College Ave Student Loan Refinancing Review: Good Rates and Flexibility

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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution.

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Refinancing with Laurel Road

Refinancing rates from 1.89% APR. Checking your rates won’t affect your credit score.

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Choosing the right bank, credit union or online company to refinance your student loans is imperative — it could be there to support your progress, or simply stand in the way. But is College Ave student loan refinancing the right lender for your repayment?

In addition to offering student loans of its own, College Ave has a refinancing loan with low interest rates and a high degree of flexibility. But of course, no College Ave refinancing review would be complete without much more context, so here are all the details:

College Ave student loan refinancing review: The basics

Just as if you applied to refinance your federal and private student loans at a brick-and-mortar bank, you’ll need a strong application to qualify at College Ave.

A minimum credit score of 680 (or a cosigner with good credit) and an annual income of at least $65,000 will get you started. To be eligible, you’ll also need to be at least 18 years old and a U.S. citizen or permanent resident, and you must have graduated from a participating college or university.

College Ave’s refinancing loan comes with a number of benefits, as the lender matches many of its competitors’ generous offerings to borrowers, including:

  • Low fixed and variable interest rates
  • 0.25% rate discount for enrolling in autopay
  • No application or origination fees
  • No prepayment penalty
  • Choose from 16 different repayment term options, spanning from five to 20 years
  • No cosigner required
  • Refinance as little as $5,000 and as much as $150,000 (for undergraduates) or $300,000 (medical degrees)

But not everything about College Ave student loan refinancing is so rosy. Here are a few potential negatives of the borrowing experience:

What we like about College Ave student loans refinancing

Founded by two ex-Sallie Mae executives, College Ave seems to pride itself on reliable customer service.

The lender boasts a 4.8-star rating (out of 5) among users on its website and earns similar acclaim elsewhere. More than three-quarters of reviewers on Trustpilot gave it “excellent” grades, and it also netted an A+ grade from the Better Business Bureau.

Aside from helpful customer service, below are three more features worth highlighting in this College Ave refinancing review.

Prequalify via a 3-minute application

To gauge your qualifications for College Ave refinancing without undergoing a credit inquiry and dinging your credit score, you (or your cosigner) can use the lender’s prequalification tool.

You’ll need to provide just three pieces of information to complete the application:

  • Social Security number
  • Estimated annual income
  • Borrowing amount

The lender promises a response — and rate quotes — within three minutes. The site is also mobile-friendly, so you could apply from your tablet or smartphone, as well as a desktop or laptop.

Score low fixed and variable interest rates

The interest rates you’re quoted represent a significant factor in your choice of lender, and rightfully so. A lower rate can bring greater savings.

College Ave offers very competitive rates. When we checked in April 2019, for example, only First Republic Bank had a lower variable-rate range among the major lenders surveyed.

Look to the math to understand the real value of a reduced rate. Say that you received the lowest possible fixed rate from College Ave — 3.24% as of May 2, 2019, when accounting for an autopay rate discount. If you refinanced $30,000 to a 10-year term, you’d repay just $5,162 in interest, according to our monthly payment calculator.

Now say you only qualify for a 6.00% fixed interest rate for the same loan. In that case, you’d be on the hook for $9,967.

Choose your repayment term

Similarly to competing online-only lender Earnest, College Ave puts the power in your hands, allowing you to choose among 16 repayment term options, spanning five to 20 years.

Consider that many of the other major student refinancing lenders have only four or five term options available — and they might select one for you.

College Ave’s level of flexibility allows you to design a loan that fits with your preferred repayment timeline. You could use your desired monthly payment amount and tolerance level for long-term interest to decide on the loan term that works best for you.

What to keep in mind about College Ave Student Loans refinancing

You might see College Ave’s advertised interest rates and think it’s a no-brainer to bank on them for your student loans.

Note, however, that the online-only lender reserves the bottom level of its rate ranges for applicants with strong credit histories (or with creditworthy cosigners). A 680 credit score might help you become eligible for refinancing, but you’ll likely need a significantly higher score to access the lowest rates listed online.

Beyond interest rates, here are three more caveats to refinancing your student loans with College Ave.

