After securing college scholarships and utilizing federal student loans, many families still find themselves in need of additional funds to cover the remaining balance of their college tuition. This situation commonly leads them to consider private student loans. Selecting the right lender is a crucial financial decision, but with the right information, the process can be straightforward and less daunting.
College Ave specializes exclusively in student loans, offering a comprehensive variety of loans and flexible repayment options. Whether you are a parent aiming to finance your child’s undergraduate education or a future medical professional looking for medical school loans, College Ave has tailored solutions for you. Their fast approval process and responsive customer service make them one of the top contenders among student loan companies.
Explore Our Comprehensive Guide to College Ave Student Loans
In-Depth Overview of College Ave Student Loans
Established in 2014, College Ave is a lender that focuses solely on providing student loans. The company has streamlined the entire process from application to funding and repayment, ensuring a user-friendly experience for borrowers. Operating exclusively online, College Ave has become a significant player in the student loan marketplace.
- Various repayment terms available
- Swift application and approval process
- Loans specifically designed for parents
- Cosigner release not available until half of the repayment term is completed
- Late payment fees can reach up to $25
College Ave offers a prequalification tool, allowing potential borrowers to gauge their eligibility for loan terms with just a soft credit inquiry. If you choose to proceed with the application, the process is efficient, taking only a few minutes to complete. This feature is particularly beneficial for those looking to understand their financing options without affecting their credit score.
Unique to College Ave is its offering of loans specifically for parents, a feature not commonly found among many private lenders. Moreover, unlike competitors that may limit repayment options, College Ave provides borrowers with a range of four to five repayment terms for most loans, ensuring flexibility for diverse financial situations.
The lender does provide cosigner release options; however, it is important to note that borrowers must have made at least half of the original repayment term payments before applying. For instance, if your repayment term is set at ten years, you must wait until you’ve made five years of payments to request a cosigner release, which is notably longer than many other lenders’ policies.
While College Ave does not impose origination fees, borrowers should be aware that they will incur a fee for any late payments, which can impact overall loan costs.
Diverse Loan Services Offered by College Ave
College Ave provides a variety of loan options catering to both undergraduate students and parents seeking to support their children’s education. Additionally, the lender offers specialized loans for graduate students pursuing degrees in fields such as MBA programs, medical school, and law school. Furthermore, College Ave facilitates student loan refinancing for borrowers looking to consolidate their debts.
Comprehensive Offerings: Private Student Loans
In-school Repayment Options
$1,000 to total cost of attendance
Deferred
Interest-only
Flat Monthly
$1,000 to total cost of attendance
Deferred
Interest-only
Flat Monthly
$1,000 to total cost of attendance
Deferred
Interest-only
Flat Monthly
$1,000 to total cost of attendance
Deferred
Interest-only
Flat Monthly
$1,000 to total cost of attendance
Deferred
Interest-only
Flat Monthly
$1,000 to total cost of attendance
Deferred
Interest-only
Flat Monthly
$1,000 to total cost of attendance
Interest-only
Interest-plus partial principal
$1,000 to total cost of attendance
Deferred
Interest-only
Flat Monthly
Borrowers have the flexibility to select from four distinct repayment options, including making interest-only payments while enrolled in school or deferring payments until after graduation. College Ave also allows students and parents to choose from a variety of loan terms, which can range from five to 20 years depending on the specific loan type. This range of options surpasses what is typically available from other well-known lenders like Discover and Sallie Mae.
For borrowers who encounter financial difficulties during the repayment phase, College Ave offers up to 12 months of hardship forbearance throughout the loan term. Generally, individual forbearance periods are designed to last between three to six months, depending on the borrower’s circumstances.
The decisions made regarding your loan and repayment terms will significantly impact your lifelong loan costs and monthly payment amounts. The size of your loan plays a crucial role in determining the interest rates available to you. While you can borrow up to 100% of your educational expenses, borrowing less can often lead to a more favorable interest rate from College Ave. Similarly, opting for a shorter repayment term, such as ten years, will generally yield a lower interest rate compared to a 20-year term. In essence, shorter loan terms typically translate to lower interest payments over the duration of the loan.
