Everyone should have access to higher education, but securing a student loan is not always easy. While federal student loans offer fixed rates and terms for all applicants, privately funded student loan companies can often provide greater flexibility for applicants. When it comes to selecting a private loan provider, comparison is vital. Here we will compare two of the most popular undergraduate student loan providers, Sallie Mae and Ascent, and see how well they match up when offering non-cosigned loans.
Variable and Fixed Interest Rates
Your undergraduate student loan interest rate is one of the most important considerations when selecting a loan provider. This number will help determine how large your monthly payments will be as you repay the loan. Two types of interest rates can be applied to your loan: variable and fixed rates.
Fixed rates are flat rates that remain consistent for the loan’s lifetime. Fixed rates are a good option if you have a limited income and can lock in a low-interest rate from the beginning. Fixed rates make it easier to predict your monthly payments, even though they may be initially more expensive than variable rates.
Variable interest rates, on the other hand, will fluctuate month to month depending on market conditions. Variable rates are a good option if you have more wiggle room in your budget, plan on paying off your loan quickly, and anticipate beneficial market conditions. Variable rates may mean you pay less on certain months and more in others, but they could ultimately benefit those who can afford such risk.
Regarding Ascent VS Sallie Mae for cosigned loans, Ascent offers slightly lower rates overall than Sallie Mae, whose rates could max out at nearly 14%.
- Ascent Fixed Interest Rates: 3.89%-13.16%
- Ascent Variable Interest Rates: 2.52%-11.11%
- Sallie Mae Fixed Interest Rates: 3.75%-13.72%
- Sallie Mae Variable Interest Rates: 3.25%-13.59%
But, not every applicant can get a cosigner with strong credit to help them secure a loan. What about students with poor credit and no cosigner, are there options for them?
While there is no separate interest rate listing for no cosigner student loans from Sallie Mae, they list that all applicants are four times more likely to secure a loan with a cosigner. Ascent, on the other hand, lists different interest rates for non-cosigned credit-based loans and non-cosigned outcomes-based loans. Ascent is one of the only private loan companies to offer non-cosigned outcomes-based loans for junior and senior undergrads. Students can qualify for this type of loan with factors other than credit, such as GPA or school of attendance. This provides an excellent option for those students who may be seeking higher education on their own without the help of family.
- Ascent Non-Cosigned Credit-Based Loan: Variable Rate 7.09%-12.87%, Fixed Rate 8.69%- 14/75%.
- Ascent Non-Cosigned Outcomes-Based Loan: Variable Rate 10.37%-12.57%, Fixed Rate 11.96%- 13.24%.
Not everyone can secure a cosigner for their student loans, but that shouldn’t stop them from finding a deal to get them into the school of their dreams. Many high school students don’t have the opportunity to build credit before it’s time to apply and pay for college. If you find yourself in a similar situation, consider companies like Ascent that offer options for students in all positions.
Selecting the Best Loan Provider
There are many factors to consider when selecting the right private loan provider for your education. Interest rates are an essential consideration, as is your opportunity to secure a loan without a cosigner or good credit. No matter your background or financial position, you will most likely have an undergraduate loan option. Consider all your options before committing to a particular lender, and remember that you need to find a deal that can work for you throughout your time in college so you can stay on top of your monthly payments.
Start your journey to higher education today by securing a private undergraduate student loan. You don’t need good credit or even a cosigner to secure funding for your education. Explore your options today and find the right loan for you.