College Ave Student Loans is a newcomer to the student loan arena. Part of their mission is to help students obtain new, affordable loans.
Although this company is relatively new, it was established by experienced former executives from Sallie Mae. Liberty Bank, N.A. has partnered with College Ave Student loans and helps fund their loans.
College Ave is a relatively new company that seeks to improve private lending to undergraduate and graduate students. The company boasts a quick application and approval decision as well as no hidden fees.
Furthermore, they have flexible repayment plans and a number of repayment options to fit different budgets.
Who is Eligible for College Ave Student Loans?
In order to be eligible for a loan through College Ave Student Loans, the applicant must be a resident or citizen of the United States. Students must plan to enroll on a half-time basis in an accredited college or university. Furthermore, students must be at least eighteen years of age. Students may apply with a cosigner, which in many cases can help them qualify for a lower interest rate, but a cosigner is not required. Cosigners must also be at least eighteen years of age and be a permanent resident or citizen of the United States.
What Does College Ave Offer?
College Ave Private Student Loans
College Ave Student Loans are made to eligible undergraduate and graduate students. The minimum amount of the loan is $2,000 and the maximum amount can cover up to the total amount of a student’s school-certified attendance cost, after accounting for other financial aid such as scholarships and federal loans. The amount of the cost of attendance must be verified by the student’s institution. Both of these loans provide a discount on the interest rate of 0.25% for students who agree to use the automatic payment function to pay for their student loan. This allows the company to debit money automatically each month from the borrower’s checking or savings account. Additionally, there are no application fees or prepayment fees.
Undergraduate Student Loans: This is a private student loan that is best used for individuals who have a gap in between their estimated cost of attendance and the remaining balance after accounting for other financial aid. Currently, the variable rates range from 3.54% to 11.15% APR. Students who choose a variable rate loan may benefit from low rates, but their rate will fluctuate depending on the market. Alternatively, undergraduates may choose to have a fixed rate loan. The current rates for this type of loan range from 6.07% APR to 12.66% APR.
There are a number of repayment options and the company has an online calculator to help borrowers determine which repayment option will best fit their needs. While in school, students can opt to pay the full principal and interest on their loan or simply pay just the interest. Alternatively, students who are unable to afford to make large payments can make a flat payment of $25 each month while in school, to help them lower their interest rate and the amount of interest that accrues. If students are unable to pay anything towards their loans, they can opt for a deferred payment of their loans which will allow them to wait until graduation to begin paying their loan.
Graduate Student Loans: These loans were created for students pursuing an advanced degree, such as a masters or doctoral degree. In general, applicants need to have great credit. This loan is a private loan for students who are seeking an alternative to the Federal Grad Direct PLUS program. A loan through College Ave Students Loans may benefit students with great credit by offering them a lower interest rate than the Federal Grad Direct PLUS program can offer.
Graduate students have the option to choose either a variable rate or fixed rate loan. The current variable rates range from 3.69% to 9.25% APR while the fixed rate loans are funded with a rate from 6.22% to 10.66% APR. Similar to the undergraduate loans, potential borrowers can use the online calculator to help them determine what type of repayment program and terms would best match their needs. Students have the option to add a cosigner and in general, it is recommended that students add a credit worthy cosigner in order to benefit from a lower interest rate.
College Ave Student Loan Refinancing
College Ave also recently started to offer student loan refinancing. Variable rates start as low as 2.63% and fixed rates start as low as 3.25%. As far as term lengths, College Ave offers anywhere from 5 to 15 years. Lastly, the minimum refinancing amount is $5,000 while the maximum is $250,000.
What are the Benefits of College Ave Student Loans?
- Quick application processing
- Fast credit decision
- No application fees
- No fees during loan origination
- Flexible repayment terms which range from eight to fifteen years
- An interest rate reduction of 0.25% for borrowers who choose to make their payments using the automatic debit function
- No penalties for repaying the loan balance early
- Various repayment options which can be customized to the borrower’s circumstances
What Do I Need to Apply?
Students can complete an online application and get a decision within three minutes. If the applicant is approved, they will need to accept the loan terms and submit required documentation. After that has been completed, the lender will contact the school to certify the loan, cost of attendance, and the applicant's enrollment status. After certification has been received from the school, the funds will be disbursed. The time it take to receive the loan varies, but in general it takes at least ten business days.
College Ave Student Loans FAQ
What Credit Score Do I Need in Order to Qualify?
College Ave Students Loans does not list a minimum credit score that is required. However, they do have an online pre-qualification tool which allows applicants to determine whether they are eligible and what interest rates would be available to them. Typically, lenders require a credit score of at least 660.
What is Required to Cosign for a Loan?
Cosigners must be at least 18 years old and be a resident of the U.S. Furthermore, cosigners must earn at least $35,000 per year.
Does Your Company Offer Loan Forgiveness?
Loan forgiveness is offered in rare circumstances, such as if the borrower becomes permanently disabled or dies.
What Ways Can I Pay My Loan Each Month?
Borrowers have a number of options when it comes time to repay their loan. Customers can set up automatic payments using the auto pay function on the company’s website. This allows payments to be automatically deducted from a checking or savings account. In addition, borrowers who choose this option will save 0.25% on their interest rate. Customers can also make one-time payments online from either a bank account of with a credit care. Alternatively, for customers who do not have access to a computer, payment can be made 24/7 on the phone or by mailing the payment through the postal service.