College Ave Student Loans offer private student loans ranging from $1,000 up to the cost of admission. Borrowers with existing debt can also apply to refinance their student loans through the company. There are no origination or prepayment fees on their loans, but there may be late fees if you miss a payment.
College Ave Loans are great for those who want a variety of repayment plan options to choose from and want to be pre-qualified for a loan. But if you have bad credit or erratic income, you may find that federal student loans offer better interest rates.
University Avenue Basics: A General Overview
Founded in 2014, College Ave Student Loans is a Delaware-based online lender serving student loan borrowers. The company offers private student loans to undergraduates, graduate students, and parents. If you’ve exhausted your federal student loans or don’t qualify, College Ave private student loans could be a good financing option.
If you already have student debt, College Ave also offers refinancing loans. Lenders work with borrowers in all 50 states, provided you can meet other requirements.
To qualify for prime rates, you’ll need good credit and a steady income. The company allows you to add co-signers to the application if you cannot qualify yourself. According to College Ave, 98% of all undergraduate student loans are co-signed.
College Ave Undergraduate Student Loan Details
Loan Amount and Terms
- Loan Amount: Like many private student loan companies, College Ave student loans cover the full annual cost of attendance, less any other financial aid you may have received.The minimum amount you can borrow is $1,000 and up to 100% of the school-certified cost of attendance. The lifetime limit for student loans through College Ave will be determined based on your creditworthiness and other factors.
- Terms: College Ave offers repayment terms of five, eight, 10, 15 and 20 years. Longer monthly payments usually have lower payments and higher interest rates, while shorter monthly payments usually have higher monthly payments and lower interest rates.
Loan Costs and Fees
- Annual Percentage Rate (APR): College Ave offers both fixed and variable rate loans. For undergraduate loans, fixed-rate loans have an annual interest rate of 4.42% to 15.99%, while variable-rate loans have an annual interest rate of 5.29% to 15.99%. These ranges include a 0.25% interest rate discount on automatic payments. (All APRs accurate as of July 17, 2023; see current rates here.)
- Initiation Fee: College Ave does not charge an initiation or application fee, so there is no need to pay any application fee.
- Additional Fees: If you pay late, you will be charged a late fee of $25 or 5% of the outstanding amount, whichever is less.
- Prepayment Penalties: College Ave does not charge any prepayment fees, so you can pay off your loan early without negative financial consequences.
Repayment Options
College Ave offers four repayment options for borrowers to choose from:
- Full principal and interest payments: Once the loan is disbursed, full repayments can begin while you are in school. This is the most cost-effective option as it will prevent excessive interest accruing and result in the least amount of interest paid over the life of the loan.
- Interest Only: When you enroll in the school, you only pay interest. These payments will be less than payments of full principal and interest.
- Flat Payment: You can pay $25 during enrollment. Full principal and interest payments will begin upon graduation.
- Deferred payment: If you are unable to pay any fees during your enrollment, you may apply for a deferred payment. Payments don’t start until after you graduate, but that could result in you paying more in interest over the life of the loan.
Borrowers who join the deferred full repayment repayment option also get a six-month grace period after leaving school.
Notable Benefits and Features
- Loans can be extended for most students. College Ave approves 90% of additional loan funding requests for subsequent academic years.
- Posted by a co-signer. If you need a co-signer to qualify for student loans, you can remove it after certain conditions are met. You may be eligible after you are halfway through your repayment term, have made 24 on-time payments, and passed certain income and credit requirements.
College Ave Refinancing Loan Details
Loan Amount and Terms
- Loan Amount: College Ave refinances student loans ranging from $5,000 to $150,000 for undergraduate or graduate students. Borrowers with medical, dental, pharmacy or veterinary degrees can refinance up to $300,000.
- Terms: For refinance loans, College Ave offers 11 repayment term options ranging from 5 to 15 years. Most lenders require you to choose a standard term, such as five, seven or ten years, but College Ave allows you to choose the exact number of years you want to repay.
Loan Costs and Fees
- Annual Percentage Rate (APR): College Ave offers fixed and variable rate options for refinancing loans. Fixed rates range from 5.99% to 11.99% per annum, while variable rates range from 5.99% to 11.99%. These ranges include the 0.25% autopay discount. (All APRs accurate as of July 19, 2023.)
- Initiation Fee: College Ave does not charge an initiation or application fee.
- Additional Fees: If you pay late, you will be charged a late fee of $25 or 5% of the outstanding amount, whichever is less.
- Prepayment Penalties: College Ave does not charge any prepayment fees, so you can pay off your loan early without negative financial consequences.
