Bank Of America Student Loans Alternatives – Federal and Private Options
Find out why the Bank Of America stopped issuing student loans and learn about the top alternatives available to help you save money.
Student loans are a common way for college students to fund their education and there are many institutions providing loans to students. Bank of America also used to provide student loans that were backed by the government; however, they stopped funding student loans some time ago. There are various other Bank Of America student loan alternatives that students can opt for today.
Alternative sources to get a student loan include federal loans, private lenders, and various banks. It can be beneficial for your situation to learn about these alternatives that will provide student loans with competitive interest rates.
Read on to learn about what happened to Bank Of America (BofA) student loans, its alternatives, and how to apply for the alternatives suggested to pay for your education and ease your financial burden.
What Happened to the Bank of America Student Loans?
Bank Of America (BofA) used to offer student loans to college students but stopped offering them in 2020. This was due to concerns about the risk posed by student loan debt for younger borrowers, as well as the higher default rates on government-backed loans. If you have had a loan with the Bank of America previously, before 2010, you can refinance or consolidate them with another lender.
What to Do if You Have Existing Bank of America Loans
If you happen to have an existing Bank of America student loan, the first step is to assess your current situation. You may be able to refinance or consolidate your loans in order to reduce your interest rate and monthly payments. Make sure that you keep track of any changes in terms and conditions so that you can make sure you are up-to-date with your payments. If you’re having difficulty making your loan payments, Bank of America has several programs in place to help borrowers who are struggling with their debt. Seeking professional advice from a financial advisor is often the best way to ensure that you are on track with your student loans.
Refinancing Bank of America Student Loans
There are many lenders that offer refinancing services such as the Citizens Bank and College Avenue. You can compare the rates for multiple lenders and choose the one offering the lowest one and better terms for refinancing your student loans.
When you refinance, you basically are choosing to pay off your old loan with a new private one with fixed monthly payments. You can bring together payments from multiple loans into one payment each month and can also get lower rates and better repayment terms. However, with refinancing, you may lose benefits associated with federal loans like forgiveness programs and other federal protections.
Different lenders may have different requirements for student loan refinancing. The general requirements mostly include a good credit score and a steady income. In case you don’t have a good credit history, you can refinance your loan with the help of a cosigner who meets the requirements of the lender of your choice
Consolidating Bank of America Student Loans
If you want to preserve your federal loan benefits, you can consolidate your existing Bank of America federal student loan, if you are able to qualify, under Direct Consolidation Loan offered by the government. Doing so usually does not change your interest rates and you would be able to keep the loan protections and forgiveness options associated with federal student loans, unlike refinancing.
Bank of America Alternatives
Take a look at the following alternative options for Bank of America student loans.
#1 Federal Student Loans
Federal student loans (alternatively known as Federal Stafford loans) are an ideal alternative to Bank of America student loans because they typically offer benefits such as fixed repayment terms and lower interest rates. These types of loans are funded by the federal government, which means that lenders can’t change the terms of the loan without prior notification from the government. Additionally, these loans can be deferred or even forgiven in certain cases if you are unable to make payments. Federal student loans tend to be a great option for those looking to save money on their college education and can be an excellent way to reduce the burden of student loan debt.
Steps to Apply - Federal Student Loans
The process of obtaining a federal student loan is relatively straightforward:
- Fill out the Free Application for Federal Student Aid (FAFSA)
The first step is to fill out the Free Application for Federal Student Aid (FAFSA), which will determine your eligibility for financial aid. - Choose a lender that offers federal loans and complete their application process
Once you have applied and been approved, you must choose a lender that offers federal loans and complete their application process. - Lender will review your application and determine whether or not to approve the loan
After this, your chosen lender will review your application and determine whether or not to approve your loan. - Finalize details of the loan, such as interest rate and repayment terms
If approved, you can then finalize the details of the loan, including the interest rate and repayment terms. - Begin making payments
Once the loan is finalized, you begin making payments according to the agreed-upon schedule.
#2 Private Student Loan lenders - 6 Best BofA Student Loans Private Alternatives
Here are some of the top private student loan lenders currently available:
| Lender | Scholaroo rating | Fixed rates starting (APR) | Variable rates starting (APR) |
|---|---|---|---|
Wells Fargo $1,000–$500,000 Visit website | 4.50% | 3.44% | |
Citizens Bank $1,000–$350,000 Visit website | 4.50% | 3.45% | |
Ascent $2,000–$200,000 Visit website | 5.99% | 4.00% | |
Discover $2,000–$250,000 Visit website | 4.74% | 4.24% | |
College Ave $1,000–$250,000 Visit website | 5.05% | 4.24% | |
Sallie Mae $1,000–$250,000 Visit website | 5.74% | 3.37% |
Wells Fargo
$1,000–$500,000
Citizens Bank
$1,000–$350,000
Ascent
$2,000–$200,000
Discover
$2,000–$250,000
College Ave
$1,000–$250,000
Sallie Mae
$1,000–$250,000
Wells Fargo
Wells Fargo has private student loans with fixed or variable rate options. The minimum credit score needed to qualify for their loans is 660, and the maximum loan amount available is $500,000. Wells Fargo is a good alternative to Bank of America student loans because they don’t charge any origination or application fees.