Limitations of College Ave’s Loan Offerings
As a private lender, College Ave does not provide access to federal student loans, including parent PLUS loans, which are often popular financing options for families.
Additionally, while College Ave does offer what they term “career loans,” these options are more limited compared to other lenders’ career preparation loans. To qualify for these loans, applicants must still be enrolled at an accredited institution pursuing an associate’s, bachelor’s, or graduate degree. Unfortunately, those enrolled in certificate programs or trade schools will need to seek alternative lenders.
Understanding College Ave’s Loan Eligibility Criteria
The eligibility requirements for College Ave align closely with those set forth by many other student loan lenders. To qualify for College Ave private student loans, applicants must meet the following primary criteria:
- Must attend an eligible educational institution
- Must be a U.S. citizen or permanent resident, or an international student with a valid U.S. Social Security number and an eligible co-signer
- Must maintain a credit score in the mid-600s or have a qualified co-signer
The company also evaluates standard credit factors, which include specific income requirements that either you or your co-signer need to fulfill, although College Ave does not disclose exact income thresholds. Additionally, they assess your annual income relative to your existing debt, commonly referred to as your debt-to-income ratio.
Credentials and Reputation of College Ave
As a relatively new player in the student loan industry, having been founded in 2014, College Ave has quickly established itself as a competitive option for student borrowers. It consistently appears on various lists of leading student loan lenders and has secured multiple rounds of venture capital funding, demonstrating its growth and potential.
The loan products provided by College Ave are funded by Firstrust Bank, which is insured by the Federal Deposit Insurance Corporation (FDIC). Once you secure your loans, repayments are made through College Ave’s platform, which includes a user-friendly mobile app.
Licenses and Business Registrations
College Ave is fully licensed to operate and provide loans in all 50 states. Additionally, it has been accredited by the Better Business Bureau (BBB) since 2015, further solidifying its credibility in the industry.
Third-Party Ratings and Evaluations
College Ave boasts an A- rating from S&P Global Ratings regarding its long-term credit outlook. However, neither the company itself nor the bank that funds its loans has received ratings from Moody’s or Fitch.
Regulatory Issues and Legal Actions
A review of the Consumer Financial Protection Bureau database indicates that there have been 46 complaints filed against College Ave in the past three years. Out of these complaints, 31 were related to private student loans. Notably, 11 complaints were centered around issues regarding flexible repayment options or payment handling, and two specifically mentioned problems with College Ave’s customer service.
Accessibility Features of College Ave Services
College Ave’s services are readily accessible online, and once you create an account, you can manage your loans through their mobile app. Currently, the College Ave mobile app has garnered a user rating of 2 out of 5 stars on the Apple App Store based on 43 ratings. Conversely, it has received a much higher rating of 4.9 stars based on 13 reviews on Google Play, indicating a divergence in user experiences.
Contact Availability and Support Options
College Ave provides multiple avenues for customer support. You can initiate a live chat with a representative directly from their website, or text the company at 855-910-0510. The company has dedicated phone lines for students needing assistance with loan applications and for existing borrowers seeking help with repayment. While most prefer digital communication, mailing correspondence can be beneficial for documentation purposes; you can reach College Ave at its headquarters located at 33 North King Street, Suite 400, Wilmington, DE 19801.
Essential Contact Information for College Ave
For further information, visit College Ave’s website.
If you have questions regarding loan applications, you can contact:
- 844-422-7502
- Available Monday through Friday, from 9 a.m. to 10 p.m. EST; Saturday from 9 a.m. to 3 p.m. EST
For inquiries related to loan payments, please reach out to:
- 844-803-0736
- Available Monday through Friday, from 8 a.m. to 8 p.m. EST
Enhancing User Experience with College Ave
Navigating the process of applying for a student loan can often feel overwhelming, particularly for first-time borrowers. College Ave strives to simplify the application process, making it less intimidating for users.
The user interface of College Ave’s website is designed to be intuitive and friendly. The lender features a loan calculator that allows potential borrowers to assess various loan scenarios before making a commitment. You can check your rates quickly and apply for a loan in less than five minutes via the website. The interest rates you may qualify for will depend on factors such as your credit score, loan amount, and other relevant details. Like most lenders, College Ave offers its most favorable rates to borrowers who demonstrate strong creditworthiness.