Repayment Options
College Ave refinance loans have fewer repayment options. While you can customize your repayment schedule and choose a variable or fixed rate, your loan will enter standard repayments as soon as disbursements are made.
Generally speaking, shorter repayment terms result in smaller interest costs throughout the life of the loan, which can help you maximize your savings when refinancing. Longer repayment periods increase your total interest costs, but can provide more affordable monthly repayments.
Notable Benefits and Features
Fast approval. Most applicants receive a decision immediately after submitting their application. While it will still take some time to pay off your old loan and open an account with College Ave, you can apply and begin the transfer process the same day.
How to Qualify for College Ave Student Loans
Eligibility for private student loans depends on your income, credit score, and other factors. If you can’t qualify yourself, a co-signer can help you get the best deal.
Qualification requirements
To qualify for College Ave undergraduate student loans, you must be a U.S. citizen or permanent resident and be enrolled in at least one accredited college or university. International students must have a social security number and co-signer to be eligible.
To qualify for a refinance loan, you must be at least 18 years old, a U.S. citizen or permanent resident, and a graduate of an eligible school.
Co-Signer Options
Since most college students don’t have much credit history or income, many can benefit from a co-signer. A co-signer can be a parent or any adult with a good credit score and a steady income. International students must have a co-signer to be approved for student loans through College Ave.
College Ave also offers a Co-Signer Release Program where borrowers can apply to have a co-signer removed from their loan. If you are approved for a co-signer waiver, the debt will no longer appear on the co-signer’s credit report, and you will be solely responsible for the debt.
In order to qualify for a co-signer release, borrowers must meet certain criteria, including:
- The loan term has passed halfway
- You have made 24 consecutive on-time payments (excluding any late payments)
- you are a citizen of the united states
- Your income over the past two years was more than double your outstanding debt
- How to Apply for University Avenue Student Loans
- Pre-qualify for loans. If you pre-qualify for a College Ave loan, you can view your estimated interest rate without affecting your credit score. First, you’ll need to enter basic information such as your name, birthday, and contact information. You can do this as a student or as a co-signer.
- Check your rates. College Ave will then determine if you qualify for a loan and what terms and interest rates you may be eligible for. You can review your options and see if it’s a good fit.
- Submit a complete application. If you like what you see, you can submit a full application. You will need to provide additional information such as your social security number, annual income and other details. If you’re applying for a refinance loan, you’ll also need information about existing debt. If you use co-signers, they will also need to provide their own data.
- Sign documents. According to College Ave, you can apply and receive a decision within three minutes. If you are approved, review the final terms of the loan and make sure all details are correct. If yes, please sign on the dotted line.
- get funding. If you applied for an undergraduate student loan, College Ave will work with your school and send the loan directly to them. If you are refinancing, College Ave will transfer the money to your previous lender. Whichever option you choose, keep an eye on your College Ave account so you know when your first payment will be made.
FAQs about College Avenue
Is there a grace period for College Ave?
After you graduate or leave school, there will be a six-month grace period on your undergraduate student loans and a nine-month grace period on most graduate student loans.
Does College Ave conduct a rigorous credit check?
You can get prequalified for student loans, which only leads to a soft credit check. This will not affect your credit score in any way.
When you complete your loan application, College Ave will conduct a rigorous credit check. A hard credit check may cause a slight drop in your credit score and will remain on your credit report for two years, but usually only affects your credit score for one year.
Does College Ave offer student loan refinancing?
If you already have student loans, you can refinance through College Ave and potentially get a lower interest rate, lower monthly payments, or both. College Ave offers refinancing on 11 different loan terms ranging from 5 to 20 years. Borrowers can choose between fixed or variable interest rates.
Are College Ave Federal Student Loans?
College Ave offers private student loans, not federal student loans. Private loans do not offer the same benefits as federal loans, such as income-driven repayment plans, loan forgiveness programs, and longer deferments and grace periods.
What credit score does College Ave need?
College Ave does not publish the exact credit score needed to qualify for student loans, but most lenders prefer a score in the 600s or higher. You can enter your current credit score into a lender’s prequalification tool to see if you qualify for a College Ave loan. This will only result in a soft credit check and will not affect your credit score.
Why was my College Ave loan denied?
Your loan application may be rejected for a number of reasons, such as not meeting credit or income requirements or attending an ineligible school. If you would like to know why your loan was denied, please contact College Ave directly.
If you are unable to qualify on your own, please consider applying with a co-signer. If your co-signer has good credit and a steady income, you can qualify for a loan and get a better rate.