Citizens Bank
Citizens Bank has private student loans with fixed or variable rate options. The minimum credit score needed to qualify for their loans is 690, and the maximum loan amount available is $350,000. Citizens Bank is a good alternative to Bank of America student loans because it does not charge any origination or application fees and their rates are competitive.
Ascent
Ascent Student Loans has private student loans with fixed or variable rate options. The minimum credit score needed to qualify for their loans is 660, and the maximum loan amount available is $200,000. This is a good alternative to Bank of America student loans due to competitive rates with no origination fees and flexible repayment terms. Additionally, Ascent Student Loans has an income share agreement option that allows borrowers to pay for their loan based on a percentage of their income.
Discover
Discover also offers competitive interest rates, as well as fixed or variable rate options. The minimum credit score needed to qualify for their loans is 660, and the maximum loan amount available is $250,000. Discover is a good alternative to Bank of America student loans because it does not charge any origination or application fees.
College Ave
College Ave has private student loans with fixed or variable rate options. The minimum credit score needed to qualify for their loans is 660, and the maximum loan amount available is $250,000. College Ave is a good alternative to Bank of America student loans because they offer competitive rates with no origination fees and flexible repayment terms.
Sallie Mae
Sallie Mae offers private student loans with fixed or variable rate options. The minimum credit score needed to qualify for their loans is 650, and the maximum loan amount available is $250,000. Sallie Mae is a good alternative to Bank of America student loans because of their competitive rates and flexible repayment terms.
Steps to Apply - Private Student Loans
When applying for a private student loan, it’s essential to consider several factors. You should make sure that the amount you are borrowing is within your borrowing limit. Also, pay close attention to the interest rate for the loan and its repayment period.
Make sure that you understand any conditions for loan forgiveness, if the option applies in the case of your chosen loan. It’s also a good idea to consider how long it takes for the loan to be funded by the lender and whether or not they offer pre-payment options. By researching your loan choices and understanding all options available, you can make an informed decision about which lenders are right for you.
Applying for private student loans is also a relatively straightforward process:
- Research and compare different lenders to find the best loan for you.
- Gather all necessary documents, such as your college transcripts and tax returns:
You will generally be required to provide information about yourself, such as your name, address and Social Security number. - Submit a loan application with all the required information:
You may also have to provide proof of your income, such as pay stubs or tax returns. - Wait for approval or denial of your loan request based on the lender’s criteria.
- If approved, sign the loan documents and make a down payment.
- Monitor your payments and repayment terms to stay on track with your loan.
- Keep in contact with your lender if any changes occur that could affect your loan status.
- Once you have paid off the loan, keep all documentation for future reference.
#3 Student Loans from Banks
Certain banks, both national and community-based, may offer student loans. Depending on the policies of the bank in question, these loans may have flexible terms and competitive interest rates. Before selecting a loan from any particular bank, research all available options, carefully weighing the benefits and drawbacks of each one in order to make an informed decision. PNC Bank and Education Loan Finance are two of the many options you can look into.
Steps to Apply - Alternate Banks Student Loans
The application process for a student loan through a bank typically involves the following steps:
- Research loan types and eligibility criteria to determine the best fit for you.
- Gather all necessary documents such as proof of income and expenses, employment information, and tax returns.
- Complete the application with the bank, providing details about the school you plan to attend and the expected cost of attendance.
- Read carefully all terms and conditions before signing.
- Make payments on student loan.
- Check with the bank periodically to ensure you are meeting all of your repayment obligations.
Also, make sure to stay up-to-date on any changes in interest rates or other loan terms that could affect you.
FAQs
Does Bank of America Offer Student Loans?
No, it stopped offering student loans a while ago. There are other Bank of America student loan alternatives that you can opt for like federal loans, private lenders student loans, and loans being offered by various national and private banks.
Are there any fees associated with taking out a loan from another bank?
Yes. Some banks may charge origination or processing fees for student loans. Be sure to read through the terms of your loan agreement carefully to understand any charges that may apply.
How long does the loan approval process typically take?
The timeline for loan approval can vary depending on the lender, but it generally takes a few days to several weeks.
What kind of repayment plans are available for student loans from another bank?
Repayment plans will depend on the lender, but typically banks offer either fixed or variable rate plans. Fixed-rate loans offer a set interest rate for the duration of your loan term, while variable-rate loans may change over time.
Final Thoughts
There are several student loan alternatives available for those needing additional help with financing their college ambitions. No matter what type of student loan you choose, remember that careful planning and research can make a huge difference when it comes to paying for college. The previously mentioned student loan options are just one way to make college more affordable. Be sure to compare them before making a decision in order to find the best fit for your financial needs.
