14 ways to improve your private student loan application | Earnest | Earnest

14 ways to improve your private student loan application

By Client Happiness | Published on October 21, 2025

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While private student loans generally don’t require essays, you should approach private lenders with a strategy to qualify for the best possible rates¹. Before you apply for a private student loan, you’ll want your personal finances in good order.

Here are some tips to improve your private student loan application so you have the best chance of being approved for the lowest rate possible.

Borrow only what you need

Private student loans can cover your program’s full cost of attendance, including educational expenses such as tuition, books, and supplies, along with living costs like housing, food, transportation, and even some personal expenses.

However, the bigger your loan amount, the bigger of a risk you’ll present to your lender. This is because they stand to lose more money if you can’t repay your debt. Before applying, try to reduce the amount you need to borrow as much as you can.

Some things you can do to reduce the amount you need to borrow from a private lender include:

Federal student loans should generally be your first choice before considering private loans, as federal loans offer borrower protections, income-driven repayment plans, and potential forgiveness options, which are not guaranteed by private lenders.

Highlights of the federal loan program include:

You can find out more about student and parent loan options from the U.S. Department of Education at studentaid.gov.

By applying for exactly what you need and no more, you’ll also reduce the amount you have to pay in interest, saving you money over time.

Improve your credit score

One of the best ways to get lower interest rates is to apply for student loans when you have excellent credit. Your credit score is a tool lenders use to evaluate your history of borrowing and repaying debt. The more experience you have with borrowing and repaying loans on time, the higher your credit score will be—and the lower your interest rates will be.

If you’re still in high school or you’ve just recently graduated from undergrad, you probably don’t have a super-high credit score. Don’t panic—it doesn’t mean you’ve done something wrong. It just means you haven’t had time to build up a score yet.

Here are a few ways you can build your score:

Dispute errors on your credit report

You may know your credit score, but a credit report is a lot more than a single number. Your credit report has information about every loan, credit card, or line of credit in your name, including balances and repayment history. When your credit report is pulled, lenders consider everything on it — so you want to make sure it’s accurate before applying for a loan.

You can access your credit report for free every week through AnnualCreditReport.com, which provides reports from the three major credit reporting agencies. If you see a discrepancy, you can correct or dispute any inaccurate information with that specific agency and the organization involved in the error.

Link as much financial info as possible

Some lenders, like Earnest, consider as much of your financial life as we can in order to give you the lowest rates possible. We don’t focus solely on credit score, but instead, take a more holistic view of your financial situation.

That means the more information you offer, the better. Things that can count in your favor include savings accounts, retirement accounts, investments, and credit cards along with any proof of additional income. All these pieces help us understand and reward you for your financial responsibility.

Remember, linking your accounts to Earnest is secure and private. Under no circumstances do we ever sell your information to third parties.

Have a safety net in place

Aggressively paying down debt is a great habit to cultivate — but one of the best ways to indicate to your lender that you can handle another loan is to have a cash safety net in place.

Having three months’ worth (or more) of your normal expenses on-hand — including living expenses like rent, food, utility, and debt payments — ensures that even if something unexpected happens, you won’t be in danger of falling behind on payments.

Keep documentation handy

In order to reward you for all your financial responsibility, we have to be able to verify the information on your application. Often this can be done through electronic account connections, but sometimes we will ask for records like pay stubs or other loan statements. To ensure that we can zip through this step quickly, make sure you have your recent records in an accessible place, whether those are online statements or paper records.

Apply after your next raise

Think you’ll get a raise soon? Or maybe you’re expecting a bonus? If you anticipate increasing your cash flow in the coming months, you might want to wait to apply for a loan until after it comes your way. That way, you can include a higher income on your application.

If you don’t want to wait until you have that raise but you have confirmation in writing (a letter from your company, for example), you’ll want to have that ready to show. It’s just one more piece of information that helps us understand your ability to repay a loan.

