College Ave Student Loans Review
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Paying for college is expensive. The Education Data Initiative reported that the average in-state student attending a public four-year institution and living on campus spends $27,146 for one academic year. And that number is even higher for students attending private universities. The Education Data Initiative reported that the average private university student spends $58,628 each academic year living on campus.
Unsurprisingly, many students and their parents need to take out private
student loans to help cover these costs. The good news? You'll have plenty of choices for private loans, whether you are a parent paying for your child's college tuition and room-and-board or a student paying your way.
One option? College Ave, which provides private student loans for both undergraduate and graduate students. But is College Ave a good choice for you? Read our in-depth review of this company below to learn more.
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What is College Ave?
Based in Wilmington, Delaware, College Ave provides private student loans.
There is a difference between federal student loans and private ones. Private student
loans, such as the ones offered by College Ave, are originated by private, for-profit
companies. The federal government provides federal student loans.
Most borrowers first go with federal student loans because they often have lower
interest rates and offer forbearance and forgiveness programs. However, there are borrowing limits for these loans. Most undergraduates can only borrow $31,000 in federal student loans. Those who need to borrow more than that will often turn to private student loans to fund the difference.
As with all lenders, once you take out a loan with College Ave, you'll pay it back with
interest. Your interest rate on a College Ave loan will vary depending on the strength of your credit and the term of your loan. The Better Business Bureau gives College Ave a fair rating, with the lender earning 3.29 stars out of five on the bureau’s website.
In general, though, College Ave says that you can expect to pay interest rates ranging from 5.59% to 16.85% if you take out a loan with a variable APR and from 4.29% to 16.39% if you take out a private student loan with fixed interest rates. Variable interest rates can change during the life of your loan, rising or falling according to whatever economic index your student loan is tied to. Fixed interest rates remain the same throughout the life of your student loan.
You can also choose from undergraduate student loans or graduate student loans. College Ave offers student loans, too, that are tailored to students in trade schools, pursuing a medical degree, those in law school, those studying to be a dentist, and those pursuing law degrees or MBAs. If you are a parent, you can apply for a parent loan to help fund your child’s college education costs.
College Ave has flexible repayment options. You can choose a loan term from five to 15 years with this lender. The shorter your term, the more you'll pay each month. But with a shorter term, you'll also pay less interest during the life of your loan. College Ave says that you can borrow up to 100% of the costs of your attendance at a college or university. Of course, you would only borrow what you need to pay for college minus any other financial aid you have received or federal student loans you've already taken out.
To qualify for a College Ave loan, you must show proof of your school enrollment and tell College Ave whether you are enrolled full-time or half-time. College Ave offers other services, too. You can apply for a student loan refinance if you’d like to refinance an existing private or public student loan to one with a lower interest rate. The company also offers its own credit card designed for undergraduate and graduate college students.
5.59% - 16.85% VARIABLE rate APRs 4.29% - 16.39% FIXED rate APRs
- Apply in as little as 3 minutes and get an instant credit decision
- Multiple repayment options from deferred to immediate principal and interest
- Choice of how long you take to repay the loan - 5, 8, 10, or 15 years
- 0.25% interest rate reduction when you make required payments by automatic debit
- Borrow up to 100% of your cost of attendance (minimum $1,000)
How do College Ave student loans work?
Filling out a loan application for an undergraduate or graduate student loan
with College Ave is simple. First, log onto College Ave’s student loan website. That will
take you to this page:
Click the “Apply Now” button to get started. This will pull up a page that gives you
several options for the type of College Ave, private student loan for which you’d like to
apply.
You can choose a standard undergraduate or graduate student loan. You can also
choose a career loan designed for students in trade schools or other career training
programs. The parents of college students can apply for a parent loan here. Parent
private student loans are designed for parents who are borrowing to pay for their
children’s college education.
You can select student loan refinancing if you’d like to refinance your current student
loan for a new private student loan with a lower interest rate. Once you select – for this story, we selected “Undergraduate Loan” – you’ll then be asked whether you are a student borrower or co-signer.
If you are applying for a loan on your own, click “Student Borrower,” which brings you to this page:
If you are applying for a new student loan, select the “Start A New Application” button. If you have already started an application and need to finish it, select “Return To An Existing Application.” Once you make your selection, you’ll be taken to this page:
If you are ready to start your application, click the “Get Started” button. Once you do, College Ave will ask for your estimated annual income, Social Security number, and the school that you are attending. You’ll also tell College Ave how much you’d like to borrow. You’ll need, too, to select your loan’s term and the number of years you have to pay back what you’ve borrowed.
