INvestEd Student Loans Review
July 19, 2019
Thinking of going to college? It’s a worthy investment. According to The College Board, bachelor’s degree recipients can expect to earn 66% more than a high school graduate over their working lives.
While college can be expensive, there are grants, scholarships, and student loans available to help offset the cost. If you live in Indiana or are attending school in Indiana, INvestEd student loans may help you reach your goals.
When you get into college, your selected school will send you a summary of your financial aid package. Most packages are a combination of scholarships, grants, and federal loans. However, your financial aid package may not be enough to cover the total cost of attendance. You may need to turn to a private student loan lender to be able to pay for your other expenses.
If you’re a resident of Indiana or attending an eligible school in Indiana, you may be eligible for a student loan from INvestEd. They offer unique loan benefits that may make your debt more manageable after you graduate.
INvestEd student loans
With INvestEd, you can borrow up to the total cost of attendance, minus other financial aid; the minimum you can borrow is $1,001.
You can also choose what repayment term makes sense for you. INvestEd offers loan terms of 5, 10, or 15 years. The longer the loan term, the lower your monthly payment. You’ll pay more in interest with a longer loan term, but it may be worth it if you prefer a more affordable payment.
Interest rates and fees
INvestEd offers both fixed and variable rate loans. With a fixed rate loan, your interest rate is locked for the length of your repayment period. Variable rate loans tend to start off with lower rates than fixed rate loans, but the rate will fluctuate over time.
Signing up for automatic payments is a great way to ensure you never miss a payment, and doing so has another benefit that can save you money. If you sign up for automatic payments with INvestEd, you get a 0.25% interest rate reduction. Over time, that reduction will save you money.
Private student loan lenders all have their own eligibility criteria. To qualify for an INvestEd Student Loan, you or your co-signer must meet these requirements:
- Your monthly debt payments (including rent or mortgage, credit cards, and car loans) must not exceed 30% of your gross monthly income or you must have a minimum gross monthly income of $3,333.
- Your FICO score must be at least 670
- You have had continuous employment over the last two years
- You do not have any delinquencies of 60 days or more in the past 24 months on your credit report
- You do not have any bankruptcies during the past five years
- You did not default on any private or government student loans
What sets INvestEd apart
There are dozens of private student loan lenders out there, so it can be difficult to choose one. If you’re trying to decide between lenders, it’s important to keep three points about INvestEd in mind.
1. Generous graduation benefit
When you graduate from school, you can request a 2% principal reduction reward from INvestEd. That means you’ll have a lower loan balance to repay. For example, let’s say you had $30,000 in INvestEd student loans. When you graduate, INvestEd may take 2% off your student loan balance. In your case, that would be a savings of $600.
To receive this benefit, you must contact INvestEd and request it once you graduate. You’ll have to provide documentation proving you graduated, such as a copy of your diploma. Your loans must be current, and not delinquent or in default.
2. INvestEd offers a co-signer release
When you apply for a loan, you may need a co-signer on the application to get approved. A co-signer takes on responsibility for the loan if you fall behind on payments.
While having a co-signer can help you get the funding you need for school, it’s a big responsibility for your friend or relative. After you graduate and start building your career, you may want to consider getting a co-signer release to remove their obligation for the loan.
Not all private student loan lenders offer a co-signer release; INvestEd is one that does. You can apply for a co-signer release after making your first 48 consecutive monthly principal and interest payments on time.
3. Loan discharge available
With some private student loans, your family could be stuck repaying the loan even if something terrible happens to you. But with INvestEd, loan discharge in the case of death or permanent disability is available.
How to apply for an INvestEd Student Loan
Applying for an INvestEd Student Loan is quick and easy. You can submit an application online. You or your co-signer need:
- 2 consecutive pay stubs or other proof of income
- Proof of employment
- Selected school
- Loan amount
If you’re approved for a loan, you’ll receive a notification and will get a promissory note you need to sign before the loan can be disbursed.
Paying for college
Private student loans may help you get the financing needed for your education. As you’ve learned in this INvestEd Student Loan review, what lender you choose can help you get lower interest rates and unique benefits that make repayment easier.
To simplify the process, shop around and compare offers from multiple lenders with Purefy’s Find My Rate tool. You’ll get a list of loan quotes at once, helping you make an informed decision.