After receiving college scholarships and federal student loans, many families still need to secure funds to pay the remainder of their college bills. This is where private student loans tend to come in.
Whether you’re a parent looking for a loan to help your undergraduate student or an aspiring physician looking to secure a medical school loan, College Ave has options for you. This lender specializes in student loans, offering a wide range of loan and repayment terms, fast approvals, and strong customer service
Making it one of the best student loan companies.
College Ave Student Loans Overview
College Ave is a lender that specializes in student loans. In fact, it’s the only type of loan the company has offered since its founding in 2014. College Ave operates strictly online and has done extensive work to simplify the loan application process, loan financing, and loan repayment.
Advantage
- Various repayment methods are available
- Fast application and approval process
- provide parents loan
Shortcoming
- No co-signer release provided until halfway through the repayment period
- Late fee of up to $25
College Ave has a prequalification tool that allows borrowers to see the loan terms they are eligible for without going through a rigorous credit check. If you decide to apply for a loan, the whole process is quick and easy – it only takes a few minutes.
College Ave specializes in loans for parents (not all private lenders do), and unlike other lenders who may only have one or two repayment terms available, College Ave’s clients can take from four to five repayment terms for most of their loans choose.
Lenders provide co-signer releases. But to apply, the borrower must have paid half of the original repayment term. So, for example, if your tenure is 10 years, you cannot apply to remove a co-signer until you have paid five years’ worth of payments. That’s much longer than other lenders, which typically allow borrowers to apply for co-signer release after a year or two of on-time payments.
While College Ave does not charge an activation fee, you will be charged a fee for late payments.
University Avenue Service
College Ave offers loans to undergraduate students and parents who want to borrow for their children’s education. It also offers several types of loans for graduate students, including MBA programs, medical school, and law school. It also offers student loan refinancing.
Borrowers can choose between four repayment options, including paying interest-only repayments while in school or choosing to wait until after graduation. The company also allows students and parents to choose from various loan terms depending on the type of your loan, ranging from 5 to 20 years. That’s more options than some big-name student loan lenders like Discover and Sallie Mae offer.
For borrowers who experience financial hardship at the time of loan repossession, College Ave offers up to 12 months of hardship forbearance during the life of the loan. Individual probation periods are usually three to six months, depending on the circumstances.
The choices you make about your loan and repayment term will of course affect your loan lifetime cost and monthly payment. The amount of your loan is the main factor in determining the interest rate offered to you. You can borrow up to 100% of your education expenses, but the less you borrow, the more likely you are to get low rates from College Ave. Likewise, a ten-year repayment plan will be faster than a 20-year repayment period. The shorter the term of your loan, the lower the interest you will pay over the life of the loan.
what they don’t offer
College Ave is a private lender, so you cannot take out federal student loans through this company.
College Ave does offer so-called “career loans,” but these are more limited than other lenders’ career readiness loans. To apply, you must still be enrolled in an associate, bachelor’s, or graduate degree program at an eligible institution. So if you’re in a certificate program or other trade school, you’re going to have to find another lender.
College Ave Loan Eligibility
College Ave’s eligibility is in line with most other student loan institutions. Your eligibility for a College Ave private student loan is based on the following key criteria:
- Attend an eligible school
- Be a U.S. citizen/permanent resident or international student with a U.S. Social Security number and an eligible co-signer
- Have a credit score of 600+ or be an eligible co-signer
The company also considers a series of standard credit factors. These include certain income requirements that you or your principal must meet, although it does not disclose income cutoffs. The company will also consider how your annual income compares to the amount of debt you already have, also known as your debt-to-income ratio.
College Ave Qualifications
Founded in 2014, College Ave is a newcomer to the student loan space. But the company quickly established itself as a strong player and a competitive resource for student borrowers — appearing on many lists of top student loan lenders. The company has attracted multiple rounds of venture capital funding over the years and has maintained steady growth since its inception.
College Ave loan products are offered by Firstrust Bank, a Federal Deposit Insurance Corporation (FDIC) insured bank. Once your loan is taken out, you’ll make payments through College Ave using the lender’s sleek interface. The company also offers mobile applications.
Licensing and Registration
College Ave is licensed to do business and make loans in all 50 states. This business has been accredited by the Better Business Bureau since 2015.
third party rating
College Ave has an A- rating from S&P Global Ratings for its long-term credit outlook. Neither the company itself nor the banks funding its loans are rated by Moody’s or Fitch.
Regulatory and Legal Action
Our search of the Consumer Financial Protection Bureau’s database revealed 36 complaints filed against College Ave over the past three years. Of the complaints, 24 were related to student loans. Of these, 10 related to borrowers’ difficulties meeting loan obligations, and two of the issues mentioned related to the customer service provided by College Ave.
Accessibility to College Ave
College Ave services are available online and through their mobile app once you have opened an account. The College Ave mobile app has a 3.3 out of 5 stars rating on the Apple App Store. This review is based on 17 ratings. This app is not rated on Google Play.
availability
College Ave offers several ways to get in touch. You can live chat with company representatives directly from the company website. You can text the company at 855-910-0510. The company offers separate phone lines for students who need help applying for a loan and for students who already have a loan and need to discuss repayment or payments over the phone. Most people don’t want to take the time to mail a letter these days, but sometimes for documentation purposes it’s a good idea. You can mail to College Ave from our headquarters at 33 North King Street, Suite 400, Wilmington, DE 19801.
user experience
Applying for student loans can be confusing, especially for students who have never applied for a loan before. College Ave has spent years trying to make the application process simpler and less stressful.
College Ave’s website is very user-friendly. The lender offers an excellent loan calculator that allows borrowers to compare multiple loan options before choosing a loan. You can check interest rates instantly and apply for a loan from the company’s website in five minutes. The interest rate you will receive will vary based on your and/or your guarantor’s credit score, the amount of your loan and other factors. College Ave, like other lenders, offers the best rates available to borrowers who demonstrate a high degree of creditworthiness.
If you’re at a point in your student loan journey shopping around, the company offers an easy way to compare loan options and see your prequalified (though non-binding) rates almost instantly.
In addition, College Ave publishes an extensive blog to help borrowers better understand student loans and make smarter loan decisions—decisions that could significantly impact your financial life for years to come. Articles cover less serious topics from how to budget for law school to decorating your dorm room.
