Product & Application FAQs
Why should I choose the College Ave Student Loans Graduate Loan?
Because College Ave Student Loans believes that a quality education is the best foundation for the future, and the College Ave Student Loans products are designed to help you pay for school as easily (and inexpensively!) as possible. College Ave Student Loans offers great rates and flexible terms that let you decide how and when you’ll pay your loans back.
Which are better, federal loans or private loans?
They’re both useful financial tools. We always recommend completing the FAFSA, and exploring scholarships, grants, and federal student loans first. Those won’t always cover the full cost of attendance though. That’s where College Ave Student Loans can help you get the remaining money you need for school.
Do I need to be a full time student to obtain a College Ave Student Loans Product?
No you don’t, but you must be enrolled in a degree program and attending classes at an eligible school.
How much of my education costs will this loan cover?
Credit-worthy applicants can borrow up to 100% of the school-certified cost of attendance, which typically includes things like tuition and fees, books and supplies, room and board, transportation and personal expenses. The minimum amount you can borrow is $2,000.1
What options do I have for reducing the overall cost of my loan?
The faster you pay, the more you save. We encourage making payments during school (even if you choose to defer during school, you still have the option to make payments when you can) and picking shorter loan terms so you pay the loan off as quickly as possible. That will help you save on your overall interest charges so you never pay more than you have to.
You can also get a 0.25% interest reduction when you sign up to make automated payments from your checking or savings account.2
Can I apply for a loan over the phone?
We can’t take your application by phone at this time because required disclosures are presented during the online application process. While we can’t take your application over the phone, you can reach us at (844)-422-7502 if you have questions or need help.
How long does the application process take? How quickly can I get my loan?
You can apply and get your credit decision within 3 minutes. If you are approved, you’ll then need to accept your terms and e-sign your loan documents, which can all be done right after approval.
At that point, we send the loan to the school for certification. Every school has their own processes and timelines, so certification can take several days or sometimes weeks, although that is less common. Once we receive the certification back from the school, we’ll schedule the funds to be sent according to the school’s requested timeline.
The entire process from application to actually sending the money to the school typically takes at least 10 business days, and it can be longer than that depending on the school.
How long can I defer the loan? Can I defer payment until I’m done with school?
Full principal and interest payments can be deferred as long as graduate students remains enrolled at an accredited school. For graduate loans, full principal and interest payments would begin 9 months after the student graduates or leaves school.
I tried to apply, and I can’t find my school in the application. What do I do?
It’s possible that your school isn’t currently on our eligible list. You may want to contact the school to ask if they have a list of participating lenders. You can also send us an email with your school name, and we’d be happy to confirm eligibility: firstname.lastname@example.org
How much should I borrow at one time? Can I borrow for multiple years with one loan?
A loan can fund a semester, quarter, or up to a full academic year at a time, but no more. During the application process, you will indicate the time period you would want the loan to cover. It’s your choice if you want to cover a portion of the academic year at a time, or if you want to borrow to cover the full year.
During the school certification process, the school confirms you are enrolled, that the funds won’t exceed the maximum cost of attendance for the time period requested, and they set the date(s) that they want to receive loan funds. If you indicate in the application that you’re only covering one semester or quarter, they typically ask for the money all at one time. If you indicate in the application that you want the loan to cover two semesters, half is typically sent at the beginning of the first semester and the rest is sent at the beginning of the second semester. That way you don’t overpay on interest for the portion of the loan that wasn’t needed until later in the school year.
Each loan is separate and won’t be automatically combined if you take out multiple over the course of your education.
Are international students or cosigners eligible for your loans?
At this time, we require that both student borrowers and cosigners be U.S. citizens or permanent residents. Permanent residents are the only eligible non-citizens.
Do you require students to make satisfactory academic progress (SAP) in order to receive the loan?
Yes, we ask the school to verify satisfactory academic progress (SAP) during school certification. The school applies their individual criteria for SAP. In other words, we don’t define SAP, but we do ask the school to confirm that the student is making SAP according to each school’s definition.
