Alternative student loans outside FAFSA - First-timer needs bank recommendations

chase and discover both have ok student loans. but honestly they ALL suck compared to federal loans. private loans have way higher interest rates and none of the protections. definitely put them in YOUR name if your credit is good, your daughter will get destroyed by the interest rates with no credit history.

I would strongly recommend exhausting all FAFSA options before turning to private loans. Have you tried calling the Federal Student Aid helpline to get your verification issues resolved? That's much faster than waiting for the online system to update. If you absolutely need private loans, SoFi and Earnest typically offer competitive rates for parents with good credit. Citizens Bank also has Parent Loans with fixed rates starting around 5.99% (though that varies based on credit and market conditions). Regarding whose name - private loans should ideally be in your name since you have established credit. Most undergraduate students need a co-signer anyway, and with your 740+ score, you'll qualify for much better rates than your daughter would alone.

dont do sallie mae. BIGGEST MISTAKE OF MY LIFE. they started at 11.5% interest for me and literally would not work with me at all when i had trouble making payments. ended up having to refinance with sofi which was way better experience

Have you looked into the Parent PLUS loan option through FAFSA? It's still a federal loan, just for parents instead of students. The interest rate is fixed at 6.28% for the 2025-2026 year, which is almost certainly better than any private loan you'll find. If your FAFSA is stuck in verification, you should still be able to apply for a Parent PLUS loan separately. The application process is pretty straightforward, and they only check for adverse credit history, not your actual credit score. If you absolutely need to go private, College Ave and Earnest consistently have the best rates in my experience (I'm a financial aid counselor). And definitely put them in your name - your daughter would need you as a cosigner anyway, and you'll get better rates.

I used Claimyr to finally get through to the FSA helpline after weeks of trying on my own. Just went to claimyr.com, they connected me to an agent in about 20 minutes when I'd been trying for days with no luck. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ The agent was able to push my son's verification through while I was on the phone. Saved me from having to take out private loans altogether. If FAFSA is your first choice (which it SHOULD be), don't give up before talking to an actual human.

Everyone keeps suggesting Parent PLUS loans which are definitely better than private loans, but be careful! They still have a 4.228% origination fee that gets tacked onto the loan amount. So if you borrow $10,000, you actually owe $10,422.80 right from the start. Private loans typically don't have origination fees. Also, with your credit score, you might qualify for rates in the 7-8% range from lenders like SoFi, Earnest, or Citizens. Always apply to multiple lenders and compare offers before deciding. And DEFINITELY keep trying to get your FAFSA verification resolved. Federal direct student loans are still the best option with the most flexible repayment plans.

To answer your original question about the loan being in your name vs. your daughter's: there are actually different types of private loans. 1. Student loans with parent co-signer: These are in your daughter's name, but you guarantee the loan. She's primarily responsible, but they'll come after you if she doesn't pay. These appear on BOTH credit reports. 2. Parent loans: These are solely in your name. Your daughter has no legal obligation to repay. These only appear on your credit report. Parent loans sometimes have slightly better interest rates, but remember that student loans in your daughter's name (with you as co-signer) can be refinanced later when she has income and credit history. Some loans also offer co-signer release after a certain number of on-time payments. Definitely compare total costs over the life of the loan when deciding.

my kid got private loans from our credit union!! the rates were waaaaay better than the big banks. like 3% better! definitely check local credit unions if you belong to one

Don't give up on your FAFSA yet! My daughter's application was stuck in verification for over 2 months too. I finally got through to someone at Federal Student Aid and they resolved it in a single phone call. The issue was just a small discrepancy between our tax return and what we entered on the FAFSA. Keep trying the Federal Student Aid phone line at different times of day. Early morning (right when they open) or late afternoon (an hour before closing) sometimes has shorter wait times.