Genuinely, College Ave is an online lender founded in 2014 that specializes in private student loans and student loan refinancing. In addition to its loan possibilities, its website offers tools, services, and scholarship chances. This makes it an excellent choice for borrowers who are new to student loans or starting college for the first time. Therefore, we conducted this review to help you decide whether it is an outstanding student loan.
List of Contents
College Ave: Website
Best for: Overall
Variable Rates: 0.94% – 12.99% APR
Fixed Rates: 3.22% – 13.95% APR
Loan Amounts: $1,000 – 100% of the school-certified cost of attendance
Overview
College Ave is an online lender for student loans headquartered in Wilmington, Delaware. The only objective of the lender is to make a college degree more accessible by assisting students and parents with the escalating expense of higher education. Importantly, when you borrow from College Ave, you will get its Multi-Year Peace of mind. When applying with a co-signer, 90% of undergraduate students are authorized for extra loans for subsequent years due to this advantage.
Nevertheless, this is not the only advantage of College Ave. In addition, it enables you to set your repayment period and illustrates how the term and plan you choose the total cost of your loan over time.
Why We Selected It
College Ave provides a comprehensive private student loan solution with a few distinctive characteristics. In addition to the average 5, 10, and 15 years maturities, borrowers can select an eight-year term. In addition to the first payment-free period of 6 months following graduation, borrowers have access to an additional six months grace period. College Ave also offers refinancing loans for those with existing school debt. The lender works with borrowers in all fifty states.
Details about the College Ave Undergraduate Student Loan
1. Loan Amounts and Terms
- Loan Amounts
College Ave student loans, like many other private lenders, pay the total annual cost of education less any additional financial help you may obtain. The lowest loan amount is $1,000. College Ave will calculate the lifetime limit for student loans based on your creditworthiness and other considerations.
- Terms
College Avenue offers repayment options of five, eight, ten, and fifteen years. Typically, longer durations have lower monthly payments and higher interest rates, whereas shorter terms have higher monthly payments and lower interest rates.
2. Loan Costs and Fees
- Annual Percentage Rate (APR)
College Ave provides loans with both fixed and variable rates. Fixed-rate loans for undergraduates vary from 3.22 to 13.95 percent APR, while variable-rate loans range from 0.94 to 12.99 percent APR. These interest rate ranges include a 0.25 percent reduction for automatic payments.
- Origination Fees
College Ave does not charge origination or application costs. Therefore, there is no application fee.
- Additional Fees
If you make a late payment, a $25 late fee or 5% of the outstanding balance, whichever is greater, will be assessed.
- Prepayment Penalty Fees
College Ave does not charge prepayment fees. Thus, you can repay your loan early without incurring any financial penalties.
3. Repayment Options
- Delayed Payment
You can sign up for delayed payments if you cannot afford to make any payments while enrolled in school. You won’t begin making payments until after you graduate. However, you will likely pay more interest throughout the life of the loan as a result.
- One-time Payment
You are allowed to pay $25 payments while enrolled in school. After graduation, total principal and interest payments will commence.
- Interest-Only Payment
While in school, you pay only the interest on your student loan. These payments will be less than the total amount of principal and interest.
- Total Principal and Interest Payment
As soon as the loan is disbursed, you can begin paying payments in full while still enrolled in school. This is the most economical choice as it prevents excessive interest from accruing and results in the lowest total interest paid throughout the life of the loan.
4. Noteworthy Perks and Features
- Co-signer Release
If you need a co-signer to qualify for a student loan, you may be able to remove them after meeting specific requirements. You may be eligible once half the payback period has passed and 24 on-time payments have been made. Moreover, certain income and credit conditions have been met.
- Most students’ debts can be extended.
90% of requests for additional loan funding for following years of schooling are approved by College Ave.
Details about the College Ave Refinance Loan
1. Loan Amounts and Terms
- Loan Amounts
College Ave refinances undergraduate and graduates student loans ranging from $5,000 to $150,000. Those with a medical, dental, pharmacy, or veterinary degree are eligible for refinancing up to $300,000.
- Terms
College Ave provides 11 repayment term options for refinanced loans, ranging from five to fifteen years. It allows you to select the exact years you wish to be in debt. Most lenders ask you to choose a conventional term such as five, seven, or ten years.
2. Loan Costs and Fees
- Annual Percentage Rate (APR)
College Avenue provides both fixed and variable rate refinance loan alternatives. Variable interest rates range from 3.44% to 7.99% APR, while fixed interest rates range from 3.49 to 7.99% APR. These values include an autopay discount of 0.25 percent.
- Origination Fees
College Ave charges no origination or application costs.
