Lori Meadows
Student loans can be a daunting prospect, but there are options to help you manage your debt. Custom Choice, for example, offers personalized student loan solutions, allowing you to customize your loan with options like fixed or variable interest rates and the possibility of adding a cosigner for a higher chance of approval and lower interest rates. Additionally, there are no fees associated with Custom Choice Loans, including no late or prepayment fees. Federal Student Aid (FSA) also provides various repayment options, such as Auto Pay, where your payments are automatically debited from your designated account each month, making it convenient to stay on top of your loan obligations. Understanding the specifics of your loan options and the available tools for repayment can empower you to make informed decisions about managing your student debt.
| Characteristics | Values |
|---|---|
| Minimum loan amount | $1,000 |
| Maximum loan amount per year | $99,999 |
| Total outstanding student loan debt | Up to $180,000 |
| Fees | None |
| Cosigner | Not required, but recommended for approval and a lower interest rate |
| Cosigner release | After 36 consecutive on-time monthly principal and interest loan payments |
| Interest rate | Fixed or variable |
| Interest rate reduction | 0.25% for automated payments |
| Principal loan reduction | 2% upon request with proof of graduation |
| Scholarship | $1,500 monthly until December 31, 2025 |
| Auto Pay | Available |
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What You'll Learn
Custom Choice Loans: no fees, no cosigner required, and flexible interest rates
Custom Choice Loans are private student loans with no fees, a cosigner not required, and flexible interest rates. The loan application process is simple and can be completed entirely online. The loan offers flexible repayment options, competitive rates, and potential discounts.
Custom Choice Loans are backed by Cognition Financial and offer a no-fee loan with no late fees, no prepayment fees, and no fees for missed payments due to job loss or natural disaster. The loan also provides a 2% principal loan reduction upon graduation. A cosigner is not required for the loan, but adding one can increase the chances of approval and provide a lower interest rate. The loan offers four repayment options: deferred payment, flat payment, interest-only payment, and immediate payment. The deferred payment option has the highest overall costs, while the immediate payment option has the lowest overall cost but the highest monthly payments.
Custom Choice Loans offer both fixed and variable interest rates. The variable rates range from 1.15% to 9.36% APR, while the fixed rates range from 4.14% to 10.70% APR. Borrowers can choose a loan term of 7, 10, or 15 years. The loan also offers a 0.25% interest rate reduction for automated payments and a 2% reduction in principal upon graduation. The minimum loan amount is $1,000, and the annual maximum is $99,999, with an overall cumulative amount of up to $180,000.
Custom Choice Loans provide a simple and flexible option for students seeking funding for their education. The loan's no-fee structure, cosigner flexibility, and competitive interest rates make it a competitive choice in the student loan market. Borrowers can tailor the loan to their needs with various repayment options and interest rate choices. Overall, Custom Choice Loans offer a comprehensive solution for students seeking financial assistance for their educational journey.
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Cosigners: how to add/remove and their benefits
A cosigner is not required for a Custom Choice Loan, but it may be beneficial to consider one. Adding a parent or another adult in good financial standing may increase your chances of approval and could result in a lower interest rate. This can be particularly helpful if you are struggling to get approval on your own.
When applying with a cosigner, you may not have to provide income documentation, which makes the application process faster and simpler. It is important to note that a cosigner can be released from the loan upon request after making 36 consecutive on-time monthly principal and interest loan payments. This means that even if you require a cosigner initially, you can remove them from the loan later on.
Custom Choice Loans also offer other benefits such as no fees, including no late fees or prepayment fees. Students can choose between a fixed interest rate for the life of the loan or a variable interest rate that changes with the market. Additionally, you can receive a 2% principal loan reduction upon request with proof of graduation, and a 0.25% interest rate reduction when you make automated payments from your checking or savings account.
Overall, while a cosigner is not mandatory, it can be advantageous in certain situations, and there are options to remove them from the loan in the future if needed.
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Repayment plans: Auto Pay, online, or by mail
Auto Pay is a repayment plan that allows you to automate your student loan payments. You can choose to have the minimum amount due or a higher amount automatically deducted from your designated checking or savings account each month on a date of your choice. Auto Pay is a convenient way to make timely payments without having to mail in a check or log into your online account each month. You can also avoid late fees and qualify for a 0.25% interest rate reduction with Auto Pay. However, it's important to continue monitoring your payments and budget to avoid overdraft fees and ensure that your lender withdraws the correct amount.
