TD Bank Student Loans: 4 Alternatives

 July 1, 2021
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Private Student Loan rates starting at 2.49% APR

2.49% to 13.85% 1
VARIABLE APR

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2.55% to 11.44% 2
VARIABLE APR

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3.25% to 13.59% 3
VARIABLE APR

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  • Variable APR

If you have a checking or savings account with TD Bank, you may want to use the bank to take out student loans too. After all, TD Bank offers special benefits like quick loan disbursement or cash bonuses for opening a new bank account, and J.D. Power ranked TD Bank among the top regional banks in its customer satisfaction study.

But while TD Bank offers a student line of credit for Canadian customers, TD Bank student loans or student lines of credit aren’t available to customers in the U.S. If you need to borrow money to finance your education, you’ll have to explore alternative options.

Here’s what you should know:

Alternatives to TD Bank student loans

TD Bank is a subsidiary of the Toronto-Dominion Bank in Canada, and one of the top 10 largest banks in the U.S. It serves over 9.7 million customers and operates over 1,100 branches in the Northeast, Mid-Atlantic, the D.C. metro area, the Carolinas and Florida.

TD Bank has a range of lending products, including personal loans, home equity loans and home equity lines of credit (HELOC). However, neither private student loans nor student loan refinancing is available to customers in the U.S.

Since TD bank student loans aren’t an option, consider the following alternatives:

1. Maximize financial aid
2. Take out federal student loans
3. Apply for a home equity loan or HELOC
4. Consider private student loans

1. Maximize financial aid

Before borrowing money for college, make sure you exhaust all possible non-loan financial aid options. You may qualify for grants, scholarships or work-study programs that lower your education costs and reduce or eliminate the need for loans.

  • Grants: Usually awarded based on financial need, grants don’t have to be repaid. Grants are available from the federal government in the form of Pell grants, but you may also be eligible for state or institutional grants.
  • Scholarships: Like grants, scholarships are a form of gift aid, and you don’t have to repay them as long as you meet the award’s criteria. Scholarships are usually awarded based on your merit or achievements, such as your GPA or athletic performance. Scholarships are available from colleges, nonprofit organizations and private companies. You can find opportunities and apply online through scholarship search engines.
  • Work-study: If your college participates in the federal work-study program, you can get a part-time job related to your field and use your income to cover some educational expenses.

Complete the Free Application for Federal Student Aid (FAFSA) and if necessary, the CSS Profile, to maximize financial aid.

2. Take out federal student loans

Federal student loans usually have lower interest rates and more favorable repayment terms than private ones, so you should prioritize these.

However, borrowers are increasingly using private loans instead. The Institute of College Access & Success (TICAS) notes that according to the most recent federal data, more than half of undergraduate students that took out private student loans did not use the maximum available in federal student loans.

Students and parents may qualify for the following federal loan options:

  • Direct subsidized: Undergraduate students with financial need can qualify for subsidized loans. With this loan type, the government covers the interest that accrues on the loan while students are in school, as well as during the loan’s grace period and for any periods of qualifying deferment.
  • Direct unsubsidized: Unsubsidized loans are available to undergraduate and graduate students regardless of income. The student is responsible for paying all interest that accrues on the loan, but, as with subsidized loans, payments don’t start until six months after graduation.
  • PLUS: PLUS loans are for graduate students and for parents that want to pay for their child’s undergraduate education. Unlike other federal loans, PLUS loans require that applicants have no “adverse credit” history, such as loans in default.

Federal loan borrowers can take advantage of benefits like in-school deferments, income-driven repayment plans, forbearance in cases of financial emergencies or illness and student loan forgiveness for those that work in public service.

However, most federal loans also have annual and aggregate borrowing limits, and you may reach the borrowing maximum before completing your degree. As a result, you may need to turn to private student loans or other types of debt.

3. Apply for a home equity loan or HELOC

If you’re a homeowner and want to work with TD Bank to finance your education or pay for your child’s college expenses, another option is to apply for a home equity loan or a HELOC. With this approach, you borrow against the equity you have in your home to get access to funds.

Home equity loans give you a lump sum of cash, while HELOCs are revolving forms of credit you can utilize again and again during the draw period.

TD Bank’s home equity loans and HELOCs can be used to finance education costs, and, because they’re secured by your home, they may have lower interest rates than other options. Plus, TD Bank gives checking account customers a 0.25% interest rate discount on its HELOCs.

Keep in mind that borrowing against your home does come with risk. If you fall behind on your payments, the lender can start the foreclosure process against you, so be sure you can comfortably afford your payments if you go this route.

4. Consider private student loans

After exploring your other financial aid options, you may still need additional financing. Private student loan lenders allow you to borrow money to cover your remaining costs, including tuition, room and board and other expenses.

Private student loan interest rates and terms can vary by lender, but they often have variable or fixed interest rates and loan terms as long as 15 or 20 years.

