Best Personal Loans for Students in 2023
Personal loans can help students cover expenses beyond their financial aid or student loan budget. The best personal loans for students come with low interest rates, minimal fees and either reasonable credit score requirements or cosigner eligibility.
Unlike student loans, which must go toward qualified educational costs, you can use a personal loan to cover a wide range of expenses.
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Best personal loans for students
Here’s a look at our top lenders offering personal loans suitable for students.
| Lender | Best for… | APR | Loan amounts | Terms |
|---|---|---|---|---|
 | Quick funding | 6.99% to 24.99% | $2,500 to $40,000 | 36 to 84 months |
 | No fees | 7.99% to 23.99% * with autopay | $5,000 to $100,000 | 24 to 144 months |
 | Cosigned loans | 8.99% to 23.43%* | $5,000 to $100,000 | 24 to 84 months |
 | International students | Starting at 7.99% | $1,000 to $35,000 | 12 to 36 months |
 | Small amounts | 8.49% to 35.97% | $1,000 to $50,000 | 24 to 84 months |
 | Bad credit | 6.70% to 35.99% | $1,000 to $50,000 | 36 or 60 months |
*Rate includes autopay discount
- Minimum credit requirement: Not specified
- APR: 6.99% to 24.99%
- Loan amounts: $2,500 to $40,000
- Terms: 36 to 84 months
- Origination fee: None
Why we like it: Discover’s loan process is fast and easy, and this lender offers a same-day decision. If approved, funds could be deposited into your account within one business day.Overview: Discover offers more than just credit cards and banking services. This lender’s personal loans range from $2,500 to $40,000 with competitive interest rates, flexible terms and no up-front fees. Although Discover doesn’t publicly disclose the minimum required credit score, it suggests that borrowers should have a solid credit profile before applying. You can use the funds for emergency expenses, vacations, medical costs, debt consolidation and more.
| Pros | Cons |
|---|---|
Quick funding time No origination fees or prepayment penalties Flexible terms | Cosigners aren’t accepted Minimum credit score isn’t disclosed Low maximum borrowing amount ($40,000) |
Eligibility requirements: In addition to meeting Discover’s minimum credit score and debt-to-income ratio (not publicly disclosed), you must be a U.S. citizen or permanent resident with an annual income of $25,000 or higher to qualify.
- Minimum credit requirement: Not specified
- APR: 7.99% to 23.99% *with autopay
- Loan amounts: $5,000 to $100,000
- Terms: 24 to 144 months
- Origination fee: None
Why we like it: If you qualify for a better rate (on the same loan term) with a competing lender, LightStream will drop your interest rate by 0.10 percentage points through its Rate Beat Program.Overview: LightStream offers personal loans with competitive interest rates to borrowers with good to excellent credit. Loan amounts range from $5,000 to $100,000 and have no origination fees or prepayment penalties. Only unsecured loans are eligible for the Rate Beat program and you must meet specific criteria before submitting a rate reduction request. Unfortunately, since LightStream doesn’t offer prequalification, this lender will run a hard credit check before extending any loan offers.
| Pros | Cons |
|---|---|
Low interest rates Quick funding timeline No fees | Preapproval isn’t available Minimum credit score not disclosed |
Eligibility requirements: LightStream doesn’t list specific requirements for its personal loans. However, you can expect the lender to review your credit history, assets, debt-to-income ratio and payment history during the application process.
- Minimum credit requirement: 680
- APR: 8.99% to 23.43% (with autopay)
- Loan amounts: $5,000 to $100,000
- Terms: 24 to 84 months
- Origination fee: No origination fee required
Why we like it: If you have a low credit score or little to no previous credit history, you can apply for a SoFi personal loan with a co-borrower to boost your chance of approval.Overview: SoFi offers personal loans from $5,000 to $100,000 with competitive interest rates and no required fees. Adding a creditworthy co-applicant might help secure a lower interest rate than applying by yourself. Your co-borrower must share the same permanent address as you. (Note: A co-applicant differs from a cosigner — while both share responsibility for repaying the loan, only co-borrowers share ownership of the loan funds.)
| Pros | Cons |
|---|---|
Co-borrowers are accepted No fees Unemployment assistance | High minimum loan amount Good credit required No physical bank branches |
Eligibility requirements: You must be a U.S. citizen or permanent resident, employed or have a job offer starting within 90 days and agree to use the funds for SoFi’s approved purposes.
- Minimum credit requirement: Not required
- APR: Starting at 7.99%
- Loan amounts: $1,000 to $35,000
- Terms: 12 to 36 months
- Origination fee: Varies by state
Why we like it: Stilt specializes in personal loans for non-U.S. citizens, making it an ideal choice for international students.Overview: Stilt offers personal loans from $1,000 to $35,000 with terms ranging from 12 to 36 months. The minimum APR is 7.99%, but the maximum rate and origination fee Varies by state. This lender is one of few who don’t require a Social Security number to apply, although you need a visa valid for at least six months.
| Pros | Cons |
|---|---|
Loan options for non-U.S. citizens Looks at other factors beyond credit score to determine eligibility Competitive starting APR | Short maximum repayment term (36 months) Doesn’t accept cosigners Not available in all states |
Eligibility requirements: Stilt technically doesn’t require a credit score or credit history to apply, but they’ll pull your credit report if you have one. If you don’t, they’ll review your history of paying regular bills, your educational background and other factors.
Additionally, you must have a current U.S. bank account, a personal phone number in your name, a stable source of income and a physical address in one of the following 16 states: Arizona, California, Florida, Georgia, Illinois, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania, Texas, Utah, Virginia, Washington and Wisconsin.