To register for Auto Pay, you will need to log into your online account or create an account if you haven't already. You will need your bank account information, including the routing number and account number. Once enrolled, you can change your withdrawal date or cancel Auto Pay at any time through your online account.
If you prefer not to use Auto Pay, you can choose to make payments online, by mail, or by phone. Online payments can be made through your student loan account or your bank's online bill pay service. When paying online, ensure that your payment is submitted by the deadline, typically 11:59 pm ET or PT, to be credited for the same day.
For mail-in payments, you will need to include a check or money order payable to the loan provider, along with your name, account number, and correct payment amount. Be sure to mail your payment at least 10 days before your due date to ensure it is credited on time.
You can also make payments over the phone by calling the customer service line or using an automated phone system. Payments made through the automated phone system are effective for the day they are scheduled, but they may not be reflected in your online transaction history for 2-4 days.
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Loan amounts: minimum, maximum, and annual limits
The loan amount a student can borrow depends on several factors, including their grade level, dependency status, and type of loan. Annual and aggregate loan limits are set by the federal government and vary depending on the specific loan program and the student's circumstances.
For dependent first-year undergraduates, the maximum loan amount for a single academic year is $5,500 in Direct Subsidized Loans and/or Direct Unsubsidized Loans. Of this amount, no more than $3,500 may be subsidized. If a dependent first-year undergraduate has no subsidized loan eligibility, they may receive up to the full $5,500 in Direct Unsubsidized Loans. As the student progresses to higher grade levels, the maximum annual loan limit increases.
For independent undergraduates and dependent undergraduates whose parents are unable to obtain Direct PLUS Loans, the loan limits are higher. Independent undergraduates may borrow up to $9,500 as freshmen (including up to $3,500 subsidized), $10,500 as sophomores (including up to $4,500 subsidized), and $12,500 as juniors and beyond (including up to $5,500 subsidized).
There are no fixed annual loan limits for Direct PLUS Loans. Graduate or professional students may be awarded a Direct PLUS Loan amount up to their Cost of Attendance (COA) minus other financial aid. Similarly, the total Direct PLUS Loan amount borrowed by a parent on behalf of a dependent student is limited by the student's COA minus other financial aid received.
It is important to note that loan limits may vary based on specific circumstances and loan programs. Additionally, there is a maximum eligibility period for receiving Direct Subsidized Loans, which is typically 150% of the published length of the student's program.
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Scholarship opportunities: Custom Choice offers monthly scholarships
Custom Choice is a direct private student loan program that offers a flexible way to cover education costs. It can cover up to 100% of the cost of attendance, including expenses like books, lab fees, computers, and room and board. The minimum loan amount is $1,000, but if you are a permanent resident of Iowa, it's $1,001. The maximum annual loan amount depends on your school's cost of attendance and can go up to $99,999 per year, with an aggregate limit of $180,000. Custom Choice student loans offer flexible repayment terms, principal reduction upon graduation, rate discounts for autopay, no fees, cosigner options, and payment relief options.
Custom Choice sponsors a $1,500 scholarship sweepstakes each month until October 31, 2024. The sweepstakes are open to legal residents of the 50 US states and DC, aged 18 and older, who are currently students or parents of students enrolled in an undergraduate program at an eligible institution. There is no purchase or payment necessary to enter or win.
Custom Choice is best for independent borrowers with excellent credit. It does not have many requirements for loan approval, such as a minimum credit score, but it does require that borrowers be US citizens or permanent resident aliens or eligible non-citizens (DACA) with a qualified cosigner. The application process can be completed online, starting with prequalification, and Custom Choice will send the loan funds directly to the institution the borrower plans to attend.
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Frequently asked questions
Custom Choice is a student loan provider that allows you to customize your loan and pre-qualify in minutes with no obligation. There are no fees associated with Custom Choice Loans, and you can choose to lock in a fixed interest rate or allow it to change with the market.
There are several ways to make payments on your student loan. You can sign up for Auto Pay, where your payments are automatically debited from your designated bank account each month. Alternatively, you can submit a one-time or recurring payment through your online account. You can also make payments by mailing a check or money order, but it is important to ensure that you mail your payments to the correct address, as delays may occur otherwise.
Yes, you can choose to add a cosigner to your Custom Choice Loan, and you may request to release them after making 36 consecutive on-time principal and interest payments. Adding a parent or another adult in good financial standing may increase your chances of approval and provide a lower interest rate.