Do I need a cosigner?
Most students have limited credit history and income, so they will need a cosigner who has good, established credit in order to be eligible for a private student loan.
Check out our free credit pre-qualification tool. It will tell you (and your cosigner) whether your credit score qualifies for a loan, and what interest rates you can personally expect from us before you apply – without impacting your credit score. Pre-qualification isn’t a full review or guarantee, but it may help you decide if you want to submit a full application.
What does it mean to cosign the loan? What are a cosigner’s responsibilities?
By co-signing, your cosigner is agreeing to take equal responsibility for the loan. That means that if you, as the student borrower, are not able to make the payments, the cosigner is still legally obligated to pay the loan back. Either one of you can be the one to make the required monthly payments.
I’d like to cosign a loan for my student, but I’m not sure my credit qualifies. What should I do?
Check out our free credit pre-qualification tool. It will tell you whether your credit score qualifies for a loan, and what interest rates you can personally expect from us before you apply – without impacting your credit score. Pre-qualification isn’t a full review or guarantee, but it may help you decide if you want to submit a full application.
Can I apply with more than one (multiple) cosigners?
We’re not able to accept multiple cosigners at this time. You can only apply with one cosigner.
What are the credit requirements for student borrower and/or cosigner?
Exact credit criteria is proprietary, but we offer a free credit pre-qualification tool to tell students and cosigners if their credit scores qualify, and what interest rates they can personally expect from us before they apply. Plus, using the tool won’t impact your credit score. Pre-qualification isn’t a full review or guarantee, but it may help you decide if you want to submit a full application.
Cosigners are required to be U.S. citizens or permanent residents and must meet annual income requirements.
How do your variable rates work? How often do they change?
The variable rate on our graduate loans is based on the one-month London Interbank Offered Rate (LIBOR) as published on The Wall Street Journal’s website on the 5th day of the month (or the next business day if the 5th day is not a business day) and rounded up to the nearest 1/8th of one percent.
The rate will only go up (or down) based on future published one-month LIBOR rate changes and to the extent that one-month LIBOR changes. The variable rate will not increase more than once per month, and it will never exceed 25%.
We can’t predict exactly how LIBOR will change over the life of your loan, and past trends are not necessarily indicative of future performance, but you can review the historical 1 month LIBOR rates at the Wall Street Journal: http://online.wsj.com/mdc/public/page/2_3020-libor.html
Are all of the loans sent directly to the school? Can I have the money sent directly to me instead?
All of our graduate loans are disbursed directly to the school; there is not a way to send the money to you directly at this time. The school first applies the loan to your outstanding balance (tuition, fees, etc). If there is money left over after that balance is paid, the school will refund the money to you following their individual refund procedures.
Do you offer forgiveness for death and/or disability of the student?
Yes. If the student borrower dies or suffers a permanent disability, the loan is forgiven.
Can a cosigner ever be released from a loan?
A student borrower who is a U.S. citizen can request the release of their cosigner after more than half of the scheduled Repayment Period has elapsed, if the following requirements are met:
- The most recent 24 consecutive payments were made on-time and did not include any forbearance or workout programs for hardship reasons (an “on-time” payment is defined as paid within the grace period such that no late charges are assessed);
- The borrower has demonstrated income for the previous two years that is more than twice the outstanding balance of all their loans with College Ave Student Loans; and
- A credit bureau review shows no late payments on any other obligations for the past 24 months
College Ave Student Loans products are made available through either Firstrust Bank, member FDIC, or Liberty Bank, N.A., member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1As certified by your school and less any other financial aid you might receive.
2The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments.
Information advertised valid as of 10/3/2016. Variable interest rates may increase after consummation.
WE RESERVE THE RIGHT TO MODIFY OR DISCONTINUE (IN WHOLE OR IN PART) THIS LOAN PROGRAM AND ITS ASSOCIATED SERVICES AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK WWW.COLLEGEAVESTUDENTLOANS.COM FOR THE MOST UP-TO-DATE INFORMATION.