College Avenue student loan review
It's only a few months until the fall semester starts, so for those headed to college, the time is now to start lining up scholarships, grants and student loans.
While federal student loans are the ideal choice, sometimes, they aren't enough to cover your full costs of attendance. When this is the case, you can turn to private student loans. These are typically quick to get, come in higher loan amounts and may even have a lower interest rate if you have great credit.
Which private student loan lender should you choose, though? One option is College Avenue. Here's what you need to know about the company and its private student loans.
Start exploring your student loan options online now.
About College Avenue student loans
College Ave is a private student loan company that offers a variety of loan options. There are loans for undergraduate students, graduate students, parents of students and specific career paths. In the latter category, College Ave offers MBA, medical school, dental school, law school and health profession loans.
The company is based in Wilmington, Delaware, and has been in business since 2015. It has an A+ rating with the Better Business Bureau.
What makes College Avenue private student loans unique
College Ave's student loans come with a number of term options ranging from five years to 15, and there are both variable and fixed-rate options.
You can also choose between several payment plans while in school:
- Full principal and interest payments: These allow you to start paying down your balance immediately and will save you the most in long-term interest costs.
- Interest-only payments: With these loans, you'll only pay the interest charges on your loan while in school.
- Flat payments: These offer the lowest in-school payments, charging just a flat $25 per month while you're still enrolled.
- Deferred payments: These loans require no in-school payments, and you only start repaying the debt once you've graduated. They'll cost you the most in long-term interest.
College Ave's undergraduate fixed loan rates range from 3.59% to 17.99%, depending on the type of loan you choose and your credit score (or your cosigner's score). The company also offers a 0.25% rate discount if you put your account on autopay using a valid bank account.
College Avenue student loan pros
There are many benefits to using College Avenue for your private student loans. For one, you can apply online in just a few minutes, and you can check on your application's status once it's been submitted.
Other pros include:
- Loan options for parents, undergrads, graduate students and specific careers
- Lots of loan terms and payment options
- 0.25% autopay rate discount
- No origination fees
- Eligibility is not need-based
In some cases, you may be able to get a lower rate with College Ave than is currently offered on federal student loans. This is likely only possible with great credit and the company's autopay discount, though.
College Avenue student loan cons
The downside of College Ave is that your eligibility and rate are largely based on your credit score, which might be challenging if you don't have a deep credit history. For this reason, you may need a cosigner to qualify.
Other cons include:
- Rates may be as high as 17.99%
- The company has had 35 complaints with the BBB in the last three years
- Terms only go up to 15 years
- No income-based repayment options, like federal loans offer
Keep in mind that most private loans don't offer the full slate of repayment and assistance offerings federal loans come with. This is why it's important to exhaust your federal aid options before moving on to private loans.
The final word on College Avenue
If you're looking for private student loans to supplement your higher education costs, College Ave can be a smart option to explore. It offers lots of loan options and even comes with a potential rate discount that can save you money.
Just make sure to compare it with a few other student loan companies. This will ensure you get the best loan possible for your needs.
