How To Choose A Student Loan: Key Factors To Consider

How To Choose A Student Loan: Key Factors To Consider

First, consider any federal student loan options available to you. When it comes time to apply for a private student loan, do not assume that all private student loans are the same. Benefits can vary by lender, and some lenders offer more repayment flexibility than others. Unsure how to choose a student loan and lender? Here are some key factors to look for in a private student loan:

Repayment Options

The repayment option is the way in which you are required to repay your loan. The biggest decision when it comes to choosing a student loan repayment option is whether you want to make payments while you're in school or postpone until you graduate. Making in-school payments helps reduce the overall cost of the loan as you start paying down interest sooner. Some lenders will give you more options than others. At College Ave, we offer four different repayment options on our undergraduate and graduate loans, so you can choose what works best for you.

Repayment Terms

The repayment term is the amount of time you will take to repay the loan. Paying the loan back sooner will result in a lower overall total cost, but it will also result in larger monthly payments. Picking a longer loan term will help you manage your monthly payment, but the loan will be more expensive overall. The terms offered by lenders vary, and many lenders assign you a term without giving you the choice. At College Ave, we allow you to choose the term that works best for you.

At College Ave, we believe student loans should not be one-size-fits-all. Students and families need financing that's tailored to their goals, their lifestyles, and their budgets - not those of their bank. You should consider what's important to you and look for a lender that gives you the options you desire. We give you the choice so you can build a loan that meets your needs. You can use our student loan calculator go to student loan calculator to find your perfect fit before applying.

Interest Rates

There are two types of interest rates - fixed and variable - and most lenders offer both options. However, when it comes to the actual interest rates, don't assume that all lender's rates are the same. Some lenders can offer better pricing options. To see what your rates would be at College Ave before applying, check out our pre-qualification tool - it won't affect your credit score.

What Should I Consider When Choosing A Lender?

Choosing a private student loan lender can seem overwhelming but knowing what factors to consider can make the process easier. Low interest rates are important, but also be sure to look for lenders with flexible repayment options that can help you match your monthly loan payments to your budget. Also, be on the lookout for any application or origination fees as well.

All lenders are not created equal and it's important to know what to expect from your lender. Check out lender's customer reviews and verify their Better Business Bureau rating. Taking out a student loan is a big decision, and you'll want to make sure that you choose the lender that's right for you.

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What’s the FAFSA and why is it important?

The Free Application for Federal Student Aid (or FASFSA) is the online form you must complete each year to access federal aid (including federal student loans). In addition to helping you access federal aid, many states and individual colleges also use the FAFSA to determine your eligibility for state and school aid.

I Just accepted and signed my loan documents. Now what happens during school certification?

After your loan is approved, and you have accepted the terms, signed the loan documents, and (if asked) provided documents to verify your identity, your loan is sent to your school for certification. At this point in the process, you’re done until we hear back from the school. So what's happening on their side?

What types of degree programs can a graduate student loan cover?

A graduate student loan can cover school costs for most master’s, doctoral, or advanced professional degree programs, including the examples listed below, and many more. If you’re wondering whether grad school is the right investment for you, do your homework.

What’s the difference between federal student loans and private student loans?

Federal student loans are made and funded directly by the federal government. To apply, you need to complete the Free Application for Federal Student Aid (FAFSA).

How do I get my 0.25% auto-pay interest rate reduction?

You'll need to set up a "Recurring Payment" on our Customer Service site. We will walk you through the steps setting up.

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College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or Nationwide Bank, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

Information advertised valid as of 04/01/2018. 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.