Self-employed? Apply after you’ve filed taxes

Most lenders need to verify your financial information before extending an offer, including your income. Most income can often be verified using a pay stub. However, if you don’t receive pay stubs as you work for yourself, you may want to wait to apply for a loan until after you’ve done your yearly taxes. Your IRS tax return can be used as a record of your earnings.

Choose a lender that caters to your personal situation

There are lots of different lenders out there, and many of them cater to specific types of borrowers. Some, for example, specialize in loans for people who aren’t able to get cosigners. Others specialize in lending to people who have low credit scores because of adverse credit history. And still others offer specific loans for undocumented students who wouldn’t be able to access funding otherwise.

While interest rates are important when choosing a lender (generally, you want the lowest rate possible) they’re not the only factor you should consider. Before you move forward with a lender, make sure you understand what they specialize in so you can choose one that caters to your situation. Choosing a lender who explicitly specializes in the type of borrower you are will also improve your chances of getting approved.

At Earnest, we strive to be every student’s first and best financial partner. We offer 24/7 customized support, flexible repayment options, a 9-month grace period³, and the option to refinance your private loans later on. We know that student loans are a big decision, which is why we provide support and resources every step of the way.

Do your homework on loan types

When you apply for a private loan, you generally have the option to choose between variable and fixed-rate loans. Variable interest rates can fluctuate over time with the prime interest rate. Fixed interest rates stay the same for the duration of your loan, regardless of how the loan market changes.

Both types of loans have pros and cons. Variable rates are usually cheaper at the outset of the loan, so they could save you money if you’re planning on paying off your loans quickly. However, there’s essentially no limit to how high they could go. If you’re worried about the uncertainty of an interest rate that could potentially increase significantly throughout the course of your loan, fixed rates may be better for you.

Fixed rates won’t increase no matter how high variable rates go. They can provide peace of mind because you know exactly how much your student loan payments will be for the duration of your repayment term. However, they also won’t decrease even if interest rates start to go down.

Earnest allows qualified borrowers to apply to refinance² their loans periodically, providing the opportunity to adjust between fixed and variable rates to suit changing financial needs. This can also help you save money on interest if your credit score increases after your first six months of payments. That way, you can access lower rates.

Get prequalified

Submitting an official loan application triggers a hard credit check, which will negatively impact your credit score and remain on your report for two years. Before you submit an application for a student loan, check to see if you’re pre-qualified. This is a way for you to check interest rates with a soft credit check — which won’t show up on your credit report — and get an idea of whether you’ll be approved before you even begin the application process. You will generally need a social security number in order to prequalify for loans.

Earnest offers a free eligibility check to see your rate. It won’t affect your credit score and it only takes a few minutes.

Take advantage of the rate-shopping exception

If you apply for multiple loans within a few weeks, these will generally be counted as a single inquiry on your credit report. This is known as the “rate-shopping exception.” If you want to apply for loans from multiple lenders, try to do this all around the same time to minimize the effect on your credit score.

Apply with a cosigner

If you’re an undergraduate student (or soon will be), you may have a better chance of getting approved for a loan if you apply with the help of a cosigner. A cosigner essentially promises to pay back your loan in the event you can’t, which makes it less risky for private lenders to loan money to you. The higher your co-signer's credit score is, the lower your interest rates will be, and the better terms you’ll be able to access.

Give yourself enough time

While many student loan applications may be approved within a few days or less, it’s best to apply early in case you hit any snags. If your lender needs more information to approve your loan, or if you have unexpected questions about the contract, you’ll want a buffer so you can make sure you get the money in time to pay tuition.

It may be wise to submit your application two months before tuition is due. That way, you’ll have time to research other options in the event your application is denied.

Read More:How Long Does It Take to Get a Student Loan? (Federal and Private)

Learn more about Earnest student loans

Earnest offers some of the lowest interest rates available today, as well as a Client Happiness team that will go above and beyond to make sure you fully understand all of your loan options. Earnest doesn’t charge any origination fees and gives students a 9-month grace period³—the best in the business.

Check your rate today with Earnest’s student loan calculator and see how much you could save. It only takes a couple of minutes and it won’t hurt your credit score.