College Ave vs. Sallie Mae Student Loans | LendEDU (2024)

FAQs

Is Sallie Mae or College Ave better for student loans? ›

The bottom line: Which lender is better? Both lenders offer competitive rates and flexible repayment terms to help you pay for your education. College Ave may be the better choice for graduate school programs and if you plan to make payments while in school. Sallie Mae can help you finance part-time attendance.

It rates an excellent 4.5 out of 5 stars on Trustpilot based on more than 750 reviews. The Consumer Financial Protection Bureau received 13 complaints about College Ave Student Loans in 2022, with most about dealing with the lender or servicer.

Lawsuits later revealed that one set of these predatory Sallie Mae private student loans had default rates ranging “between 50 and 92 percent every year from 2000 to 2007,” and that Sallie Mae's own expectations were that these loans would default at rates as high as 92 percent.

If you signed up for a Sallie Mae loan when you entered college, you might have a high interest rate because you were a college student with no credit history and no full-time income. You may be eligible for a lower interest rate if you have a stable job and a good credit score.

Additional fees: If you make a late payment, you will be charged a late fee of $25 or 5% of the unpaid amount—whichever is less. Prepayment penalty fees: College Ave does not charge any prepayment fees, so you can pay off the loan early with no negative financial consequences.

Thanks to the College Ave Multi-Year Peace of Mind, 95% of our undergraduate borrowers are approved for additional loans to cover their degree when they apply with a cosigner⁵. That's less stress from start to finish.

College Ave's application process is completely online. According to the lender, it allows you to apply from any device and find out if your loan is approved in just three minutes. The entire process, from application to College Ave sending money, typically takes 10 business days or longer.

Is the Lender Reputable? The lender receives an A+ grade from the Better Business Bureau and gets 1.5 out of 5 stars, or a bad rating, from Trustpilot based on about 30 reviews. The Consumer Financial Protection Bureau received 315 student loan-related complaints in 2022 about SLM Corp., holding company of Sallie Mae.

Is the government forgiving Sallie Mae loans? ›

Those who borrowed from Sallie Mae after this 2014 split have private student loans, which aren't eligible for federal forgiveness programs. However, Sallie Mae will discharge debts for borrowers who die or become totally and permanently disabled.

You may like Sallie Mae undergraduate student loans if you want to avoid origination and prepayment fees, as the lender doesn't charge any. You also get four months of the study service Chegg for free. Chegg offers expert Q&A, and students can submit up to 20 questions per month.

Benefits of federal student loans

Though any student loan—federal or private—is a legal agreement and must be paid back with interest, federal student loans generally offer more flexible options than private student loans.

After you've signed your loan

Your school will certify your loan (verify that you're attending the school and the money you are borrowing doesn't exceed the cost of attendance). Once all requirements are met, the lender will disburse (send) the funds directly to your school.

Undergraduate loan: Variable rates: 5.37% - 15.70% APR and Fixed rates: 4.15% – 15.49% APR with the loan term of 10-15 years. Lowest rates shown include the auto debit discount.

A private loan with a lender like Sallie Mae covers up to 100 percent of your education costs, while federal loans come with borrowing caps that might not cover all your expenses. Private loans come with competitive terms for borrowers with excellent credit, with fixed or variable rate options available.

The average credit score for approved Sallie Mae borrowers is around 748 for undergraduate student loans. That's pretty high – but don't panic if your credit score is much lower than that. You'll need a minimum credit score (or have a cosigner with a minimum credit score) that is somewhere in the mid-600s.

A subsidized loan is your best option. With these loans, the federal government pays the interest charges for you while you're in college.