After college scholarships and federal student loans, many families still need to access additional funds to pay the rest of their college bill. That’s where private student loans tend to come in. Choosing the right loan and lender is an important financial decision, but it doesn’t have to be stressful.
College Ave, which focuses exclusively on student loans, offers a wide array of loans and repayment terms. In fact, its flexible repayment terms for parent loans, along with its competitive starting interest rates, help it make our list of best student loan companies.
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College Ave student loan overview
College Ave is a lender that specializes in student loans. In fact, that’s the only kind of loan the company has offered since it was founded in 2014. College Ave operates strictly online and says it has a streamlined, speedy process to walk you through the loan application, loan funding and loan repayment.
- Flexible repayment terms for parent loans
- Competitive APRs for credit-worthy borrowers
- Quick application and approval process
- Cosigner release not offered until half the repayment term has passed
- Late payment fee of up to $25
- Limited information about forbearance options or hardship protections online
Like many lenders, College Ave has a prequalification tool to allow borrowers to see the loan terms they’re eligible for with only a soft credit check. If you do decide to apply for a loan, the lender says the application and approval process takes just three minutes.
College Ave has loans specifically for parents, and while some other lenders also offer parent loans, College Ave stands out for its flexible repayment options for parents. Instead of one or two pre-set repayment terms, College Ave allows parent borrowers to choose any repayment term length between 5 and 15 years.
The lender does offers cosigner release. But to apply, a borrower must have already paid through half of the original repayment term. So, for example, if your term was 10 years long, you cannot apply for cosigner release until you’ve made five years of payments. That’s much longer than other lenders, who typically allow borrowers to apply for cosigner releases after a year or two of on-time payments.
While College Ave doesn’t charge origination fees, you will be charged a fee for late payments.
College Ave services
College Ave offers loans for undergraduate students and parents looking to borrow for their children’s education. It also offers several types of loans for graduate students, including for MBA programs, medical school and law school. It offers student loan refinancing, too.
What the lender offers: 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 for most types of College Ave loans can choose among four in-school repayment options, including making interest-only payments while attending or choosing to wait to make payments until after graduation. The company also allows students and parents to select from various loan terms, ranging from five years to 20 years, depending on your loan type.
The choices you make about your loan and repayment term will, of course, affect the lifelong cost of your loan and your monthly payments. Shorter terms tend to carry lower interest rates, for example. And making payments while in-school, even if they’re interest-only or a flat $25 a month, can significantly lower your overall cost.
What the lender doesn’t offer
College Ave is a private lender, so you cannot borrow federal student loans, including parent PLUS loans, through the company.
College Ave does offer what it calls “career loans,” but these are more limited than other lenders’ career prep loans. To apply, you still must be enrolled at an eligible institution in an associate’s, bachelor’s or graduate degree program. So if you’re in a certificate program or other trade school, you’ll have to find another loan provider.
College Ave’s loan qualifications
College Ave’s eligibility requirements are in line with most other student loan lenders. Your eligibility for College Ave private student loans depends on these primary criteria:
- Attending an eligible school
- Being a U.S. citizen/permanent resident or an international student with a U.S. Social Security number and eligible co-signer
- Having a credit score in the mid 600s or an eligible co-signer
The company also has a standard range of credit factors it considers. These include certain income requirements you or your cosigner must meet, though College Ave doesn’t disclose income cutoffs. The company will also consider your annual income compared to the amount of debt you already carry, also known as your debt-to-income ratio.
College Ave’s credentials
Founded in 2014, the company quickly established itself as a competitive option for student borrowers — appearing on many lists of top student loan lenders.
College Ave loan products are made available by Firstrust Bank, which is covered by the Federal Deposit Insurance Corporation (FDIC). After you take out your loans, you’ll make your payments through College Ave, using the lender’s interface. The company also provides a mobile app.
Licenses and registrations
College Ave is licensed to do business and offers loans in all 50 states. The business has been accredited by the Better Business Bureau since 2015.
Third-party ratings
College Ave’s recent ratings and outlook reports from S&P Global Ratings have been positive, with a AAA rating in 2024 for its latest asset class. The company does not have any recent ratings from Moody’s or Fitch.
Regulatory and legal actions
Our search of the Consumer Financial Protection Bureau’s database found 56 complaints against College Ave over the past three years that related to private student loans. Among the complaints, the most common included trouble with how payments were handled, needing information about loan details and being denied from borrowing.