Private student loans from TD Bank-like lenders

TD Bank is known for its customer service, interest rate discounts and robust online banking platform. Although TD Bank student loans aren’t an option, you can find some of those same characteristics from the following private student loan lenders:

Ascent

  • Ascent offers loans for undergraduate study, graduate school and coding bootcamps.
  • Ascent has loan options specifically designed for international and Deferred Action for Childhood Arrivals (DACA) students.
  • Annual percentage rates (APRs) run from 2.52% to 14.75%
  • Undergraduate students can borrow between $2,001 and $200,000.
  • There are options for both cosigned and noncosigned loans.
  • Borrowers can choose between deferred, interest-only, fixed and immediate repayment options.
  • Loan terms range from 5 to 15 years.
  • Some options have grace periods as long as nine months.
  • Borrowers can qualify for a 1.00% cash back graduation reward upon graduation.
  • Some borrowers can take advantage of a 1.00% autopay discount.
  • Customer service team is available via phone, email or chat.

College Ave

  • College Ave issues student loans for undergraduates, graduate school students and parents.
  • It allows students and parents to borrow up to 100% of the cost of attendance.
  • APRs range from 2.49% to 13.95%
  • Repayment terms range between 5 and 15 years.
  • There are four repayment options (immediate, interest-only, fixed and deferred).
  • There is a 0.25% autopay discount available.
  • Cosigners are permitted.
  • College Ave offers cosigner releases if more than half of the scheduled repayment period has elapsed and the borrower made the 24 most recent monthly payments on time, with no forbearance or workout periods.
  • Borrowers can apply online in as little as three minutes.
  • Customer support is available via phone, email, chat or text.

Sallie Mae

  • Sallie Mae issues undergraduate, graduate and career training student loans.
  • Its loans have variable or fixed interest rates, with APRs of 3.25% to 13.72%
  • Students can borrow between $1,000 and the total cost of attendance.
  • Borrowers also qualify for four free months of Chegg, a company that provides tutoring and other services for students.
  • Borrowers can choose from four repayment options: deferment, interest-only, fixed and immediate.
  • Customer support can be reached via phone or chat.

Alternatives for TD Bank student loan refinancing

For college graduates with education debt, student loan refinancing can be an excellent way to accelerate your loan repayment and save money. Unfortunately, TD Bank doesn’t offer student loan refinancing — however, you can refinance your loans and take advantage of competitive rates and other benefits with the following lenders:

Earnest

  • Earnest offers both variable and fixed interest rates, but variable rates aren’t available in all states. The APRs range from 3.74% to 8.49%.
  • Borrowers can refinance between $5,000 and $500,000 of outstanding student loans.
  • Cosigners aren’t accepted.
  • Repayment terms range from Up to 20 years.
  • You can get a rate quote in as little as two minutes without affecting your credit score.
  • Customer service can be reached via phone, chat or secure online message.

SoFi

  • In addition to student loan refinancing, SoFi offers banking services, including a combination checking and high-yield savings account.
  • SoFi student loan refinancing can carry an APR of 3.24% to 8.24%, with repayment terms ranging from Up to 20 years.
  • Its loans can have variable or fixed interest rates.
  • The minimum loan amount is $5,000, and the maximum is your total outstanding loan balance.
  • SoFi is one of the few lenders that allows parents to transfer their parent student loans into their child’s name.
  • Cosigner releases are available after 24 consecutive monthly payments.
  • Customer service is available via phone or chat.
Key student loan refinancing tips
● Given the high expenses involved in paying for college, be sure to shop around and compare rates. Start with our list of leading student loan refinancing companies to find the most competitive rates.
● Although you can refinance both federal and private student loans, think twice before refinancing your federal loans. If you decide to refinance them, you’ll lose benefits like income-driven repayment plans, loan forgiveness and federal deferment or forbearance programs.

Choosing your best alternative to TD Bank student loans

Since TD Bank student loans aren’t an option for your college expenses, it’s important to learn about what financing options are available to you. Depending on your situation, you may be eligible for grants, scholarships, work-study programs, federal student loans or private student loans.

If you do need to borrow money from a private student loan lender, carefully review your options and get quotes from multiple lenders to find the best deal for you and your situation.

Need a student loan?

Check out our top picks below or learn more about other ways to pay for college.
Variable APRDegrees That QualifyMore Info
2.49% – 13.85%1 Undergraduate
Graduate

Visit College Ave

2.55% – 11.44%2 Undergraduate
Graduate

Visit Earnest

3.25% – 13.59%3 Undergraduate
Graduate

Visit SallieMae

0.00% – 23.00%4 Undergraduate
Graduate

Visit Edly

3.25% – 9.69%5 Undergraduate
Graduate

VISIT CITIZENS

N/A 6 Undergraduate
Graduate

Visit FundingU