Yes, College Ave is a private student loan lender. Every loan the company offers is funded through private capital rather than the U.S. Department of Education, which means these loans sit outside the federal student aid system and its borrower protections. Fixed rates currently range from 2.74% to 17.99% APR, and variable rates run from 3.89% to 17.99% APR, with the rate you receive tied to your credit profile and whether you apply with a co-signer.
Who Actually Funds a College Ave Loan
College Ave was founded in 2014 by former student lending executives and is headquartered in Delaware. Its loans are originated through three partner banks: Firstrust Bank, First Citizens Community Bank, and M.Y. Safra Bank.1College Ave. College Ave Education Loans and College Planning Resources None of these are federal loans, and none run through the William D. Ford Federal Direct Loan Program.
As a private education lender, College Ave has to follow the disclosure rules in the Truth in Lending Act. Under 15 U.S.C. ยง 1638(e), the company must tell you the potential range of interest rates, whether the rate is fixed or variable, the fees, the total cost of the loan over its full term, and whether interest will accrue while you’re still in school.2Office of the Law Revision Counsel. 15 USC 1638 – Transactions Other Than Under an Open End Credit Plan You get those disclosures at three points: when you apply, after approval, and before the loan is finalized.
What You Give Up by Borrowing Private
The “private” label matters most in what it excludes. Because College Ave loans are not federal, borrowers do not have access to the benefits attached to federal Direct Loans, including:3Federal Student Aid. Should I Refinance My Federal Student Loans Into a Private Loan
- Income-driven repayment plans that cap monthly payments at a percentage of your income and forgive remaining balances after 20 or 25 years
- Public Service Loan Forgiveness for borrowers working in government or nonprofit jobs
- Federal deferment and forbearance options tied to financial hardship, returning to school, or military service
- Subsidized interest benefits, where the government covers interest during certain deferment periods
These programs are written into federal law and only apply to federal loans. A private lender is free to offer its own hardship options, but it is not required to match any of them, and the terms are entirely at the lender’s discretion.
How the Rate Is Set
Federal student loan interest rates are set once a year based on the 10-year Treasury note auction plus a statutory add-on, and every borrower in a given loan type gets the same rate.4Federal Student Aid. Interest Rates for Direct Loans First Disbursed Between July 1, 2025 and June 30, 2026 College Ave works differently. As a private lender, it prices each loan using its own credit models, so your credit score, income, debt-to-income ratio, and co-signer strength all move the rate.
As of early 2026, College Ave’s advertised rates (including the 0.25% autopay discount) are 2.74% to 17.99% APR fixed and 3.89% to 17.99% APR variable. These ranges apply across undergraduate, parent, and graduate loans, though graduate borrowers may see a slightly lower ceiling depending on the program.5College Ave. Student Loans with Low Rates and Flexible Repayment Options Variable rates can change over the life of the loan as market rates move; fixed rates stay the same from origination through payoff.
You can check an estimated rate through College Ave’s pre-qualification tool, which uses a soft credit inquiry and will not affect your credit score. A hard inquiry happens only when you submit a full application.6College Ave. Student Loan Credit Pre-Qualification
Who Qualifies, and Why Most Students Bring a Co-signer
Private underwriting drives eligibility. To qualify, you generally need to be a U.S. citizen or permanent resident with a valid Social Security number; international students and DACA recipients may qualify with a co-signer who is a citizen or permanent resident. College Ave also reviews credit history and debt-to-income ratio, and you must be enrolled at least half-time at an accredited institution that participates in federal student aid programs. Proof of steady income or employment helps demonstrate ability to repay.
Most undergraduate applicants haven’t had time to build credit or income, so they apply with a co-signer. Adding a co-signer with good credit can lower the offered rate and improve the odds of approval. College Ave reports that roughly 90% of undergraduate borrowers who apply with a co-signer are approved for additional loans in subsequent years, though a new application is still required each academic year.7College Ave Student Loans. Do You Have Multi-Year Approval for Your Undergraduate Loans
Co-signer release is available, but the requirements are stricter than many borrowers expect. You must meet all four of these conditions:8College Ave Student Loans. Can a Cosigner Be Released From a Loan
- At least half of the original repayment term has passed (for example, five years on a 10-year loan)
- Your documented annual income is at least twice the remaining loan balance
- You pass a credit check with no 30-day-or-greater delinquencies on any account in the past 12 months
- No bankruptcy, foreclosure, or repossession in the past 24 months
How Much You Can Borrow
Because a private lender is not bound by federal borrowing caps, the numbers look very different. College Ave loans start at $1,000 and can go up to $200,000, though the actual amount is limited to your school’s certified cost of attendance minus any other aid you’ve received.9College Ave. How Much in Student Loans Can I Get Federal undergraduate loans, by comparison, cap annual borrowing at $5,500 to $7,500 depending on your year in school. That gap is one of the main reasons students turn to private lenders, and also one of the main reasons those loans can grow large.
Repayment and Hardship on a Private Loan
Repayment terms depend on the loan type. Undergraduate and career loans run 5, 8, 10, or 15 years. Graduate loans use the same options, with terms up to 20 years available for health professions, medical, dental, and law school borrowers. Parent loans allow any term between 5 and 15 years.10College Ave Student Loans. What Repayment Terms Are Available for a Student or Parent Loan Enrolling in autopay earns a 0.25% interest rate reduction, which stays in place as long as autopay is active with a valid bank account on file; a returned payment cancels the discount.11College Ave. Auto-Pay Interest Rate Discount
If you run into trouble after leaving school, College Ave may offer forbearance in three- or six-month increments, depending on your situation.12College Ave. What Is Student Loan Forbearance During forbearance, monthly payments pause, but interest keeps accruing and will capitalize onto your balance. College Ave does not publish detailed eligibility criteria on its website, so borrowers who are struggling need to contact the loan servicer directly to see what’s available.
Refinancing Federal Loans Into a College Ave Loan
College Ave also offers a refinancing product that rolls existing federal and private loans into a single private loan with one monthly payment. This can simplify things and, for borrowers with strong credit, lower the rate. It also permanently converts any federal debt into private debt, and there is no way to reverse that decision. You lose access to income-driven repayment, Public Service Loan Forgiveness, federal deferment and forbearance, and subsidized interest benefits.3Federal Student Aid. Should I Refinance My Federal Student Loans Into a Private Loan
One eligibility point catches some borrowers off guard: you have to have already graduated from an eligible school and program to refinance with College Ave. You cannot refinance while still enrolled.13College Ave Student Loans. What Are the Eligibility Requirements for a College Ave Refi Loan Refinancing generally makes the most sense for borrowers with high incomes, strong credit, and no plans to use federal repayment or forgiveness programs.