- Additional Fees
A $25 late fee or 5% of the outstanding balance will be charged if you make a late payment.
- Prepayment Penalty Fees
College Ave does not charge prepayment fees. Thus, you can repay your loan early without incurring any financial penalties.
3. Repayment Options
Refinance loans on College Avenue offer fewer repayment alternatives. Even though you can personalize your payback schedule and pick between a variable or fixed interest rate, your loan will begin regular repayment as soon as it is released.
In general, a shorter payback term results in lower interest expenses over the life of the loan. It allows you to optimize your savings when you refinance. A longer payback period will result in higher total interest expenses. However, it may result in more manageable monthly payments.
4. Noteworthy Perks and Features
- Rapid Approval
After submitting an application, the applicants will receive an immediate response. While it may take time to pay off your former loan and open an account at College Ave, you can apply and initiate the transfer procedure on the same day.
Qualification Requirements
The qualification for a private student loan is based on income, credit score, and other considerations. If you are unable to qualify on your own, a co-signer may assist you in obtaining the best possible interest rates.
1. Registration Requirements
To be qualified for a College Ave undergraduate student loan, you must be a U.S. citizen or permanent resident attending an authorized college or university at least part-time. Moreover, international students must have a Social Security number and a co-signer. In addition, you must be at least 18 years old, a U.S. citizen or permanent resident, and a graduate of an eligible school to qualify for a refinance loan.
2. Co-signer Options
Since most college students have limited credit histories and incomes, many can benefit from a co-signer. The co-signer may be a parent or other adult with an excellent credit score and solid income. International students must have a co-signer in order to qualify for a College Ave student loan.
In addition, College Ave has a co-signer release service through which debtors can petition to have the co-signer removed from the loan. If co-signer release is granted, the debt will be removed from the co-credit signer’s report, and you will be alone accountable for the amount.
To receive a co-signer release, borrowers must qualify the following criteria.
- Over the past two years, your income has been greater than twice your total debt.
- You’re a U.S. citizen.
- You have made 24 on-time payments, which do not include forbearance periods.
- Over fifty percent of the loan term has already passed.
Pros & Cons
Pros
- Flexible repayment conditions
- $150 bonus for completing a degree
- Can enroll for less than half time
- Pre-qualification available
Cons
- Charges late payment fee
- Must maintain satisfactory academic progress (SAP)
Pros Clarified
- Flexible repayment conditions
College Ave provides 11 payback terms ranging from 5 to 15 years for parent loans.
- $150 bonus for completing a degree
After completing your degree, you can upload a copy of your transcript to receive a $150 statement credit on your loan from College Ave.
- Can enroll for less than half time
Unlike other private student loan lenders, College Ave does not require students to be enrolled full- or part-time. The only requirements are enrollment in a degree program and attendance at an authorized school.
- Pre-qualification available
College Ave gives you and potential co-signers a free pre-qualification tool to assess your eligibility and interest rates for student loans without affecting your credit score.
Cons Clarified
- Charges late payment fee
College Ave adds a fee for any payment that is received late.
- Must maintain satisfactory academic progress (SAP)
Students must maintain SAP standing to qualify for federal financial aid. Each school determines what constitutes satisfactory academic progress, which may include maintaining a minimum grade-point average, taking a specific number of credits, or other variables. Numerous private student loan providers do not conduct these.
Customers Service
College Ave offers customer assistance by live chat, email, and phone. Email is managed by a third party and has a turnaround time of approximately 24 hours.
Monday through Friday, from 9 a.m. to 8 p.m. ET, you can call College Ave’s customer care at 844-422-7502 for assistance with your loan application. For assistance with loan servicing or repayment, call 844-803-0736 Monday through Friday, 8 a.m. to 6 p.m. ET (extended to 7 p.m. ET on Tuesdays).
College Ave’s website features 465 five-star ratings, and most negative remarks are from several years ago. According to the Consumer Financial Protection Bureau’s Consumer Complaint Database, as of March 2022, College Avenue was the subject of eight complaints.
Is College Ave A Worth Student Loan to Apply?
College Ave Student Loans provides private student loans ranging from $1000 to the total cost of education. The company also accepts refinancing applications from borrowers with existing debt. There are no origination or prepayment fees associated with their loans. However, there may be late payment fees. Therefore, College Ave loans are beneficial for borrowers who desire a variety of repayment options and the option to prequalify for a loan.
Conclusion
In summary, College Ave is a 2014-founded online lender that provides private student loans and student debt refinancing. Its private loan is ideal for students who wish to make payments while still enrolled. Its refinance loan is suitable for consumers desiring nonstandard loan terms, such as six or nine years.
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Source: Forbes, Investopedia