Congratulations, you got into college! Now for the big question: How are you going to pay for it?
The 2025 One Big Beautiful Bill Act, recently passed by Congress, includes new rules for financial aid for students. Specifically, there are now caps on the maximum amount of financial aid a student can get, starting in 2026.
In this article: College Ave, Sallie Mae and SoFi
The new rules take effect July 1, 2026 and affect borrowers or their parents at undergraduate, post-graduate and doctoral levels.
Education, especially at private or out-of-state schools, can exceed these maximums, and doctoral programs can cost much more. If you're looking to fill the gap left by the new caps on federal student loans, a private loan may make up the difference.
A private educational loan is a loan from a bank, credit union or online lenders. It's like taking out a car loan or line of credit, but the lender pays your school.
College Ave provides private student and graduate loans with interest rates between 3.19% and 17.99% (14.49% on graduate loans) with options for students, parents, law students, medical students, dental students and more. College Ave usually informs applicants of loan decisions within minutes and, unlike other lenders, offers multiyear approvals for the whole time of schooling, rather than requiring annual updates. It's been in business since 2014.
SoFi is the largest online lender in the U.S. and has been doing business since 2011. Its loans offer fixed rates from 3.23% to 15.99%, with loan terms from five to 15 years, and has a known minimum credit score for applicants of only 640. It offers undergraduate, graduate and parent loans, and financing for health professions, law school, medical school and MBAs. It offers rate discounts, good grades bonuses and other incentives.
Sallie Mae started out as part of the government's student loan program, but now is a private company. Its loans are offered for undergraduate, graduate, law, health professions and MBA programs, and also for parents. Sallie Mae's student loans offer fixed rates from 3.19% to 16.99% with loan terms from 10 to 15 years. Notably, its loans can also go toward certain professional training, certifications, and trade schools.
If you live in the eastern U.S. you probably know Citizens Bank as an all-purpose bank and financial institution. It's been in business for decades and even has its name on the ballpark of the Philadelphia Phillies. It offers private educational loans with fixed APRs of 3.24% to 14.99% with five- to 15-year terms, although it caps total loans at $150,000 for undergraduates. There's a discount if you have a previous financial relationship with the company, like a bank account or previous loan.
New limits on government student loans make it unlikely you can use them to pay for your whole education. Private loans for education can help bridge the gap, but it's wise to first use all the free money you have access to and apply for the government loans. Look for a private student loan that's flexible, easy to use, and won't be too much of a financial burden into your earning years.
Prices listed reflect time and date of publication and are subject to change.
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