Narrow eligibility criteria

To qualify for refinancing, you need to be a U.S. citizen or permanent resident who has graduated from a participating school. For some, that might be no big deal, but others could find that one or more of these rules will rule them out.

If, for instance, you have don’t have U.S. residency, or if you didn’t graduate before leaving college, a College Ave refinancing loan may be out of the question. Still, you might be able to refinance your education debt elsewhere — for example, Citizens Bank is among a few lenders that work with both such types of borrowers.

No cosigner release policy

Although attaching a cosigner to a loan application is much more common for in-school students with thin credit files, many candidates for refinancing could benefit from applying with one. Doing so could significantly decrease their interest rate.

If you apply to College Ave, however, remember that it offers no way to release your cosigner from their responsibility to repay the debt if you can’t. Even after making years of on-time payments, you won’t be able to relieve your cosigner of responsibility for the loan agreement.

If cosigner release is important to you, you might explore refinancing with PenFed Credit Union. It allows you the opportunity to release your cosigner after 12 months of prompt payments, plus a routine credit check.

Limited details on forbearance program

Even with refinancing, it’s smart to prepare for the worst. Before borrowing anew, you should consider scenarios when you’re unable to make your monthly payment. As you shop around for a refinancing lender, ask about the safety net that each lender provides.

College Ave provides a wealth of information on its website about the ins and outs of its refinancing product. Nowhere to be found, however, are the criteria needed to qualify for forbearance — a pause on your repayment in case of financial hardship. The lender awards forbearances on a case-by-case basis, so the actual requirements are murky.

Some banks, credit unions and online lenders spell out their forbearance programs more clearly. SoFi, for example, offers up to 12 months of unemployment protection when you’re in repayment, while some others, such as CommonBond, provide as many as two years of forbearance for general economic hardship.

Is College Ave student loan refinancing right for you?

It’s easy to prequalify with College Ave, but make sure it meets your needs before borrowing.

The lender features relatively low rates and a high degree of choice when it comes to selecting a loan term. It’s less generous when it comes to cosigner release and forbearance, so keep those factors in mind, too.

As you search for refinancing lenders, you might compare College Ave refinancing against other top-rated student loan refinancing companies and see how it stacks up.

Kat Tretina contributed to this report.

Student Loan Hero has independently collected the above information related to refinancing loans, which is current as of May 2, 2019, unless otherwise noted. None of the financial institutions named has either provided or reviewed the information shared in this article.

Need a student loan?

Here are our top student loan lenders of 2020!
LenderVariable APREligibility 
1.24% – 11.44%1Undergraduate, Graduate, and Parents

Visit Earnest

1.25% – 11.15%*,2Undergraduate and Graduate

Visit SallieMae

1.24% – 11.98%3Undergraduate, Graduate, and Parents

Visit College Ave

1.24% – 12.49%4Undergraduate and Graduate

Visit Discover

1.80% – 11.89%5Undergraduate and Graduate

Visit SoFi

2.71% – 12.99%6Undergraduate and Graduate

Visit Ascent

3.52% – 9.50%7Undergraduate and Graduate

Visit CommonBond

* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.

1 Important Disclosures for Earnest.

Earnest Disclosures

  1. Rates include 0.25% Auto Pay Discount
     
  2. Explanation of Rates “With Autopay” (APD)
    Rates shown include 0.25% APR discount when client agrees to make monthly principal and interest payments by automatic electronic payment. Use of autopay is not required to receive an Earnest loan.

    Available Terms
    For Cosigned loans – 5, 7, 10, 12, 15 years. 
    Primary Only – 10, 12, 15 years

    In school deferred payment is not available in AL, AZ, CA, FL, MA, MD, MI, ND, NY, PA, and WA).


2 Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.

3 Important Disclosures for College Ave.

CollegeAve Disclosures

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

  1. Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
  2. This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. This informational repayment example uses typical loan terms for a first year graduate student borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.10% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $141.66 while in the repayment period, for a total amount of payments of $16,699.21. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.

Information advertised valid as of 9/24/2020. Variable interest rates may increase after consummation. Lowest advertised rates require selection of full principal and interest payments with the shortest available loan term.