College Ave’s accessibility
College Ave services are available online and, once you’ve opened an account, via its mobile app. The College Ave mobile app earns 2.3 out of 5 stars from users on the Apple App Store, based on just a handful of ratings. The app has a 4.2 rating, based on 43 reviews, on Google Play.
Availability
College Ave offers a number of ways to get in touch. You can chat live with a company representative directly from the company’s website. You can text message the company at 855-910-0510. The company offers separate phone lines for students who need help applying for a loan and those who already have one and need to discuss repayment or make payments by phone. Nowadays, most people don’t want to take the time to mail a letter, but sometimes it’s a good idea for documentation purposes. You can mail College Ave at its headquarters, located at 33 North King Street, Suite 400, Wilmington, DE 19801.
Contact Information
Learn more on College Ave’s website.
To call for questions about applying for a loan:
- 844-422-7502
- Monday through Friday, 9 a.m. to 10 p.m. EST; Saturday 9 a.m. to 3 p.m. EST
To call for questions about loan payments:
- 844-803-0736
- Monday through Friday, 8 a.m. to 8 p.m. EST
User experience
Applying for a student loan can be confusing, especially for students who have never applied for a loan before. College Ave says it has aimed to make the application process easier and less intimidating.
College Ave’s website is user-friendly. The lender provides a loan calculator that allows borrowers to compare multiple loan scenarios before selecting a loan. You can check rates immediately and apply for a loan in under five minutes from the company’s website. The interest rates you’ll be offered will vary depending on your and/or your cosigner’s credit score, your loan amount and other factors. College Ave, like other lenders, offers its best rates to borrowers who demonstrate a high degree of creditworthiness.
If you’re just at the shopping-around point in your student loan journey, the company offers an easy way to compare loan options and see your prequalified (though non-binding) rates almost instantly.
In addition, College Ave publishes an extensive blog to help borrowers better understand student loans and make a more informed loan decision — a decision that can affect your financial life significantly for years to come. Articles run the gamut from how to budget for law school to less serious topics like decorating your dorm room.
College Ave’s customer satisfaction
Relationships between borrowers and lenders aren’t always smooth or straightforward. That’s especially true when borrowers have a hard time meeting their obligations. We regularly see that lenders are the recipients of unflattering reviews. College Ave student loan reviews are no exception.
Although College Ave is A+ rated by the Better Business Bureau, customers who review the company on the BBB website award it 3.62 out of 5 stars. That rating is based on a total of 61 reviews. (Note: The customer satisfaction score has improved in the past couple years. When Money first published this review, it was 2.63 stars out of 5.)
On Trustpilot, College Ave has a score of 4.5 out of 5 stars, based on a total of more than 2,000 reviews. Some 80% of customers gave the lender an excellent rating. Most of the positive reviews praised the speed and convenience of doing business with College Ave.
Customer complaints
Over the past three years, the BBB has received and closed 42 complaints against College Ave. Seventeen complaints have been closed in the last 12 months. Most complaints deal with billing issues.
College Ave Student Loans FAQ
How much does College Ave cost?
You won’t have to pay a loan origination fee to apply for a College Ave student loan. Your monthly payment will be based on your loan amount, loan term and the repayment option you select. There is no prepayment penalty if you decide to pay off your full principal early.
However, if you are late with your monthly payment, College Ave will charge you a late fee of $25 or 5% of your unpaid balance (whichever is less.)
Can College Ave loans be forgiven?
No. Only federal student loans offer forgiveness and, even then, under only select circumstances. However, you can apply for loan forbearance with your College Ave student loan, though the lender is not obligated to approve the forbearance. It’s important to remember interest still accrues during periods of non-payment
Do I need a cosigner to apply for a College Ave loan?
If you’re entering college directly after high school, chances are you will. Older students who have an established earning and credit history may want to apply on their own. If you do have a cosigner on your loan, you can relieve him or her of their obligations down the road — once you’re on your own and financially solvent — by signing a cosigner release.
What credit score do you need to get a College Ave loan?
According to the company’s website, borrowers are required to have a credit score in the mid-600s to be approved for a loan. Students who don’t have their own credit scores can rely on a cosigner to help them qualify.
Is College Ave a direct lender?
College Ave is considered a direct lender, but loans are actually funded by Firstrust Bank, an institution that was founded nearly 90 years ago.
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