- Minimum credit requirement: 580
- APR: 8.49% to 35.97%
- Loan amounts: $1,000 to $50,000
- Terms: 24 to 84 months
- Origination fee: 1.85% - 8.99%
Why we like it: The application process is quick and easy, allowing you to borrow as little as $1,000 with flexible terms.Overview: Upgrade is an online lender offering personal loans from $1,000 to $50,000. If approved, you can receive funds as quickly as one business day. However, Upgrade charges an origination fee, which is deducted from the total amount, along with additional fees for late payments.
| Pros | Cons |
|---|---|
Low minimum borrowing amount Long maximum loan term Fast funding timeline | Charges an origination fee Late charges if payment is 15 days late Not ideal for large amounts |
Eligibility requirements: Along with a decent credit score and history, you must be over 18, a U.S. citizen or permanent resident, have a verifiable bank account and a valid email address to qualify.
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- Minimum credit requirement: 300
- APR: 6.70% to 35.99%
- Loan amounts: $1,000 to $50,000
- Terms: 36 or 60 months
- Origination fee: 0.00% - 10.00%
Why we like it: Upstart works with low or bad credit scores and uses artificial intelligence rather than traditional FICO Score-based models to make lending decisions. Unlike most personal loan lenders, Upstart allows borrowers to use funds toward education-related expenses (in some states).Overview: Upstart offers personal loans ranging from $1,000 to $50,000 with a low credit score requirement of 300. Your state of residence determines the minimum amount you can borrow, although Upstart doesn’t offer loans in Iowa or West Virginia. Upstart is a good choice for a bad-credit loan since it looks beyond your credit history and considers your education, employment history and more. If approved, funds could be disbursed as quickly as the next business day.
| Pros | Cons |
|---|---|
Low minimum credit score Quick time to funding Can use funds for student debt (in some states) | No secured loan options May charge an origination fee Doesn’t allow a co-application or cosigner |
Eligibility requirements: To qualify, you must be 18 or older, a U.S. citizen or permanent resident with a U.S. address, have a dependable source of income (or a job offer starting in six months), a valid banking account and not reside in West Virginia or Iowa.
How to apply for a personal loan
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.
Improve chances of approval
If you’re not in immediate need of funds, try to boost your credit score before applying for a personal loan. You can also increase your income or consider adding a cosigner to increase your odds of approval.
Prequalify with multiple lenders
Many lenders let you prequalify for a personal loan by entering basic details. This won’t result in a hard credit check and can give you an idea of your eligibility.
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, which is referred to as “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.
Student loans vs. personal loans
Student and personal loans share many similarities, including receiving a lump sum up front and repaying the debt 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 borrowers are permitted to use the funds:
- Student loans: Generally, you can only use student loans for tuition and school-related expenses, which typically include room and board, food, textbooks and supplies, transportation and more.
- Personal loans: While you can use personal loans for almost anything, most lenders don’t allow borrowers to use funds toward college expenses. Your lender might have a list of additional excluded purposes, such as real estate or 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 private student loan. Otherwise, a personal loan could help if your most significant expenses aren’t school-related.
Alternatives to personal loans for students
If a personal loan doesn’t meet your needs or you’ve been denied, here are other options to explore.
Emergency school funds
Many colleges have emergency funds set aside for students in need. Some schools might offer emergency grants, while others provide emergency student loans. Reach out to your school to learn about what’s available.
Student loans
Often, students don’t fully exhaust their available federal financial aid. Contact the financial aid office at your institution to see if you’re eligible for additional federal student loans. If you’ve exhausted your available federal aid, you may consider exploring private student loan options. You can also ask your parents about applying for a parent PLUS loan.
Secured loans
The personal loans discussed above are unsecured, which means you won’t lose your car or home if you default. However, if you’ve been rejected or have poor credit, you might consider a secured loan. Keep in mind that if you’re unable to repay your debt, you could lose the collateral securing the loan.
Credit cards
If you haven’t already built a credit history, consider applying for a student credit card to start building a more robust credit profile. Some student credit cards begin with a smaller credit amount — say, under $1,000 — to keep your debt more manageable as you learn to handle credit responsibly.
Friends and family
Borrowing money from your parents, relatives or a good friend could be more affordable than a personal loan since you won’t need to pay origination fees and your credit isn’t a factor. However, you should get the terms of the arrangement in writing — and stick to them. You don’t want to spoil a relationship over missed payments.
Part-time job
Juggling classes and a job might seem impossible. However, even 10 to 20 hours a week can significantly impact your budget. Plus, having a steady job can improve your odds of qualifying for credit or loans.
How we chose the best personal loans for students
We reviewed 11 lenders that offer personal loans suitable for students to determine the six best lenders for student borrowers. By compiling detailed information on rates, terms, loan amounts and basic eligibility requirements, we hope you can make a sound decision to address your immediate financial needs.
Here’s the criteria we assessed to choose the best personal loan lenders for students:
- Eligibility with a credit score as low as 600
- Flexible loan amounts
- Little or no extra fees
Frequently asked questions
Stipulations for spending your personal loan funds will vary from lender to lender. Most lenders do not allow borrowers to use funds toward school-related expenses, including repaying student loan debt. Upstart is an online lender that allows you to pay student debt with a personal loan, although this allowance isn’t available in every state.
Although most lenders want to see a reliable source of income, certain lenders are lenient with this requirement. For example, Upstart will accept borrowers with a job offer starting within six months.
If you’re in desperate need of funds, reach out to your school first. They can help you check your financial aid award package — there may be extra aid available, such as a work-study opportunity you overlooked. Your school may also have emergency loans for students experiencing financial hardship. Although applying for a private student loan is an excellent option, a personal loan can be one of the fastest ways to get funds.