4 Important Disclosures for Discover.

Discover Disclosures

  1. Aggregate loan limits apply.
  2. Students who get at least a 3.0 GPA (or equivalent) qualify for a one-time cash reward on each new Discover undergraduate and graduate student loan. Reward redemption period is limited. Please visit DiscoverStudentLoans.com/Reward for any applicable reward terms and conditions.
  3. Lowest APRs shown are available for the most creditworthy applicants and include an interest-only repayment discount and Auto Debit Reward. The interest rate ranges represent the lowest and highest interest rates offered on Discover student loans, including undergraduate and graduate loans. The fixed interest rate is set at the time of application and does not change during the life of the loan. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. For variable interest rate loans, the 3-Month LIBOR is 0.375% as of July 1, 2020. Discover Student Loans may adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the “interest rate change date”), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Our lowest APR is only available to customers with the best credit and other factors. Your APR will be determined after you apply. It will be based on your credit history, which repayment option you choose and other factors, including your cosigner’s credit history (if applicable). Learn more about Discover Student Loans interest rates.
  4. Lowest APRs shown for Discover Student Loans are available for the most creditworthy applicants for the Discover Private Consolidation Loan and include an Auto Debit Reward. The fixed interest rate is set at the time of application and does not change during the life of the loan. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. For variable interest rate loans, the 3-Month LIBOR is 0.375% as of July 1, 2020. Discover Student Loans may adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the “interest rate change date”), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Our lowest APR is only available to customers with the best credit and other factors. Your APR will be determined after you apply. It will be based on your credit history, which repayment option you choose and other factors, including your cosigner’s credit history (if applicable). Learn more about Discover Student Loans interest rates.
Lowest APRs shown for Discover Student Loans are available for the most creditworthy applicants for undergraduate loans, and include an interest-only repayment discount and a 0.25% interest rate reduction while enrolled in automatic payments.

5 Important Disclosures for SoFi.

sofiDisclosures

UNDERGRADUATE LOANS: Fixed rates from 4.23% to 11.76% annual percentage rate (“APR”) (with autopay), variable rates from 1.90% to 11.66% APR (with autopay). GRADUATE LOANS: Fixed rates from 4.13% to 11.83% APR (with autopay), variable rates from 1.80% to 11.73% APR (with autopay). MBA AND LAW SCHOOL LOANS: Fixed rates from 4.30% to 11.98% APR (with autopay), variable rates from 1.97% to 11.89% APR (with autopay). PARENT LOANS: Fixed rates from 4.60% to 11.26% APR (with autopay), variable rates from 1.90% to 11.16% APR (with autopay). For variable rate loans, the variable interest rate is derived from the one-month LIBOR rate plus a margin and your APR may increase after origination if the LIBOR increases. Changes in the one-month LIBOR rate may cause your monthly payment to increase or decrease. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Lowest rates are reserved for the most creditworthy borrowers. If approved for a loan, the interest rate offered will depend on your creditworthiness, the repayment option you select, the term and amount of the loan and other factors, and will be within the ranges of rates listed above. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Information current as of 07/10/2020. Enrolling in autopay is not required to receive a loan from SoFi. SoFi Lending Corp., licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. NMLS #1121636 (www.nmlsconsumeraccess.org).


6 Important Disclosures for Ascent.

Ascent Disclosures

Before taking out private student loans, you should explore and compare all financial aid alternatives, including grants, scholarships, and federal student loans and consider your future monthly payments and income. Applying with a cosigner may improve your chance of getting approved and could help you qualify for a lower interest rate. Ascent Student Loans may be funded by Richland State Bank (RSB). Ascent Student Loan products are subject to credit qualification, completion of a loan application, verification of application information and certification of loan amount by a participating school. Loan products may not be available in certain jurisdictions, and certain restrictions, limitations; and terms and conditions may apply. Ascent is a federally registered trademark of Turnstile Capital Management (TCM) and may be used by RSB under limited license. Richland State Bank is a federally registered service mark of Richland State Bank.

