can secure a loan with a co-signer.
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Best for fair credit

Before You Apply
- Minimum FICO credit score: Not disclosed
- Loan amounts: $1,000 to $40,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: not rated
Best Features
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Loans of $1,000 or more are available.
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Joint applications are accepted.
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Borrowers can qualify with fair to excellent credit.
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Best for small loan amounts

Before You Apply
- Minimum FICO credit score: 580
- Loan amounts: $1,500 to $20,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Secured and unsecured options are available.
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Borrowers can get prequalified with a soft credit check.
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OneMain approves loans for borrowers with lower credit scores.
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Best for peer-to-peer loans of up to $40,000

Lender Highlights
- Minimum FICO credit score: 640
- Loan amounts: $2,000 to $40,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Prosper offers preapproval with a soft credit check.
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Small-dollar loans of $2,000 or more are available.
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Joint personal loans are available.
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