College Ave says it will tell you whether you are approved for a student loan in
three minutes. The company will check your credit scores and credit reports, though
College Ave does not disclose the minimum credit score that it requires or other
eligibility requirements on its website. You can also visit College Ave’s website to check whether your credit is high enough to qualify for a private student loan.
This pre-qualification is a soft credit check, which won’t cause your credit score to drop.
How much does a College Ave student loan cost?
College Ave charges no application fees. It also doesn’t charge a prepayment penalty if you pay off your student loan before its term ends. This doesn’t mean that College Ave student loans are free. College Ave charges interest on its loans, and its student loan rates vary based on several factors, including your creditworthiness.
Interest rates for undergraduate student loans run from 5.59% to 16.85% if you are taking out a loan with variable interest rates. Undergraduate student loans with fixed interest rates range from 4.29% to 16.39%. You can always check rates with College Ave before applying for a loan.
For graduate student loans, variable-rate loans have interest rates ranging from 5.59% to 14.49%. Fixed-rate graduate student loans have interest rates of 4.29% to 14.49%. You can avoid late fees if you always make on-time payments during your loan repayment period. If you make a late payment, College Ave will charge a late fee, usually $25.
You might also qualify for an autopay discount on your interest rate if you set up
automatic payments from your bank account.
Related: Ways to Pay Off Student Loans Faster
Features of a College Ave student loan
Loans cover a variety of expenses
College Ave student loans cover a range of expenses related to paying for college. The company's student loans cover the costs of tuition and fees; food and housing; rent, bills, and utilities; meal plans or groceries; books and supplies; equipment such as computers or printers; and transportation.
Flexible repayment plans
You have plenty of loan options with this provider. College Ave offers three loan repayment plans. Under the standard repayment plan, you'll make a fixed monthly payment for the loan's term, which usually lasts 10 years. College Ave says that you'll usually pay the lowest interest with these plans. A graduated repayment plan is a good choice if you expect your income to increase over your repayment period.
These plans start with lower payments that gradually increase, usually jumping every two years. These plans are a good fit for students whose incomes start lower and then increase over time. College Ave also offers income-driven repayment plans. These plans tweak your monthly payments based on your income and family size. College Ave will recalculate your payments each year. College Ave also offers interest-only payments to students and parents while the students are enrolled in classes. These payments will be lower. However, six months after you graduate, you must make larger payments based on your loan’s full principal and interest.
Two interest-rate types
You can choose either fixed-rate or variable-rate private student loans with College Ave. With a fixed-rate loan, your interest rate will remain the same throughout the life of your loan. The benefit here is that you can more easily budget for your loan payment because it won’t change. There is also less uncertainty with these loan types.
Variable-interest rate student loans feature interest rates that can rise or fall during the life of the loan. This brings uncertainty to your loan payment: When your interest rate rises, your monthly loan payment will jump, too. The benefit of a variable-rate student loan is that your interest rate will usually be lower when you first take out the loan than it would be if you applied for a fixed-rate loan. This will result in a lower initial monthly payment. Just be sure that you can afford the higher monthly payment when your loan’s interest rate adjusts upward.
You can borrow as much as you need
Unlike federal student loans, you can borrow as much as you need with a private student loan. College Ave says you can borrow up to the full cost of your college education, including expenses such as room and board, supplies, and transportation to and from your university or college. Just remember: Whatever you borrow, you must repay. Make sure you are not overly burdened with student loan debt after you graduate.
5.59% - 16.85% VARIABLE rate APRs 4.29% - 16.39% FIXED rate APRs
- Apply in as little as 3 minutes and get an instant credit decision
- Multiple repayment options from deferred to immediate principal and interest
- Choice of how long you take to repay the loan - 5, 8, 10, or 15 years
- 0.25% interest rate reduction when you make required payments by automatic debit
- Borrow up to 100% of your cost of attendance (minimum $1,000)
Pros and cons
Pros
- You can borrow up to 100% of your college costs.
- You can repay your loan over five- to 15-year terms.
- College Ave offers loans designed for graduate and undergraduate students, those pursuing careers in a trade school, those working towards medical and law degrees, those studying to be dentists, and those working toward an MBA.
- Borrowers can choose from fixed- or variable-rate loans.
- Borrowers can choose from three repayment plans, including ones in which their payments will be tweaked according to their income.
Cons
- Interest rates can be higher than those of federal student loans, depending on your credit.
- Your credit might not be strong enough to qualify. College Ave doesn’t say what credit score you need for a student loan, but you can check to see if your credit score qualifies here.
Who should apply for a College Ave student loan?
