Bank of America Student Loans: Refinancing and Alternatives

Considering how expensive it is to pay for college, you may be discouraged from pursuing your studies after high school. But thanks to Student Loans, you can now take out loans to support your tuition with less stress.

As a college student, if your school approves your student loans, you are free to choose your lender as part of your federal financial aid package. Bank of America can be a perfect choice here.

Officially, Bank of America has initiated student loans and manages the most popular federal loans such as Safford Loans, PLUS (for parents), Graduate Student PLUS, and Federal Consolidation Loans. So, as a freshman, you should be able to take out and refinance your loan from Bank of America.

The question now is, “Does Bank of America still offers student loans? The next section of this article will explain whether Bank of America continues to provide student loans.

For easy navigation, you can check the table of contents below:

Does Bank of America Still Offer Student Loans?

Years ago, Bank of America was one of the nation’s largest student loan issuers. They offer private loans, federal loans, and even student loans like Campus Edge and Education Maximizer Loan.

Unfortunately, the Bank of America’s private student loan program ended in 2008. So federal student loans were available until 2010, the federal home education loan stopped it.

Between 2014 and 2017, the company finally sold its entire $ 3.9 billion student loan portfolio. Currently, you can only get these loans from the US Department of Education Direct Loan Program.

So, if you are hoping to take part in Bank of America student loans, it is a shame to tell you that you have to look elsewhere. Your best bet is to borrow a private student loan from a bank or credit union if you have an existing relationship with that financial institution.

This article is here to serve as a resource and to provide a historical reference in case Bank of America initiates student loans in the future.

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Types of student loans offered by Bank of America

It is obvious that Bank of America no longer makes student loans. But when they did, here are some types of student loans offered by Bank of America:

CampusOne student loan

CampusOne Student Loan is a federal loan offered by Bank of America. Federal loans are of different types such as the Stafford Loan, the PLUS Loan, the Graduate PLUS Loan, and the Consolidation Loan.

In addition, federal loans are linked to the government. This means that the loan is certified and is subsidized or at a fixed rate, from the student’s point of view.

However, the consolidation loan usually charges the fixed interest rate set by the government.

Loans for private students

Private student loans have no federal bonds. It is exclusively autonomous. While similar to regular bank loans, they differ in some areas.

There are different types of private student loans offered by Bank of America. And it depends on whether they are certified by the school or educational institution.

In a situation where the loan is certified by the school, Bank of America offers two types of private student loans.

The first is the Bank of America private loan, accessible to undergraduate and graduate students. The cool thing about this loan is that it charges a minimum monthly rate and offers flexible repayment schedules.

The second type of school-certified student loan offered by Bank of America is the Bank of America’s TERI (The Educational Resources Institute) loan. This loan is available to all students enrolled in a program with minimum requirements.

The granting of these loans depends on the student’s ability to repay the loan. Also, make sure your credit score is strong if you are planning to apply for the TERI loan.

Non-certified loans

Bank of America also offered loans that did not require certification from the school you planned to attend. The two types of loans in this category are the CampusEdge Student Loan and the Education Maximizer Loan.

These loans are useful for students to pay for their additional expenses such as books, food, housing. Furthermore, both loans have easy terms and conditions.

For example, you can take out a $ 40,000 per year loan under the Education Maximizer Loan and have the option to defer repayment until graduation.

Can I Refinance My Student Loans With Bank of America?

Bank of America doesn’t refinance student loans, but you can find many lenders that do. However, to qualify with any refinance lender, a student must need:

  • A good credit score:
  • Stable Income: Must be a debt-to-income ratio of less than 50%
  • Fulfill additional requirements such as college graduation

By having a private student loan from Bank of America, you will experience a little inconvenience in refinancing. But if you have federal loans from the Bank of America, you have additional options:

  • Federal Bank of America Student Loan Refinancing: In this case, you can only refinance with a private lender. This will cost you federal benefits, although refinancing can make sense if your goal is to lower the loan interest rate and save money in the end.
  • Consolidate Federal Student Loans from Bank of America: Consolidation will not reduce your interest rate or save you more money, but it can certify your existing federal student loans for additional repayment plans and programs. An example of such plans and programs is the forgiveness of the public service loan. Furthermore, the consolidation can extend the repayment term.

What is the credit score for Bank of America student loans?

To secure a private loan from Bank of America, you typically need a score of at least 600 or a co-signer (typically a parent) with a score in that range.

However, it is difficult to ascertain the main credit score limit for Bank of America because private lenders keep it as a trade secret.

So, the only way to find out if you are eligible is to apply. Although some lenders offer pre-screening, which gives you access to find out if you are eligible for a student loan without the lender doing hard work on your credit.

What are the alternatives to Bank of America student loans?

Students are looking for other private or federal loan lenders as Bank of America student loans no longer exists.

We recommend that you go to private lenders for student loans. Because private loans are the best way to pay for school fees, especially when federal loans don’t cover all college tuition.

In this case, there are many lenders to consider, so it’s important to take some time and compare them all to find the best that fits your needs.

Here are some good private lenders that are the best alternatives to Bank of America student loans:

College Ave

College Ave is our top-notch lender offering student loans to college students, graduates, and parents.

With no impact on your credit score, you can pre-qualify for a College Ave loan. Upon approval, you can select the loan term that meets your repayment needs.

However, the interest rates are low for approved borrowers and there is an interest rate cut of 0.25% for choosing the automatic payment option.

Serious

Earnest offers student loans to undergraduate and graduate students.

You can check your eligibility in just two minutes, with no commitment or effect on your credit.

While refinancing, borrowers can decide to skip a payment once a year.

Credible

Credible is a student loan platform that allows you to compare multiple private lenders. You start by looking for both college and graduate loans to find the best that fits your needs.

A big advantage is that you only have to apply once to multiple lenders.

CommonBond

CommonBond also offers several private student loan options. And you will enjoy low rates for qualified borrowers

There are no application fees or prepayment fees, but some of their loans have a 2% issuing fee.

Most importantly, CommonBond is known for its refinancing.

LendKey

LendKey is another platform as credible. While acting as an intermediary, working between lenders and credit unions, it offers private student loans to undergraduate and graduate students.

Although most loans require a cosigner. LendKey has very low rates and a 0.25% rate reduction for choosing automatic payment.

Conclusion

Its obvious student loans are useful, especially for college students. Over the years, Bank of America has helped students provide loans. Although Bank of America no longer offers student loans, many other lenders can be of great help.

You can get alternatives to Bank of America student loans here

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