If you are still in the exploratory phase of your student loan journey, the company provides a straightforward method to compare loan options and discover your prequalified rates almost instantly, without any binding commitment.
Additionally, College Ave maintains a comprehensive blog aimed at educating borrowers on the intricacies of student loans, assisting them in making informed financial decisions that can significantly impact their financial future. The blog covers a range of topics, from budgeting for law school to fun ideas for decorating dorm rooms.
Evaluating College Ave’s Customer Satisfaction and Experience
The relationship between borrowers and lenders can often be complex, particularly when borrowers struggle to meet their payment obligations. Negative reviews and experiences are not uncommon in the lending industry, and College Ave’s student loan reviews reflect this reality.
Despite holding an A+ rating from the Better Business Bureau, customer reviews on the BBB platform yield an average rating of only 2.63 out of 5 stars, based on 35 reviews. This discrepancy highlights the varied experiences of borrowers using College Ave services.
On Trustpilot, College Ave achieves a score of 4.3 out of 5 stars, supported by 102 reviews. Notably, over 70% of reviewers rated the lender as excellent, with many praising the efficiency and convenience associated with the loan process.
Addressing Customer Complaints and Feedback
In the past three years, the BBB has recorded and resolved 34 complaints against College Ave. Seven of these complaints were closed within the last 12 months. The 35 reviews submitted about College Ave student loans, while distinct from formal complaints, do not present a unanimous perspective. Some borrowers expressed dissatisfaction with high-interest rates, while others commended the seamless application process.
Frequently Asked Questions About College Ave Student Loans
What are the costs associated with College Ave loans?
Applying for a College Ave student loan incurs no loan origination fee. Your monthly payment will depend on factors such as your loan amount, loan term, and selected repayment option. There are no penalties for early repayment of the full principal. However, if you miss a monthly payment, a late fee of $25 or 5% of the unpaid balance (whichever is lower) will be charged.
Is there a possibility for forgiveness on College Ave loans?
No, forgiveness is only available for federal student loans and under specific conditions. However, you may apply for loan forbearance with College Ave. Furthermore, you can secure a loan with a four-year deferment period to postpone payments until graduation. If you’re facing challenges in meeting your student loan obligations, contact College Ave to establish a manageable repayment plan.
Is a cosigner required for College Ave loans?
If you are transitioning directly from high school to college, it is likely that you will need a cosigner. However, older students with established income and credit histories may apply independently. If you initially secured your loan with a cosigner, you can release them from their obligations once you establish financial stability and meet the requirements for a cosigner release.
What credit score is necessary to qualify for a College Ave loan?
According to College Ave’s website, borrowers should aim for a credit score in the mid-600s to gain approval for a loan. Students without an established credit score can rely on a cosigner to assist with qualification. Many students entering college for the first time may not have taken out loans or owned credit cards, which is why cosigners play a crucial role in the lending process.
Is College Ave considered a direct lender?
Yes, College Ave is regarded as a direct lender; however, it is important to note that loans are funded through Firstrust Bank, which has a long-standing history of nearly 90 years in the banking industry.
How We Assessed College Ave’s Student Loans
Our evaluation of College Ave student loans was based on several key criteria that are essential for student borrowers. We discovered that College Ave provides a broader range of loan options than average, including numerous refinancing opportunities. We compared the annual percentage rates offered by College Ave and found them to be highly competitive. Furthermore, we examined consumer reviews and the specific issues highlighted in any complaints. Finally, we assessed the overall customer experience, from the application process to the reputation for customer support.
Final Thoughts on Our Review of College Ave
College Ave presents a straightforward application process along with one of the most diverse selections of loan types, terms, and repayment options available in the market. They offer competitive interest rates and cater to international students, a service not provided by all student loan lenders. Like most private loans, a significant number of young borrowers will likely require a cosigner to qualify for College Ave’s loans. Unlike many competitors, College Ave mandates a longer period of on-time payments before borrowers can remove cosigners from the loan.