  1. Competitive variable rates calculated monthly at the time of loan approval based on a margin plus the 1-Month London Interbank Offered Rate (LIBOR) rounded to the nearest 1/100th of a percent. The current LIBOR is 0.176%, which may adjust monthly. Your interest rate may increase or decrease, based on LIBOR monthly changes. Rates are effective as of 09/01/2020 and reflect an Automatic Payment Discount. Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. (See Automatic Payment Discount Terms & Conditions.)
    1. Undergraduate Loans: Your variable interest rate may increase or decrease, based on LIBOR monthly changes, resulting in an APR range between 2.71% and 12.99%.  Fixed rate loans will not increase or decrease over the life of the loan and have an APR range between 3.53% and 14.50%. Rates reflect an Automatic Payment Discount of 0.25% on the lowest offered rate and a 2.00% discount on the highest offered rate. The following table shows a 48 month in-school period plus 9 months of grace prior to a full repayment term of either: 60-months (lowest fixed/variable rate), 144-months (highest fixed rate) or 180-months (highest variable rate) with examples of (i) Interest Only payments, (ii) $25 Minimum payments, and (iii) Deferred repayment options. (See Undergraduate Loan repayment examples.)
  2. Payments may be deferred. Subject to lender discretion, forbearance and/or deferment options may be available for borrowers who are encountering financial distress.
  3. Making interest only or partial interest payments while in school will not reduce the principal balance of the loan. There are three (3) flexible in-school repayment options that include fully deferred, interest only and $25 minimum repayment. (See Undergraduate Loan repayment examples.)
  4. Flexible repayment plans may be offered up to a fifteen (15) year repayment term for a variable rate loan and ten (10) year repayment term for a fixed rate loan. Students must be enrolled at least half-time at an eligible school. Minimum loan amount is $2,000.
  5. Interest rate reduction of either 0.25% (for Credit-Based Loans) or 2.00% (for Undergraduate Future Income-Based Loans) applies only when the borrower and/or cosigner sign up for automatic payments and the payment amount is successfully deducted from the designated bank account each month. The amount of the discount is dependent upon the loan product and credit history of the borrower at the time of application. Interest rate reduction(s) will not apply during periods when no payment is due, including periods of in-school, deferment, grace or forbearance, unless a regular payment amount has been arranged with the servicer. If you have two (2) consecutive returned payments for Nonsufficient Funds, we may cancel your automatic debit enrollment and you will lose the interest rate reduction. You will then need to re-qualify and re-enroll in automatic debit payments to receive the interest rate reduction.(See Automatic Payment Discount Terms & Conditions.)
  6. All applicants (individual and cosigner) are required to complete a brief online financial literacy course as part of the application process to be eligible for funding.
  7. Eligibility, loan amount and other loan terms are dependent on several factors, which may include: loan product, other financial aid, creditworthiness, school, program, graduation date, major, cost of attendance and other factors. Aggregate loan limits may apply. The cost of attendance is determined and certified by the educational institution.
  8. The legal age for entering into contracts is eighteen (18) years of age in every state except Alabama where it is nineteen (19) years old, Nebraska where it is nineteen (19) years old (only for wards of the state), and Mississippi and Puerto Rico where it is twenty-one (21) years old.
  9. 1% Cash Back Graduation Reward subject to terms and conditions. Click here for details. In order to be eligible for the 1% Cash Back Graduation Reward, borrower must meet the following criteria after graduation:
    • The student borrower has graduated from the degree program that the loan was used to fund.
    • The student borrower may change majors and/or transfer to a different school, but must obtain the same level of degree (e.g. – undergraduate or graduate)
    • The graduation date is more than 90 days and less than five (5) years after the date of the loan’s first disbursement.
    • Any loan that the student has borrowed under the Ascent loan is not more than 30-days delinquent or in a default status as of the graduation date and until any Graduation Reward is paid.
  10. Students can apply to release their cosigner and continue with the loan in only their name after making the first 24 consecutive regularly scheduled full principal and interest payments on-time and meeting the other eligibility criteria to qualify for the loan without a cosigner.

* Application times vary depending on the applicant’s ability to supply the necessary information for submission.


7 Important Disclosures for CommonBond.

CommonBond Disclosures

Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.17% effective Sep 1, 2020 and may increase after consummation.


Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.