Students who have reached their limit on federal student loans. If you’ve already borrowed as much as you can with federal student loans, a private student loan from College Ave can help cover the rest of your college costs. Make sure, though, to exhaust your federal student loan limit first. Federal student loans have certain perks that make them more attractive than private loans.
Students who expect their incomes to rise over time. College Ave offers a
repayment plan in which monthly payments start low and increase, usually
every two years. These are good choices for students who might expect a lower salary when they first graduate but then a higher one as they advance in their careers.
Students with strong credit scores. The higher your credit score, the more likely you’ll qualify for a student loan with College Ave. Your loan’s interest rate will also be lower if your credit is stronger.
Students worrying about covering costs other than tuition. You can use the funds from a College Ave student loan to cover a range of costs in addition to your tuition, including any fees, you must pay for books, equipment, meal plans, room and board, and transportation to your classes.
Who should not apply for College Ave student loans?
Students who can still apply for more federal student loan dollars. If you haven’t
yet reached your limit on federal student loan dollars, apply first for more federal money before applying for a private student loan from College Ave. Federal student loans come with better repayment terms and might also come with lower interest rates.
Students with low credit scores. If your credit score is low, you might not qualify for a private student loan from College Ave. And if you do, your interest rate might be higher. If you can get a parent or other family member with a strong credit score to act as a cosigner, you might increase your odds of qualifying even if your credit score is lower. College Ave doesn’t list income requirements on its website, though you are more likely to qualify if your income is higher.
Students who already face a large debt load upon graduation. If you are already graduating with a large amount of student loan debt, you might reconsider before applying for another private student loan. You might have other, less-expensive options to cover the remainder of your college education.
5.59% - 16.85% VARIABLE rate APRs 4.29% - 16.39% FIXED rate APRs
- Apply in as little as 3 minutes and get an instant credit decision
- Multiple repayment options from deferred to immediate principal and interest
- Choice of how long you take to repay the loan - 5, 8, 10, or 15 years
- 0.25% interest rate reduction when you make required payments by automatic debit
- Borrow up to 100% of your cost of attendance (minimum $1,000)
College Ave student loans vs. the competition
How does College Ave compare against other providers of private student loans? Here’s a quick look.
Lender | Interest rates | Loan terms | Closing costs |
College Ave | 4.29% to 16.85% | Five to 15 years | No closing costs |
Sallie Mae | 3.99% to 15.70% | 10 to 15 years | No closing costs |
Ascent | 9.28% to 15.44% | Five, seven, 10, 12 or 15 years. | No closing costs |
Sallie Mae
Sallie Mae offers a range of lending products, including private student loans. You can work with Sallie Mae to fund 100% of your education costs. You can apply for graduate and undergraduate student loans, medical school loans, dental school loans, MBA loans, and career training student loans, among other options.
Interest rates range from 3.99% to 15.49% for a fixed-rate Sallie Mae undergraduate student loan. For variable-rate undergraduate loans, rates range from 5.37% to 15.70%. Sallie Mae charges no origination or application fees for its private student loans. Loan terms for undergraduate loans range from 10 to 15 years. You can apply for a loan with Sallie Mae online.
Ascent
Ascent is another provider of private student loans. The company provides undergraduate, graduate, MBA, medical, health professional, dental, law, PhD, and master's student loans. It also offers student loans designed for parents to help pay for their children's college education.
How much you pay in interest will vary depending on the strength of your credit. For a fixed-rate undergraduate student loan, your interest rate will range from 9.28% to 15.31%. For a variable-rate undergraduate loan, it will range from 9.46% to 15.44%. Ascent also offers outcomes-based student loans to applicants without a credit history or cosigner. Instead, Ascent considers factors such as applicants' grade-point average and major. Interest rates with outcomes-based loans tend to be higher, ranging from 13.32% to 15.28% for fixed-rate undergraduate student loans.
You can choose loan terms of five, seven, 10, 12, or 15 years and a maximum loan amount of $200,000 for private student loans without a cosigner for undergraduate students and $400,000 for graduate student loans without a cosigner. Ascent charges no origination fees.
The bottom line
College Ave provides several options for borrowers looking for private student loans. You can turn to College Ave to fund all your college costs. But as always, it’s best to first exhaust your supply of federal student loan dollars. While College Ave offers student loans at fair interest rates and with no application fees, you might qualify for lower rates and better repayment terms with federal student loans.
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Writer
Dan Rafter is a freelance writer who has more than 20 years experience covering personal finance. He's written for the Chicago Tribune, Washington Post, Bankrate, CreditCards.com, Rocket Mortgage, NortonLifeLock and several others.
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