Review: College Ave Student Loan Refinancing
October 9, 2019
Student loan debt has reached unprecedented levels. According to the Pew Research Center, Americans owed about $1.5 trillion in student loans at the end of March 2019. That’s more than two times what they owed just a decade earlier.
If you’re struggling with student loans, you’re certainly not alone. One solution to consider is student loan refinancing through a lender like College Ave. You can reduce your interest rate or qualify for a lower monthly payment, making your loans more manageable. Continue reading this College Ave student loan refinancing review for more information about your options.
College Ave: Refinance your student loans
When you refinance your loans with College Ave, you take out a new loan for the amount of your current debt, including both federal and private loans. Going forward, you have just one loan and one easy payment. The new loan will have a different interest rate, monthly payment, and repayment term.
Refinancing can reduce your interest rate so that you save money over the length of your loan. Or, you can extend your repayment term and dramatically reduce your monthly payment, giving you more room in your budget.
Interest rates and fees
College Ave offers student loan refinancing for all federal and private student loans, including federal Direct, Parent PLUS, and Grad PLUS loans. College Ave student loan refinancing does not charge any origination fees or prepayment penalties.
You can check what rates you would qualify for using Purefy’s rate comparison tool. After answering a few simple questions, you can easily compare rate estimates from College Ave and other top lenders to find the best deal.
College Ave also offers a 0.25% discount if you sign up for automatic payments.
The minimum amount you can refinance is $5,000. If you have a medical, dental, pharmacy, or veterinary doctorate degree, the maximum you can refinance is $300,000. If you have a bachelor’s or other graduate degree, the maximum amount you can refinance is $150,000.
Residents of Maine are currently ineligible for refinancing loans through College Ave.
To qualify for a loan, you must meet the following requirements:
- You must be a U.S. citizen or permanent resident
- You must be at least 18 years old
- You must have graduated from a Title IV-eligible undergraduate or graduate program
College Ave doesn’t publicly list its credit score and income requirements. In general, you’ll need good credit to qualify for a loan. Otherwise, you may be able to get approved for a loan if you have a co-signer apply with you.
What sets College Ave apart
When you’re comparing refinancing lenders, it’s important to know that no two lenders are the same. They all have unique features, so it’s important to do your homework. Here are three highlights of College Ave’s program:
1. Fixed or variable rate loans are available
With College Ave, you can choose between a fixed or variable interest rate for your new loan. Fixed rate loans have the same interest rate for the length of your repayment, so you never need to worry about rates increasing in the future. With a variable rate loan, your interest rate starts off lower than it would be with a fixed rate loan. However, it will fluctuate over time, meaning your interest rate could go up.
If you want to aggressively pay off your debt ahead of schedule, opting for a variable rate loan makes sense. You can take advantage of a lower rate and pay off your loans before you see significant increases.
If you think you’ll need several years to repay your loans, a fixed rate loan will give you more security and peace of mind.
2. There are flexible loan terms as long as 20 years
College Ave offers loan terms as short as 5 years or as long as 20 years. Borrowers can choose any number of years between those limits to repay their student loan. This allows for more flexibility than most refinance lenders, who typically only offer 4 or 5 options. With a longer repayment term, you’ll pay more in interest fees over time. However, you might find that drawback well worth it, because you’ll get a much smaller and more manageable monthly payment. When you’re just starting out and not making much money, a longer repayment term can give you a lot more breathing room in your monthly budget.
3. You could qualify for an interest rate discount
If you sign up for automatic payments, you could qualify for a 0.25% interest rate reduction on your loans. For example, if you qualified for a 6.00% interest rate and signed up for automatic payments, your interest rate would drop to 5.75%. That difference may not sound like much. However, over time, that reduction can help you save hundreds of dollars.
For example, let’s say you had $30,000 in student loans at 6.00% interest and a 15-year repayment term. Over the length of your loan, you’d repay $45,568.
But if you signed up for automatic payments and your interest rate dropped to 5.75%, you’d repay just $44,842. By simply enrolling in autopay, you’d save $726.
How to apply for a College Ave student loan refinance
Before refinancing, you should always start by comparing rates from multiple lenders using Purefy’s free rate comparison tool. If you select College Ave after looking at how they stack up against other lenders, you’ll be taken directly to their online application.
According to College Ave, the application takes just three minutes to complete, and you’ll receive a decision right away.
To complete the application, you’ll have to enter:
- Your name
- Phone number
- Email address
- Date of birth
- Social Security number
- School information
Once you submit that information, College Ave will list a summary of possible rates and fees available on the loan. If everything looks good, you can continue with the loan. After you submit the required information, College Ave will give you an instant decision, so you’ll know if you’re approved immediately.
Refinancing your student loans
College Ave’s refinancing options include low interest rates and favorable repayment terms, making it a good choice if you’re shopping around for a lender. However, you shouldn’t look at just one company. Instead, compare offers from multiple student loan refinancing lenders to make sure you get the lowest rates.